Why the BWX Limited share price is rising today

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

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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.

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