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Key points
- The ARB Corporation share price is currently up 9.49%, trading at $46.83
- The gains follow the release of a market update detailing a 26.5% revenue increase
- Over the first half of financial year 2022 the company has recorded $359 million of unaudited sales revenue
The ARB Corporation Limited (ASX: ARB) share price is reaching higher ground on Monday after the company announced a revenue surge.
At the time of writing, the ARB Corporation share price is $46.83, 9.49% higher than its previous close.
Though, that's down from its intraday high of $49.50 – representing a 15% gain.
Let's take a closer look at the news boosting the company's stock on Monday.
ARB Corporation share price launches on market update
The ARB Corporation share price is surging higher after the company announced it's likely to report a 26.5% revenue increase for the first half of this financial year.
Around this time last year, the company released an update stating it had received $284 million of unaudited sales revenue over the first half of financial year 2021.
That figure is set to be $75 million higher this year, reaching $359 million.
The increased revenue is expected despite impacts from COVID-19, delays in new vehicle availability, and economic uncertainty.
Additionally, based on its preliminary, unaudited management accounts, ARB Corporation's profit before tax for the first half of financial year 2022 will likely be between $90 million and $92 million.
That's compared with around $72 million recorded for the prior comparable period.
In today's release, ARB Corporation commented:
The company maintains a positive outlook based on its strong customer order book and improved inventory levels… ARB is focused on managing customer expectations, global supply chain pressures and pursuing various market opportunities.
While its preliminary earnings look positive, bullish investors have to wait a few weeks before their hopes will be confirmed. ARB Corporation is expected to release its results for the first half on 22 February.
Despite today's boost, the ARB Corporation share price is nearly 11% lower than it was at the end of 2021. Though, it's still 33.23% higher than this time last year.
