Gerberit results expected to build on good start to year

Geberit is due to publish first-half earnings tomorrow, with analysts expecting the results to build on what was a good start to the year for the group. The Swiss manufacturer of bathroom piping and toilets will also report-second quarter results on the same day.

Davy stockbrokers noted this year’s second-quarter results will be the first time a full clean year-on-year comparison can be made since the acquisition of Sanitec. One effect of this will be a natural deceleration in the rate of revenue growth, which had been running at over 10 per cent year-on-year since the first quarter of 2015.

“We expect revenues of CHF718 million (€661 million) for Q2, up 7 per cent year-on-year, split between organic growth and positive foreign exchange translation effects.”

Davy is forecasting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be CHF219 million for the second quarter, which would represent a gain of 16 per cent on the same quarter in 2015.

Elsewhere, Home Depot is expected to post second-quarter results tomorrow. The home improvement supplies store recently raised its 2016 earnings guidance to $6.27 per share and is forecasting a 6.3 per cent increase in revenue year-over-year.