The Australian market was in the red yesterday (ASX 200 Index -0.8%) as reporting season continues to drive some big individual share price moves.
Wesfarmers shares were down slightly after the company reported a -69% fall in net profit for the 2020 financial year, to $1.7 billion. The previous year’s $5.5 billion net profit was boosted by the proceeds of the demerger of Coles. Booming sales at Bunnings and Officeworks through the pandemic were a bright spot in Wesfarmers’ full-year results.
Qantas has recorded a $2 billion loss, with the coronavirus pandemic slashing its full-year revenue by -21% as most of its fleet remains grounded, however this was expected by the market and its share price was flat.
Santos shares were also down -5% after reporting a half-year loss of $US289 million ($403 million), hurt by weaker oil and gas prices due to weak demand during coronavirus lockdowns.
On the upside, Coca-Cola Amatil’s earnings highlighted the resilience of its key brands along with outstanding cost management as volume trends are improving,
New Zealand shares fell on Thursday (NZX 50 Index -0.8%) as investors continued to sell off its two biggest stocks being A2 Milk and Fisher & Paykel Healthcare from record highs.
In terms of results, Auckland International Airport’s report of a -63% drop in net profit and prediction that international travel won’t recover for more than three years was largely expected by the market, and its shares were a touch higher.
Genesis Energy said it is expecting to deliver on its $400 million operating earnings target this year—barring any material one-off events, causing its shares to also rise.
SkyCity Entertainment Group indicated it will now hit the top end of prior earnings guidance, suggesting trading has been better than implied at the capital raise.
By Chas Gunarathne