Harvey Norman Holdings Ltd [ASX:HVN], one of Australia largest electronic retailers, announced its earnings recently, showing it has made the best of the COVID situation.
Trading at $4.28, the HVN share price recovered well from the onset of the COVID-19 pandemic, however trading lower at the time of writing.
What’s happening at Harvey Norman?
Like most in the current climate of COVID-19, things took a bit of a nosedive around March 2020 as the pandemic started shutting business down.
As people were forced to work from home more, they also started shopping online more.
Harvey Norman fell over 52% in value from the March high, but has now recovered a lot of this and has done so on the back of strong earnings:
- Net cash flow from operative activities: $1.1 billion, up $684.12 million (183%), and
- A reported profit before tax of $661.29 million, up 15.1% on 2019.
Underpinning all this is the $3 billion portfolio of freehold property the company has.
While 2020 is not without its challenges, Harvey Norman made the best of the situation where it could.
Where to from here for HVN’s share price?
While on the surface it looks like a bumper year for Harvey Norman, in terms of stock price the company hasn’t experienced the superb growth of JB Hi-Fi Ltd [ASX:JBH] or the likes of Afterpay Ltd [ASX:APT].
Historically, this is what’s happening with HVN’s share price:
The cancellation of the interim dividend could be a factor.
If the HVN share price can keep climbing, the next level of focus may be $4.64, which has proved strong in the past.
Should it fall to the downside, then the levels of $4.15 or $3.95 may provide future support, as, again, both of these levels have proved strong in the past.
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