AUS
NZ
UK
CA
USA
IND
Highlights
- The US Fed has targeted to bring down inflation to 2%.
- The measures to bring down inflation will also bring trouble to businesses and households.
- In Australia, the consumer price index (CPI) rose 1.8% in the June quarter.
Skyrocketing US inflation has threatened emerging companies dependent on the US economy for their growth. It is expected that an effort to bring down inflation might hurt households and businesses.
In a speech on Monetary Policy and Price Stability by Jerome H Powell, Chair of the Federal Reserve of United States, stated that the focus of the Federal Open Market Committee (FOMC) is to reduce inflation back to 2%. Other major highlights from his speech are as follows:
He also stated that the US is moving its policy stance purposefully to a sufficiently restrictive level to cut down inflation to 2%. In particular, he drew out three important lessons:
Similarly, Europe is also struggling with rising inflation. The annual inflation in July 2022 was 8.9%, up from 8.6% in June 2022. The Russian invasion of Ukraine has severely impacted the European economy with trade disruptions and soaring energy and commodity prices.
Let us take a look at some of the ASX-listed companies based in the US.
Boart Longyear Group Ltd (ASX:BLY)
During the first half of FY22, BLY’s revenue surged 18%, and adjusted EBITDA increased by 14%. The innovative drilling equipment and performance tooling firm also reported a 147% increment in net profit after tax (NPAT).
Demand from customers mainly in the Latin America, Canada and US led to a vibrant price and surge in volume for the company’s drilling services.
EBR Systems Inc (ASX:EBR)
EBR Systems, Inc. is a medical device company. It develops a wireless cardiac pacing system for heart failure.
Following are the major highlights of the company for the half year ended 30 June 2022
- Executed a 5-year agreement worth US$ 50 million growth capital facility with Runway Growth Capital, LLC
- Ended the half year with a cash position of US$79.3million
- Operational expenses of US$16.5million, an increase of US$6.3million compared to prior corresponding period (pcp), backed by an increase in research and development expenses and clinical trial
GQG Partners Inc (ASX:GQG)
GQG Partners Inc. manages global and emerging market equities. The ASX-listed firm specialises in boutique asset management on a global basis.
During H122, the company’s revenues from ordinary activities increased by 21.3%. However, net profit to members decreased by 14.4%. Similarly, the company’s operating expenses increased by 27.6%.
Candy Club Holdings Ltd (ASX:CLB)
Candy Club specialises in confectionary activities operating through both business-to-business (B2B) and business-to-customer (B2C) divisions.
The company’s revenues from ordinary activities increased by 1.6% in the half year ended 30 June 2022. However, the company incurred a loss of US$3.28million, which was 19.1% lower than the previous year.
BuildingIQ Inc (ASX:BIQ)
BuildingIQ develops services and solutions to help lowering energy use for building owners and operators worldwide and improve building operations efficiency and tenant comfort.
Highlights of BIQ for the second quarter of FY2021 ending 30 June 2021.
- Unaudited total income: AU$0.172million
- Revenue: AU$0.172million
- As per the company, its business development activities in the US were impacted by COVID-19. The pandemic resulted in a reduction of the workforce and slow restoration of the supply chain.
- It reported that it is committed to launching its recent version of the product offering in the latter part of 2022.
Imricor Medical Systems Inc (ASX:IMR)
In 1H22, Imricor Medical Systems’ revenues from consumable products surged by 159% to US$229 thousand. Further, Imricor signed a new site, summing up total sites to 15. It also signed an agreement with Siemens to employ its upcoming 3D mapping system. As of 30 June 2022, the company had a cash balance of US$9.1 million.
The company specialises in magnetic resonance imaging (MRI)-compatible products.
Keypath Education International Inc (ASX:KED)
Keypath Education is steered by its mission to be a world leader in education transformation. It offers technology-enabled online higher education programs to students.
The company’s revenue in FY22 was US$118.4 million, reflecting a growth of 20.7% compared to FY21. Its annual EBITDA was US$10.5 million, surpassing forecasts by US$1.1 million. Similarly, the company added 49 new programs and seven new partners during the reporting period.
Pivotal Systems Corp (ASX:PVS)
Pivotal Systems Corporation deals with performance gas flow control products. In the half year ended 30 June 2022, the company’s revenue from ordinary activities declined by 35%, and it incurred a net loss of US$10.04million. The company attributes the loss to lower sales volume, reduced overhead absorption and inflation in the supply chain.
