Guess which ASX 100 share is jumping 12% on record earnings

This company just delivered record quarterly earnings in a tough environment.

| More on:
Modern accountant woman in a light business suit in modern green office with documents and laptop.

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 James Hardie Industries plc (ASX: JHX) share price is on fire on Wednesday.

In morning trade, the ASX 100 share is up 12% to $46.32.

This follows the release of the building materials company's second-quarter update, which revealed record earnings.

ASX 100 share jumps on record earnings

  • Global net sales flat at US$998.8 million
  • Record global adjusted EBITDA of US$285.5 million
  • Adjusted net income up 2% to record of US$178.9 million
  • Record first-half operating cash flow of US$459.1 million

What happened during the quarter?

For the three months ended 30 September, James Hardie reported flat net sales of $998.8 million but a 2% lift in adjusted net income to a record of US$178.9 million.

This reflects margin improvements in the ASX 100 share's key North America Fiber Cement segment. Although its net sales declined 2% to US$734.4 million, its EBIT increased 9% to a record US$232.7 million. This was driven by a higher average net sales price and lower freight and input costs, primarily pulp.

Elsewhere, the Asia Pacific Fiber Cement segment's net sales increased 7% to a record A$225.1 million and EBIT increased 21% to A$67.9 million. This reflects its higher average net sales price which offset higher cost of goods sold per unit.

Finally, the Europe Building Products segment posted a 5% increase in net sales and a 161% jump in EBIT to 11.5 million euros. This was driven by strategic price increases and growth in high value products.

Management commentary

James Hardie's CEO, Aaron Erter, commented:

Our team's focus remains simple: working safely, partnering with our customers, managing decisively, and controlling what we can control. This focus has enabled us to deliver a strong first half, and a record quarterly result for Adjusted Net Income.

I believe our last three quarterly results are proof points that we are accelerating through this cycle and taking share. We have a superior value proposition that helps our customers grow profitably and be successful. Our team is focused on maintaining momentum to deliver strong financial results again in the third quarter as highlighted by our guidance range provided today. We are homeowner focused, customer and contractor driven, providing the entire value chain with world class products and services.

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 Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Gold

Newmont share price lifts off on first-quarter results

The ASX 200 gold stock is charging higher on Thursday.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Up 53% in a year, why is this ASX 200 financial stock leaping higher again today?

Investors are sending the ASX 200 financial stock soaring on Wednesday. Let’s see why.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX 200 uranium stock rocketing 17% on Wednesday?

The ASX 200 uranium stock is racing higher today. But why?

Read more »

Piggy bank at the end of a winding road.
Dividend Investing

Why this $44 billion ASX 200 dividend stock is pushing higher today

The ASX 200 dividend stock trades on a yield of 4.6%.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Why is the Santos share price racing ahead of the ASX 200 today?

Santos shares are enjoying a day of strong outperformance. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

What's happening with the AMP share price on Thursday?

A lot of AMP shares are changing hands on Thursday. But at what price?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »