ARB (ASX:ARB) share price jumps 8% after preliminary profit release

It’s been a good day for the manufacturer of 4WD accessories after the company released its preliminary financial results

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The ARB Corporation Ltd (ASX: ARB) share price has soared firmly into the green during trading today.

ARB shares are currently changing hands for $44.55 a piece — up 7.63% — after the company released its preliminary unaudited set of accounts yesterday.

Let’s take a closer look at what ARB announced after market close yesterday.

ARB’s growth engine is on full display

ARB reported yesterday, ARB recorded unaudited sales revenue of $623 million for the financial year. This figure implies a 34% growth in revenue from the same time last year.

The company also reported profit before tax for the financial year in the range of $145 – $150 million.

The news sent the ARB share price flying this morning, reaching an intraday high of $45.23, before retreating back to its current levels.

The release comes after the company reported first-half sales revenue of approximately $284 million back in February.

In the preliminary report, ARB stated:

The company maintains a positive short-term outlook based on its consistently strong customer order book…The current pandemic and economic conditions remain very uncertain and it is not possible to provide financial or operational guidance beyond the short term.

Investors can expect ARB’s results for the full financial year to be released on 17 August 2021.

What is ARB?

ARB stands on the podium as Australia’s largest manufacturer and distributor of four-wheel drive accessories.

It has a market capitalisation of around $3.4 billion at the time of writing, and is a member of the S&P/ASX 200 Index (ASX: XJO).

Since first listing in 1987, ARB has expanded its geographical footprint into the US, European and Asian markets.

ARB share price snapshot

ARB shares have waltzed through this year to date in the green, posting a return of 46%.

This extends the previous 12 month’s return of 142%, which has beaten the S&P/ASX 200 Index (ASX: XJO)’s return of 11.7% over this same time.

The ARB share price has also finished the previous 5 trading sessions 7% in the green.

Should you invest $1,000 in ARB right now?

Before you consider ARB, you'll want to hear this.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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