AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
As of 8:30 am AEST, ASX 200 futures are trading 22 points lower, reflecting a 0.27% decline. The market's focus is on significant earnings results, including those from Wesfarmers Ltd (ASX:WES) and Mineral Resources Ltd (ASX:MIN), both reporting their FY24 outcomes.
Nvidia Corporation (NASDAQ:NVDA) recently released its highly anticipated earnings report, exceeding analyst expectations with Q2 revenue rising by 122% to USD 30.0 billion, a 4.4% beat against consensus. However, Q3 guidance fell short of the highest analyst forecasts, leading to a 7% drop in Nvidia's share price during after-hours trading. The tech giant also announced a USD 50 billion share buyback, although its smallest revenue percentage beat in six quarters and Q2 gross margins were impacted by inventory provisions for low-yielding Blackwell material.
Mineral Resources reported a predictable dip in profits, primarily driven by rising debt levels. The company’s FY24 financials are in line with expectations, including an EBITDA of AUD 1 billion.
Tabcorp Holdings Ltd (ASX:TAH) faces pressure from brokers, with several downgrades following its underwhelming FY24 earnings, and the company may consider market options to address financial challenges.
This morning, attention is also on Wesfarmers Ltd (ASX:WES), Bega Cheese Ltd (ASX:BGA), and IDP Education Ltd (ASX:IEL), all set to release their earnings reports.
Overnight Market Recap
Major U.S. benchmarks closed lower, although they recovered from their worst levels during a relatively risk-off session. The "Mag-7" stocks, including Nvidia, experienced broad declines. Meanwhile, Bitcoin [BTC] dropped 5.4%, slipping below the USD 60,000 mark, while the U.S. dollar index gained 0.5% from its 12-month lows.
Key Points from Nvidia’s Q2 Earnings:
- Revenue: USD 30.0 billion (+122% YoY, 4.4% beat)
- Data Center Revenue: USD 26.2 billion (+154% YoY, 5.0% beat)
- EPS: USD 0.67 (+168% YoY, 4.6% beat)
- Q3 Revenue Guidance: USD 32.5 billion (2.2% beat, but top estimates reached USD 37.9 billion)
- Share Buyback: Announced USD 50 billion buyback plan
ASX Today
Today is expected to be another busy day for earnings reports. Investors can track all announcements via the ASX Announcements page, with companies like Baby Bunting Ltd (ASX:BBN) revealing notable updates, including HMC Capital’s (ASX:HMC) increased stake from 12.3% to 14.9%.
Nine Entertainment Co. Holdings Ltd (ASX:NEC) is reportedly evaluating options for its Domain Holdings Australia Ltd (ASX:DHG) stake, with potential interest from private equity firms such as EQT, KKR, Blackstone, and TPG.
Tabcorp Holdings Ltd (ASX:TAH) may explore market options following a disappointing FY24 earnings report, potentially impacting its financial strategy moving forward.
What to Watch Today:
The ASX 200 is likely to open lower, influenced by a weak lead from Wall Street and Nvidia's selloff, which could further pressure tech stocks. Notably, several ETFs, including those tracking gold, copper miners, and uranium, are currently experiencing pullbacks.
Key earnings reports to monitor today include:
- Mineral Resources Ltd (ASX:MIN): The company’s results align with expectations, featuring an EBITDA of AUD 1 billion and no final dividend, as projected by UBS.
- Qantas Airways Ltd (ASX:QAN): Goldman Sachs anticipates FY24 EBITDA of AUD 4.03 billion, net income of AUD 1.41 billion, EPS of AUD 0.85, and no dividend.
- Wesfarmers Ltd (ASX:WES): Morgan Stanley expects FY24 revenue of AUD 44 billion, NPAT of AUD 2.56 billion, EPS of AUD 2.26, and a total dividend of AUD 1.92 per share.
