EROAD Fiscal 2025 H1 Results Meets Expectations; Maintenance of Guidance 'Disappointing', Jarden Research Says

MT Newswires Live
2024/11/27

EROAD's (ASX:ERD, NZE:ERD) fiscal 2025 guidance is "disappointing", Jarden Research said in a Nov.25 note.

EROAD reported revenue of NZ$95.9 million for the six months ended Sept. 30, up 8% from its revenue of NZ$ 88.9 million in the same period a year earlier.

For the fiscal year ending June 30, 2025, EROAD expects revenue between NZ$190 million to NZ$195 million, EBIT between NZ$5 million to NZ$10 million, and R&D spending of NZ$35 million, up from NZ$32 million last year.

The company said it was "on track" to meet the guidance.

Jarden believes that the guidance will not let the company achieve the fiscal 2026 revenue CAGR target of over 11% to 13%, which is in line with market growth expectations.

"Maintenance of FY25 guidance is disappointing given the required execution to meet FY26 targets", Jarden added.

The investment firm maintained EROAD's neutral rating but raised its target price to NZ$1.05 from NZ$0.96.

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