Biggest ASX movers at noon: News Corp, Generation Development, REA Group and more

These are the ASX companies and sectors making headlines in afternoon trade.

The S&P/ASX 200 is charging 73 points higher (+0.87%), driven by a strong overnight session, easing bond yields, solid 1H25 earnings, and another broker upgrade for Wesfarmers.

News Corp (ASX: NWS) – Shares rallied 5.3% after the company reported a clean sweep of better-than-expected first quarter FY25 results, driven by solid growth in digital real estate services, book publishing and Dow Jones segments. Key highlights for the quarter include:

• Revenue up 4.8% to $2.23 billion (3.2% ahead of consensus)

• EBITDA up 19.5% to $478 million (12% ahead of consensus)

• NPAT up 24.3% to $189 million (14.2% ahead of consensus)

• EPS up 22.2% to 33 cents (13.3% ahead of consensus)

Generation Development (ASX: GDG) – Shares in the life insurance company rallied 3.6% after Morgan Stanley highlighted an upcoming catalyst for the stock. The key takeaways include:

• Government Legislation: The government is considering a tax increase on Superannuation accounts exceeding A$3m, raising the tax rate from 15% to 30%, set to take effect from July 1, 2025. The Senate will vote on the bill on February 6, 2025.

• Impact on GDG: If passed, the tax change will make Investment Bonds (IBs) more tax-efficient than Super for balances over A$3m, leading to significant growth in the IB industry. GDG, capturing more than 50% of industry inflows, is expected to benefit disproportionately.

• Potential Growth in Investment Bond Market: GDG estimates that A$224bn in Super assets (80k people) will be impacted, approximately 20 times the current size of the IB market (A$11bn). This could lead to an A$5.5bn increase in GDG's IB funds under management (FUM) by FY27, boosting earnings potential.

BWP Trust (ASX: BWP) – Shares rose 2.3% higher after Citi upgraded the stock to Neutral from Sell. The company reported its 1H25 results on Wednesday, delivering 22.2% earnings growth to $100.6 million and raising its interim dividend by 2% to 9.20 cents per share. Analysts believe BWP remains a stable, growing business, supported by a strong tenant covenant with Bunnings Warehouse.

Wesfarmers (ASX: WES) – Shares in the conglomerate ticked 2.5% higher after UBS upgraded the stock to Neutral from Sell, with a $76.00 target price. "Bunnings sales growth accelerated during COVID but has slowed to low single digit," the analysts said in a note this morning. They are confident Bunnings' sales will continue to accelerate, driven by:

• Category: Build market share in existing categories and enter new ones

• Channel: Online sales were 5.5% of FY24 sales, below global peers

• Customer: Commercial represents only 38% of FY24 results compared to peers at approximately 50%

Banks are rallying, with Commonwealth Bank (+1.5%) back above $160 and the other majors all up around 1.5-2.0%.

REA Group (ASX: REA) – Shares are up 2.5%, recovering from an early 3.0% dip. The company reported a solid 1H25 result, slightly beating consensus expectations. However, factors such as a slight dividend miss and the CEO's departure likely contributed to the initial volatility. Key numbers from the result include:

• Revenue up 20.3% to $873 million (2.3% beat vs. consensus)

• Expenses up 17.9% to $338 million (0.2% below consensus)

• EBITDA up 22.3% to $521 million (1.2% beat vs. consensus)

• NPAT up 25.8% to $314 million (2.1% beat vs. consensus)

• EPS up 25.9% to 238 cps (2.5% beat vs. consensus)

• DPS up 26.4% to 110 cps (4.2% miss vs. consensus)

Pexa Group (ASX: PXA) – Shares eased 3.1% after the company flagged non-cash impairment charges of $35-40 million (vs. prior guidance of $15-20 million) and tax expense of $40-45 million (up from prior expectations of $13-18 million).

Beach Energy (ASX: BPT) – Shares sold off after the company reported a relatively mixed first-half FY25 result. Jarden analysts flagged a surprisingly low interim dividend and weaker-than-expected guidance, which notably omitted mention of fuel gas entering the Waitsia gas plant