SYDNEY — Insignia Financial shares rose after it guided for full-year earnings that exceeded consensus forecasts.
The Australian wealth management company’s shares rose 4.6% to 2.49 Australian dollars (US$1.66) on Monday, after hitting a high of A$2.62 earlier. It is one of the strongest performers on the S&P/ASX 200 so far today.
Insignia on Monday said fiscal 2024 underlying net profit after tax would sit in the range of A$212 million to A$218 million.
Insignia’s guidance is well above Citi’s current forecasts and consensus, the investment bank said in a note.
“This compares to our existing forecast of A$199.1 million and Visible Alpha consensus of A$197.5 million. At the mid-point of A$215 million, this is 8% ahead of our forecasts and 9% ahead of consensus,” said Citi analysts who reckon the beat is largely cost driven.
Despite better costs above the line, a further A$135 million after tax was added to the remediation provision, Insignia said.
Insignia is up 6.8% so far this year.