From EML Payments to Pepper Money: 5 ASX shares running hot today

Highlights

  • EML Payments shares surged over 27% after it issued an update on its Irish subsidiary.
  • Fisher & Paykel Healthcare rose more than 7% following H1 FY22 earnings report.
  • NRW Holdings jumped 12% on optimism about earnings outlook.
  • Pepper Money gained over 9% after it upgraded its profit guidance for calendar year 2021.
  • Adairs shares jumped nearly 12% on acquisition news.

Australian shares witnessed lacklustre trade on Thursday amid persistent concerns about rate hike while mixed global cues also weighed on market sentiment. The ASX 200 benchmark index was trading near baseline as losses in health care and financial stocks were offset by gains in tech and mining companies. The top gainer on the ASX was payment solutions company EML Payments (ASX:EML), while diversified financial services company AMP (ASX:AMP) topped the losers’ chart.

Individual shares that dominated trade on the ASX today are: EML Payments, Fisher & Paykel Healthcare, NRW Holdings, Pepper Money, and Adairs. Here’s why these companies were in focus today:

EML Payments

Shares of EML Payments (ASX: EML) rallied 27.6% to hit an intraday high of AU$3.51 after the payment solution company issued an update on its Irish subsidiary.

The fintech company, in an exchange filing, said that Ireland’s central bank has permitted its subsidiary, PFS Card Services (Ireland) Limited (PCSIL), to sign new customers and launch new programs with certain conditions.

The Central Bank has also decided to continue to engage with the company to agree appropriate limits under its Risk Management and Controls Framework.

Fisher & Paykel Healthcare

Shares of Fisher & Paykel Healthcare (ASX: FPH) rose 7.3% to AU$34.55 after it announced half yearly earnings report for the 2022 financial year.

For the six months ended 30 September 2021, total operating revenue fell 1% to AU$900 million, compared to the prior year period.

The respiratory device manufacturer and marketer has posted AU$222 million in net profit after tax, a 2% fall compared to the same period last year.

The company has also declared an interim dividend of 17 cents per share, which will be paid on 15 December 2021 with a record date of 3 December 2021.

Commenting on the earnings, Managing Director and CEO Lewis Gradon said, “For nearly two years now, our customers have been working selflessly to care for patients during a pandemic. Our people and our suppliers have also been working under demanding circumstances, and we are grateful for their relentless
commitment.”

“As you may recall, the first half of the last financial year was a period of extraordinary demand during the initial surges of COVID-19. Our financial results in the first half of the 2022 financial year have continued to be very strong,” Gradon added.

NRW Holdings

Shares of NRW Holdings (ASX: NWH) surged 11.9% to hit an intraday high of AU$1.79 after the company expressed confidence to meet its profit guidance for the 2022 financial year.

Speaking at the Annual General Meeting (AGM), CEO Jules Pemberton said the company is on track to achieve the higher end of profit guidance of between AU$145 million and AU$155 million for FY22.

The order book, which stood at AU$3.4 billion at the end of FY21, is expected to grow to at least AU$4.4 billion following the recently announced letter of intent for the extension of mining services at Curragh, said Pemberton.

Pepper Money

Shares of Pepper Money (ASX: PPM) jumped as much as 9.1% to AU$2.40 apiece after the recently listed company upgraded its profit guidance for calendar year 2021.

The consumer finance company expected its net profit after tax to be in range of AU$135 million to AU$138 million, an upgrade over the previous estimate of AU$120.7 million. The hike in profit guidance was driven by continued strong originations growth, says Mario Rehayem, CEO, Pepper Money.

“Our originations continue to hit milestones, and, in the 10 months to October we have delivered $5.1bn in Originations on Mortgages and $1.6bn in our Asset Finance business. Combined, originations to October 2021 at $6.7bn exceed our full year IPO forecast,” said Rehayem.

Adairs

Shares of Adairs (ASX: ADH) traded higher by 11.7% to AU$3.82 after the homewares retailer agreed to acquire Focus on Furniture, a vertically integrated omni-channel furniture retailer operating in Australia. The deal values Focus on Furniture at AU$80 million on a debt free basis. The transaction will be effective from 1 December 2021.

The transaction value of the deal includes AU$74 million in cash and a AU$6 million placement of ordinary Adairs shares to the major shareholder.

Speaking on the acquisition Mark Ronan, Group CEO and Managing Director, said: “This is an exciting and strategically significant development for the Adairs Group. Focus builds out our product offering in the key area of home furniture and increases the exposure we have to that market by almost three times.”

“The acquisition will be earnings per share accretive from day one and we see strong growth opportunities that have the potential to drive sales of $250m+ over the next 5 years,” Ronan added.

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