GEOFF PERCIVAL: Origin Enterprises makes strong start to year

Analysts are expected to increase net profit forecasts for Origin Enterprises, following the Dublin-based agri-services group reporting a strong start to its current financial yea, writes Geoff Percival.

Origin reported a 3.9% year-on-year rise in revenues, to €346.7m, for the three months to the end of October — the first quarter of its current financial year.

“We expect consensus to raise their 2018 net income forecasts post this solid trading update”, said Merrion analyst Darren McKinley, who has a price target of €7.25 on the Origin stock which was up marginally at around €6.73 yesterday.

“In what is a seasonally quiet period for the group, the first quarter planting out-turn provides a good foundation for the year ahead with overall trading performance described by management as satisfactory.

In a competitive market, Origin achieved higher demand for agronomy service and inputs in the period,” said Davy analysts Cathal Kenny and Roland French in a research note.

For the quarter, Origin saw near 10% underlying growth in its Ireland and UK division, and 13.5% in continental Europe.

On the back of the update, Goodbody Stockbrokers upped its earnings per share forecasts for Origin’s current financial year by around 2% to 47.9c and said it maintains a positive stance on the stock.

“Importantly, autumn and winter crop planting in the UK is forecasted to be 2.8% ahead of last year, which provides a good platform for the seasonally important second half of the year,” said Goodbody’s Jason Molins, who has upped his price target for the stock to €7.50.



Breaking Stories

Yahoo agrees to pay $50m for massive security breach

Dublin Airport management condemn suggestions of new terminal

Ireland leads in fight for manufacturing jobs for now

Ormond Hotel redevelopment dispute to be case managed

Breaking Stories

Physiotherapy hope for cancer patients thanks to Jane Tomlinson’s legacy

Review: Wexford Festival Opera

How to ace being the new girl at work

Tried and tested: Polar’s new Vantage M running watch

More From The Irish Examiner