Transport equipment maker MaxiTRANS Industries (MXI) is one of the second best performing stock on the Uncapped 100 as its earnings raced ahead of market expectations.
The stock is up 9.3% to a five-month high of $1.41 in afternoon trade after the company reported a 111% surge in net profit to $26 million as revenue lifted 31% to $362.5 million for the year ended June 30, 2013.
The profit line was ahead of analysts’ expectations of $25.4 million, although sales came in below consensus of $382.5 million.
However, investors were not too concerned about the sales miss given the good outlook for MaxiTRANS with a strong harvest in 2013-14 expected to drive solid demand for its tippers.
The removal of the political uncertainty once the federal election is out of the way should also see business confidence rebound, and that should translate to better orders for MaxiTRANS’ products.
Further, management believes it will start benefitting from its rebranding exercise and launch of new products in the current financial year.