ASX Earnings Wrap: Reckon jumps 13pc; Pro Medicus keeps delivering, up almost 40pc this year
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It’s earnings season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
The accounting software company has delivered according to plan with a strong first half performance.
Results were underpinned by the continued investment in its cloud based products, and strong topline growth for its Legal Group.
Overall, Reckon’s recurring revenue was up 5% on the pcp to $25.8m after an exceptionally strong subscription revenue growth of 19% made by the Legal Group.
The Business Group, meanwhile, strengthened with a 6% uplift in cloud revenues despite a slight decline in user numbers to 109,000 following the discontinuation of the free Payroll app.
Commenting on the results, Reckon’s CEO, Sam Allert, said this was a direct result of the company’s commitment to leverage R&D investments into an expanded and improved product offering, which is now yielding results for shareholders.
“We have continued our track record of rewarding shareholders with healthy dividends, and for the foreseeable future, our intention is to pay one dividend annually given it reflects a healthy yield based on the current share price,” said Allert.
Pro Medicus’ solid results were mainly driven by increased revenue from North America, which was up 41.8% while Australian revenue was up 9.4% on pcp.
Its European business’ revenue decreased by 12.2% due to one-off revenue coming from the extension of the German government hospital contract in FY22, which was not replicated this year.
During the year, Pro Medicus made key announcements including three contract wins with a combined minimum value of $16.5m with Montage Health, Children’s Hospital of Philadelphia, and Bay Imaging Consultants.
Pro Medicus CEO Dr Sam Hupert described the result a record one for the company in terms of both revenue and net profit, with all other key financial metrics also heading in the right direction.
“We predicted that our second half would be better than our first, and we were pleased to achieve that,” he said.
“The year was notable for us because we secured seven new contracts in the North American market, and renewed a significant contract with the University of Florida. These contract wins reinforced our position as a leader in cloud-based PACS systems.”
The hearing tech company said during the year, Cochlear implant units increased 16% driven by a combination of market growth, improved clinical capacity, and market share gains.
Covid catch-up surgeries also played a part in the surge, with the company successfully launching the Cochlea Nucleus 8 Sound Processor late in the second quarter.
The newly launched product generated strong demand for Cochlear implant systems and sound processor upgrades during the second half.
Cochlear has a strong balance sheet and cash flow generation, which supports the 21% increase in the final dividend to $1.75 per share, taking full year dividends to $3.30 per share.
In FY24, the company expects to deliver underlying net profit of $355-375 million, a 16-23% increase on FY23, which is expected to be driven by a combination of revenue growth and improved net profit margin.
CSL says its performance in FY23 was delivered against a challenging operating environment.
“Our CSL Behring business rebounded strongly driven by exceptional growth in immunoglobulin sales and record plasma collections,” said CEO, Dr Paul McKenzie.
However, CSL says it has been impacted by adverse AUD/USD currency rates.
“While we have not been immune to inflation and currency headwinds, our focus on improving efficiencies across our global network of manufacturing sites has helped reduce the impact,” McKenzie said.
In FY24, NPATA is anticipated to be in the range of approximately $2.9 billion to $3.0 billion at constant currency basis.
The San Francisco-based company says it has maintained growth momentum through Q2, with good growth in Paying Circles app despite the price increase for existing US Android subscribers.
Life360 added around 62,000 global net subscribers during Q2, compared with 73,000 the previous quarter.
For CY23, Life360 expects to deliver Core Life360 – its flagship app – subscription revenue growth in excess of 50% YoY.
The company’s balance sheet remains strong, with cash and equivalents balance of $64.2 million at the end of Q2.