During reporting season, companies announce their earnings and offer updates on their business and any changes they might be facing.
Reporting season can be a good chance for savvy investors to check in on the performance of companies they’re invested in, or are considering investing in.
We’ll be sharing daily highlights, so be sure to check back to this page or follow us on Twitter to stay up-to-date.
Week Four (25th February – 28th February)
Appen shares were up 21% after the tech growth story reported strong full-year results on 25th February. Revenue grew by 119% to $364.3 million, and underlying net profit grew by 148% to $49 million. Analysts were expecting a profit of $41.1 million.
Appen attributes this growth to its content relevance division. The tech company increased its dividend by 33% to 8 cents per share.
G8 Education (GEM)
G8 Education shares dipped by 11% on 25th February following disappointing full-year results released this morning. While revenue was up 7.7% to $88.2 million, EBITDA declined by 10.1% to $149.1 million and net profit was down 10.8% to 71.9 million.
The company revealed that employee costs and occupancy expenses have increased faster than revenue growth. G8 declared an 8 cent dividend, which is 20% lower than the previous year.
QBE Insurance Group (QBE)
Shares in QBE are up 4.18% today. The insurance company released its full-year results which showed a cash profit after tax of US$715 million. QBE reported a loss of $1.25 billion in the prior year, so this is quite an improvement.
According to QBE, this turnaround has been driven by a newly implemented performance management framework and an upgrade in core capabilities for the business.
— CommSec (@CommSec) February 25, 2019
Week Three (18th February – 22nd February)
Australian Financial Group (AFG)
Australian Financial Group shares were up almost 6% on 22nd February after the mortgage broking group reported a 2.2% increase in cash profit up to $14.72 million and an unchanged NPAT of $16.69 million. The group acknowledged the banking royal commission’s potential impact on the mortgage broking industry, however, they are optimistic.
Kogan shares took a dive after the online retailer reported its half-year results on 22nd February. While revenue was up 10.6% to $231.8 million, NPAT was down 11% to $7.4 million. Kogan blames this mixed result on increased investments in marketing and operating infrastructure.
The outlook for the rest of 2019 is looking strong as Kogan has reported that active customer growth is up 32% for the first half of the year.
— Financial Review (@FinancialReview) February 22, 2019
Coca-Cola Amatil (CCL)
Coca-Cola Amatil’s shares fell by 1.08% on 21st February as it announced a 37.3% decrease in NPAT in its half-year earnings. Coca Cola doesn’t expect an increase in growth until 2020 as the group undergoes a transition period. The group will deliver a 26 cent dividend, franked to 50%.
Flight Centre (FLT)
Shares in Flight Centre soared by 2.88% on 21st February off the back of their half-year report release. $FLT announced a revenue increase of 7.4% to $1.46 billion and an underlying profit increase of 0.7% to $140 million. While the travel company attributed this result to the success of its corporate travel segment, it also revealed that their Australian leisure segment had delivered a disappointing result. Shareholders will receive a 60 cent interim dividend, and a $1.49 special dividend.
Nine Entertainment (NEC)
Following the first earnings results release since the Nine-Fairfax merger, $NEC shares were up by 7.17% on 21st February. Revenue was down by 1% to $709.8 million. Total revenue from broadcasting was down 10%, but up 4% for digital and publishing. Nine is hopeful that the recent merger with Fairfax will improve results for the full financial year.
Qantas shares were down almost 2% on 21st February after the airline announced its statutory profit had decreased by 16.3% to $498 million in HY19. $QAN named rising fuel costs as a contributor to this decline. Shareholders will receive a 12 cent dividend.
— Patrick Hatch (@pwhatch) February 20, 2019
Wesfarmers shares were up 6.88% on 21st February following their first earnings release since they demerged coles last year. $WES reported a NPAT of $4.54 billion, largely driven by gains from the demerger. Shareholders will receive a fully franked dividend of $1.
Crown Resorts (CWN)
Shares in Crown resorts dipped by 5.33% on 20th February after reporting mixed half-year earnings results. While reported profit was up 9.9% before significant items to $174.9 million, it was down 26.7% after significant items. Crown management said that these results reflected mixed trading conditions in the resorts and entertainment industries.
Crown announced that they would continue delivering a 30 cent bi-annual dividend, which has remained the same as the previous year.
Domino’s Pizza Enterprises (DMP)
Dominos shares were down 3% on 20th February, as investors seemed to be disappointed by their half-year earnings results. While their revenue grew by 23.7% to $702 million and underlying NPAT increased by 8.4% to $68.2 million, their reported profit attributable to shareholders fell by 9.2% to $53.3 million.
