ASX Quarterlies Top 5: It was (almost) all tech this morning
As the ASX becomes flooded with quarterlies, Stockhead sorts out the best ones so you don’t have to.
“Quarterlies” alludes to ASX company quarterly activity and cash flow reports due on or before the last trading day of the first month after the relevant quarter.
While material company developments are typically recapped rather than announced, a company’s cash position is always watched by investors.
Shares may rally or sell off dependent on results if investors perceive the company is on track or not.
Stockhead has recapped this morning’s stocks that rallied the most after releasing quarterly updates.
Rising over 30 per cent in early trade was car classified site owner Icar Asia (ASX:ICQ).
Admittedly, it was released on the same day as a takeover offer from Chinese car classified site Autohome.
But the results of its quarterly were impressive with net operating cash outflow improving by 32 per cent and a couple of its markets (Malaysia and Thailand) turning earnings positive.
It noted markets were returning to normal operation after the disruption COVID-19 had.
As people keep learning and working from home, the stocks that enable this “new normal” keep winning.
ReadCloud (ASX:RCL) was one edtech company with a helping hand amidst the lockdown and institution closures, offering e-textbooks for schools and VET providers.
While its cash receipts from customers were only $300,000 it now has over 500 school customers and more than 115,000 users.
Earlier this week Readcloud announced an acquisition of COSAMP – a VET course provider for the music industry. It says this will help it expand in the industry.
Brisbane-based telco Vonex (ASX:VN8) meanwhile had another strong quarter with its sales revenue and Annualised Recurring Revenue both growing by 84 per cent to $4.44 million and $16.7 million respectively.
Additionally, it is building a platform, called Oper8tor, allowing users to communicate across communications platforms (such as Skype, Zoom and WhatsApp) regardless of whether or not they are using the same platform.
Rounding out the list is Linius (ASX:LNU). At its heart it is a video software platform which allows users to personalise video streams.
But one of its solutions, the Linius AI meeting solution, helps video conferences that help users assemble relevant points from ecordings as well as share and collaborate on the go.
While the company still has more cash flowing out than in, it made several client wins in the last quarter including the NBL, Sportshero and news service Grafa.
All stocks rose by at least 20 per cent in early trade.
WestStar Industrial (ASX:WSI) was one of the few non-tech winners today.
It serves infrastructure projects ranging from new motorways to Rio Tinto’s Koodaideri iron ore development.
WestStar had another solid quarter, with cash receipts rising from $12.2 million to $15.9 million. Additionally, it was awarded another $15 million in contracts.
Yet, the sector has been one of the biggest targets of government stimulus and WestStar admitted it had positive exposure to these projects.
Shares rose by 17 per cent today.