Earnings Wrap: why is the utilities sector tanking & other big name earnings on Thursday

It’s that time of year again – earnings season, where the big names of the ASX200 either make or break the hearts that love them.

Let’s take a quick look at five big names reporting today – Origin Energy, Treasury Wine Estates, NRW Holdings, Cochlear, and, Magellan.

Remember: when it comes to earnings, whether or not the company meets expectations is really more important than anything. Trading decisions are made before the reports are even read based on that.

Origin Energy

Origin Energy (ASX:ORG) has missed expectations for profits, and it published a forward-looking outlook on Thursday that the market hasn’t liked. That’s even as electricity gross profits climbed by $1B.

Despite this, Origin management expect such gains won’t be replicated through FY25.

Shares have tanked -10%, bringing down the entire utilities sector on the ASX. Losses weren’t far off a mammoth -5% for the entire sector in afternoon trades.

• Underlying profit: $1.18B
• Underlying earnings: $3.52B
• Final dividend: 27.5cps

Treasury Wine Estates

Treasury Wine Estates (ASX:TWE) has reported profit in line with expectations – a must for any large company on earnings day hoping to stay in the green.

However, some analysts have perceived the company’s FY25 outlook as being slightly less robust than would have been desired. Shares were down -0.41% in lunchtime trades – nowhere near as dramatic as Origin.

• Revenue: $2.8B (+12.9% vs pcp)
• Profit after tax: $407.5M (+8.3% vs pcp)
• Earnings before tax: $658.1M (+12.8% vs pcp)

NRW Holdings

NRW Holdings (ASX:NRW) has posted a record FY24 performance in which profit jumped nearly 20% to $124M. Revenue increased in line 9% to nearly $3B with earnings before taxes at $335M – a jump of 16%.

The company has fattened its FY24 dividend to 15.5c on an aggregate basis, an 11% climb over FY23.

• Revenue: $2.9B (+9.2% vs pcp)
• Earnings before tax: $195.1M (+17.4% vs pcp)
• Profit after tax: $123.8M (+18.6% vs pcp)

Cochlear

Cochlear (ASX:COH) has missed earnings expectations in FY24 and, in a trend familiar from some other big names today, has pointed to weaker FY25 outlook.

Full year profits increased 19% to nearly $360M, however, analysts had been hoping for closer to $400M. Talk about high expectations. Perhaps unsurprisingly, the stock has boosted its dividend.

• Sales revenue: $2.25B (+15% vs pcp)
• Statutory net profit: $357M (+19% vs pcp)
• Underlying net profit margin: 17%

Magellan Financial Group

Magellan Financial Group (ASX:MFG) has posted a climb in profits of 2% to $178M in FY24. The company declared a final dividend of 28.6cps and a performance fee dividend of 7.1cps.

The company also announced its acquisition of another entity, Vinva Holdings, for just short of $140M. It expects “immediate upside” from the deal.

• Profit after tax: $238.8M (+31% vs pcp)
• Average FUM: $36.8B (-25% vs pcp)
• Adjusted diluted earnings per share: 98.2cps (+3% vs pcp)