The Eclipx (ASX: ECX) share price is rising today after the company provided investors with a business update. Here are the highlights.
The post Eclipx (ASX:ECX) share price rises on positive business update appeared first on The Motley Fool Australia. –
Eclipx Group Ltd (ASX: ECX) shares are edging higher today after the fleet management company provided investors with a business update. At the time of writing, the Eclipx share price has inched 0.79% higher to $1.915.
How has Eclipx been performing?
Investors appear moderately pleased with the company’s latest progress, sending the Eclipx share price into positive territory today.
In its announcement, Eclipx advised that for the first five months of FY21, it continues to perform to expectations. Recently at its annual general meeting (AGM), the group provided investors with a business update on Q1 FY21.
It said that net operating income (NOI) and net operating profit after tax (NPATA) before end of lease (EOL) were in line with estimates. To date, the company has sustained this performance through to the end of February.
In further news bolstering the Eclipx share price, the company noted that EOL income has significantly increased over the period with robust trading conditions recorded from the used car market. A limited supply of new vehicles to market in Australia and New Zealand primarily drove the surge. As a result, Eclipx revealed that EOL income stood at $26.4 million, or $5,766 per unit at the end of February. This reflects a jump of 70% when compared to the first half of 2020, which saw EOL income at $15.5 million, or $2,468 per unit.
The company stated that the higher EOL income is temporary and will fall back to normal levels. According to independent third parties, ‘the global shortage for new cars could be restored from as early as June 2021’.
Eclipx is scheduled to report its half-year results sometime in the middle of May 2021.
About the Eclipx share price
The Eclipx share price has rallied by nearly 58% since this time last year. After hitting a low of 36.5 cents last March, Eclipx shares have steadily moved in an upward trend.
Based on the current share price, Eclipx commands a market capitalisation of roughly $618 million.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Here are some of the best performing ASX tech shares today
- Warrego Energy (ASX:WGO) share price rises despite losses increasing
- Retirement village operator Summerset Group’s (ASX:SNZ) share price stagnant on property update
- Centuria Capital (ASX:CNI) reports $57 million healthcare asset purchases
- The Hansen Technologies (ASX:HSN) share price is hitting a 52-week high
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.