Metcash's Earnings Outlook Looks Too Positive -- Market Talk
Dow Jones
Dec 02, 2025
0135 GMT - Expectations for retailer Metcash's earnings in FY 2027 look too high to Citi. "The starting point is lower with material downgrades in Liquor and Hardware," says analyst Adrian Lemme. Metcash's earnings should benefit from the reversal of A$12 million of one-off strategy and implementation costs in FY 2027. Still, Citi thinks Metcash's Hardware division won't recover as quickly as the market hopes. That's because detached housing approvals are now tracking flat year-over-year, and the interest rate outlook appears neutral at best. "We lower our net profit forecasts by 4% over FY 2026-FY 2028," Citi says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
December 01, 2025 20:35 ET (01:35 GMT)
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