市场见解

Vulcan Steel (ASX:VSL) share price surges 8% higher on guidance upgrade

Vulcan Steel has started FY 2022 very strongly…
The post Vulcan Steel (ASX:VSL) share price surges 8% higher on guidance upgrade appeared first on The Motley Fool Australia. –

The Vulcan Steel Ltd (ASX: VSL) share price has started the week strongly.

At the time of writing, the steel producer’s shares are up 8% to $8.75.

Why is the Vulcan Steel share price storming higher?

Investors have been bidding the Vulcan Steel share price higher this morning following the release of a trading update.

Positively, that trading update reveals that the recently listed company is outperforming its prospectus forecasts in FY 2022.

According to the release, Vulcan’s overall revenue is up 35% year-on-year for the five months to 30 November. This has been driven by a 42% increase in Steel segment revenue and a 22% lift in Metals segment revenue.

And while management notes that there is volume uncertainty during the December and January holiday period, that isn’t stopping it from upgrading its earnings guidance.

What is the upgrade?

Vulcan now expects to deliver pro forma EBITDA in the range of NZ$174 million and NZ$184 million and net profit in the range of NZ$93 million to NZ$100 million.

This compares to its prospectus forecast of NZ$147 million and NZ$74 million, respectively. Which means an upgrade of 18% to 25% for its EBITDA and 26% to 35% for its net profit guidance.

Vulcan’s Managing Director and CEO, Rhys Jones, commented: “Trading has been stronger than anticipated and has been broad-based across all our Australasia business units, especially in October and November as Sydney and Melbourne emerged from COVID19 restrictions. As an industrial distributor and value-added processor, we remain confident of our ability to maintain our high service level and product availability to meet the needs of our growing and diverse customer base.”

The Vulcan Steel share price is now up 23% from its November IPO listing price of $7.10 per share.

The post Vulcan Steel (ASX:VSL) share price surges 8% higher on guidance upgrade appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vulcan Steel right now?

Before you consider Vulcan Steel, 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 Vulcan Steel 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

More reading

Metcash (ASX:MTS) share price jumps 7% on strong half year results

Boral (ASX:BLD) share price jumps on $1bn fly ash sale

Bapcor (ASX:BAP) share price sinks again after CEO is kicked out

Shiba Inu soars and crashes, but it’s still holding up this week

These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!