The ASX fell backwards today.
The S&P/ASX200 dropped 55.80 points or 0.76% to 7,284.30, setting a new 20-day low. The index has lost 0.56% for the last five days but sits 3.74% below its 52-week high.
Bottom-performing stocks were Elders Ltd and Pilbara Minerals Ltd (ASX:PLS) down 5.97% and 5.93% respectively.
The best-performed sector was Communication Services up 0.77%, while Energy gained 0.56%. On the losing end, was Materials down 1.57%, followed by Real Estate which lost 0.85%.
Earnings watch
There were a couple of big earnings reports today. EToro's Josh Gilbert ran the ruler over carsales.com and JB Hi Fi.
Carsales.com
"Carsales.com shares raced to a record high today after an impressive set of full-year results saw net income climb to A$646 million, more than 300% growth for the full year.
“Cameron McIntyre has done a stellar job in leading carsales.com to record growth in FY2023, which saw revenue rise by 53% to A$781 million as demand for second-hand vehicles soars.
“Carsales.com’s full-year results are clearly impressive but the road ahead is also promising. Its guidance for FY24 didn’t disappoint, with the company saying it anticipates ‘good’ growth. The growth could mean more great news for investors who have already seen shares climb by 25% in the 2023 calendar year.
“With over half of its revenue flowing in from international markets, Carsales.com's global expansion strategy remains a cornerstone of its success. Brazil is a region that investors should be excited about, with strong growth expected in the year ahead.
“To cap off the results, Carsales.com lifted its dividend to 32.5 Australian cents, up from 24.5 Australian cents a year earlier. If earnings continue to flourish as carsales.com expects in the year ahead, shareholders can look forward to payouts continuing to improve."
JB Hi FI
"It was a beat across the board for JB Hi-Fi in its full-year result, with the retailer showing resilience in the face of a tough macro backdrop.
“Group sales grew by 4.3% year-over-year to $9.63 billion, but profitability fell by 3.7% to $525 million, better than the 7.5% decline the market had expected.
“Investors will be pleased by this resilience in what was a record year, but there’s a challenging period ahead for JB Hi-Fi. Looking at FY24 so far, July sales were down 1.8% from a year ago, which may be a sign of things to come. With sales set to slow and discounts likely to materialise as consumers tighten their belts, profit for the full year is set to fall by 27%.
“Consumer confidence remains near decade lows, and consumers are pulling back on spending as the heightened cost of living continues to erode household budgets. With the lag of the RBA’s tightening cycle yet to be fully felt – and unemployment set to rise over the months ahead, consumers aren’t likely to be splashing out on high-ticketed items, meaning the months ahead will be an uphill battle for JB Hi-Fi."
JB CEO Terry Smart said the sector still faced “heightened uncertainty”, despite its record sales.
“In a challenging retail environment, we remained top of mind for shoppers and grew our market share by continuing to drive our value offering, leveraging the strength of our multichannel offer and maintaining our high levels of customer service,” he said.
However, with uncertainty comes tempered, but quietly confident expectations.
“With the heightened uncertainty in the retail environment, both our brands remain well positioned to leverage their low-price market position as shoppers look to maximise value from their purchases. As we have continued to demonstrate, we will adapt and respond to the changing retail conditions to ensure we remain the number one destination for shoppers and grow our market share.”
Five at five
The small cap index took a backward step. The S&P/ASX Small Ordinaries index fell 0.50% today.
However, there was good news among some.
Volt Resources’ feasibility study update highlights improved economics of Bunyu Graphite Project Stage 1
Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has delivered a favourable feasibility study update for its Bunyu Graphite Project Stage 1 in Tanzania, with new values representing significant improvements relative to the metrics of the 2018 feasibility study.
Read more
MGC Pharmaceuticals welcomes favourable chronic safety evaluation in CimetrA® pre-clinical trial
Europe-based pharmaceutical company MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has received encouraging findings from the pre-clinical chronic toxicology evaluation of CimetrA®, showing safety when administered in large animals.
Read more
Anteris Technologies lauds second successful implant procedure for innovative transcatheter aortic valve
Anteris Technologies Ltd (ASX:AVR, OTC:AMEUF) is celebrating the successful implantation of its new class of biomimetic valves, the world’s only balloon-expandable, single-piece transcatheter aortic valve, in a Valve-in-Valve (ViV) procedure as part of Health Canada’s Special Access Program (SAP).
Read more
Leeuwin Metals hits high-grade nickel sulphides in initial William Lake drilling
Assay results are in from Leeuwin Metals Ltd (ASX:LM1)’s initial drilling program at its William Lake Nickel Project in Manitoba, Canada, confirming significant nickel sulphide mineralisation and validating William Lake as a major nickel system within the world-class Thompson Nickel Belt.
Read more
Peninsula Energy ticks off Lance low-pH ISR milestone with first wellfield installed
Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has completed installation of water quality wells for the Mine Unit 3 (MU-3) production area within its flagship Lance Projects in Wyoming, USA, a development milestone that takes the company one step closer to supplying low-pH in situ recovery (ISR) uranium to a growing market.
Read more
On your six
"Biggest tax revenue fraud" rocks Australia - how a simple scam became a $4.6 billion crime wave
An extensive GST fraud scheme that exploited Australia's Tax Office (ATO) systems for months was brought to light last year, as accountants across the country began uncovering the significant discrepancies in their clients' tax reports, according to an exclusive by Australian Financial Review. The scheme, which vent viral on TikTok, reportedly cost the ATO $4.6 billion.
Read more
The one to watch
Carnavale Resources kicks off substantial RC drilling at Kookynie
Carnavale Resources Ltd (ASX:CAV) CEO Humphrey Hale tells Proactive the company has started an aggressive reverse circulation (RC) drilling program at McTavish East prospect within the Kookynie Gold Project in Western Australia, targeting substantial high-grade gold shoots as it works to establish a quality gold resource.
Watch