Nick Scali Limited [ASX:NCK] shares are up 12%.
A move that’s pushed the company into new all-time highs.
The company beat its revenue guidance for the first half, bringing its interim profits to $20.1 million.
The company’s guidance offered in October last year sat around $18 million.
No doubt this news is exciting for investors.
Which may cause you to wonder…is now the time to buy Nick Scali?
Today, we’ll take a look.
Who is Nick Scali Limited [ASX:NCK]?
Operating out of Australia and NZ, Nick Scali imports and sells furniture.
The company sells lounges, chairs, coffee tables, rugs and other household items.
You may own some of their furniture yourself! The company listed in 2014 and trades on the ASX.
Nick Scali has a market cap of around $660 million.
The company released half-yearly reports today. Profits were down 2.5% for the half and net profit was $20.1 million.
With profits declining, why did the shares rally 13%?
Turns out investors expected the results to be much worse than they were.
The managing director, Anthony Scali had been forewarning that consumers were fragile.
Citi Group analysts had thought there’d be a 6% decline in revenue.
In short, investors expected the worst and it didn’t occur.
And when Nick Scali reported results that were better than anticipated, investors were quick to jump back in.
With that out of the way, let’s take a look at the chart.
I’ve attached it for you below…
This chart is now in ‘blue sky’
Source: Trading View
What you’re looking at above is the weekly chart of Nick Scali.
You can see NCK has moved into a new all-time high.
We can assume investors are now looking to the future in the expectation of growing revenues again.
If this does happen then the Nick Scali share price should continue to rise over the medium term.
If you’re so inclined to see how this plays out, you can put NCK on your watch list.
As always, this is not a recommendation to buy or sell NCK. It is an update only. I hope you found it useful.
Until next time,
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