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Live Coverage of the ASX – May 28 Highlights
Welcome to our live coverage of the ASX for Wednesday, May 28. We invite you to refresh the page for the latest updates and share your feedback to enhance our service.
Web Travel Group: Positive FY25 Results
[9:15 am] Web Travel Group has released strong FY25 results that surpass Morgan Stanley estimates. Managing Director John Guscic highlighted the company’s remarkable growth, with total transaction value (TTV) reaching nearly $5 billion—double pre-pandemic levels. Key figures include:
- Total Transaction Volume: Increased by 22% to $4.9 billion, slightly under the estimated $5.03 billion (2.6% miss).
- TTV Margins: Stabilised at 6.7%, down from 8.2% in FY24 but ahead of the 6.48% estimate (22 basis points better).
- Revenue: Rose 1% to $328.4 million, beating forecasts of $326.1 million (0.7% beat).
- Underlying EBITDA: Fell 13% to $120.6 million, slightly above estimates of $117.9 million (2.3% beat).
- Underlying Net Profit After Tax: Declined by 22% to $79.2 million, outshining expectations of $72.3 million (9.5% beat).
The firm also reported that global bookings are up by 29%, with TTV (AUD) increasing by 37% so far in FY26.
Fisher & Paykel: Slight Miss on FY25 Guidance
[9:05 am] Fisher & Paykel reported solid FY25 numbers, despite a slight miss on some guidance:
- Operating Revenue: Increased 16% to NZ$2.02 billion, aligning with UBS estimates.
- Gross Margin: Enhanced by 296 basis points to 62.9%, also in line with expectations.
- Operating Profit: Improved by 44% to NZ$509.6 million.
- Operating Margin: Rose to 25.2%, a 494 basis points jump.
- Profit After Tax: Surged 184% to NZ$377.2 million compared to NZ$373 million estimated (1.1% beat).
- Full-Year Dividend: Increased by 2% to 42.5cps, falling short of the 55cps estimate (22% miss).
For FY26, Fisher & Paykel forecasted:
- NPAT: Between NZ$390-440 million, below the NZ$460 million estimate (10% miss).
- Revenue: Expected between NZ$2.15-2.25 billion, under the NZ$2.34 billion estimate (6% miss).
- A reaffirmation of their commitment to a long-term gross margin target of 65%.
REA Group: Regulatory Concerns
[9:00 am] An afternoon announcement affected REA shares, shifting from a 0.5% gain to a 3.5% decline. At 3:07 pm, the company confirmed it received a Section 155 notice from the ACCC, demanding information about specific subscription offerings. REA stated that it is cooperating fully with the ACCC and could not provide further comments due to confidentiality.
Top Insights from Livewire
- From Downturn to Boom: Bravura Solutions and Spartan Resources, previously suffering from earnings downgrades and price drops, made remarkable turnarounds, with Bravura up 870% and Spartan’s valuation increasing twenty-fold from its 2023 lows due to strategic operational improvements and solid cash reserves.
- US Market Dismissed: The US stock market is being labelled "dead" by some growth-oriented investors, as the ASX 200 has outperformed American indices this year, despite ongoing potential in tech and AI sectors.
- Top Holdings Update: New entrants to top small-cap fund managers’ portfolios include Paragon Care, Universal Store, and Guzman y Gomez, driven by recent revenue growth and renewed investor interest.
- Market Timing Insights: Experienced investor Marcus Padley reveals strategies for successful market timing, emphasising a shift to cash during downturns and reinvesting during recovery periods.
Market Influences
[8:50 am] US markets concluded positively, with all sectors up. Notable influences included:
- A delay in the reduction of tariffs on the EU.
- Hints from Japan’s finance ministry regarding easing bond issuance policies.
- A notable surge in US consumer confidence to 98 in May, driven by reduced tariff tensions.
- A 3% rise in China’s industrial profits, attributed to government initiatives and strong demand.
Morning Market Update
[8:40 am] S&P/ASX 200 futures rose by 51 points (+0.60%) following a positive US trading session post-Memorial Day. Markets reacted favourably to news of tariff delays and falling bond yields.
Stay tuned for continued updates and insights throughout the day’s trading session. Don’t forget to visit our Morning Wrap for a quick overview!
