SYDNEY — G8 Education Ltd. shares have hit a 14-month high after the childcare-center operator reported stronger-than-expected annual earnings and announced a share buyback.
The ASX-listed company on Tuesday reported earnings before interest and tax of 117.5 million Australian dollars ($84.3 million) for 2021. The average analyst forecast was for Ebit of A$107.4 million, according to data compiled by FactSet.
The stock was 5.8% higher at A$1.28 and had earlier reached A$1.285. RBC Capital Markets said the share buyback announcement had been long awaited.
Yet the investment bank also saw headwinds at the start of G8’s 2022 fiscal year, with occupancy rates down on-year due to the Covid-19 pandemic’s impact on staffing, child attendance and enrolments.
G8 said those impacts would be temporary but also flagged investment in attracting and retaining staff.