The SGX-listed companies Singapore Telecommunications, or Singtel (SG:Z74), and Seatrium Limited (earlier Sembcorp Marine) (SG:S51) reported their quarterly earnings yesterday. Singtel published its first-half earnings for FY24, while Seatrium released its third-quarter earnings for the fiscal year 2023.
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Ahead of these earnings, analysts have assigned strong Buy ratings to both of these stocks, predicting more upside in their share prices.
The TipRanks Earnings Calendar tool serves as a useful tool to select companies that have recently disclosed their earnings. This tool is now available in 10 different markets on TipRanks and allows users to stay updated on earnings releases. It also provides crucial details like projected EPS, reported EPS, and more, offering a comprehensive view for informed decision-making.
Let’s take a look at these companies in detail.
Singtel H1 FY24 Results
Singtel is a prominent telecommunications service provider in Singapore. The company offers a diverse array of services encompassing fixed, mobile, internet, data, TV, and more to cater to the varied needs of its customers.
Singtel reported its first-half results for the fiscal year 2024 with a net profit of S$2.14 billion, marking a huge increase of 83%. The company’s underlying profit grew by 12% to S$1.12 billion. The growth was driven by solid performance in its mobile business, which offset the weakness in the enterprise sector. The profits were also well supported by an exceptional gain stemming from regional associate Telkomsel’s integration of IndiHome, Indonesia’s largest fixed broadband provider.
The operating revenue witnessed a 3.2% year-on-year decline, falling from S$7.3 billion to S$7 billion. The group’s overall performance was “adversely impacted” by the robust strength of the Singapore dollar in comparison to the Australian dollar and other regional currencies.
The board declared an interim dividend of S$0.052 per share, representing 77% of the group’s first-half underlying net profit. Notably, the group revised its dividend policy, expanding the payout range from 60-80% to a new range of 70-90% of underlying net profit.
What is the Target Price for Singtel?
According to TipRanks’ rating consensus, Z74 stock has been assigned a Strong Buy rating backed by eight Buy and one Hold recommendations. The Singtel share price target is S$2.98, which is 26% higher than the current price level.
Seatrium Q3 Results 2023
Seatrium Limited provides comprehensive engineering solutions across the global marine, energy, and offshore industries.
The company released its Q3 2023 earnings report on November 8. The standout feature of the results was the company’s strong order book, reaching a total of S$17.7 billion. In the initial nine months of 2023, the company secured new contracts amounting to S$4.3 billion. The company further disclosed that the order book includes 33 projects currently under execution, with plans extending until 2030.
Despite robust operational performance, the company issued a cautionary note, indicating a potential net loss for the full year of 2023. The primary factors contributing to this projection are the challenges associated with struggling margins and difficulties in executing the order book.
Is Seatrium a Good Buy?
In terms of share price growth, analysts have assigned a Strong Buy rating to the S51 stock based on three Buy recommendations. On TipRanks, the Seatrium share price forecast is S$0.19, which implies a huge upside of 74%.
