Perpetual shares are in focus as the financial services company is due to report its FY21 earnings tomorrow.
The post How did the Perpetual (ASX:PPT) share price respond last earnings season? appeared first on The Motley Fool Australia. –
The Perpetual Limited (ASX: PPT) share price has walked through today’s session in the green, only to close exactly where it started the day at $39 and change.
Perpetual shares were sitting pretty throughout the day as the financial services company prepares to report its FY21 earnings tomorrow.
In addition, Perpetual shares have kept pace with the S&P/ASX 200 Index‘s (ASX: XJO) return of around 14% this year to date. Therefore, it’s worth covering what Perpetual exhibited on the charts on its last earnings report back in April.
What did Perpetual record in its last earnings report?
Although Perpetual announced its Q4 business update on 23 July, it’s worth delving a bit deeper into its share price performance over a longer period, post-earnings.
Perpetual demonstrated a resilient first quarter, growing assets under management (AUM) by around 7% from the previous quarter.
Moreover, Perpetual outlined additional progress points in its report, including:
Australia AUM growth of 4.4% and international AUM expansion of 7.7% to $71 million
Fixed income inflows edged lower to $20.6 million, but remained positive
Net outflows of $892 million, offset by $5.3 billion in asset growth from strong market conditions
Positive currency impact of $783 million
US equities gained almost $5 billion, with net outflows of $1.4 billion in equities
Additional takeouts to the above include that Perpetual Corporate Trust’s funds under management also grew 1% to $942.9 billion, whereas it gained momentum in its Perpetual Private arm. Here, it exhibited a 4% gain in funds under advice.
What happened to the Perpetual share price next?
As the company released its last earnings on a Friday, by Monday, the Perpetual share price had soared 44% from the previous close.
Perpetual shares continued to climb until reaching 52-week highs on 2 July of $40.66, up until the next earnings release in July.
From the period 23 April to 22 July, the Perpetual share price climbed 13.5%. This occurred despite no price-sensitive news from the company, suggesting that the market welcomed its results.
Since then, additional catalysts have continued the fundamental momentum on Perpetual’s chart, where it has climbed an additional 3% to today’s trading.
Perpetual shareholders are undoubtedly hoping the momentum continues and that the market reacts the same way it did in April.
For context, Perpetual has a market capitalisation of $2.2 billion. Moreover, its share price has climbed 14% year to date and nearly 26% in the last 12 months.
Should you invest $1,000 in Perpetual right now?
Before you consider Perpetual, 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 Perpetual 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 August 16th 2021
The author Zach Bristow has no positions 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.