From Healius to AMP: How these stocks reacted to Sept quarter numbers

Highlights

  • Healius surged nearly 8% after reporting a significant surge in quarterly revenue.
  • AMP shares rose over 5% following the company’s September quarter business update.
  • Woodside Petroleum shares dropped despite posting robust earnings.
  • Santos shares fell over 1% in spite of delivering record sales revenue in Q3 FY21.
  • Shares of Perpetual climbed over 9% on robust earnings.

Australian shares witnessed choppy trade on Thursday in absence of any major trigger on the domestic or global front. Investors seemed to have set aside inflation concerns and shifted focus to corporate earnings announcements. The equity market saw stock-specific reactions based on quarterly numbers, with some big companies such as AMP, Woodside Petroleum, Healius, Santos, and Perpetual releasing their September quarter business updates this morning.

Here’s how investors reacted to the quarterly numbers of these companies:

Healius

Shares of health care firm Healius (ASX: HLS) rallied nearly 8% as investors cheered the company’s September quarter business update. The Healius share price gained as much as 7.9% to hit an intraday high of AU$4.91.

The company informed its shareholders that it reported 44% growth in its revenue in the September quarter of FY22, on the back of COVID-19 testing and a stronger performance by all business segments.

Quarterly revenue surged to AU$690 million, up from AU$480 million in the same period last year. The underlying earnings before interest and tax (EBIT) for the quarter more than doubled to AU$202 million, compared to same period last year.

The company said that its pathology revenues rose as it conducted more than 40,000 COVID-19 tests per working day.

AMP

Shares of financial services company AMP (ASX: AMP) jumped as much as 5.3% to AU$1.18 during the day’s trade on Thursday. The share price surged after the wealth manager provided a business update for the third quarter of the current financial year 2021.

The company reported Australian wealth management (AWM) assets under management (AUM) at AU$131.2 billion during the third quarter ended September 30, 2021. AWM net cash outflows stood at AU$1.4 billion in Q3 21, improved from A$1.8 billion in same period last year.

Meanwhile, AMP Bank’s total loan book increased to AU$21.3 billion, while AMP Capital’s AUM fell by 4% to AU$180.3 billion.

“AMP Bank has delivered another strong quarter, amid a very active market, helping more of our customers to purchase a home,” says Alexis George, CEO, AMP.

“We’ve progressed our transformation of wealth management enabling us to deliver superannuation fee reductions at the start of Q4 as we committed. We’ve also continued to invest in our North platform, which has again grown assets under management,” George added.

Woodside Petroleum

Shares of oil and gas major Woodside Petroleum (ASX: WPL) declined 1.8% to touch an intraday low of AU$24.07 after it released its third quarter business report. The stock dropped despite posting strong earnings in the September quarter.

The energy company’s sales revenue rose 19% to AU$1,531 million, compared to the previous quarter.

For the quarter ended September 30, 2021, the company delivered oil production of 22.2 million barrels of oil equivalent (MMboe), down 2% from Q2 2021. Average realised price rose to AU$59 per barrel of oil equivalent, up 28% from Q2 2021.

During the quarter under review, the company also entered into a merger commitment deed with BHP Group (ASX: BHP) to merge its oil and gas portfolio with Woodside.

Going ahead, the company expects to continue good performance in the fourth quarter. “We expect in the fourth quarter to see the benefit of stronger pricing on our realised prices, reflecting the oil price lag in many of our contracts and recent increases in gas hub prices. Our production guidance remains unchanged at 90-93 MMboe,” says Meg O’Neill, CEO, Woodside Petroleum.

Santos

Australian energy major Santos (ASX: STO) saw its shares falling as much as 1.1% to AU$7.2 after releasing its September quarter business update.

The oil and gas producer reported record sales revenue of US$1.14 billion in Q3 FY21, up 6% compared to the same period last year, driven by strong business performance and higher commodity prices.

The third quarter production dropped by 3% to 21.9 million barrels of oil equivalent, compared to the previous quarter.

The firm’s free cash flow rose to US$359 million, which helped the company reduce its debt to US$3.1 billion.

During the quarter, the company signed an agreement with Oil Search to merge the two companies in an all-scrip transaction. Santos will own 61.5% stake in the merged entity, while Oil Search shareholders will hold the remaining 38.5% shares.

Commenting on Q3 earnings, Managing Director and Chief Executive Officer Kevin Gallagher said, “We disciplined, low-cost operating model continues to drive strong performance with US$931 million of free cash flow generated in the first nine months of 2021.”

“At current commodity prices, Santos should generate close to US$1.3 billion in free cash flow for the full year,” he added.

Perpetual

Shares of fund manager Perpetual (ASX: PPT) climbed as much as 9% to AU$40.86 after the company reported robust earnings in the September quarter.

PPT’s assets under management (AUM) grew by 2.7% to AU$101 billion in the third quarter, helped along by AU$100 million in net inflows.

Assets in the company’s international fund management unit rose 2.6% to AU$75.5 billion, while the local business grew assets 3% to AU$25.5 billion.

Chief Executive Officer and Managing Director, Rob Adams said, “We have had a positive start to the financial year with continued momentum across the business and all four divisions reporting solid growth to start the new financial year.”

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