Boral

Nov 13, 2023

Boral has started FY 2024 very positively and upgraded its guidance. James Mickleboro has been a Motley Fool contributor since late 2015. After studying economics at university back home in the United Kingdom, James came to live in Australia and managed to land a job at an Australian fund manager. This was the start of a love affair with Australian equities and he hasn't looked back since. James is part of the CFA Institute's Chartered Financial Analyst program and hopes it teaches him how to become an astute investor which allows him to help others with their own investing. Outside of reading and researching he spends many a late night watching the English Premier League and Seinfeld reruns. Latest posts by James Mickleboro ( see all ) Image source: Getty Images You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More The Boral Limited ( ASX: BLD ) share price is catching the eye on Monday. At the time of writing, the building materials company's shares are up 8% to $5.05. Why is the Boral share price surging? The catalyst for the rise in the Boral share price on Monday has been the release of a very positive announcement this morning. According to the release, a stronger than expected performance between July and October means its earnings will be better than forecast in FY 2024. This has been achieved through price traction and cost management across each of Boral's businesses, as well as improving confidence that the gains achieved in first four months can be held for balance of the fiscal year. FY 2024 guidance Previously, management was guiding to earnings before interest and tax (EBIT) of $270 million to $300 million for the year. It has now upgraded this FY 2024 EBIT guidance to be in the range of $300 million to $330 million. The midpoint of this range represents a 10.5% increase over the midpoint of its previous guidance. It will also mean a 36% increase on FY 2023's EBIT of $231.5 million, which itself was more than double what was recorded in the previous year. Commenting on the guidance upgrade, Boral's CEO, Vik Bansal, said: We are pleased to upgrade our FY24 guidance, with year-to-date performance reflecting greater discipline in the pricing and cost from our operating model. Price realisation remains extremely important in the current inflationary environment. Volumes year to date have been relatively steady and at this stage, we expect this to continue through the remainder of FY24. The Boral share price is now up approximately 75% over the last 12 months. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. More on Materials Shares