Beacon Lighting (ASX:BLX) share price jumps 7% on first half update

It was a brighter day for the Beacon Lighting share price today…

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Key points

  • Beacon Lighting shares received a boost on Thursday
  • The company’s first half update showed sales and earnings in line with those of the prior corresponding period
  • An interim report is expected to be released on 17 February 2022

The Beacon Lighting Group Ltd (ASX: BLX) share price revelled in its latest update to the market today.

At the close, shares in the lighting retailer finished 6.5% higher to $3.14. Although, at one point the company’s share price topped out at $3.18.

Housing market turns it up for Beacon Lighting share price

It is another positive session for the Beacon Lighting share price on Thursday after the company revealed how business has been tracking in the first half of FY2022. This period captures the 26 weeks ending 26 December 2021.

According to the release, the continued importance of the home has generated strong business for Beacon Lighting retail, trade, eCommerce, and international businesses. As such, the company’s unaudited results are largely in line with those of the first half in FY2021.

Unaudited accounts have Beacon’s total sales for the half-year sitting at $151.3 million. For reference, revenue for the prior corresponding period came in at $151.7 million.

Likewise, the company’s net profit after tax of $22.2 million for the most recent first half mirrors that of the previous year. Despite the lack of growth, the market is reacting with optimism towards the Beacon Lighting share price. As Beacon notes in the update, the net profit result appears to be a significant increase to analysts’ expectations.

What did management say?

Beacon Lighting CEO Glen Robinson commented on the company’s half-year update, stating:

Throughout H1 FY2022, Beacon Lighting has been working closely with our manufacturing partners to best meet
demand in a disrupted logistics environment and remained focused on providing exceptional service to our
customers. Our customers have continued to be adaptable whether that is purchasing products in store, online
or using our click and collect service.

What’s next?

While today’s update provides a glimpse into Beacon Lighting’s first-half results, the official numbers will come at a later date. A set of audited numbers with a more comprehensive breakdown of these results are expected to be published by the company on 17 February 2022.

Beacon Lighting share price snapshot

The ASX-listed Beacon Lighting share price is up 87% in the past 12-months, outpacing the broader Australian share market.

At present, the company is trading on a price-to-earnings (P/E) ratio of 17.3. This is above the specialty retail industry average of 11.7 times earnings.

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Motley Fool contributor Mitchell Lawler has no position 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 no position in any of the stocks mentioned. 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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