But the market had a set against practically everyone yesterday: even a company revealing a solid upgrade to full year earnings of more than 50%.
Infrastructure service provider Cardno said in a statement to the ASX that it sees full year profit rising by up to 54% on the previous year.
The company has forecast a net profit of between $25 million and $27 million for 2007-08, which would be 43% and 54% above the $17.499 million reported in the last financial year, excluding a one-off tax benefit.
Despite this upgrade, the shares eased 15c to $5.70. They had bounced as high as $5.94, which put them into the black on the day, but late selling saw them fall back into the red.
CDD shares have fallen steeply with the rest of the market this year. They have fallen from a high in early January of $8.20 to a low late last month of just over $5.
Cardno managing director Andrew Buckley said that the unaudited result would be achieved despite challenging economic conditions in Australia and overseas.
"The dislocation in credit markets has had impact on the housing markets in the United States of America as well as in Australia, however, Cardno’s diversification across many market sectors helps minimise the risks associated with adverse conditions in any particular region or specific market," he said.
Mr Buckley also noted that performance would have been even stronger if not for the impact of wet weather and flooding in Queensland during the first half of the year.
Market condition impacts were short term given the sound fundamentals and expanding opportunities in the regions where Cardno operates, he said.
The proposed increased spending on infrastructure projects laid out in the Federal Budget provides Cardno with strong growth prospects, Mr Buckley said.
"Cardno’s balance sheet remains strong with low gearing and that Cardno was well placed to continue to pursue and fund its organic growth and acquisition strategy," he said.
"Cardno has a great track record of successful acquisitions over the last few years and our strategy to continue to grow our business in this way remains unchanged."
The profit estimate is based on unaudited management results and current forecasts, Cardno said.
