Industrial stocks are closing out 2022 with some solid home runs
Nick Sundich, December 19, 2022
Industrial stocks haven’t fared too badly in 2022. The ASX 200 Industrials Index is flat in 2022, something that cannot be said in relation to many other sectors. And two industrial stocks on the ASX rose this morning after issuing positive guidance.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Perenti updates guidance again
Mining services company Perenti (ASX:PRN) upgraded its FY22 guidance just a month after the last upgrade. In mid-November, it estimated $2.6bn-$2.7bn in revenue and $215-$230m in EBIT(A).
Now it expects $2.7bn-$2.9bn in revenue and $230-$250m in EBIT(A). Compared to FY22’s results, this guidance would be 11-19% higher and 31-42% higher respectively.
The company credited improvements to commercial conditions to several projects, including retrospective rate adjustments to previously completed work.
MMA Offshore expects a solid result too
Also updating guidance was MMA Offshore (ASX:MMA), which services offshore wind and oil projects.
The company told its shareholders it expected 1HY23 EBITDA of $30-$32m, up ~70% on 2HY22. Similar to Perenti, it told shareholders this was due to better than expected market conditions.
An even better 2023 for industrial stocks?
Shareholders were pleased with both companies this morning. But will the results continue into CY23?
We think shareholders should be wary of commodity prices and the risk of a global recession. These could put a dent into industrial stocks such as Perenti and MMA.
Of these two companies, we think Perenti is the better equipped one with a exposure to a wider range of commodities and a stronger balance sheet.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
R&D: Which companies spend the most on it and how do they set their budgets right?
R&D (Research and Development) is an important activity undertaken by ASX-listed companies of all kinds. This is most prominent in…
Things were going so well for Redox (ASX:RDX), Australia’s largest chemicals importer, until its 1H25 results
It was a golden run for chemical importer Redox (ASX:RDX) from when it listed on the ASX in July 2023…until…
8 Growth Stocks to Watch This Month — Will They Beat Market Uncertainty?
Mid-way through 2025, markets remain anything but predictable. As they continue to experience volatility, investors are constantly looking for opportunities…