The pizza company’s profit was weighed down by $10.9 million in one-off legal costs related to nation-wide industrial relations reviews and $12.6 million of costs spend acquiring, integrating and converting recently acquired German pizza chain Hallo pizza.
Domino’s increased its dividend by 7.9% to 62.7 cents.
Woolworths Group (WOW)
Woolworths’ half-year earnings fell short of expectations, with their shares down 5.16% on 20th February. Woolworths’ total profit came to $979 million, which was just shy of analyst expectations of $1.088 billion. The supermarket chain’s continuing sales grew by 2.3% to 30.59 billion, continuing EBIT grew by 1% to $1.45 billion and net profit increased by 2.1% to $920 million.
Woolworths increased its dividend by 4.7% to 45 cents per share.
Based on today’s analyst call, Bank of America Merrill Lynch’s David Errington is throwing in the towel and the long-time Woolworths bull will presumably cut his price target for the stock https://t.co/UoAXbGrPgd notes @John_Durie #ausbiz #earnings $WOW pic.twitter.com/vTcc0itMOS
— Business Review (@aus_business) February 20, 2019
WiseTech Global (WTC)
There were high expectations around WiseTech’s earnings results, with NPAT estimates of $25.7 million. Despite strong results, WiseTech came up short of these expectations and as a result, their share price fell by 10%. Revenue for the fast-growing tech company was up by 68% to $146.7 million. 84% of organic revenue growth was driven by continuing existing customers.
Shares in Blackmores fell by 24.85% on 19th February as the health supplies company announced their half-year earnings results. While revenue was up by 11%, NPAT was only up 0.4% to $34.3 million, which fell below analyst expectations of a $37 million NPAT result. Sales in Blackmores’ key China segment fell by 11%. Blackmores announced a 150 cent per share dividend.
Blackmores shares have crashed by over 30 per cent in early trade after the company reported flagging sales to China https://t.co/xG19nPyS14
— The Sydney Morning Herald (@smh) February 19, 2019
Shares in biotech leader Cochlear were down 8.14% on 19th February as the company delivered their half-year result to December 2018. Sales revenue increased by 11% and NPAT increased by 16%. Much of this growth was driven by a 5% increase in sales of Cochlear implant units and growth in its service arm, which grew its revenue by 28%.
While these results seem positive, Cochlear also revealed that its business in the US was experiencing a lower rate of growth following a competitor’s product launch.
Cochlear increased its interim dividend per share by 11% to $1.55 per share.
On 19th February Coles delivered their first earnings results since they demerged from Wesfarmers late last year. Coles announced a 29.4% decline in profit from ordinary activities, which seems to have disappointed investors, with their share price closing down 4.05% from the previous day.
No dividend was declared, but Coles expects to deliver a dividend later this year.
Seven West Media (SWM)
Shares in Seven West Media were down to a near-record low of $0.52 on 19th February, a decline of nearly 8% from the previous day’s close. In their half-year results, Seven West revealed an 8% decline in revenue to $92 million, and they expect to see a further decline in the second half of the year.
Seven West Media announced that they will not pay an interim dividend for HY19.
Following its half-year earnings release on 18th February, Altium’s share price was up 20.28% on 19th February. The tech company reported a revenue increase of 24%. Growth in their Chinese arm was particularly strong, with a revenue increase of 49%.
Altium announced a dividend of 16 cents per share, a 23% increase from last year.
Brambles’ share price took a hit as it announced a 27% dip in profit in its half-year results on 18th February. Shares in the pooling solutions company finished down 1.5% for the day. While sales were up 7%, NPAT was down 27%.
Brambles will deliver a 65% franked dividend of 14.5 cents per share.
Week Two (11th February – 15th February)
Investors in real estate website Domain took its price higher by 21.05% on 15th February, despite the company reporting a net loss of $156.4 million in its half-year results. These results were in line with expectations, which may have relieved some downward pressure on Domain’s price. Domain attributed the write-down to lower-than-expected listings in the Sydney and Melbourne housing markets.
Domain announced a fully franked dividend of 2 cents per share but expects to increase this to 4 cents in its full-year results.
Medibank’s share price increased by 2.9% following its half-year results announcement on 15th February. While the health insurer’s operating profit increased by 2.4% to $293 million, its NPAT decreased by 15.4% to $207.7 million. Analysts were expecting a profit of $240 million.
Medibank increased its dividend slightly to 5.7 cents per share.
— SMH/Age Business (@BusinessDay) February 14, 2019
AMP just can’t seem to catch a break at the moment with their share price dropping 7.79% after releasing results on 14th February. AMP’s profit for the year ended 31st December was $28 million, which was below analyst expectations and $820 million short of the same time last year. AMP announced a final dividend of 4 cents franked to 90%, down from 14.5 cents in 2017.
