Goodman (ASX:GMG) share price storms 5% higher on earnings guidance upgrade

Goodman shares are booming on Tuesday…

| More on:
Man jumps for joy in front of a background of a rising stocks graphic.

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 Goodman Group (ASX: GMG) share price is storming higher on Tuesday morning.

At the time of writing, the global integrated property company's shares are up 5.5% to $23.50.

Why is the Goodman share price rising?

Investors have been bidding the Goodman share price higher today following the release of its first quarter update.

According to the release, Goodman has made a strong start in FY 2022. This has been driven by the continuation of structural changes, significant customer demand, and intensification of use of sites in Goodman's target markets.

Management notes that the consistent execution of its strategy has resulted in increased transactional activity and higher earnings certainty for the full year. This has led to Goodman upgrading its operating earnings per share growth guidance for FY 2022 to be in excess of 15%. This compares to prior guidance of 10% growth.

Other key metrics of note in Q1 include 3.2% like for like net property income (NPI) growth, 98.4% occupancy, $12.7 billion of development work in progress (WIP), and $62 billion of total assets under management (AUM).

Pleasingly, management notes that its outlook remains strong and expects its AUM to continue growing to around $70 billion by June 2022.

Digital economy drives strong growth

Goodman's CEO, Greg Goodman, commented: "The results of the deliberate positioning of our portfolio over the last decade to adapt to and leverage the changes in the digital economy, are now being realised. Customer demand for high- quality properties close to consumers has never been greater."

"This is resulting in rental growth, increased development activity, stronger than expected performance from our Partnerships and generally higher levels of profitability, leading to upgraded earnings guidance for FY22," he concluded.

The Goodman share price is now up 22% in 2021.

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

A young smiling couple out hiking enjoy a view from the top of the mountains.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a rosy end to the trading week this Friday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

How these 3 ASX 200 stocks led the charge higher this week

The three top ASX 200 stocks are up 14% to 34% this week.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Imugene, Neuren, Sigma, and Smartgroup shares are charging higher

These shares are ending the week on a high. But why? Let's find out.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
BNPL shares

Is this why the Zip share price keeps breaking records?

Zip shareholders have been enjoying a record breaking year. Is this why?

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile, but positive, day for ASX shares this Thursday.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Block, GQG, Neuren, and Sigma shares are racing higher today

These shares are rising on Thursday. But why?

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Share Gainers

Why Brainchip, Cooper Energy, Core Lithium, and Neuren shares are roaring higher today

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

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »