Ashtead 1Q results beat expectations

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Ashtead Group, the industrial equipment rental company, posted 1Q results: "Group revenue for the quarter decreased 6% (7% at constant exchange rates) to £1,203m (2019: £1,278m). Overall, Group underlying operating profit decreased to £265m (2019: £373m), down 30% at constant exchange rates. Underlying earnings per share decreased to 34.7p (2019: 51.4p)”. The results came out above expectations.

About the outlook, the company said: “we expect full-year Group rental revenue to be down mid to high single digits when compared with last year on a constant currency basis".

From a technical perspective, the stock price is posting a short term consolidation move within a downward-sloping channel. Prices need to stand above the key support at 2435p (gap) to maintain the bullish bias. The upward breakout of the channel upper boundary would call for a new up leg towards 2880p and 3130p. Alternatively, a push below 2435p would open a path to see 2032p.

Source: GAIN Capital, TradingView


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