The GR Engineering (ASX: GNG) share price will be on watch today after the company announced an update on its revenue guidance for FY21.
The post Why the GR Engineering (ASX:GNG) share price will be on watch today appeared first on The Motley Fool Australia. –
GR Engineering Services Ltd (ASX: GNG) shares will be on watch today after the company provided investors with a business update on its guidance for the full 2021 financial year. At market close yesterday, the GR Engineering share price finished the day at $1.18.
It will be interesting to watch how the company’s shares perform today as investors digest this morning’s update.
What did GR Engineering announce?
The GR Engineering share price will be in focus this morning after the company released a positive update.
According to this morning’s release, GR Engineering advised that favourable trading conditions have continued throughout FY21.
As a result, the company upgraded its revenue guidance for the period ending 30 June 2021. GR Engineering now expects its full-year revenue to come in at between $340 million and $360 million, reflecting a sizeable increase on the original guidance.
Originally, GR Engineering had forecast FY21 revenue for the same period to be around $280 million to $300 million.
The company stated that its half-year results will be released on 24 February 2021.
Mr Geoff Jones, managing director of GR Engineering, touched on the company’s robust performance, saying:
GR Engineering has been able to build on its strong finish to FY20 and is forecasting record revenue for FY21 with improved EBITDA margins. The pipeline of ongoing and near-term prospective projects remains solid and provides revenue and earnings visibility beyond FY21. The balance sheet has been strengthened and this has been underpinned by strong cash generation in the first half of FY21.
About the GR Engineering share price
Over the past 12 months, the GR Engineering share price has trekked higher, delivering a 28% gain for shareholders.
During March, GR Engineering shares fell to a multi-year low of 60 cents, before zooming on an upwards trajectory.
It’s worth noting that the GR Engineering share price is currently a whisker away from its 52-week high of $1.26.
Based on the current share price, the company commands a market capitalisation of roughly $183 million.
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Motley Fool contributor Aaron Teboneras 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.