From Monadelphous to Boral: How these stocks performed post earnings report  

Highlights

  • Shares of oil and gas producer Oil Search rose over 3% post its earnings report.
  • Australian engineering firm Monadelphous Group declined over 16% despite robust earnings.
  • The share price of global ship building company Austal tumbled 13.5% after earnings announcement.
  • Shares of medical technology company Nanosonics rallied nearly 18% following financial results.
  • Boral shares dropped nearly 7% after it scrapped dividend despite rise in profit.

The Australian share market continued gaining momentum on Tuesday, with the benchmark ASX 200 index gaining as much as 0.4% by lunch. The market witnessed surge in buying across energy, tech, material, financial and A-REIT stocks, while firm global cues also boosted sentiment.

Among individual stocks, infection prevention company Nanosonics topped the gainers’ chart, while engineering services firm Monadelphous Group declined the most.

Investors also reacted to corporate earnings announcement of index heavyweights such as Oil Search, Boral, Monadelphous, Austal and Nanosonics, which announced their earnings this morning.  

Here’s how top five stocks performed after unveiling their earnings report:

Oil Search H1 profit zooms, revenue rises

The share price of oil and gas producer Oil Search (ASX: OSH) rose 3.5% to AU$3.83 post earnings release.

Revenue rose 7% to US$667.7 million during the first half of the year ended June 30, 2021, while core net profit zoomed 463% to US$139 million.

The company, which has announced its merger with Santos, declared an interim dividend of 3.3 US cents a share, its best since 2019.

The company’s Acting Chief Executive Officer, Peter Fredricson, said the result pointed to the resilient operational performance from within the business as well as recovering conditions in the market.

Monadelphous Group hikes dividend on robust earnings

Shares of Australian engineering firm Monadelphous Group (ASX: MND) declined as much as 16.3% to AU$9.87 and emerged as the top loser on the ASX. The stock witnessed a surge in selling despite robust earnings for the 2021 financial year.

For FY21, profit rose 29% to AU$47.1 million, while revenue surged 18% to AU$1.75 billion, helped by a surge in demand for its services, especially in Western Australia.

The company also declared a final fully franked dividend of 21 cents a share, much higher than 13 cents paid a year ago.

Austal profit, revenue drop in FY21

The share price of global ship building company Austal (ASX: ASB) tumbled 13.5% to AU$2.17 after it reported drop in its earnings.

Austal’s revenue dropped 24.6% to AU$1.57 billion for the 2021 financial year, while earnings before interest and taxes declined 21% to AU$114.6 million. Net profit after tax stood at AU$81.1 million, compared to AU$89 million in FY20.

The company said it delivered a record number of ships in the year, while improvement in ship building margins boosted its earnings. The company has invested massively in the US shipbuilding, while commencement of construction of vessel is expected by May 2022.

Nanosonics FY21 revenue rises 3%, operating profit falls

Shares of medical technology company Nanosonics (ASX: NAN) rallied nearly 18% to AU$7.18 on robust earnings.

The company reported significant growth in the second half of the 2021 financial year, with revenue rising 39% compared to the first half. For the full year, revenue increased 3% to AU$103.1 million, while operating profit before tax dropped to AU$11 million, from AU$12.4 million in FY20. The company’s global installed base surged 13% to 26,750 unites.

Boral scraps dividend despite robust earnings

Construction materials manufacturer Boral (ASX: BLD) saw its shares drop as much as 6.7% to AU$6.39 after it scrapped dividend despite rise in profit.

The company’s profit rebounded to AU$639.9 million in the 2021 financial year, compared to AU$1.14 billion loss a year earlier. Revenue dropped 6.7% to AU$5.3 billion. The company said that it does not have adequate franking credits available to pay franked dividends.

Boral Chief Executive and Managing Director Zlatko Todorcevski said that the results indicated the continued mixed market conditions in Australia during the pandemic.

Going ahead, the company expects market conditions to remain mixed in the 2022 financial year.

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