Dick Smith stock up 10% after posting better than expected profit; NAB’s reports $1.7 billion in profit: Midday Roundup

The price of shares in Dick Smith has jumped by 10% this morning, after the retailer beat its full-year profit forecast by 5.3%, reports Business Spectator.

In its first profit report since going public last December, Dick Smith recorded net profit after tax for the 2014 financial year of $42.1 million.

The results were up 5.3% on the $40 million profit forecast given in the retailer’s IPO prospectus last year, and higher than analysts’ forecasts of $40.75 million.

While Dick Smith did not offer specific guidance on expected profit for the current financial year, it said it is expecting another year of “strong performance”.

“It is particularly pleasing to see the strong sales growth performance experienced in the second half of the year continuing in to this year,” said Dick Smith managing director and chief executive Nick Abboud.

“Consumers continue to respond well to our strong offers, despite challenging market conditions,” he said.

NAB reports $1.7 billion

The National Australian Bank has reported its third quarter results, posting a $1.7 billion net profit.

Its cash profit rose 7% to $1.6 billion, while revenue fell 1% due to lower markets income amid volatility.

Business lending balances grew at an annualised rate of 5.5% over the quarter.

“The group achieved a satisfactory third quarter result,” said NAB chief executive Andrew Thorburn.

“Costs were well contained and asset quality continues to improve. While revenue growth remains challenging, Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter,” he said.

Shares down on open

Aussie shares open slightly higher this morning, following Wall Street’s strong start to the week.

The S&P/ASX200 benchmark was up 31.4 points to 5618.5 points at 12.14pm AEST. On Monday, the Dow Jones closed 175.83 points higher, up 1.06% to 16838.7 points.