Altium Ltd (ALU); Appen Ltd(APX); Afterpay Touch Group Ltd(APT); WiseTech Global Ltd(WTC):
Local technology stocks are well outperforming the market after a stellar interim result from Altium released after the close on 18 February. The electronic design software maker delivered revenue growth of 24 per cent for the first half, and increased its net profit by 58 per cent year-on-year to $US23.4m. Altium shares have jumped by $5.56 or more than 20 per cent on the results - what seems to have rubbed off on its fellow high-growth tech peers. The broader tech index is up 2.6 per cent - surpassing a 0.3 per cent boost in the benchmark ASX2000. While Altium is the biggest gainer in the sector, Appen too is up by 3.7pc, Afterpay by 1.43pc, Wisetech by 4.77pc and Carsales by 1.39pc.
Blackmores Ltd (BKL):
Blackmores has reported a dip of 11 per cent in its sales to China to $65 million in the six months ending December 2018 compared to the prior corresponding half as the vitamins and supplements company released its 2019 first half results. But the company said part of the drop was due to Australian retailers changing their strategy to target the Chinese export market, competing with Blackmores' own sales to the country. Overall, Blackmores reported earnings up 11 per cent to $319 million in its half-year report with net profit after tax 0.4 per cent higher at just over $34 million. The company will pay a fully franked dividend of $1.50 on March 20 with an ex-date of March 4.
Cochlear Ltd (COH):
Hearing technology maker Cochlear has posted a 16 per cent jump in net profit for the half thanks to a boost from its services business and sound processor upgrades. The company posted sales revenue growth of 6 per cent in constant currency terms, and net profit of $128.6 million. But, Cochlear said its US and Western Europe growth rates had been hit by new product launches from its competitors. “Our emerging markets business had a strong start to the year with units growing by over 15pc. Emerging markets provide a long-term growth opportunity as awareness of and affordability for cochlear implants expands,” chief Dig Howitt told the market. Looking ahead, the company reaffirmed its expectations of net profit between $265 million and $275m, an 8 per cent to 12pc increase on the previous year. “We are targeting to maintain the net profit margin, reinvesting any efficiency gains, currency or tax benefits into market growth activities, adapting the pace of investment to revenue growth,” Mr Howitt said.
Coles Group Ltd (COL):
Supermarket Coles has announced a 14 per cent fall in half-year net profit to $738 million, in its first standalone result since spinning off from Wesfarmers late last year. Coles says total revenue is up 2 per cent to $20.3 billion, largely due to a 3.1 per cent growth in supermarkets’ sales revenue, and earnings before interest and tax are down 27.2 per cent to $567m.Coles says it won’t pay an interim dividend. Coles Group CEO Steven Cain said the result was a solid outcome in a challenging retail environment, and Coles was now laying the foundations for long term growth. “We have delivered strong cash generation and we have a robust balance sheet which will enable us to reposition the business in the years ahead,” he said.
IOOF Holdings Ltd (IFL):
Under-fire wealth group IOOF has posted markedly higher interim profits, as it vowed to “restore trust” and committed to buying ANZ Bank’s pensions and investments division. IOOF’s statutory profit surged to $135.4 million for six months ended December 31, compared to $45.2 million in the year earlier period. Underlying profit from continuing operations edged up 5 per cent to $99.9 million. “We have delivered a solid financial result in a difficult first-half year, and we’re well aware of the challenge ahead to restore trust,” acting chief executive Renato Mota said. “The royal commission has identified some serious failings within our industry and given us cause for reflection and a catalyst for change.” IOOF’s first-half revenue climbed 22 per cent. Net platform inflows amounted to $688 million during the period, while funds under management and advice rose 10 per cent to $137.8 billion. But the company remains in the crosshairs of regulators. IOOF – which also had licence conditions imposed on it by the banking regulator – warned today it expects to incur $20 million to $30 million in compliance and regulatory costs, starting immediately and into fiscal 2020.
LandMark White Ltd (LMW):
Property valuer LandMark White has voluntarily suspended its shares while it counts the costs of a data breach announced earlier this month. After shares were paused before the close, the company this afternoon revealed it had been suspended from receiving work from a “significant” number of its clients following the incident. “At this point in time we are unable to ascertain when these clients will reinstate LMW and hence when LMW will be in a position to assess with any certainty the financial impact of the Incident,” it said. “In addition, LMW anticipates that continued public commentary does not allow for an informed market for trading in LMW securities.” It said it expects to collate the financial impact of the incident and give a forecast for the year within the next two to four weeks, when it expects to return to trade. Shares in the company were hit by 10 per cent on 18 February and last traded at 38c.
