By Alice Uribe
SYDNEY–Challenger’s shares rose after it issued its half-year net earnings, which showed improved guidance for fiscal 2024.
The Australian financial company’s shares were 8.7% higher at 7.15 Australian dollars (US$4.67) in morning trade Tuesday, after hitting a high of A$7.23 earlier. The company is the best performer on the ASX 200 in the session.
Challenger on Tuesday reaffirmed its FY 2024 normalized net profit before tax guidance, but said it now expected it to be in the top half of the A$555 million-A$605 million guidance range.
Analysts from Citi said the market may like Challenger’s “confidence” of finishing in the top half of the guidance range for FY 2024, and potentially attributed this “mainly to more favorable fixed income spreads moves than expected.”
At the same time, Jarden analysts said Challenger’s interim result reflected the “value-enhancing” shift in the company’s annuity book toward longer-duration products that deliver higher spread margins.
Challenger reported a net profit of A$56.3 million for the six months through December, up 80% on year. Its shares are up 9.9% so far this year.
Write to Alice Uribe at [email protected]
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