Author: Shawn Hickman
Worth watching shares of Australian uranium companies today following comments from Elon Musk saying that countries shouldn’t shut down existing nuclear power plants as Europe grapples with an energy crisis.
A2M +9.98%: Produced a solid FY22 results today, launched a NZ$150m buy-back and said that sales would be up high single digits in FY23, with higher margins meaning earnings will increase by more. All in NZ dollars, for FY22 they produced $1.44b in revenue ($1.39b Exp), EBITDA of $196.21m ($184.4m Exp) and profit of $122.62m ($113m Exp).
BGA +11.76%%: it was hardly an unblemished report from Bega, however, the dairy products company has performed well despite a number of headwinds facing the business over the last 12 months. EBITDA jumped 27% despite higher mil costs, supply chain disruptions and flooding impacting performance throughout the year, meeting analyst expectations.
CCX -19.31%: retailers have largely surprised to the upside this reporting season, however, shares in City Chic were sold off heavily after today’s weak FY22 result and outlook. Sales grew 39%, but fell short of consensus, while profit rose just 3% as margins were squeezed, the $22m posted was an 18% miss to expectations. Inventory ballooned in the second half to $195m, up more than 50% from the first half, fanning fears of an inventory write-down or higher carry costs.
WTC +12.38%: A very strong result today from the logistics technology business which is propelling the stock rapidly towards all-time highs above $60. Revenue of $632.2 million was up +25% YoY and above consensus of $626.2 million while EBITDA of $319m was a 3% beat , plus they forecast FY23 earnings growth of at least 21% which was above the 19% currently tipped.
ALU +19.75%: The Printed Circuit Board (PCB) design platform reported FY22 results after market yesterday and they were above our expectations. Revenue delivered at $221m (+3% ahead) and EBITDA $81.1m (+8% ahead) while their FY23 guidance is also +8% better than consensus.
TPG -12.39%: A weaker 1H result for the telco than we hoped and the share price is unfortunately reflective of that. Revenue of $2.19bn was around 2% light on while EBITDA was a 3% miss (excluding restructuring costs relating to the Vodafone merger).
XRO -7.11%: The online accounting business held their AGM today and the commentary has prompted a decent sell-off in the shares. They said year-to-date UK subscriber growth was weaker than expected with net subscriber additions subdued amid a “less than buoyant macro environment”.
MFG -5.87%: it’s been a difficult year at Magellan, and it showed in their results. NPAT for the year was $399.7m, down 3% and a small miss to expectations. The market took issue with margins which fell to ~62bps in the second half, after running at 65bps at the end of the first half, despite a larger portion of funds being held by retail clients which typically have higher margins.
The integrated property company reported FY22 earnings per share (EPS) of 81.3c, inline with the 81.4c expected by the market while the dividend of 30cps for the FY was also as we expected. Earnings were up 24% on FY21 which is clearly a strong result while they talked to a strong development pipeline for the year ahead.
