Reporting Season

Six stocks with guidance upgrades today

Wed 23 Feb 22, 2:41pm (AEST)
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Stocks in article

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Key Points

  • Six stocks with guidance upgrades today
  • HomeCo Daily Needs REIT, Wisetech Global, Coronado Global Resources, Charter Hall Retail REIT, Pexa Group, PSC Insurance Group

Here’s a snapshot of six stocks that announced guidance upgrades along with their financial result this morning.

HomeCo Daily Needs REIT (ASX: HDN): The REIT upgraded its FY22 [pro forma] funds from operations (FFO) guidance to 9.3 cents, a 4.5% increase on former guidance.

The company notes the FFO guidance of 9.3 cents includes $100m of new debt funded acquisitions which are expected to be completed in the second half of FY22.

In the first half, the REIT reported FFO of $30.6m, up 121% on the previous period.

FFO a unit was up 38% to 4 cents. At half year, the REIT’s pro forma net gearing was 32.2%, lower than 35% in June.

The REIT’s share price was up around 2% at noon today.

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Wisetech Global (ASX: WTC): While the provider of software solutions reaffirmed revenue guidance, FY22 earnings guidance increased by $10-$15m to $275-$295m.

First half FY22 net profit was up 74% to $77.4m - a beat against consensus estimates ($73.0m), and revenue of $281m was up 18% on the previous period (incl FX).

Other highlights with the first half result included:

  • Earnings up 54% to $137.7m

  • Free cash flow up 85% to $90.3m

  • Interim dividend – the biggest on record – up 76% to 4.75 cents per share.

The share price was up 2.2% at noon.

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Coronado Global Resources (ASX: CRN): Within today’s FY21 result, the met coals producer announced that full-year saleable production will increase to 18m - 19m metric tonne (MMt), up from 17.4MMt in 2021.

In a major about face from the year prior, the company delivered a net profit of US$189.4m – versus a previous loss of -US$226.5m – and was a beat against both Bell Potter and consensus forecasts.

Much of the turnaround can be attributed to a met coal – aka coking coal - price of US$138 a tonne, up 52%.

Capex will be US$170m to US$190m, targeting increased tonnage and production from future cost increases, US$91.1m last year.

After paying a dividend of US9 cents during the first quarter of 2022, the company expects to maintain its net cash position, plus an offering of US$100m in notes.

The share price was up around 3.67% at noon today.

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Charter Hall Retail REIT (ASX: CQR): The REIT has upgraded its FY22 earnings guidance to be no less than 28.4 cents a unit, compared with former guidance of no less than 28.2 cents a unit.

As a result, FY22 distributions a unit are now expected to be no less than 24.5 cents a unit, which is an upgrade from previous guidance of no less than 24.3 cents a unit.

The company delivered a first half 2022 Net profit after tax (NPAT) of $368.6m, up $285.8m on previous period.

Net Tangible Assets (NTA) per unit of $4.54, were up 13.2% from $4.01 at June 2021.

The share price was up 0.61% at noon today.

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Pexa Group (ASX: PXA):  The operator of Australia’s digital property settlement platforms upgraded its full year revenue forecast to $275m from its prospectus projection of $246.9m.

PEXA Exchange earnings were also upgraded to $140m-$150m from $126,3m.

The company is also targeting net profit after tax (NPAT) of $95m-$105m, up from $75.6m.

Highlights within the first half FY22 result included a 46% increase in revenue to $145.4m, PEXA Exchange earnings were up 76% to $83.2m, and net profit of $9.7m versus a former loss of -$1.6m.

Commenting on the 1H22 results, PEXA Group Managing Director and CEO Glenn King said:

“We now expect to materially exceed previous Prospectus guidance across FY22 and have increased guidance across all key earnings metrics. Our plans for the UK are on-track and we expect ‘go live’ later this calendar year.”

The share price was up 14.26% at noon today.

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PSC Insurance Group (ASX: PSI): Due to a much stronger than expected FY22 first half result, the company upgraded its full year guidance by 5% to underlying earnings range of $87m-$92m (from $84m-$89m), and underlying net profit to a range of $57m-$61m (previously $54m-$58m).

Net profit for the half was up 61% to $27.6m and was a substantial beat against both Bell Potter and consensus estimates.

Highlights within the result included:

  • A 28% increase in underlying revenue to $119.7m

  • A 42% increase in underlying earnings (EBITDA)1 to $40.7m

  • A dividend of 4.5 cents for the period

Management noted: “The company continues to progress a number of acquisition opportunities and we are increasingly being seen as a strong partner to sell to in our core Australian and UK markets.”

The share price was up around 6% at noon.

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Written By

Mark Story

Editor

Mark is an award-winning investigative financial journalist and editor who started his career working for Marathon Oil in London. He has a degree in politics/economics, a diploma in journalism and has completed the Institute of Directors course. Mark has worked on 70-plus newspapers and financial publications across Australia, NZ, the US, and Asia including: The Australian Financial Review, Money Magazine, Australian Property Investor and Finance Asia. Mark is passionate about improving the financial literacy of all Australians through the highest quality content.

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