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%.
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.
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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.