These are the ASX companies and sectors making headlines in afternoon trade.
Appen (ASX: APX) – Shares rallied 13.2% after a volatile session on Thursday (opened 3.0% higher, hit a session low of -11.8% and closed 4.5% lower), when the company reported its Q4 update, which included:
Revenue down 7% to $66.7 million
Revenue (ex-Google) was up 37% (from $48.6 million in 4Q23)
Quarter-on-quarter growth of 23.3%, largely driven by growth in generative AI projects
Underlying EBITDA up 67.8% to $4.7 million
Cash on hand of $54.8 million as of 31 December 2024
After the result, Barrenjoey upgraded their target price by 18% to $3.30.
Gold stocks soared in response to higher gold prices, which rallied 1.26% overnight to a fresh all-time high of US$2,797 an ounce. Prices are even stronger in Aussie dollar terms, crossing A$4,500 for the first time on record. Stocks leading the charge on Friday include Catalyst Metals (+6.0%), St Barbara (+5.0%), De Grey (+3.8%), Newmont (+3.8%) and Bellevue Gold (3.5%).
ResMed (ASX: RMD) – Shares eased 1.5% despite reporting a relatively positive December quarter result, where most figures slightly exceeded market expectations.
Revenue up 10.3% to US$1.28bn (0.9% ahead of consensus)
Income from operations up 19.3% to US$436m (1.9% beat)
Net income up 29.2% to US$358m (4.4% beat)
Underlying EPS of US$2.34 (3.4% beat)
Interim dividend of 53 US cents per share (2.6% miss)
Magellan (ASX: MFG) – Shares dipped another 8.5% after falling 8.3% on Thursday, after the company's Head of Investments Gerald Stack announced his departure after 18 years at the firm. The stock faced several downgrades on Friday, including:
Jarden downgraded to Underweight from Neutral; target cut to $9.35 from $10.25
UBS downgraded to Sell from Neutral; target cut to $10.30 from $10.90
Origin Energy (ASX: ORG) – Shares dipped 6.0% after the company guided to a disappointing FY25 production forecast, including:
Integrated gas production of 670-690 (PJ) vs. previously guided 685-710 due to lower than expected benefits from well optimisation activities at Condabri, Talinga and Orana, as well as lower field performance and unplanned maintenance at non-operated assets
Unit capex and opex unchanged
LNG trading EBITDA unchanged at $400-450 million
Pointsbet (ASX: PBH) – Shares tumbled 15.3% after the company downgraded its full-year EBITDA guidance to $11-14 million from prior guidance of $11-16 million, representing a 7.5% downgrade at the midpoint. The company attributed the downgrade to favourable sports results and changes in consumption taxes.
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