The Cimic Group Ltd (ASX: CIM) share price is down a whopping 20% this afternoon after the engineering and construction services group missed analysts’ forecasts for its half year profit to June 30, 2019. For the period net profit after tax came in at $367 million on revenue of $7 billion, which translates into a net profit margin of 5.3%.
Cimic will also pay a 71 cents per share interim dividend, with guidance for full year 2019 net profit to come in between a broad range of $790 million to $840 million.
Cimic Group Executive Chairman Marcelino Fernández Verdes said: “At the half way point in 2019, CIMIC Group remains in a strong financial position. Our net cash and work in hand increased consistently and we have a strong foundation for profitable growth.”
According to news reports Goldman Sachs lowered its price target on Cimic shares to $45 in light of the result, with the stock changing hands for $36.60 this afternoon.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. 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.
- On a serendipitous day, Tom Richardson is leaving the building – December 17, 2019 11:55am
- Why Aerometrex shares have doubled their IPO price – December 16, 2019 4:32pm
- Why the National Veterinary Care share price is going nuts today – December 16, 2019 3:39pm