Ricardo Gains Most in 10 Months as Profit Set to Beat Estimates
Ricardo Plc (RCDO), a U.K. developer of fuel-efficient engines for automakers, gained the most since September in London trading after saying full-year earnings will beat analysts predictions as demand improves.
“Market conditions are improving although Europe remains challenging,” Chief Executive Officer Dave Shemmans said in a statement today. “Our pipeline, balance sheet and operational delivery give us confidence of further progress in the current year.”
The company will probably report a 13 percent increase in pretax profit to 20.9 million pounds ($31.6 million) when it releases full-year earnings on Sept. 9, according to the average of five analysts estimates in a survey compiled by Bloomberg. The company, founded by Harry Ricardo in 1915, has boosted its order book with recent contract wins from the automobile, defense and marine engine industries.
Ricardo rose as much as 5.7 percent, the most since Sept. 21. The stock traded 5.3 percent higher at 398.5 pence as of 8:30 a.m. local time, giving the company a market value of 207 million pounds. The volume of shares traded was almost three times the three-month daily average.
Full-year revenue will exceed the prior year both including and excluding Ricardo-AEA, an environmental consultancy it acquired in November, the Brighton, England-based company said in the statement.
Ricardo will probably report a 16 percent increase in full-year revenue to 229 million pounds, according to the average of seven analysts in a survey compiled by Bloomberg.
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