ASX earnings season: Swift Media, EVZ pop 13pc after bumper revenues

ASX listed companies are required to report on their financials every six months, but almost all are reporting them on a quarterly basis to keep their investors well informed.

Earnings reported this quarter will be a good indication of whether recent lofty valuations justify performances that reflect the ‘V-shape’ recovery, or if there would be some corrections ahead.

On Friday, almost all of the earnings announced were solid.

Telco Swift Media (ASX:SW1) led the way, rising by 13% after flagging a 15% increase in full year FY21 revenues from the prior corresponding period (pcp), to $17.6 million.

For the quarter, Swift booked $4.9 million in revenues, which was a 29% increase on pcp.

For FY22, the company says the focus will be on prioritising recurring revenue to grow TCV (total contract value), and launching its latest technology for the Mining and Aged Care sectors.

Swift specialises in providing communication solutions to connect engage communities, and its products include cloud and on-premises entertainment portals, communications apps, and communications distribution infrastructure.

Other ASX small caps reporting earnings today

EVZ Limited (ASX:EVZ) +13%

The engineering specialist says EBITDA for the full year of FY21 is expected to be a profit in the range of $5.3~$5.8 million, on the back of $57~$60 million in revenues.

Bigtincan Holdings (ASX:BTH) +6%

The global software company reported annual recurring revenues of $53.1 million for the full year FY21, which was a 48% increase from the pcp. The company also said it’s well funded to continue executing its growth strategy, with $56.7m in cash at the end of June.

Weebit Nano (ASX:WBT) +4%

In its quarterly update, the computer chips tech company said it received $1.1m in cash flows from the exercise of listed options, and $2m awarded by the French government for its R&D activities in France.

Weebit expects to secure its first commercial agreement over the coming quarter. The company is in advanced discussions with multiple potential customers and production partners and expects to finalise an agreement soon.

DDH1 Ltd (ASX:DDH) +3.5%

The specialist drilling services company says its EBITDA is expected to be $74.8 million, which is 7.9% higher than the IPO forecast of $69.3 million.

“Since listing on the ASX in March, DDH1 has continued to benefit from the strong macro-economic conditions that suit our diversified commodities exposure, client base and geographic footprint,” said CEO Sy Van Dyk.

Youfoodz (ASX:YFZ) unchanged

The ready-made meals company, which recently got a takeover bid from HelloFresh, flagged a 19.5% increase in gross revenues from the prior comparative period to $53.8 million.

However, Youfoodz said it expects EBITDA to come in at the lower of of guidance, between $1-2 million, for the full year.

Candy Club (ASX:CLB) -6%

Total gross revenue of $3.05 million was achieved in 2Q FY21, representing an increase of 29% year-on-year. This was driven by its business-to-business segment, posting $2.37 million in gross revenue during the quarter (+56% YoY).

The quarter was slow due to seasonality as there were no candy gifting festive holidays, while 1Q FY21 experienced two strong holidays – Valentine’s Day and Easter.

Candy Club’s said its prospects for the rest of FY21 remain extremely positive despite the challenging operating environment in the US.