Stock Analysis

Exxaro Resources Full Year 2022 Earnings: Misses Expectations

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Exxaro Resources (JSE:EXX) Full Year 2022 Results

Key Financial Results

  • Revenue: R46.4b (up 42% from FY 2021).
  • Net income: R13.8b (up 23% from FY 2021).
  • Profit margin: 30% (down from 34% in FY 2021). The decrease in margin was driven by higher expenses.
  • EPS: R57.13 (up from R45.35 in FY 2021).
JSE:EXX Earnings and Revenue Growth March 18th 2023

All figures shown in the chart above are for the trailing 12 month (TTM) period

Exxaro Resources Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 6.6%.

Looking ahead, revenue is expected to fall by 8.3% p.a. on average during the next 3 years compared to a 4.6% decline forecast for the Oil and Gas industry in Africa.

Performance of the market in South Africa.

The company's shares are down 2.4% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Exxaro Resources (1 doesn't sit too well with us!) that you need to be mindful of.

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