Bid Corp share price reversal at support post results

Key takeaways:

1. Strong financial performance: Bid Corporation Limited reported an impressive revenue increase of 24.0% and a trading profit jump of 20.8%
2. Healthy earnings growth: Earnings per share (EPS) saw a healthy increase of 17.6%, and headline earnings per share (HEPS) climbed by 18.6%
3. Solid cash flow: The company reported an 11.3% increase in cash generated by operations before working capital adjustments, amounting to R6.8 billion.
4. Dividend increase: Bidcorp declared an interim dividend of 525.0 cents per share, up by 19.3%.
5. Strategic growth approach: Bidcorp combines organic expansion with strategic bolt-on acquisitions, showcasing its agility in enhancing market presence.

Bid Corporation Limited (BID), has released its unaudited financial results for the half-year ended December 31, 2023.
The company reported an impressive revenue increase of 24.0%, reaching R113.8 billion. Trading profit followed suit, jumping by 20.8% to R5.9 billion, reinforcing the company's profitability and operational efficiency.
Earnings per share (EPS), saw a healthy increase of 17.6%, with headline earnings per share (HEPS) climbing by 18.6% to 1152.4 cents.

The company has also reported an 11.3% increase in cash generated by operations before working capital adjustments, amounting to R6.8 billion. This solid cash flow positions Bidcorp to effectively manage its capital requirements and invest in growth opportunities.
Bidcorp declared an interim dividend of 525.0 cents per share, up by 19.3%. This move aligns with the group's dividend policy and signifies its ongoing commitment to sharing its success with its shareholders.

Growth for Bidcorp is multifaceted, combining organic expansion with strategic bolt-on acquisitions, demonstrating the company's agility in enhancing its market presence. Moreover, Bidcorp places a high value on balance sheet conservatism, which it considers a competitive financial advantage, ensuring the company remains resilient in various market conditions.

The Bid Corporation Limited's latest financial results reflect a company that is not only performing well but is also strategically positioned for sustainable growth. The combination of strong financial performance, a dynamic business model, and a commitment to innovation and corporate responsibility makes Bidcorp an attractive consideration for traders and investors focused on long-term value creation.

Bid Corp – technical view

The share price of Bid Corp has produced a bullish price reversal off the 43150-support level. The bullish price reversal (circled black) is accompanied by a move out of oversold territory.

Traders who are long into the move might target a move towards the resistance range at 47400 to 47930. An initial stop loss for the setup might be used on a close below the 43150-support level. If the position is fortunate to start moving towards the resistance targets mentioned, traders might then consider trailing their respective stop levels to a one or two day low, depending on threshold for risk.