Imperial Brands (LON:IMB) Announces Earnings Results

by · The Cerbat Gem

Imperial Brands (LON:IMB – Get Free Report) posted its earnings results on Tuesday. The company reported GBX 127.70 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Imperial Brands had a net margin of 10.91% and a return on equity of 42.31%. The business had revenue of GBX 1,471.90 billion for the quarter.

Here are the key takeaways from Imperial Brands’ conference call:

  • The company said it is on track to meet full-year guidance, including low-single-digit tobacco net revenue growth, double-digit NGP net revenue growth, 3% to 5% adjusted operating profit growth, and at least high-single-digit EPS growth.
  • First-half results showed solid cash generation, with GBP 2.6 billion of free cash flow over the last 12 months and operating cash conversion of 98%, supporting continued capital returns.
  • Management highlighted that tobacco pricing more than offset volume declines, while NGP growth was temporarily held back by one-off U.S. promotional timing that they expect will not repeat in the second half.
  • The company reiterated its shareholder returns strategy, including a 4% increase in the ordinary dividend and progress on the GBP 1.45 billion buyback, which management called an evergreen program.
  • Strategic transformation is accelerating, with factory rationalization, the Capgemini partnership, and other efficiency actions expected to deliver about GBP 320 million of annual savings over time, while also building capabilities for longer-term growth.

Imperial Brands Stock Performance

Shares of Imperial Brands stock traded up GBX 90 on Tuesday, reaching GBX 2,818. 9,081,209 shares of the stock were exchanged, compared to its average volume of 22,633,926. The company has a quick ratio of 0.41, a current ratio of 0.74 and a debt-to-equity ratio of 207.21. The firm has a market capitalization of £21.83 billion, a price-to-earnings ratio of 11.30, a PEG ratio of 16.51 and a beta of 0.17. The business has a 50 day moving average price of GBX 3,007.88 and a two-hundred day moving average price of GBX 3,101.46. Imperial Brands has a twelve month low of GBX 2,648 and a twelve month high of GBX 3,341.

Insider Activity at Imperial Brands

In other news, insider Alan Johnson acquired 645 shares of Imperial Brands stock in a transaction that occurred on Friday, April 10th. The stock was purchased at an average cost of GBX 3,097 per share, with a total value of £19,975.65. Also, insider Lukas Paravicini sold 30,561 shares of the stock in a transaction on Monday, February 16th. The shares were sold at an average price of GBX 3,219, for a total value of £983,758.59. 0.46% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

IMB has been the topic of several recent research reports. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 3,700 price objective on shares of Imperial Brands in a research note on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a GBX 3,500 price objective on shares of Imperial Brands in a report on Wednesday, April 15th. UBS Group reiterated a “neutral” rating and set a GBX 3,150 target price on shares of Imperial Brands in a research report on Monday. Finally, Citigroup lowered their price target on Imperial Brands from GBX 3,650 to GBX 3,550 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Imperial Brands currently has an average rating of “Moderate Buy” and a consensus target price of GBX 3,466.67.

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