Why the BWX Limited share price is rising today

The BWX Limited (ASX:BWX) share price has rebounded today.

| More on:
a woman

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

This morning BWX Limited (ASX: BWX) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding year.

  • Net profit of $2.6m, down 52%
  • Revenue of $68.1m, up 1%
  • Underlying EBITDA of $7.1m
  • Q2 underlying EBITDA of $9.4m
  • No interim dividend declared, compared to 3.3 cents
  • Forecast for full year underlying EBITDA between $27m-$29m
  • Sukin sales revenue of $23.2m, compared to $36.4m
  • Basic earnings per share of 2.1 cents, compared to 5.2 cents
  • Adjusted earnings per share (backing out one off costs, tax impacts, etc) 3.2 cents
  • Operating cash loss of $7.8 million
  • Debt of $56.7 million, compared to $50.8 million 30 June 2018
  • Cash on hand of $5.6 million

The BWX share price is up 11% in response to the news most likely because the company has reported a much stronger second quarter to fiscal year 2018 and very marginally downgraded its full year EBITDA guidance to come in between $27 million to $29 million.

The second fiscal quarter ending December 31 2018 produced "EBITDA" of $9.1 million compared to an EBITDA loss of $2.3 million for the first quarter of fiscal 2019 as management work through a number of issues around its US acquisitions, systems and technology improvements among other issues.

The company has a market value around $210.6 million at $1.80 per share and given the historical issues and financials I'm not a buyer of BWX shares.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. You can find Tom on Twitter @tommyr345 The Motley Fool Australia owns shares of and has recommended BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why BHP, Coronado Global, EBR Systems, and Whitehaven Coal shares are pushing higher today

These shares are ending the week on a positive note. Let's find out why.

Read more »

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
BNPL shares

Up 87% since April, why the Zip share price can keep flying higher into 2026

A leading fund manager expects more outsized gains from Zip shares ahead.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a bountiful session for investors this hump day.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Coronado, DroneShield, Lovisa, and Mayne Pharma shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »