At the same time the JBH maintained FY14 sales guidance of 6%to 8% growth, but this upgrade really puts upward pressure and could see the results at the higher end of guidance. Some analysts already have FY forecasts at the higher end of the range, with Goldman Sachs looking for a figure of +7.6%. Gross margins have continued to improve along with total sales and EBIT. Underlying earnings are expected to be up 7.5% to $132.9 million.
JBH traded back above $20 early in today’s trade where it encountered some selling after printing a high of $20.31. Over the past year, the stock has been in a strong uptrend which took it from $10 and has effectively seen it double its share price. The uptrend support was tested in December and managed to hold prices, which saw the stock rally to around $22.50. However, this has since been broken this year as JBH traded to around $18.
Today’s move saw JBH retest this previous uptrend line which is where it faced some resistance. Volume also ramped up today probably mainly due to some selling on strength. While the stock remains positive, the bulls would need to see a close above $20.31 to bring back confidence in the near term. Failure to do so could see recent lows tested again.