(Nathan Denette/CP)
Home-improvement and construction-supply chain Rona reported its second-quarter financial results today. Here’s what you need to know.
What happened:
This quarter was Rona’s best result in more than three years. The company earned nearly $40 million on sales of $1.26 billion, or $0.46 per share, just above analyst predictions (see below). Significantly, the company announced it would raise its dividend from 14¢ to 16¢ per year and reorganize the payment schedule, going from biannual to the standard quarterly payout. Same store-sales grew particularly strongly, at 5.4%, which suggests that the company’s turnaround plan, focused on streamlining its product offerings and improving the retail experience in its stores, is starting to take hold.
PREVIOUSLY: Home-improvement giant Rona is finally ready to build again
The analysts said:
Consensus prediction, earnings per share: $0.45
Consensus target price: $16.44
Closing price yesterday: $15.00
What they advise: Buy: 2; Hold: 6; Sell: 1
Good news recently:
Rona announced it would buy 20 of its franchise locations in a bid to further simplify its supply chain and reduce costs.
Bad news recently:
Competitor (and thwarted acquirer) Lowes recently announced it would expand into 12 former Target locations, so competition in the category is only intensifying.
Trailing 12-month stock performance:
