Domain Holdings (ASX:DHG) Shares Surge 8.4% on Strong FY Profit Growth and Positive Outlook

August 16, 2024 11:25 AM AEST | By Team Kalkine Media

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Domain Holdings (ASX:DHG) Shares Surge 8.4% on Strong FY Profit Growth and Positive Outlook — Image source: © Littlemacproductions | Megapixl.com

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Domain Holdings Australia (ASX:DHG) saw its shares jump by as much as 8.4% to AU$3.35 during Friday’s trading session, marking the company’s largest intraday gain since 9 August 2022. This significant rise propelled the stock to its highest level since July 22, making it the top performer on the benchmark S&P/ASX 200 Index (.AXJO) for the day.

Strong Financial Performance Drives Gains

The surge in Domain Holdings’ share price follows the company’s announcement of robust full-year financial results. The online property marketplace provider reported a 28% increase in net profit attributable to shareholders, accompanied by a 13.1% growth in revenue. These solid results reflect the company’s ability to capitalize on the recovering property market, which has been buoyed by increased buyer activity and a higher volume of property listings.

Dividend Maintained Amid Optimistic Outlook

In addition to the strong financial results, Domain Holdings declared a dividend of 4.0 Australian cents per share, consistent with last year’s payout. The decision to maintain the dividend reflects confidence in the company’s future prospects, as management highlighted continued growth in July trading, with new ‘for sale’ listings rising by 4%.

Looking ahead, Domain Holdings expects stable EBITDA margins in the fiscal year 2025, suggesting that the company is well-positioned to sustain its profitability amid ongoing market dynamics.

Weekly Performance and Year-to-Date Outlook

The strong performance on Friday has also boosted the stock’s weekly gains to 3.9%, putting it on track to achieve its best weekly performance since July 12, provided the gains hold through the end of the trading week. However, despite the recent uptick, Domain Holdings shares remain down 10.4% year-to-date as of the last close, indicating that the company has faced challenges earlier in the year. The latest rally may signal a potential turnaround, with investors reacting positively to the company’s robust earnings and optimistic outlook.

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