Results are in for ASX companies: Who are the winners and losers?

Posted: 18 January 2022 2:54 pm
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JB Hi-Fi soars, RedBubble falls as reporting season heats up.

The Australian market has begun another eagerly awaited reporting season, albeit COVID-19's latest variant is likely to leave some companies with more questions than answers for investors.

Reports announced today were mixed for investors.

Companies like JB Hi-Fi and Data#3 continued to outperform in a challenging environment leading to strong increases in share price.

On the other hand, those that missed expectations, such as RedBubble were heavily punished by investors.

To help you get through this reporting season, Finder notes some of the biggest gains and losses on the market today.

What is reporting season?

As part of their diligence to shareholders, twice a year, listed companies have to update the market on their performance including earnings, results and forecasts for the future.

Almost every company listed on the ASX will report their half year financial results in late January and their full year results in late August.

Reporting season impacts both short and long-term investors.

In the short-term share prices will fluctuate up or down from how they differ from the market analyst expectations.

A better than expected result will see share price grow, while a less than expected result will see share price fall, even if the company announces stellar results.

For long-term investors it allows them a chance to look under the hood and see how a company they own is performing and its expectations into the future.

The Good

Let's start with companies the market deems good.

JB Hi-Fi

JB Hi-Fi's shares shot up 7% during early trading as investors were excited about an increase in sales.

The company notes its sales grew by 23.1% when compared with this time last year.

Meanwhile, JB Hi-Fi New Zealand operation and the Good Guys also saw double digit growth, improving sales by 12.8% and 26.2%, respectively.

Group CEO Terry Smart said, "We are pleased to report strong sales and earnings for HY22. In challenging circumstances, we have again demonstrated our ability to adapt and respond to meet the strong demand from our customers, both in-store and online."

However, the company warns shareholders that the good times may not last.

Its sales and net profits are down 9% from 6 months prior.

Mirrabooka

Investors also responded positively to results released by Mirrabooka.

The lift in share price follows announcing a profit of $4.2 million, up 23.5% on the previous corresponding period, delivering another period of outperformance.

Shares in the company were slightly up at $4.01 per share.

Data#3

Another major winner this reporting season was IT company Data#3.

It announced earnings upgrades, with profits now expected to slightly exceed the $15-$18 million guidance announced during October's AGM.

As such the share price lifted by around 14%, to $6.63 per share.

The bad

On the other end of the spectrum were those that are now tipped to miss their expectations.

Redbubble

According to Redbubble's latest announcement revenue fell by 18% to $288 million over the 6 months until 31 December.

As expected, lowering revenue saw gross profits fall by 25% to $108 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) crash by 84% to $8 million.

As such shares in the company fell nearly 20% at the time of writing to $2.40 per share.

Rio Tinto

Another company that announced it missed its expectations is Rio Tinto.

Shares in mining giant Rio Tinto are among the most traded stocks on the ASX on Tuesday after dropping nearly 2% in early trading.

The company notes it shipped 321.6 million tonnes of iron ore in 2021, barely above the bottom end of its already downgraded 320 to 325 million tonne guidance range.

The giant miner also failed to lift output in any of its other key commodities. Copper production was down 7% for the year, bauxite fell 3%, aluminium slipped 1% and titanium dioxide tumbled 9%.

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