Asciano's stock price has leapt after the national freights and ports operator reaffirmed that its full-year results would be in line with its previous guidance, despite the difficult environment.
Shares in Asciano have bounced by 4.7% to $4.92 at 1245 AEST – its biggest incline in over 18 months – following the company's announcement that earnings per share (EPS) growth is expected to be 30% above the previous year's at 33.5 per share, pre material items.
Analysts are more bullish on the stock, forecasting EPS to grow by 43% to 37 cents per share and underlying net income to surge by 50% to $361.4 million for the full year.
Asciano didn't give guidance about its expected profit, but said that it anticipates revenue and earnings before interest and tax (EBIT) to be above the previous corresponding period.
Material items are believed to wipe approximately $9 million of the company's bottom line. They include the positive fair-value revaluation of C3, restructuring charges for the redevelopment of Port Botany and after tax costs for outstanding legacy issues.
The company said that trading conditions are weak in the intermodal and container terminals because of the soft domestic economy. As such, market growth for its container volumes has been lowered by between 1-2% and flat volumes are expected for intermodal rail.