Qube share price bounces 6% as dividend delights

Investors are bidding up Qube shares today.

| More on:
two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Qube has reported its full-year FY22 results 
  • Revenue, earnings, and profit all grew 
  • Record full-year dividends of 7 cents per share 

The Qube Holdings Ltd (ASX: QUB) share price is gathering steam on Thursday after the logistics company handed in its full-year FY22 results.

The Qube share price opened 4.1% higher this morning and has continued to gain ground, up 6.1% at the time of writing.

Qube share price lifts as profit soars 

Here are the key takeaways from Qube's report for the 12 months ended 30 June:

  • Underlying revenue came in at $2.6 billion – up 27% compared to the prior corresponding period (pcp) of FY21
  • Underlying earnings before interest, tax, and amortisation (EBITA) leapt 21% on the pcp to $221.1 million
  • Underlying net profit after tax (NPAT) jumped 30% on the pcp to $185.7 million
  • A fully franked final ordinary dividend of 3.3 cents was declared
  • The board also declared a fully franked special dividend of 0.7 cents 

Qube reported underlying results to more accurately reflect the continuing operations of the business.

During the year, the company discontinued its property division and finalised the sale of its interests in the Moorebank Logistics Park (MLP).

Qube's special dividend was fuelled by this $1.7 billion sale, along with the company's positive earnings outlook.

The dividends declared today take the full-year total to a record 7 cents per share, fully franked. This puts Qube shares on a trailing dividend yield of 2.4%.

What else happened in FY22?

Qube achieved solid revenue and earnings growth in FY22 through organic growth in its operating division, margin improvement in the Patrick business, and the contribution from acquisitions.

The strong result also reflects higher volumes across most of the company's core markets, including containers, grain, steel, most mining bulk commodities, and general cargo.

Despite slightly reduced volumes, Patrick Terminals delivered NPAT growth of 32% as the business benefited from operational efficiency initiatives. Qube holds a 50% interest in the container terminals business.

During the year, Qube also completed a $400 million off-market share buyback. Shareholders cheered this decision at the time, sending the Qube share price higher.

What did management say?

Commenting on the results, Managing Director Paul Digney was upbeat, saying:

In FY22, the strength across most of our core markets including containers, grain, steel, most mining bulk commodities, energy and general cargo enabled Qube to deliver strong earnings growth despite weakness in certain markets and continued cost and operational impacts from COVID-19.

It also demonstrates Qube's ability to effectively mitigate cost pressures through scale, operational performance, and productivity initiatives, as well as through contractual mechanisms.

What's next?

Looking ahead, the Qube share price will be supported by management's expectations of continued strong growth in underlying revenue and earnings in its operating division.

Management is also anticipating strong growth in underlying earnings for Patrick. This will be driven by modest market growth, stable market share, and improved margins.

Encouragingly, Qube doesn't expect cost inflation to materially impact its earnings. The company is able to recover higher costs through a combination of contractual protections, rate adjustments, and productivity improvement.

Qube share price snapshot

Despite today's rise, the Qube share price has fallen 10% since the start of 2022. Zooming out further, the Qube share price has retreated 6% over the last 12 months.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has backpedalled 7% this year. And it's down 6% compared to this time last year.

Motley Fool contributor Cathryn Goh 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 Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Earnings Results

Rio Tinto share price on watch following FY 2023 earnings miss

Rio Tinto's iron ore operations were on form in 2023. It's a shame the rest of the business wasn't.

Read more »

Man with rocket wings which have flames coming out of them.
Earnings Results

4 All Ords ASX dividend shares going gangbusters on results

All Ords investors are sending these ASX dividend shares soaring on the back of their earnings results.

Read more »

Man waiting for his flight and looking at his phone.
Earnings Results

Corporate Travel share price plunges 18% despite tripling net profits

An explosion in earnings is taking a backseat to changes in Corporate Travel Management's full-year forecasts.

Read more »

happy woman throws arms in the air
Bank Shares

NAB shares hit 52-week high on first-quarter earnings beat

NAB appears on track to at least deliver on first-half expectations.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Earnings Results

Santos share price slips on 42% profit drop in FY23 result

Profits come back down to Earth in FY23.

Read more »

a man sits on a ridge high above a large city full of high rise buildings as though he is thinking, contemplating the vista below.
REITs

Here are 4 ASX 200 REITs results catching the eye on Wednesday

A mixed set of results have been announced by these property companies.

Read more »

Three analysts look at tech options on a wall screen
Earnings Results

WiseTech share price leaps 8% today as revenues surge

ASX 200 investors are bidding up the WiseTech share price today.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Earnings Results

Domino's share price charges higher on improving outlook

Here's how this struggling pizza chain operator performed during the first half.

Read more »