JB Hi-Fi (ASX: JBH) share price higher after beating expectations in FY 2021

This retail giant had a strong year….

| More on:
happy woman smiling as she listens to music on headphones

Image source: Getty Images

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

The JB Hi-Fi Limited (ASX: JBH) share price is defying the market weakness and charging higher on Tuesday.

In late morning trade, the retail giant's shares are up almost 3% to $49.02.

Why is the JB Hi-Fi share price charging higher?

Investors have been bidding the JB Hi-Fi share price higher this morning following the release of a sales and earnings update for FY 2021.

According to the release, JB Hi-Fi experienced increased demand for consumer electronics and home appliance products in FY 2021. This underpinned a 12.6% increase in total sales to $8.9 billion for the 12 months.

A key driver of this growth was its online business. JB Hi-Fi reported a 78.1% year-on-year increase in online sales to $1.1 billion. This means that online sales now account for 11.9% of total sales.

In respect to earnings, JB Hi-Fi revealed that improvements in gross margins and cost control led to significant operating leverage.

As a result, the company expects to report earnings before interest and taxes (EBIT) of $743.2 million and net profit after tax of $506.1 million. This represents an increase of 53.8% and 67.4%, respectively, year on year.

How does this compare to expectations?

According to a note out of Goldman Sachs, JB Hi-Fi has outperformed expectations in FY 2021. This goes some way to explaining the solid gains being made by the JB Hi-Fi share price today.

It commented: "JBH pre-announced FY21 results reporting sales at A$8916.1mn, +0.3% vs. GSe and +0.1% vs. Visible Alpha consensus and EBIT at A$743.2mn, +2% vs. GSe and +4.7% vs. Visible Alpha Consensus."

"FY21 results was broadly in line with our expectations with strong margins driven by ongoing sales momentum. While we continue to expect this to normalize at some stage, the ongoing lockdowns could potentially prolong the strong momentum longer than our current expectations," the broker added.

Goldman Sachs currently has a neutral rating and $48.00 price target on the JB Hi-Fi share price.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Adriatic Metals, Catapult, Seek, and TechnologyOne shares are racing higher today

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

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares returned to positive territory this Tuesday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

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

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »