Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Brambles shares: what’s the outlook as Q1 sales revenue hits $1.16B?

The outlook for Brambles remains on-track, with the company’s CEO today reiterating previously stated FY20 guidance.

Morning price action

Brambles (ASX: BXB) – the A$17 billion large-cap, today provided the market with its FY20 first quarter trading update.

The market responded with decisive bullishness to the Q1 update, bidding the Brambles share price some 3.27% higher in the first hour of trade, to as high as A$11.37 per share.

Brambles Q1 results at a glance

Brambles saw modest top-line growth during the first quarter of 2020, with the company reporting particularly good growth in its CHEP Americas segment.

From continuing operations Brambles reported revenue figures of $1,159 million – a favourable increase on the prior corresponding quarter’s $1,139 million. At constant FX rates this represent a 5% increase, while on actual FX rates it is a more mild 2% increase.

As noted above, the CHEP Americas segment was the best performing for the group during Q1, seeing its sales revenue increase 7%, at constant FX rates.

This, as pointed out by the company, reflected ‘higher price realisation across the region, particularly in Latin America, rollover benefits from US pallet contracts won in the prior year and solid like-for-like volume growth in the US and Latin America.’

In comparison, CHEP EMEA and CHEP Asia-Pacific sales revenue came in slightly lower, increasing 4% and 2%, respectively, at constant FX rates.

Speaking of these results, Brambles’s CEO, Graham Chipchase commented that, ‘our first-quarter sales performance reflects pricing discipline and ongoing volume momentum despite increasing macroeconomic uncertainty in our major markets.’

FY20 guidance remains unchanged

Pleasantly, Brambles also took today’s Q1 trading update to reiterate the company’s FY20 guidance, with Mr Chipchase noting that the prior guidance outlined during the Brambles’s FY19 results remains unaltered.

Specifically, it was pointed out that:

‘On a constant-FX basis, we continue to expect sales revenue growth to be at the lower end of our mid-single digit objective and Underlying Profit to be in line with, or slightly above sales revenue growth, including the impact of the new leasing standard, AASB 16.’

Brambles share price: analyst expectations

According to Bloomberg Data, analysts currently have 1 buy recommendation, 8 hold recommendations and 2 sell recommendations on Brambles. Such views have evidently not stopped investors running Brambles higher today.

Year-to-date, the Brambles (ASX: BXB) share price has now risen a little more than 12%; lagging the ASX 200 only somewhat.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.