What happened to the JB Hi-Fi share price?
Electronics retailer JB Hi-Fi Ltd [ASX:JBH] shares were up as much as 6.15% this morning, reaching a high of $17.78, after closing at $16.75 on Friday. The jump appears to be due to traders’ short covering, as the share price has now pulled back to $16.99.
Why did this happen to JBH shares?
Before the market opened this morning, JB Hi-Fi announced its earnings results for the six months ended December 31 and provided a January trading update.
Half yearly profit was slightly lower than a year earlier and earnings were flat for the full year. The result failed to meet analyst expectations. However, full year guidance was well received.
CEO Richard Murray said the result was ‘pleasing’ and reaffirmed sales forecasts for the full year. The company saw sales growth pick-up in December, and January sales were ahead of last year.
JBH raised its fully franked interim dividend to $0.59 per share, up from $0.55 per share. The dividend is payable to shareholders on record at February 13.
What now for JB Hi-Fi Ltd?
The company continue see a significant growth opportunity in its JB Hi-Fi HOME stores. Three new HOME stores were opened in the first half of FY2015 and there are plans to open another two by June 30. Online sales also continue to grow.
for The Daily Reckoning Australia