Lighting specialist raises expectations just a month after an in-line trading update
Companies: Dialight plc
Dialight plc, the lighting tech specialist has released a trading update following its November performance saying that it now expected underlying EBIT, including FX, for the year ending 31 December to be "materially" ahead of expectations.
The announcement follows Dialight's last trading update just one month ago, saying it expected in-line performance across the board.
The Group expects revenue to receive a modest FX boost, following the depreciation of Sterling since the Summer.
The raised expectation suggests the company's cost-saving and efficiency strategy is going well:
"Dialight continues to make good progress implementing its strategy to fundamentally improve the Group's operating model and thus position itself for long-term, sustainable growth."
Broker N+1 Singer welcomed the update just a month on from the previous in-line trading statement but confirmed it wasn't changing its price target.
"A month on from the previous in-line trading statement, Dialight now reports good trading in November and prospects for December lead to a new comment that management is targeting an underlying EBIT for 2016 materially ahead of expectations.
Revenue expectations are unchanged, suggesting earlier than expected returns from management’s strategic actions on costs. We recently increased our estimates for currency impacts and our 12 month price target to 800p based on the 2017 EV/Sales multiple."
