MARKET TALK: Chemring 1H Earnings Slightly Below Forecasts

22nd Jun 2010 07:50

0650 GMT [Dow Jones] Chemring Group's (CHG.LN) 1H earnings are slightly below forecasts, says Execution Noble, with the operating profit at GBP52M versus the brokerage's forecast of GBP56M and revenues of GBP256M versus expectations of GBP259M. Says this leads to 1H EPS growth of 10%, compared with Execution's and consensus FY forecast of 20% EPS growth. But says the interim dividend increase of 21% should be seen as a sign of confidence. Given the brokerage's negative view of the outlook for calendar year '11, and with the stock still not far from its all time highs, maintains sell rating. Shares closed Monday at 3310p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 22, 2010 02:50 ET (06:50 GMT)