What should investors expect of the JB Hi-Fi share price when FY21 results are released on Monday?
The post How did the JB Hi-Fi (ASX:JBH) share price respond last earnings season? appeared first on The Motley Fool Australia. –
The JB Hi-Fi Limited (ASX: JBH) share price has been trading sideways since August last year, struggling to break above about $54 and bouncing off lows of about $43.
Before JB Hi-Fi delivers its full year FY21 results on Monday, 16 August, we wondered if previous earnings could provide any insight as to how its shares might respond?
JB Hi-Fi share price rallies on prior earnings
During August reporting season last year, JB Hi-Fi delivered a well-rounded result with total sales up 11.6% to $7.9 billion, while underlying net profit after tax (NPAT) surged 33.2% to $332.7 million.
The JB Hi-Fi share price rallied as much as 8.58% to $51.33 on the day of the announcement, before closing 4.92% higher at $49.60.
The FY20 results announcement also advised that sales momentum had continued into the first month of FY21, with July 2020 Australian sales up 42.1% on the prior corresponding period.
Following earnings season, the JB Hi-Fi share price rallied to highs of about $52.50 in late August and mid-October but failed to push any higher.
JB Hi-Fi shares moved in a similar fashion following the company’s 1H 21 results on 15 February.
The half-year results delivered a solid 23.7% increase in total sales to $4.9 billion, with NPAT surging 86.2% to $317.7 million.
The JB Hi-Fi share price surged 8.96% to a record high of $55.25 before closing 6.50% higher at $54.
JB Hi-Fi earnings preview
JB Hi-Fi has already provided investors with a solid preview of what to expect in its upcoming FY21 results.
In an update on sales and full year 2021 results on 20 July, the company cited preliminary unaudited sales growth of 12.6% to $8.916 billion and a 67.4% increase in NPAT to $506.1 million.
JB Hi-Fi Group CEO Richard Murray commented on the results saying:
We are pleased to report record sales and earnings for FY21. Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both instore and online.”
The JB Hi-Fi share price lifted 3.73% higher to $49.51 on the day of the update.
Murray will depart JB Hi-Fi at the end of this month.
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FY 2021 results preview: Is the JB Hi-Fi (ASX:JBH) share price in the buy zone?
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Motley Fool contributor Kerry Sun 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 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.