Reporting season updates: All the latest news from the ASX as companies deliver their financial reports
Stay across Tuesday’s markets and main events as we march into the second week of another busy earnings season.
Monday brought some tough fortunes for the likes of manufacturer Bluescope Steel, New Zealand dairy company a2 Milk and property developer Lendlease. Markets were seemingly less than pleased with forecasts dished out by a2 for the coming year despite showing resilience in China’s infant formula market.
Bluescope’s profits were down following weaker performances here in Australia and Lendlease extended its losses to $1.5 billion loss for the 2024 financial year.
Let’s see how Tuesday’s contenders hold up.
We’ll hear from retailer Baby Bunting, providing insight into retail sentiment.
But it’s a big day for contractors.
Monadelphous will report after losing a major contract with Albemarle. We will also here from the ever-growing mining services company Mader Group and underground specialist Perenti will also report for the year, as will Macmahon.
Plus expect updates from royalties business Deterra, Dexus and Vicinity Centres.
Key Events
Perenti’s net profit flat
The Mark Norwell-led mining contractor’s profit attributable to members was off 0.3 per cent on the prior year to $95.47m.
Revenue lifted 16 per cent to $3.34 billion, and is expected to come in at between $3.4 billion and $3.6 billion in FY25. And EBITDA was up 16.7 per cent to $552.6m.
Perenti’s current work in hand is $5.1b and free cashflow was $184.5m.
The contracor has declared a 4 cents per share final dividend, taking the total FY24 dividend to 6 cents per share.
“The recommencement of dividends is a tangible demonstration of our optimism that we will continue to deliver free cash flow in the future,” chief executive Mark Norwell said.
“To offer our shareholders additional certainty, we are pleased to announce that the Board has agreed to a dividend policy targeting a payout of 30-40 per cent of underlying NPAT(A) during the years ahead.”
Chief financial officer Peter Bryant, who resigned to go to Perth Airport, will be replaced by Michael Ellis.
Maintenance contractor Mader lifts profit
Luke Mader’s namesake business has continued its growth streak, turning a $50.4 million profit for the year.
That’s up 31 per cent on this time last year. Revenue across its operations in Australia and North America were up, lifting 27 per cent over the year to $774.5m.
Mader Group’s chief executive Justin Nuich said the group had exceeded revenue and profit targets of $770m and $50m respectively.
“Our performance this financial year highlights the business’ transformation into a diversified, global technical services provider,” he said.
“In Australia we have once again delivered impressive results, surpassing expectations with a 25 per cent year-on-year increase.”
The group’s business is servicing mobile and fixed plant equipment in mining, energy and transport.
Looking ahead to FY25 the group was still upbeat, saying the outlook remains “strong across all markets.
‘Prospects positive’ Monadelphous boss says
The Victoria Park-headquartered contractor’s profit ticked up 16.2 per cent on the prior year to $62.2 million.
Revenue was up across engineering and maintenance services to deliver overall takings of $2.03 billion, an 11 per cent increase.
Despite commodity prices wobbles in the likes of iron ore and lithium, Monadelphous Managing Director Zoran Bebic said fundamentals of the sector were “robust”.
“Prospects remain positivein resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects makingup an increasing share of capital expenditure forecastsand the pipeline of renewal energy opportunities expanding.,” he said.
The contactor has declared a final dividend of 33 cents per share taking its full year payout to 58c.
And the US overnight with CNBC
Stocks advanced on Monday, building on the market’s comeback as investors readied for the closely watched Federal Reserve symposium later this week.
The Dow Jones Industrial Average added 236.77 points, or 0.58 per cent, to finish at 40,896.53. The S&P 500 rose 0.97 per cent to close at 5,608.25, while the Nasdaq Composite jumped 1.39 per cent and ended at 17,876.77. The S&P 500 and Nasdaq notched their eighth straight winning day, a first for both indexes in 2024.
Monday’s moves mark an extension of the recent recovery rally, which has been the latest turn amid a choppy stretch for equities. Notably, last week ushered in the biggest gains for the three major indexes this year.
August had a turbulent start after disappointing data fuelled recession fears and bolstered concerns that the Federal Reserve was behind the curve on lowering interest rates. Those worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022.
But fresh data last week seemed to subdue an anxious market and boost hopes that the economy can attain a soft landing scenario.
The annualized inflation rate measured in July’s consumer price index touched its lowest level in more than three years.
“The market has almost fully recovered from the overblown recession fears earlier this month,” said Greg Marcus, managing director of UBS Private Wealth Management. But, “we expect volatility to remain high for the rest of the year.”
CNBC
The ASX on Monday
More positive than gloomy financial results dragged the Australian share market into positive territory, although serious concerns about the iron ore price loom large.
Jim Chalmers raised the alarm about a looming $3bn hole in the public purse should the ore price stay below Treasury forecasts, and on Monday the market responded in kind.
While the S&P/ASX 200 rose 9.3 points, or 0.12 per cent, to 7980.4 and a two-week high, the materials and energy sectors lost more than half a point each.
Four of the 11 sectors were in the green.
AAP.
Originally published on The West Australian
