ARB (ASX:ARB) share price on watch after reporting stellar FY2021 growth

ARB was on form in FY 2021…
The post ARB (ASX:ARB) share price on watch after reporting stellar FY2021 growth appeared first on The Motley Fool Australia. –

The ARB Corporation Limited (ASX: ARB) share price will be one to watch on Thursday.

This follows the release of a market update by the 4×4 parts manufacturer after the market close.

How is ARB performing?

The good news for shareholders and the ARB share price, is that ARB has been performing very positively in FY 2021.

According to the release, the company achieved unaudited sales revenue of $623 million for the 12 months ended 30 June 2021. This represents an impressive increase of 33.9% over the prior corresponding period.

Pleasingly, things have been even better on the bottom line thanks to margin expansion. The release reveals that ARB is expecting its profit before tax for FY 2021 to be within the range of $145 million to $150 million.

This will be an increase of 85.5% to 92% on FY 2020’s profit before tax of $78.1 million. Though, it is worth noting that its growth has slowed a touch since the end of the first half. At that point, its profit before tax was up 109.6% on the prior corresponding period.


While the company is positive on its short term outlook, once again it believes COVID-19 uncertainty makes it impossible to provide any guidance beyond this.

It advised: “The Company maintains a positive short-term outlook based on its consistently strong customer order book. ARB is focused on managing input costs and global supply chain pressures whilst pursuing various market opportunities. The current pandemic and economic conditions remain very uncertain and it is not possible to provide financial or operational guidance beyond the short term.”

Is the ARB share price in the buy zone?

One leading broker that sees value in the ARB share price is Citi.

According to a recent note, the broker has a buy rating and $45.95 price target on its shares. This compares to the latest ARB share price of $41.39.

Though, its analysts are likely to revise its forecasts in the coming days to reflect this update. So, stay tuned for that.

The post ARB (ASX:ARB) share price on watch after reporting stellar FY2021 growth appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

2 booming ASX shares show exactly what Aussies are up to during COVID

Here are the best performing ASX 200 shares so far in 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!