- Shares of investment conglomerate Wesfarmers dropped over 3% despite robust earnings.
- Gold miner Resolute Mining dropped as much as 4.5% on disappointing results.
- Lynas Rare Earths shares tumbled after releasing its earnings report for FY21.
- Natural beauty business BWX will acquire a 50.1% stake in Go-To Skincare.
- Appen has extended fall for second day on weak earnings.
The Australian share market continued its losing streak for the second day, with the benchmark index, ASX 200, dropping as much as 0.35% by lunchtime. The market witnessed muted trading as investors turned cautious ahead of the global central bankers’ meeting today, which may bring clarity on timing of stimulus tapering. Some major companies such as Wesfarmers, Lynas Corporation, Resolute Mining, BWX, NEXTDC and Mayne Pharma announced their earnings report this morning.
Here are the top ten stocks that created a buzz on thee ASX today.
Wesfarmers’ FY21 profit jumps 40%, revenue rises 10%
Investment conglomerate Wesfarmers’ (ASX: WES) shares declined as much as 3.2% to AU$61.92 despite reporting robust earnings.
Headquartered in Perth, the company reported 40% growth in statutory net profit after tax at AU$2.38 billion in FY 2021, compared to AU$1.7 billion a year ago. Revenue grew 10% to AU$33.94 billion, from AU$30.85 billion in the last fiscal. The earnings before interest and tax (EBIT) rose 18.8% to AU$3.78 billion.
Boosted by strong earnings, the group declared a fully franked final dividend of 90 cents per share. Adding to it, the company has also proposed a return of capital of 200 cents per share, representing a AU$2.27 billion distribution.
Resolute Mining posts AU$220M loss in H1 FY21
Shares of gold miner Resolute Mining (ASX: RSG) shares dropped as much as 4.5% to AU$0.42 on disappointing earnings.
The company posted a net loss of AU$219.8 million in the half year ended June 30, 2021, driven by a AU$172.4 million asset impairment and other non-cash expenses.
Revenue dropped by 14.4% to AU$261.3 million with gold sales of 151,503 ounces at an average price received of AU$1,723 per ounce.
Total gold production slipped to 163,118 ounces, compared to 217,946 ounces in the prior comparable half.
Lynas Rare Earths post record profit in FY21
Shares of Lynas Rare Earths (ASX: LYC) declined as much as 4.5% to AU$6.6 after releasing its earnings report for the financial year ended June 30, 2021.
The mining company has reported record AU$157.1 million profit in FY21, compared to a loss of AU$19.4 million a year earlier. Revenue rose 60.3% to AU$489 million, from AU$305.1 million in the last fiscal. Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped nearly four-times to AU$235.3 million, compared to AU$59.7 million a year ago.
Strong cost control measures and favourable market conditions powered the firm’s robust earnings. However, the company did not declare any dividends for the 2021 financial year.
JB Hi-Fi’s new CEO joins office
The share price of home entertainment retailer JB Hi-Fi (ASX: JBH) declined 1.9% to hit a low of AU$45.18 after it updated about the company’s CEO transition.
In an ASX update, the e-retailer said the new chief executive and managing director, Terry Smart, has joined the office, effective from today. Smart, who previously headed The Good Guys, will replace Group Chief Executive Officer, Richard Murray, who left the company for a new role.
Adding to it, Group Chief Financial Officer, Nick Wells, will also join the board as an executive director, effective today.
BWX to acquire majority stake in Go-To Skincare
Shares of natural beauty and wellness business BWX (ASX: BWX) have been placed in a trading halt, pending an announcement. The company, which owns makeup brands Sukin, Andalou Naturals and Mineral Fusion, will acquire a 50.1% stake in Go-To Skincare for around AU$89 million.
As per the company, Go-To will independently operate and leverage BWX expertise and capability in certain areas.
The deal will be funded via an AU$85 million fully underwritten institutional placement and a AU$15 million share purchase plan.
Cochlear acquires diagnostics company Seer
Shares of medical device company Cochlear (ASX: COH) tumbled 2.5% to AU$222.62 following an acquisition news.
The company, engaged in the manufacturing of hearing device, has snapped up medtech diagnostics company Seer. The diagnostic group has raised AU$34 million from top-tier investors including Cochlear, multi-family office EWM Group, SG Hiscock and impact investor Giant Leap.
Appen profit, revenue drops
Shares of software firm Appen (ASX:APX) extended loss for the second day after posting disappointing earnings. The stock declined as much as 8.1% to AU$9.98 after falling over 19% in intraday trade on Thursday.
The tech company has reported over 50% decline in profit at US$6.7 million for the first half of the year. The revenue also dropped 2% to US$196.6 million.
Despite reporting weak earnings, the company declared an interim dividend of 4.5 cents a share, in line with the dividend paid a year ago.
Qantas Airways’ FY21 loss narrows, to resume flight by Christmas
Shares of Qantas Airways (ASX: QAN) continued gaining momentum for the second day after releasing its 2021 financial results. The share price of the carrier rose 2.2% to AU$5.16 after surging over 3% in the previous session.
The country’s largest carrier by fleet size posted underlying pre-tax loss of AU$1.83 billion in FY21, while revenue fell 58.4% to AU$5.9 billion. The airline did not declare any dividend for the year as travel restrictions impacted business. It expects to resume international services by the end of 2021.
Mayne Pharma FY21 loss widens
The share price of Mayne Pharma (ASX: MYX) tumbled 10% to AU$0.27 after its loss widened in the 2021 financial year.
The loss more than doubled to AU$209.1 million, compared to AU$94.5 million loss reported a year ago. The steep rise in loss was attributed to intangible asset impairments worth AU$229.3 million, which occurred in the first half of the year.
Revenue fell 12% to AU$400.8 million, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 18% to AU$66.1 million.
The company did not declare any dividends for the financial year.
CIMIC Group’s UGL secures contract
The share price of engineering services provider CIMIC Group (ASX: CIM) rose 0.8% to AU$21 following an ASX update.
UGL, which is owned by CIMIC, has bagged a contract for the operations of the Auckland passenger rail network in New Zealand. The company claimed the contract will generate revenue of more than NZ$600 million for UGL over an initial term of eight years.
The contract includes operating and integrating rail systems and maintaining rolling stock and other support systems for essential transport networks, to the Auckland rail network.