The S&P/ASX 200 (ASX: XJO) pushed lower on Thursday as the reporting season losers outweighed the winners. All eyes were on the consumer sectors with staples falling 0.8% and discretionary adding 0.3% as Woolworths Group Ltd (ASX: WOW) delivered a strong result.
Two midcaps popular with brokers and DIY investors alike continued to disappoint, with Appen Limited (ASX: APX) tumbling 21.4% after reporting a 55% fall in profit and A2 Milk Company Ltd (ASX: A2M) dropping 11.8% after reporting another 30% fall in revenue.
Elsewhere, shares in the vertically integrated financial advisory group IOOF Holdings Limited (ASX: IFL) also fell 10.4% as advisers continue to depart.
Woolworths’ surprise buyback
It was more positive news for Woolies though with the company reporting a 5% increase in revenue and 77% increase in profit with the contribution from BIG W near quadrupling in a boon for shareholders.
The company saw a significant jump in profit as finance costs reduced and online sales continued to grow at a 50% rate.
The highlight by far was the 55-cent final dividend, up 15% for the year, and the announcement of an off-market share buy-back to return excess franking credits to shareholders; shares were 0.4 per cent higher.
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Link’s PEXA weakness
Link Administration Holdings Ltd (ASX: LNK) fell another 12.6%, with the company now trading well below the offer price of 2020’s private equity takeover deal.
Having held the company before, we saw great value in the PEXA platform which Link continues to own but a challenged environment for its core administration and servicing businesses.
This was proven correct by the 6% fall in revenue and 18% fall in profit after the company was forced to write down the value of its loan servicing business. The dividend was flat on 2020’s payout.
Qube delivers despite lockdowns
Port operator Qube Holdings Ltd (ASX: QUB) increased its dividend by 15 % despite a ‘messy’ year. Revenue improved by 14% to $2.2 billion, but earnings fell 11% due to a number of asset sales.
Profit was up 31% to $159 million, which was a new record, driven by bulk commodities, forestry, grain and container volumes. The company highlighted a strong grain harvest as a tailwind for 2022 along with the expected recovery in global trade and shipping.
Ramsay on the mend
Shares in private hospital operator Ramsay Health Care Limited (ASX: RHC) finished 1.8% higher after the company returned to pre-pandemic level dividends, announcing a 103 cent payment, on the back of a 13% increase in earnings to $2.05 billion.
Revenue has begun to recover as the UK and parts of Australia reopened, growing 7.3% to $13.3 billion. Management flagged a growing pipe of growth opportunities.
ASX 200 today
Looking ahead, the ASX 200 is expected to open lower on Friday, following a negative lead from US markets overnight.
Shares in Wesfarmers Ltd (ASX: WES), NextDC Ltd (ASX: NXT) and Lynas Rare Earths Ltd (ASX: LYC) will be on watch today as ASX reporting season continues.
