The Blackmores Limited (ASX: BKL) share price has followed up yesterday's surge to lift another 9% to $106.90 today after it handed in its financial results for the full year ending June 30, 2017. Over the year Blackmores' top line held up reasonably well to deliver sales of $693 million, down just 3% on the prior year.
In fact sales for the quarter ending June 30, 2017 were up 6% on the prior corresponding quarter at $197 million and up around 33% on the quarter ending September 30, 2016. In other words it seems Blackmores' sales are once again on a growth trajectory with its Asian and Bioceuticals' businesses in particular holding great potential.
Analysts at JP Morgan have reportedly upgraded the stock to "overweight" and analysts expect it could earn in the region of $4.60 per share over FY 2018. That would place it on around 23x estimated forward earnings, although it's worth noting that given the operating leverage in the business and unpredictability of sales, Blackmores could easily beat or miss analysts' estimates. As such its shares may remain volatile over the 12 months ahead.