Oil Search Limited(OSH):
Oil Search is charging ahead with a new gas processing train in Papua New Guinea after it saw full-year profit jump 13 per cent year on year thanks to sky-high oil prices. This profit came despite a major earthquake that halted its operations for months. The company has recorded a profit of $US341.2 million for 2018, due to stronger global oil and gas prices which lifted its price per barrel by around 27 per cent from $US55.68 a barrel to $US70.65 and a 31 per cent jump in gas prices. Shares are down 1.6 per cent to $8.02 this morning.
Orocobre Ltd (ORE):
Lithium producer Orocobre has cut its production guidance for fiscal 2019 as rainfall at its flagship Olaroz lithium facility in Argentina reduced the project’s output, sending its shares to a near two-month low. The miner said in a statement on Tuesday that it expects annual production to be about the same as in fiscal 2018, down from an earlier forecast of higher than in 2018. The rains have not caused any material production stoppages or other disruptions, but output has been affected by dilution of the brine feedstock, Orocobre said. Orocobre produced 12,470 tonnes of lithium carbonate in fiscal 2018, five per cent higher than a year earlier. ORE shares last down 3.58pc to $2.96.
Seven West Media Ltd (SWM):
Shares in Seven West Media have sunk more than 10 per cent after the media company slashed its annual earnings guidance following a drop in first-half profit, amid headwinds across the television advertising market. Kerry Stokes has forecast annual underlying earnings before interest and tax growth of flat to five per cent, compared to its guidance of five to 10 per cent growth in August. First-half underlying EBIT fell 4 per cent to $146.8 million, hurt by a 1.5 per cent fall in revenue to $797.4 million. Seven has flagged a “low single digit” fall in the metropolitan television advertising market for the current financial year after a “softer” ad market in the three months to December. Tim Worner is confident its freeto-air TV network Seven will continue to dominate in both ratings and revenue, citing its new cricket broadcast rights as a big driver in attracting advertisers. “Our acquisition of the cricket rights, at a lower cost per hour than the Tennis, has paid off with ratings exceeding our projections,” he said. SWM last down 7.97pc to 52c.
（Source: AIMS）
Local technology stocks are well outperforming the market after a stellar interim result from Altium released after the close on 18 February. The electronic design software maker delivered revenue growth of 24 per cent for the first half, and increased its net profit by 58 per cent year-on-year to $US23.4m. Altium shares have jumped by $5.56 or more than 20 per cent on the results - what seems to have rubbed off on its fellow high-growth tech peers. The broader tech index is up 2.6 per cent - surpassing a 0.3 per cent boost in the benchmark ASX2000. While Altium is the biggest gainer in the sector, Appen too is up by 3.7pc, Afterpay by 1.43pc, Wisetech by 4.77pc and Carsales by 1.39pc.
Blackmores Ltd (BKL):
Blackmores has reported a dip of 11 per cent in its sales to China to $65 million in the six months ending December 2018 compared to the prior corresponding half as the vitamins and supplements company released its 2019 first half results. But the company said part of the drop was due to Australian retailers changing their strategy to target the Chinese export market, competing with Blackmores' own sales to the country. Overall, Blackmores reported earnings up 11 per cent to $319 million in its half-year report with net profit after tax 0.4 per cent higher at just over $34 million. The company will pay a fully franked dividend of $1.50 on March 20 with an ex-date of March 4.
Cochlear Ltd (COH):
Hearing technology maker Cochlear has posted a 16 per cent jump in net profit for the half thanks to a boost from its services business and sound processor upgrades. The company posted sales revenue growth of 6 per cent in constant currency terms, and net profit of $128.6 million. But, Cochlear said its US and Western Europe growth rates had been hit by new product launches from its competitors. “Our emerging markets business had a strong start to the year with units growing by over 15pc. Emerging markets provide a long-term growth opportunity as awareness of and affordability for cochlear implants expands,” chief Dig Howitt told the market. Looking ahead, the company reaffirmed its expectations of net profit between $265 million and $275m, an 8 per cent to 12pc increase on the previous year. “We are targeting to maintain the net profit margin, reinvesting any efficiency gains, currency or tax benefits into market growth activities, adapting the pace of investment to revenue growth,” Mr Howitt said.
