It’s no wonder shares in Homeloans Ltd (HOM) are close to their all time highs at the moment.
And it’s no wonder, the company told the ASX late yesterday that earnings are running more than 30% ahead of where they were a year ago.
Housing finance is rising – you only have to look at the performance of the banks to know that – and that will continue for sometime yet.
The Commonwealth’s update yesterday sent its shares to a new intra day high during the day and they ended at an all time high of $77.96.
The ANZ also hit a new high of $33.80. Westpac ended on $34.39 and the NAB ended on $35.89.
Homeloans Ltd shares ended at 98.5c, just under the all time high of $1 reached late last month.
HOM YTD – Housing surge helps Homeloans shares, earnings higher
Compared to the big four banks, Homeloans is a tiddler, but its improved earnings experience shows the emerging housing boom’s impact is spreading.
The shares should kick a bit higher today after the company provided an update to the ASX after trading closed yesterday.
"The Directors of Homeloans Limited provide guidance for the half year ending 31 December 2013 in the rage of $3.3 million to $3.6 million Net Profit After Tax (NPAT) on a statutory basis.
"This compares to the previous corresponding period of $5.0 million NPAT which included a one off profit on sale of $1.0 million after tax as a result of the disposal of the Group’s stake in National Mortgage Brokers Pty Ltd.
"The forecast guidance represents an improvement of between 22% to 32% on the NPAT for the previous six months ended 30 June 2013."
The company said it expects to maintain the interim dividend at a level similar to the previous corresponding period.
Homeloans paid an interim (and a final) dividend in 2012-13 of 3 cents a share.
Both ANZ and the NAB go ex-dividend today, Westpac tomorrow.
That means the shares will fall by the amount of the dividend payment before they recover.
