The Build Up To Taylor Wimpey FY Results
Spreadex | Feb 23, 2018 11:34
Though it was certainly a bumpy ride, especially around across the summer, 2017 ended up being a strong year for the British housebuilder. Starting at £1.54, it managed to close out December at £2.08, cementing an impressive 35% across the 12 months.
Things initially got off to a good start in 2018 as well, the stock quickly climbing to a 20-ish month high of £2.11. Then it released its January update and it all went to pot, the negative reaction to that statement, combined with the fears of rising interest rates that have gripped the markets, leading the firm to a 7 month low of £1.79 in early February. And while it has rebounded since then, it is still off its highs, with Taylor Wimpey (LON:TW) PLC at a current trading price of £1.90.
So, what was so bad about the company’s January statement that it sparked this recent decline? Well, to be honest, not a lot. Completions rose 5% to 14541 in 2017, with the average selling price was up 4% to £264,000. It also revealed that its operating profit margin improved from 20.8% to 21.2%, that it had net cash of £512 million and that it was set to pay out a total dividend of £500 million in 2018.
However, the fact that its order book slipped from £1.68 billion to £1.63 billion year-on-year, alongside a comment from CEO Pete Redfern stating that the company expects to see further growth in the housing market in 2018 ‘but at levels not as strong’ as seen in previous years, seemed to sour investors on the update.
In terms of Wednesday’s annual results, investors will want to see profit numbers to match the upbeat tone set by Redfern, alongside a comment on current trading given the continued fears that the housing market has peaked.
Taylor Wimpey PLC has a consensus rating of ‘Hold’ alongside an average target price of £2.13.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.