Coles Group Ltd (COL):
Supermarket Coles has announced a 14 per cent fall in half-year net profit to $738 million, in its first standalone result since spinning off from Wesfarmers late last year. Coles says total revenue is up 2 per cent to $20.3 billion, largely due to a 3.1 per cent growth in supermarkets’ sales revenue, and earnings before interest and tax are down 27.2 per cent to $567m.Coles says it won’t pay an interim dividend. Coles Group CEO Steven Cain said the result was a solid outcome in a challenging retail environment, and Coles was now laying the foundations for long term growth. “We have delivered strong cash generation and we have a robust balance sheet which will enable us to reposition the business in the years ahead,” he said.
IOOF Holdings Ltd (IFL):
Under-fire wealth group IOOF has posted markedly higher interim profits, as it vowed to “restore trust” and committed to buying ANZ Bank’s pensions and investments division. IOOF’s statutory profit surged to $135.4 million for six months ended December 31, compared to $45.2 million in the year earlier period. Underlying profit from continuing operations edged up 5 per cent to $99.9 million. “We have delivered a solid financial result in a difficult first-half year, and we’re well aware of the challenge ahead to restore trust,” acting chief executive Renato Mota said. “The royal commission has identified some serious failings within our industry and given us cause for reflection and a catalyst for change.” IOOF’s first-half revenue climbed 22 per cent. Net platform inflows amounted to $688 million during the period, while funds under management and advice rose 10 per cent to $137.8 billion. But the company remains in the crosshairs of regulators. IOOF – which also had licence conditions imposed on it by the banking regulator – warned today it expects to incur $20 million to $30 million in compliance and regulatory costs, starting immediately and into fiscal 2020.
LandMark White Ltd (LMW):
Property valuer LandMark White has voluntarily suspended its shares while it counts the costs of a data breach announced earlier this month. After shares were paused before the close, the company this afternoon revealed it had been suspended from receiving work from a “significant” number of its clients following the incident. “At this point in time we are unable to ascertain when these clients will reinstate LMW and hence when LMW will be in a position to assess with any certainty the financial impact of the Incident,” it said. “In addition, LMW anticipates that continued public commentary does not allow for an informed market for trading in LMW securities.” It said it expects to collate the financial impact of the incident and give a forecast for the year within the next two to four weeks, when it expects to return to trade. Shares in the company were hit by 10 per cent on 18 February and last traded at 38c.
Oil Search Limited(OSH):
Oil Search is charging ahead with a new gas processing train in Papua New Guinea after it saw full-year profit jump 13 per cent year on year thanks to sky-high oil prices. This profit came despite a major earthquake that halted its operations for months. The company has recorded a profit of $US341.2 million for 2018, due to stronger global oil and gas prices which lifted its price per barrel by around 27 per cent from $US55.68 a barrel to $US70.65 and a 31 per cent jump in gas prices. Shares are down 1.6 per cent to $8.02 this morning.
Orocobre Ltd (ORE):
Lithium producer Orocobre has cut its production guidance for fiscal 2019 as rainfall at its flagship Olaroz lithium facility in Argentina reduced the project’s output, sending its shares to a near two-month low. The miner said in a statement on Tuesday that it expects annual production to be about the same as in fiscal 2018, down from an earlier forecast of higher than in 2018. The rains have not caused any material production stoppages or other disruptions, but output has been affected by dilution of the brine feedstock, Orocobre said. Orocobre produced 12,470 tonnes of lithium carbonate in fiscal 2018, five per cent higher than a year earlier. ORE shares last down 3.58pc to $2.96.
Seven West Media Ltd (SWM):
Shares in Seven West Media have sunk more than 10 per cent after the media company slashed its annual earnings guidance following a drop in first-half profit, amid headwinds across the television advertising market. Kerry Stokes has forecast annual underlying earnings before interest and tax growth of flat to five per cent, compared to its guidance of five to 10 per cent growth in August. First-half underlying EBIT fell 4 per cent to $146.8 million, hurt by a 1.5 per cent fall in revenue to $797.4 million. Seven has flagged a “low single digit” fall in the metropolitan television advertising market for the current financial year after a “softer” ad market in the three months to December. Tim Worner is confident its freeto-air TV network Seven will continue to dominate in both ratings and revenue, citing its new cricket broadcast rights as a big driver in attracting advertisers. “Our acquisition of the cricket rights, at a lower cost per hour than the Tennis, has paid off with ratings exceeding our projections,” he said. SWM last down 7.97pc to 52c.
（Source: AIMS）
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