How did the Lendlease (ASX:LLC) share price respond last earnings season?

What should investors expect when Lendlease releases its FY21 earnings on Monday?
The post How did the Lendlease (ASX:LLC) share price respond last earnings season? appeared first on The Motley Fool Australia. –

Monday will be an exciting day for the Lendlease Group (ASX: LLC) share price.

The company will be releasing its FY21 results, and market watchers will likely be ready to react to the property and infrastructure group’s performance.

The Lendlease share price finished yesterday’s session trading at $12.59, up 0.24%.

Let’s look at how the company’s share price went after the FY20 earnings release last year.

How Lendlease investors reacted to FY20 earnings

The last time Lendlease reported its full financial year’s earnings, its share price gained 1.39% to close at $11.68.

However, over the 3 sessions following the release of its results, its shares fell 4.2%.

The company’s earnings for FY20 were in the red. It reported a statutory loss after tax of $310 million.  

The loss was driven by Lendlease’s non-core businesses, which finished the financial year down $406 million.

Lendlease’s divestment of its engineering business didn’t help things – it cost $368 million.

Luckily for the Lendlease share price, the company’s core businesses brought in an after-tax profit of $96 million.

COVID had an impact in the final quarter of FY20. The pandemic brought delays for the company’s urbanisation pipeline developments and weakened Lendlease’s trading conditions.

Additionally, some of Lendlease’s internationally-based construction projects were hindered or halted when some cities and regions were put into lockdowns.

However, the company did sign two new major urbanisation projects for its portfolio over the financial year. Together, the projects were worth about $37 billion.

What’s happened to the Lendlease share price since?

Since then, the Lendlease share price has gained 8%.

It completed the sale of its engineering business and its work on the Melbourne Metro project.

The company’s half-year report stated its business had partly recovered from the worst of its recent troubles.

We’ll see to what extent its recovery has continued on Monday.

Lendlease share price snapshot

On Monday, all eyes will be on Lendlease and its share price, with investors waiting to see if the company recovered over FY21.

The company’s shares need all the good news they can get. They’re currently trading for 4% less than they were at the start of 2021. However, they’re 9.3% higher than they were this time last year.

The post How did the Lendlease (ASX:LLC) share price respond last earnings season? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lendlease right now?

Before you consider Lendlease, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lendlease wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s why the Service Stream (ASX:SSM) share price is gaining today
‘Unloved’ for 5 years, this ASX share is ready to rocket

ASX 200 midday update: Kogan FY 2021 update, Altium sinks

Lendlease (ASX:LLC) share price edges higher on divestment news

Motley Fool contributor Brooke Cooper 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.

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!