The JB Hi-Fi Limited share price is lower amid regulatory query

Credit: Peter Heath

JB Hi-Fi Limited (ASX: JBH) has fallen 9% since 30 April to $23.57 at the time of writing, after the company issued changed guidance on FY18 earnings at the Macquarie conference last week. The share price is down 8% in a year. Full-year net profit after tax guidance was revised to be 3% lower than the previous year, but no change to it sales guidance was issued.

The estimated forward price-earnings-ratio (PER) is 11.7x and annual dividend yield is 5.6% fully franked.

JB Hi-Fi’s response to the ASX query was that the downgrade was not believed to be price sensitive or material to the value of the shares as the revision was under 5%.

Harvey Norman Holdings Limited (ASX: HVN), in the same sector, is trading on a forward PER of 10x and the current annual dividend yield is 7%. Harvey Norman’s share price is down 20% in a year to $3.43.

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Motley Fool contributor Rosemary Steinfort owns shares of JB Hi-Fi Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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