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It’s just another day of August. We’re getting towards the end of earnings season – something probably only this finance journalist and his peers are celebrating.
At any rate, let’s get into the mix.
Today we’ve got Woolworths Group (ASX:WOW), Nine Entertainment (ASX:NEC), APA Group (ASX:APA), Lynas Rare Earths (ASX:LYC) and Tabcorp Holdings (ASX:TAH).
UBS analysts say:
- Fortescue Metals (not included in this wrap): SELL
- Nine Entertainment: BUY
- Woolworths Group: NEUTRAL
Woolworths Group
Woolworths shares were up 1.10% at 10.40am AEST per Cboe live pricing.
- Company summary: “Challenging year with rapidly changing customer expectations … inflation has moderated significantly in H2 [of FY24] with food declining as a proportion of household spend.”
- Profit after tax: $1.71B (-3.0% vs pcp)
- Earnings before costs: $6.001B (+3.9% vs pcp)
- Sales: $67.9B (+3.7% vs pcp)
- Final dividend: 57cps (AUD)
- Outlook: “Looking ahead, improving Customer scores, item growth, and lower inflation provide reason for optimism. However, we also know that our customers remain under significant mortgage and rent-related financial stress and anticipate them to remain cautious with the trading environment expected to be challenging for the rest of the financial year.”
Nine Entertainment
Nine Entertainment shares were up 1.5% at 10.40am AEST per Cboe live pricing.
- Company summary: “Growth in Digital & Subscription, offset by weaker advertising mark.”
- Profit after tax: $189.4M (-28% vs pcp)
- Earnings before costs: $361.2M (-17% vs pcp)
- Revenue: $2.6B (-3% vs pcp)
- EPS: 11.7c (-25% vs pcp)
- Final dividend: 4.5cps (AUD)
- Outlook: “While the underlying advertising market remains subdued particularly in FTA, digital display and print publishing, Nine expects it will show more positive trends as the year progresses.”
APA Group
APA Group shares were down -0.25% at 10.40am AEST per Cboe live pricing.
- Company summary: “APA has delivered another solid financial and operating result in FY24, with revenue, earnings and distribution growth, the completion of key projects and ongoing execution of our growth strategy.” – APA CEO Adam Watson.
- Profit after tax: $119M (-58% vs pcp)
- Underlying earnings before costs: $1.89B (+9.7% vs pcp)
- Revenue: $2.58B (+9.7% vs pcp)
- Final distribution: 56cps (AUD)
- Outlook: “FY25 distributions are expected to be 57 cents per security … Underlying EBITDA guidance is being provided for FY25 of $1,960 million – $2,020 million.”
Lynas Rare Earths
Lynas shares were up 1.6% at 10.40am AEST per Cboe live pricing – even as annual profit declined -73%.
- Company summary: “Profitable in a challenging market, well positioned for future growth.”
- Profit after tax: $84.5M (vs $310.7M pcp)
- Earnings before costs: $75.2M (vs $315.5M pcp)
- Revenue: $463.3M (vs $739.9M pcp)
- Closing cash: $523.8M (vs $1.01B pcp)
- Outlook: No meaningful outlook given
Tabcorp Holdings
Tabcorp Holdings shares were down -12% at 10.40am AEST per Cboe live pricing. The company was slammed on Wednesday; it has swung to a loss.
- Company summary: “Wagering turnover and net revenue performed well relative to major competitors in a soft market, driven by improved digital competitiveness.”
- Profit after tax: $-1.3B loss (vs $66.5M pcp)
- Earnings before costs: $317.7M (-18.7% vs pcp)
- EPS: -59.6cps vs 2.9cps pcp
- Final dividend: 1.3cps (-43.5% vs pcp)
- Outlook: “Tabcorp has a unique asset base which can ultimately create a complete sports entertainment experience for our customers and unlock value for shareholders … the challenge of connecting those assets to continue executing on the opportunities they present is what I find appealing about the opportunity for the Company going forward.” – CEO Gillon McLachlan.
