10 NZX Stocks All Set For A Banner Year Ahead

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10 NZX Stocks All Set For A Banner Year Ahead

 10 NZX Stocks All Set For A Banner Year Ahead

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Summary

  • Earnings reports of companies keep the existing and potential investors updated about the companies’ performance over a particular period.
  • The timing of the release may vary and the earnings directly affect the share price of the Company.
  • Earnings statements are carefully watched by investors and investment analysts.

Companies announce their earnings by issuing a public statement about its profitability for a specific period of time. The earnings reports are meant to keep investors updated about the performance of companies and disclose areas of difficulty that the companies might be facing.

There is a direct influence of the earnings release to the Company’s stock price. If the earnings reports are good and exceed expectations, share price of a company goes up, whereas it falls if earnings are below expectations.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Let’s have a look at these 10 NZX stocks’ results that are set for a banner year ahead.

Wellington Drive Technologies Limited (NZX:WDT)

The Group posted a revenue of $36.9 million in 2020, down from $61.7 million in 2019, due to the reduced demand induced by COVID-19. However, the gross margin improved to 28.6% due to improved sales mix.

WDT expects the 2021 revenue to be between US$40 million and US$43 million and EBITDA to be in the range of $2.5 million and $3 million. On 26 February, WDT ended the trading session at $0.091, up 1.11% from its previous close.

Rua Bioscience Limited (NZX:RUA)

Rua posted an operating loss of $3.48 million for 6 months to 31 December 2020. It also reported cash on hand of $19.2 million and investment in property, plant, and equipment of $6.23 million.

The Group completed an IPO, which was oversubscribed, and raised $20 million during the period. It also completed a listing in October 2020.

Rua advanced well against its key milestones in this period and is on track to fulfil its objectives in the coming financial year.

On 26 February, RUA ended the trading session at $0.485, down 3% from its previous close.

Evolve Education Group Limited (NZX:EVO)

Evolve recorded a better result for 9 months to 31 December 2020 compared to previous financial year. It posted a revenue of $102.6 million and an underlying EBITDA of $15.7 million for the period.

EVO also issued A$35 million 5-year notes in December 2020. The earnings from these notes will be used to fully repay bank facilities from ASB with the remainder earmarked for the future acquisitions in Australia.

EVO results were in line with its action plans for both NZ and Australia.

On 26 February, EVO ended the trading session at $1.28, up 4.07% from its previous close.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Port of Tauranga Limited (NZX:POT)

POT reported improved profits with the Group NPAT of $49.4 million for 6 months to 31 December 2020, up 2.3% on the same period previous year. This came even after widespread disruption to cargo volumes and operations.

The Group remains in a strong position to tackle any obstacles, but the outlook for the second half of the year remains uncertain amid COVID-19.

On 26 February, POT ended the trading session at $7.62, up 3.39% from its previous close.

New Zealand Oil & Gas Limited (NZX:NZO)

NZO reported reduced revenues for the first half of FY21 and the effect of exploration results on cash reserves and profits. IT reported revenue of $16 million for the period compared to $20.3 million in pcp.

It posted a loss after a tax of $42.3 million in the period compared to a loss of $1.5 million in pcp due to Ironbark exploration costs, unrealised forex loss, and reduced production revenue.

Revenue from its Kupe field is likely to increase in the next financial year with a subsequent increase in the production revenue. It continues to explore opportunities for growth in the markets it understands.

 On 26 February, NZO ended the trading session at $0.46, down 4.17% from its previous close.

Tourism Holdings Limited (NZX:THL)

THL delivered record vehicle sales performance in its half-year results to 31 December 2020 amid challenging rentals atmosphere.

The Group reported total revenue of $205.8 million, down by only 1% on pcp, driven by growth in the revenue from vehicle sales, while the global rental revenue fell 50% on pcp to $64.8 million.

It posted an 89% increase in the number of fleets sold and 132% increase in the global vehicle sales revenue on pcp.

The Group is proactively adapting its business and product mix to match the current domestic trading environment. It also remains committed to becoming a Future-Fit Business.

On 26 February, THL ended the trading session at $2.23, up 1.83% from its previous close.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Steel & Tube Holdings Limited (NZX:STU)

STU reported a 33% rise in its normalised EBIT to $7.6 million in H1 of FY21 with a 40% increase in is operating cashflow to $24 million. It gained significantly from cost reductions and initiatives like network consolidation and digital investment.

The Group resumed dividend payments with an interim dividend of 1.2 cents per share in line with its dividend policy of 60%-80% of NPAT. This came due to the improved performance and the economic outlook.

On 26 February, STU ended the trading session at $0.99, down 5.71% from its previous close.

Marsden Maritime Holdings Limited (NZX:MMH)

MMH posted a net surplus of $5.2 million for 6 months ended 31 December 2020, down by a slight $0.1 million from the same period previous year.

It reported strong results from its property and marina business segments’ offset reduced earnings from the joint venture interest in Northport Ltd. The results showed the company’s continued progress in diversification and investment in long-term development opportunities.

MMH declared a fully imputed dividend of 6.75 cents per share, to be paid on 26 March 2021.

 On 26 February, MMH ended the trading session flat at $6.3.

Scales Corporation Limited (NZX:SCL)

SCL delivered a revenue of $470.7 million for FY20 compared to $484.6 million in FY19, and an underlying EBITDA of $53.9 million for FY20 compared to $52.7 million in FY19.

The divisional mix of its earnings varied with an extraordinary performance by the Food Ingredients division. Mr Apple benefited from geographical and varietal diversification.

The Group expects Underlying Net Profit guidance in the range of $27.5 million and $33.5 million with underlying EBIDTA between $46.5 million and $53.5 million.

On 26 February, SCL ended the trading session at $4.6, down 2.13% from its previous close.

Cannasouth Limited (NZX:CBD)

CBD reported a loss before tax of $3.5 million in 2020 compared to $2.2 million in 2019 due to the planned investment in establishing the Group as a key candidate in the developing medicinal cannabis market in NZ.

The Group raised $6 million in a heavily oversubscribed SPP and capital raise placement, and returned $85,726 to the NZ government, taken for COVID-19 financial assistance.

CBD remains optimistic about the future demand for cannabis medicines and the existing health and well-being products market.

On 26 February, CBD ended the trading session at $0.53, down 3.64% from its previous close.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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