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ASX Live Coverage – May 7, 2026: Key Updates and Insights
This is our live coverage of the ASX for Thursday, May 7. Expect frequent updates, particularly before the market opens, continuing until around 2:00 PM AEST. Please provide feedback on our coverage here.
Amcor Q3 Earnings Summary
[9:02 AM] Amcor’s management reported minimal exposure to direct conflict, reaffirmed synergy targets, and indicated increased inventory levels through Q4, delaying debt reduction until FY27.
- Resin Procurement: Less than 5% sourced from the Middle East; minimal impact on Q4 FY26 earnings.
- Synergy Targets: Maintained at $650 million over three years, with progress ahead of schedule into FY27.
- Inventory Levels: Elevated to ensure supply continuity, reliance on normalisation of the supply chain in late 2026 for free cash flow (FCF) stabilisation.
- Debt Levels: Projected leverage year-end at 3.4-3.5x, targeting below 3x in FY27 through cash flow and asset sales.
- Core Focus Categories: Performance is strong, despite a slight decline in healthcare volumes owing to weather and market conditions.
Company page: Amcor (AMC)
Amcor Q3 Results Align with EPS Beats; FY26 Guidance Revised
[8:58 AM] Amcor’s Q3 results proved resilient, with Berry acquisition synergies at the upper end of forecasts, although FY26 free cash flow guidance was cut due to rising inventory levels amid the ongoing Middle East conflict.
- Revenue Growth: Up 77% year-on-year to $5.91 billion, exceeding estimates of $5.71 billion.
- Adjusted EBITDA: Increased 87% to $892 million, slightly below estimates.
- Adjusted EPS: Rose 6% to $0.96, marginally beating expectations.
- Acquisition Synergies: Reported at $77 million.
- FY26 Adjusted EPS: Narrowed guidance to $3.98-4.03, implying around 12% growth.
- Free Cash Flow Guidance: Cut to $1.5-1.6 billion, revising previous expectations.
Amcor shares responded positively, rallying 6.8% overnight.
Company page: Amcor (AMC)
Super Retail Group Trading Update: Impact of Middle East Conflict
[8:54 AM] Super Retail Group experienced slowed sales growth in H2 due to rising costs driven by the Middle East conflict.
- Sales Growth: Group total sales increased by 3.3% year-on-year in the first 44 weeks of FY26.
- H2 Sales Performance: LFL sales rose 0.4%, with mixed results across brands.
- Gross Margins: Under pressure, impacted by rising fuel prices and supply concerns.
- Investment: Approximately $30 million was channelled into inventory to combat price rises.
Super Retail Group shares have dropped 27% year-to-date, with recent analyst downgrades.
Company page: Super Retail Group (SUL)
Amotiv Reiterates FY26 Guidance Amid Soft Market Conditions
[8:52 AM] The auto parts supplier reaffirmed its FY26 EBITA guidance despite facing soft conditions in the 4WD market.
- Revenue Growth: Year-to-date group revenue increased 3.6%.
- FY26 EBITA Guidance: Confirmed at approximately $195 million.
- Market Conditions: Noted softness in 4WD new vehicle sales.
- Cost Pressures: Early signs of price increases in petroleum-related materials.
Shares of Amotiv are down 29% this year.
Company page: Amotiv (AOV)
US-Iran Relations: Nearing Agreement?
[8:46 AM] Tensions persist in the US-Iran situation, but discussions on a framework agreement are reportedly advancing.
- Potential Agreement: Expected arrangement could halt hostilities if conditions are met.
- Threats of Escalation: Trump cautioned of increased bombing if a deal is rejected.
- Deal Implications: Includes moratorium on nuclear actions and lifting of US sanctions.
Big Tech’s Narrow Leadership: Warning Signs?
[8:43 AM] Bloomberg indicates that the concentration of growth in Big Tech stocks might be near its peak.
- Market Performance: While major indices have surged, many stocks remain below their 52-week highs.
- Market Risks: Historical data suggests upcoming drawdowns in similar scenarios.
- Sector Performance: All S&P sectors are now expected to show positive year-on-year earnings growth.
AMD’s Significant Earnings Boost
[8:32 AM] Advanced Micro Devices (AMD) saw substantial growth following its latest earnings report, with shares climbing 18%.
- Revenue Surge: Increased 38% to $10.25 billion.
- EPS Outperformance: Amassed an adjusted EPS of $1.37.
- Future Guidance: Strong outlook driven by demand in AI infrastructure, with Q2 revenue forecasted to exceed estimates.
Market Highlights
[8:26 AM] US equities closed near peak levels, fuelled by optimism from possible peace initiatives and AI technology demand.
- Indices Up: S&P 500 and Nasdaq hit all-time highs.
- Oil Prices Fell: Brent crude dropped 7.5% amid de-escalation hopes in the Middle East.
Morning Snapshot: ASX 200 futures are up 95 points (+1.08%) as of 8:10 AM AEST.
This summary encapsulates the highlights from market movements and corporate earnings updates, reflecting the current trends and expectations.
