Fast Five: ASX Reporting Season (AMS, A2M, FMG, TYR, IGO)
Our fourth and final edition of Fast Five: ASX Reporting Season. We’ll wrap this series with Atomos, the A2 Milk Company, Fortescue Metals, Tyro Payments and IGO Limited’s results ending 30 June 2022.
| Name | Ticker | Industry Group | Market Cap | Reporting Period | EPS YoY Growth |
|---|---|---|---|---|---|
| Atomos | AMS | Consumer Durables & Apparel | $56m | FY22 | -269% |
Disclaimer: Market cap as of 1 September 2022
FY22 was a tough year for Atomos. Despite the company’s revenue growing at a 23% compounding annual growth rate (CAGR) since its IPO in 2018, in FY22 it grew just 4% year-on-year (YoY) to $82m. The crux of Atomos’ trouble was 3Q22, which saw revenue decline 81% YoY due to a change in promotional strategy. If we exclude that, sales increased 27% per quarter on average. Still, Net Profit After Tax (NPAT) declined 243% YoY to a loss of $6m. While management’s FY23 outlook was mostly positive, the company has a lot to prove – especially when combined with recent accusations of fraud and gender discrimination reported by the AFR.
| Name | Ticker | Industry Group | Market Cap | Reporting Period | EPS YoY Growth |
|---|---|---|---|---|---|
| A2 Milk Company | A2M | Food, Beverage & Tobacco | $4.1b | FY22 | 52% |
Disclaimer: Market cap as of 1 September 2022
A2 Milk smashed FY22’s expectations on 29 August 2022, leading to a 16% jump in the stock price in one day. A large part of FY22’s success was management’s ability to not only get inventory under control, but adapt to the new realities of the Chinese market, allowing a return to growth. In fact, management has even reintroduced share buybacks. While the company is a long way from 2020’s heights of nearly $20 per share, management looks to be on the right track.
| Name | Ticker | Industry Group | Market Cap | Reporting Period | EPS YoY Growth |
|---|---|---|---|---|---|
| Fortescue Metals | FMG | Materials | $57b | FY22 | -38% |
Disclaimer: Market cap as of 1 September 2022
Fortescue Metals’ FY22 saw a decline in revenue and profits of 22% and 40% YoY respectively, as the average price per tonne of iron ore fell by 26% and costs per tonne increased 14% YoY. The drop in profit and dividend payout rate (75% versus 80%) was bigger than expected, resulting in a decline of approximately 12% in share price over the last three days. While Fortescue is rapidly diversifying its business, its stock price is still heavily dependent on the price of iron ore and its dividend.
| Name | Ticker | Industry Group | Market Cap | Reporting Period | EPS YoY Growth |
|---|---|---|---|---|---|
| Tyro Payments | TYR | Software & Services | $632m | FY22 | 2.7% |
Disclaimer: Market cap as of 1 September 2022
As transaction volume jumped 34% YoY to $34b and merchant numbers rose 10%, Tyro Payments’ shares went up 13% after it announced its FY22 results on 29 August 2022. EBITDA did decline 25% to $11m, but the market was expecting worse. What really excited investors was Tyro’s forecast of transaction value between $40b and $42b in FY23, with between $175m and $181m in gross profit, as Australia continues to return to in-store shopping. All in all, a strong year for a company that struggled with multiple issues during COVID-19.
| Name | Ticker | Industry Group | Market Cap | Reporting Period | EBITDA YoY Decline |
|---|---|---|---|---|---|
| IGO Limited | IGO | Materials | $9.9b | FY22 | 154% |
Disclaimer: Market cap as of 1 September 2022
With revenue jumping 34% YoY, resulting in record EBITDA of $717m (51% YoY), IGO Limited continues to impress the markets. This nickel, cobalt and copper miner’s FY22 result was bolstered by lower-than-forecasted nickel cash costs. For investors, the action seems to be focused on FY23’s results, with the first shipment leaving the Kwinana Lithium Hydroxide Refinery and the completion of the Western Areas acquisition both occurring during 2H22. The stock rallied almost 20% this month, but is still around 10% below its highest price per share in 2H22.
This is not a recommendation to invest, as always do your own research