๐Weekly | ING, CAR, GUD, COH added 10% on stellar earnings!
As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,148.10 points, down 2.62% n the past 5 days.
During the last 5 trading days, $Inghams Group(ING.AU)$ was up 19.01%; $Carsales.Com(CAR.AU)$ added 13.37%; $Lake Resources NL(LKE.AU)$ was up 12.82%; $GUD Holdings Ltd(GUD.AU)$ rose 12.54%; and $COCHLEAR LIMITED(COH.AU)$ increased 11.91%.
1. $Inghams Group(ING.AU)$ jumped 19% on comprehensive improvement in revenue, profit and EPS
Inghams Group Limited, together with its subsidiaries, produces and sells chicken and turkey products.
ING has recently increased by 14% to $3.18. This increase follows the release of the company's full-year results, which included a substantial increase in underlying net profit after tax (67.7% to $71.1 million).
Inghams reported a growth in sales, with full-year sales reaching AUD 3,044 million, compared to AUD 2,713.1 million in the previous year.
The company's net income also increased to AUD 60.4 million from AUD 35.1 million a year ago. This improved financial performance is attributed to the progressive return to normal operational performance levels across the business, with both farming performance and supply chain conditions recovering and normalizing.
The basic earnings per share from continuing operations increased from AUD 0.095 to AUD 0.163 year-over-year, while the diluted earnings per share from continuing operations increased from AUD 0.094 to AUD 0.162. This suggests that the company's profitability per share has improved significantly compared to the previous year.
However, the stock's performance over the past five years has not been as strong. The stock price has dropped by 15% over that period, underperforming compared to an index fund. The decline in share price over the last five years might be reflective of the 12% per year decline in EPS during that period.
2. $Carsales.Com(CAR.AU)$ drives forward: increased profits and dividend
carsales.com Ltd operates online automotive, motorcycle, and marine classifieds business, it stock surged following the release of its FY 2023 financial results.
Pro forma revenue increased by 18% to $798.1 million, while pro forma EBITDA surged by 19% to $495.7 million.
Adjusted EBITDA saw a remarkable 57% increase to $424.9 million, and adjusted net profit after tax (NPAT) soared by 43% to $278.2 million.
The company's top-line growth was driven by robust performances in both its Australian and North American segments. Resilient demand for used cars and the adoption of higher-value products in Australia contributed to a 13% revenue increase.
Carsales increased its final dividend by 33% to 32.5 cents per share, resulting in a total FY 2023 dividend of 61 cents per share, up 22% year-on-year. This dividend increase reflects the company's confidence in its financial position and its commitment to returning value to shareholders.
Moreover, the company provided an optimistic outlook for FY 2024, including expectations of strong growth in various financial metrics.
3. $Lake Resources NL(LKE.AU)$ jumped on successful testing in Kachi Project
Lake Resources shares experienced a significant intraday spike in response to positive news about its Kachi Project.
Lake Resources reported successful extraction and injection testing at its flagship Kachi Project, a lithium brine project.
The testing showed highly favorable reservoir hydraulic properties, which is essential for optimizing future wellfield design and resource estimation. The tests are a significant milestone for the project and indicated the potential for high-yield, production-scale extraction wells in the core resource area. This suggests that the lithium extraction project is showing promise for commercial viability.
Lake Resources had previously updated its resource estimate for the Kachi lithium brine project, increasing it by 53% from 5.29 million tonnes (Mt) to more than 8.1 Mt of lithium carbonate equivalent (LCE).
4. $GUD Holdings Ltd(GUD.AU)$ Strong FY23 Results and Automotive Segment Growth Drives Share Surge
GUD Holdings Limited, through its subsidiaries, manufactures, imports, distributes, and sells automotive products.
$GUD Holdings Ltd(GUD.AU)$ experienced a substantial increase in its stock price following the release of its FY23 full-year results.
Underlying EBITDA increased by 27% to $191.1 million, while statutory net profit after tax (NPAT) surged by 251.8% compared to the prior corresponding period.
Final dividend of 22 cents per share, fully franked and payable on September 14.
GUD's automotive segment, which includes well-known brands like Ryco, Wesfil, and Narva, delivered solid growth. The division's underlying EBITA increased by 7.4%, driven by both organic growth (6.5%) and contributions from acquisitions of AutoPacific Group (APG) and Vision X.
The successful integration of APG and Vision X contributed to GUD's improved earnings. The acquisitions appear to have been well-received and positively impacted the company's overall performance.
5. $COCHLEAR LIMITED(COH.AU)$ Surged on Record Revenue, Dividend Boost and Buyback
Cochlear Limited provides implantable hearing solutions for children and adults worldwide.
Cochlear reported robust financial results for FY23, with sales revenue reaching a record $1,956 million, a 19% increase compared to the prior corresponding period.
Both statutory net profit ($301 million) and underlying net profit ($305 million) saw healthy growth, up 4% and 10% respectively. The fact that underlying net profit was at the top end of the guidance range likely contributed to the positive sentiment.
Cochlear achieved record annual revenue, signaling strong growth across all business units. The significant increase in sales revenue showcases the company's ability to capture market demand and capitalize on its offerings.
The final dividend was increased by 21% to $1.75 per share, offering an attractive reward for investors. A higher dividend often attracts income-seeking investors and positively impacts investor sentiment.
In FY23, Cochlear purchased $30 million in shares as part of a progressive $75 million on-market share buyback to reduce its cash balance to about $200 million over the coming years.
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Tigers, come check these AUS stocks with better earing!
๐๐๐I am bullish on $Inghams Group(ING.AU)$ as it enjoys a Number 1 position in Australia with 40% market share and Number 2 position in New Zealand with 35% market share. Inghams is the largest vertically integrated poultry producer in both countries.
I am impressed with Ingham's latest earnings report with its EBITDA of AUD418.5 million up 13% and NPAT of AUD 60.4 million up an impressive 72%.
Goldman Sachs has upgraded Inghams share price to a Buy rating, Target price of AUD 4.00.
Ingham ticks all the core fundamentals of a quality stock. It has a wide moat due to its extensive processing and distribution network. It is profitable, has a solid balance sheet and an excellent management team. Inghams is in a defensive consumer staples sector that will be less impervious to economic cycles. Best of all Inghams pay good dividends. The current dividend yield is 4.5%. That's my favourite kind of stock!
@ASX_Stars
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