Hobson: Buys and Sells after Company Earnings

THE WEEK: Morningstar columnist Rodney Hobson sees a potential enticement following earning news, but another stock to sell now and buy back later

Rodney Hobson 20 March, 2015 | 1:20PM

Smiths Goes with a Bang

Engineering and technology specialist Smiths Group (SMIN) made an excellent start to the week by announcing that it had won an £84 million contract for a new terminal at Abu Dhabi airport to supply equipment to detect explosives.

It is one of the biggest airport contracts that Smiths has ever won and the shares climbed 16p to 1178p on the news, continuing a recovery from a low of 1,000p in mid-December. Two days later Smiths presented less than sparkling results for the half year to the end of January.

Revenue and profits were down a shade, though not disastrously, and Smiths had warned in advance that currency fluctuations would work against it. The modest dividend increase from 12.75p to 13p was a show of confidence.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Next PLC5,934.00 GBX-1.33
Smiths Group PLC1,304.50 GBX-1.51

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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