Why the ARB Corp (ASX:ARB) share price popped today

The ARB Corp share price is up. We take a look at what the company has going and what that means for the share price.
The post Why the ARB Corp (ASX:ARB) share price popped today appeared first on The Motley Fool Australia. –

three building blocks with smiley faces, indicating a rise in the ASX share price

The ARB Corporation Limited (ASX: ARB) share price rose by almost 5% today, with ARB shares closing the day’s trade at $32.58 per share.

The company is Australia’s largest manufacturer and distributor of 4×4 accessories. ARB’s product range contains an assortment of different vehicle accessories including bull bars, canopies, roof racks and driving lights.

What’s been moving the ARB Corp share price?

Following the release of the company’s unaudited half year sales results on 12 January, the ARB Corp share price has been bouncing up and down. 

Some analysts believe ARB is on the right track, with seven granting a ‘buy’ rating, according to Nabtrade data.

The ARB Corp share price has boomed over 63% higher during the past 6-month period.

ARB Corp’s recent performance

In last week’s update, the company advised that it achieved unaudited sales revenue of $284 million for the half year ended 31 December 2020. This represents growth of 21.6% on the prior corresponding period.

ARB Corp also reported it expects its profit before tax for the first half to be within the range of $70 million to $72 million.

ARB also advised it maintains a positive short-term outlook based on a strong customer order book and record sales in December 2020.

The company expects to release half year 31 December 2020 results on Tuesday 16 February 2021. However, the company goes on to assert that its first half performance “should not be used as an indicator for the second half of the financial year, for which no guidance can be provided, as it remains far too uncertain to predict in the current economic climate.”

Foolish takeaway

With origins dating back to 1975, ARB started in the Melbourne garage of founder Anthony Ronald Brown, hence the name ARB. Today, ARB has an international footprint with an export network that extends to more than 100 countries.

In a year where COVID-19 came barrelling through, the ARB share price has delivered a return of over 59% in the past 12 months. 

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the ARB Corp (ASX:ARB) share price popped today appeared first on The Motley Fool Australia.

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