Bravura Solutions is scheduled to deliver its FY21 results tomorrow.
The post How did the Bravura (ASX:BVS) share price react last earnings season? appeared first on The Motley Fool Australia. –
The Bravura Solutions Ltd (ASX: BVS) share price is down 0.26% in early afternoon trading.
That’s less than the 0.37% loss posted by the All Ordinaries Index (ASX: XAO) at this same time.
Bravura’s share price is under the spotlight today as the company, which provides software solutions for the wealth management and finance industries, prepares to deliver its results for the full 2021 financial year tomorrow.
With that in mind, we take a step back in time to analyse how Bravura shares moved following the release of the company’s FY20 results.
What did Bravura report for FY20?
The Bravura share price closed down 6% following the release of its FY20 results on 26 August last year. That came despite the company reporting some strong results.
Some of the core figures Bravura announced for FY20 included:
A 6% increase in revenue to $274.2 million.
A 19% increase in earning before interest, taxes, depreciation and amortisation (EBITDA) to $57.8 million.
A 22% increase in net profit after tax (NPAT) to $40.1 million.
Bravura declared a final dividend of 5.5 cents per share, unfranked.
The company reported that roughly $3 million of its increase in NPAT was derived from acquisitions in FY20.
The boost in revenues for the year was driven by a 2% increase in its Wealth Management revenue and a 16% increase in its Funds Administration revenue.
At the time, Bravura’s management cautioned that COVID-19 was lengthening its sales cycle. The company noted significant opportunities existed across its core markets, with a strong a growing sales pipeline. However, looking ahead, management cautioned that the pandemic could results in flat year-on-year earnings.
How has the Bravura share price moved since then?
Over the past full year, Bravura’s share price is down 11%.
Year-to-date, things have turned around sharply, with shares up 17% in 2021.
Bravura has a market cap of $940 million.
Should you invest $1,000 in Bravura right now?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.