ASB –10.95%: fell despite delivering a material earnings beat, as irregularities in accounting adjustments and weak cash conversion weighed on the stock.
- Net income: $30.5m, +21% y/y
- Revenue: $1.11bn, +34% y/y
- EBIT: $60.3m, +41% y/y (23% above consensus)
- FY26 EBIT guidance: ~$110m (unchanged)
- Order book: A$17.7bn
Operationally, the result was strong, with EBIT comfortably ahead of expectations and the order book at record levels ~$17.7bn. However, sentiment was hit by the audit report showing incentives had been double-counted, overstating earnings by US$17m and with plenty of accounting scandals rocking the ASX recently, the market is unsurpisingly spooked.
MM is still neutral toward ASB ~$5.50
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