The S&P/ASX 200 (ASX: XJO) continued its strong run despite a more mixed performance from those companies reporting on Wednesday, adding 0.4%.
The ASX technology sector was the standout, up 1.9% after WiseTech Global Ltd (ASX: WTC) surged 28.5%. The ASX mining sector also recovered, up 1.4%, as the iron ore price showed signs of stabilising, sending Rio Tinto Limited (ASX: RIO) 2.6% higher.
WiseTech share price rockets 50%
But it was all about WiseTech with the company trading as much as 50% higher during the session before ultimately being put into a trading halt by the ASX. Management forecast a 25% increase in revenue in FY22, after delivering 18% growth in 2021.
This caught the market by surprise, but particularly those shorting the company who were forced to buy into the rally – an all too common occurrence in the mid-cap end of the market.
BNPL: Afterpay & Zip shares weaken
Both Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) reported on Wednesday, with an increase in costs the common theme.
Afterpay lost another $159 million, double expectations, as the takeover target increased share-based payments and took a loss on its financial liabilities. Afterpay shares finished 1.2% lower.
Zip’s loss widened to $652 million as the arms race in BNPL continues. Similar to Afterpay, a large portion of the loss is in share-based payments for acquisitions and in lieu of wages.
Zip’s revenue more than doubled to $402 million, with total transaction volume up 180% despite the company remaining a big player in a massive addressable market; this evidences the incredible opportunity. Zip shares were down 2.6%.
Featured video: SaaS valuation metrics
APA’s record dividend but growth in focus
Pipeline owner APA Group (ASX: APA) delivered yield-hungry investors a record dividend despite revenue stagnating at just $2.61 billion in FY21.
Profit dropped by nearly 99% to $3.8 million as the group was forced to write down the value of its Orbost plant as oil and gas prices remain weaker than expected. The APA share price ended down 3.1%.
Nine gains on digital
Nine Entertainment Co Holdings Ltd (ASX: NEC), which also owns The Australian Financial Review, declared its best dividend in five years, benefitting from a boom in readers and an improving digital strategy.
Revenue was 8% higher hitting $2.33 billion, with profit moving from a significant loss to a $184 million gain.
The improving subscriber numbers have coincided with a return of advertising budgets whilst its Stan streaming service continues to perform well. The result wasn’t up to expectations, however, with the Nine share price falling 9.7%.
ASX 200 today
According to the latest SPI futures, the ASX 200 is poised to open lower on Thursday. This comes despite a slightly positive lead from US markets overnight.
The busiest day of ASX reporting season is here, with more than 15 ASX 200 companies set to report. This includes the likes of Woolworth Group Ltd (ASX: WOW), Qantas Airways Limited (ASX: QAN) and a2 Milk Company Ltd (ASX: A2M). For all the latest, be sure to bookmark Rask Media’s ASX reporting season calendar.
