Computershare Earnings: Margin Improvements Likely Underway

Wide-moat Computershare's first-half fiscal 2024 underlying earnings per share grew 23% on the previous corresponding period to USD 54.8 cents, broadly in line with our expectations. The key growth driver is higher-margin income on client-owned cash balances. There were divisional variances, with stronger-than-expected performance in most business divisions apart from issuer services, where cost growth outstripped revenue growth, excluding margin income. We lift our fair value estimate to AUD 25.50 per share from AUD 25 with the time value of money and consider the shares fairly valued.