Broadcom's Strong Financial Performance and Optimism Propel Share Prices to Record Highs! Dr. Martens notes drop in share price

When Dr Martens launched its IPO in January 2021 at 370p the shares initially pushed higher on optimism that this iconic brand would go from strength to strength. This optimism didn't last and since then the shares have been on a slow steady decline, culminating in another profits warning earlier this year which saw the shares hit a record low of 127p.

 

The company cited supply chain issues in its US operation which could reduce wholesale revenues by £15m-£25m, and EBITDA by around £20m. For the full year the company says it expects to see EBITDA in the region of between £250m and £260m below estimates of £285m.

 

Revenues in Q3 also fell shy of company expectations for the same reason, coming in at £335.9m. Looking forward their sole concern now is resolving these issues and reversing this decline in profitability. Full year revenue is expected to rise to £1bn, a still respectable improvement on last year's £908m, while net profits are forecast to fall to £140m from £181.2m last year.

 

B&M European Retail FY 23 – 31/05

B&M European Retail has seen a solid rebound in its share price in the wake of the slump from the record highs seen at the end of 2021. Rebounding from 2 and a half year lows in late September, just below 300p they are now trading near to 500p, helped by a retail environment that has favoured the discount retail sector more than the higher end.

 

In January the retailer reported a strong pre-Christmas quarter, with Q3 revenues rising 12.3%, prompting an upgrade to full year group adjusted EBITDA to between £560m to £580m. The retailer also announced a special dividend of 20p per share to be paid on 3rd February. This week's full year results are expected to show revenues of £4.96bn, up from £4.67bn in 2022, although pre-tax profits are expected to fall to £463m.

 

Broadcom Q2 23 – 01/06

Broadcom's recent financial performance has been strong. Last year full year revenue was $33.2 billion, an increase of 21% year-over-year. Adjusted EBITDA margin was 63%, and non-GAAP diluted EPS was $40.71. In addition to its strong financial performance, Broadcom is also returning significant cash to shareholders. In the fourth quarter of fiscal year 2022, the company repurchased and eliminated 2.7 million shares for $1.521 billion. For the full fiscal year 2022, Broadcom repurchased and eliminated 10.6 million shares for $6.1 billion.

 

In May the shares hit new record highs on optimism that strong demand for its variety of end markets including hyperscale data centres, service providers, and enterprise customers will continue. In Q1 the company saw revenues rise $8.91bn, while profits increased to $$10.33c a share. For Q2 revenues are expected to slow modestly from Q1 levels to $8.72bn, along with profits of $10.16c a share.

 

These past few days have seen the shares hit record highs after the company signed a billion-dollar multiyear deal with Apple for 5G radio frequency components for the iPhone. It also got a lift from Nvidia's blowout earnings numbers as well.