Breville Group (BRG)
Breville shares jumped 18% on 14th February after reporting a 20% hike in its half-year profit results. The company cites global health trends and the coffee craze as the reason for improved sales. Breville announced an 18.5 cent dividend, up from 16.5 cents in the previous year.
Telstra finished down on 14th February as they reported a half-year profit fall of 28%. Citing the NBN transition and competition as the key headwinds, the report showed a 4.1% revenue decline from the same period last year. Telstra announced a 5 cent dividend of an extra 3 cents, which in total falls below last year’s 11 cents interim dividend.
Suncorp fell 3.78% on 14th February after announcing a 44% drop in net profit and uncertainty around the full financial impact of adverse weather events across the country. They announced a dividend of 26 cents per share, which is below Bloomberg’s target of 34.8 cents.
— Josh Callaghan (@CallaghanJosh) February 12, 2019
Beach Energy (BPT)
Beach energy investors were rewarded with a 5% bump in price off the back of announcing a 147% increase in revenue and an almost 200% increase in underlying profit in the first half. Strong cash flows have allowed them to also upgrade their guidance for the next half.
Like we’ve spoken about before, stocks with high PE ratios come with high expectations and that played out for CSL, as their interim profit beat forecasts but still seemed to disappoint shareholders. Their share price ended 4% down on 11th February.
Interim net profit came in at $US1.2 billion off an 11% improvement in revenue. The company also lifted its dividend from US$0.79 to US$0.85 or around AU$1.20.
Challenger shares moved up 1.28% on 12th February despite a net profit decrease of 79% in the 6 months ending December 2018.
Challenger had already signalled the profit slump to the market, so seeing the actual results may have enabled the market to firm up the price a little.
Interim dividends remained at 17.5 cents fully franked.
Transurban Group (TCL)
Transurban shares closed down 1.93% on 12th February after the company posted mixed earnings results. Revenue was up 30.2% while profit from ordinary activities was down 56%.
The discrepancy in Transurban’s results was due to a jump in running costs including interest on debt, depreciation, construction and salary costs. Transurban announced dividends of 29 cents per share, which is an increase from last year.
Bendigo & Adelaide Bank (BEN)
At market close on 11th February, Bendigo shares were down 6.82% after delivering results below analyst expectations. Compared to the same period last year, profit is down over 12% and cash earnings are also down.
Bendigo’s EPS dropped 13.3% to 41.7 cents and dividend remain at 35 cents per share.
Major drivers of Bendigo’s results were the higher cost of funds, legal fees, salary costs and software licences.
JB HiFi (JBH)
— Jessica Gardner (@jessigardner) February 10, 2019
JB HiFi shares finished up 1.77% on 11th February. While December was a softer quarter for retail sales, JB Hi-Fi seems to have bucked the trend, posting 5.5% profit growth. Online sales increased by 21% EPS increased to 139.4 cents and a 91 cent interim dividend was announced.
Week One (24th January – 8th February)
REA Group (REA)
Shares in Realestate.com owner REA Group sank almost 5% despite the group posting a 15% increase in revenue and net profit and EPS growth of 20%. The devil was in the detail, and in this case it was listing numbers that seemed to spook some investors with a notable decline in house listings (3% nationally, 10% in Sydney), the primary money earner for the website. REA will pay an interim dividend of 55 cents.
AGL Energy (AGL)
The AGL mid-year report was a tale of two profits. Their underlying profit, which excludes exceptional items, was up 10% while their statutory profit was down by 53%. Investors reacted negatively to the update, driving the price of the stock down 4.78% on 7th February.
The energy company will pay an interim dividend of 55 cents.
Commonwealth Bank Australia (CBA)
The market’s reaction to Commonwealth Bank’s half-year report was muted. After reporting on 6th February, its share price fell by 1.36%, which was immediately counteracted by a rise of 2.01% the following day. NPAT and EPS grew slightly and statutory profit was down, however, this included the revenue forgone by discontinuing some of their operations. The bank declared a $2 per share dividend.
Genworth shares soared almost 10% in the following few days after its half-year earnings announcement, despite a decline in net profit of almost 50%. The mortgage insurance provider announced a 9 cent fully franked dividend.
Insurance Advice Group (IAG)
Investors sent IAG shares 4.25% higher on 6th February, despite the company reporting a 33% downtick in insurance profit. IAG attributes this decline to the Sydney hailstorms and a loss on funds invested caused by the market downturn in December. Earnings for the quarter ended down 49%, which resulted in a reduced dividend of 12 cents per share.
In the few days following the release of their Q2 results, medical devices manufacturer Resmed saw its share price drop over 20%. Despite an increase in revenue, gross profit margin and profit, investors seemed to be underwhelmed by the results and sold down the stock.
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