How these ASX 200 stocks perform in the results announced today?

Key Highlights:

• ASX 200 sector ended lower. Many ASX-listed players released their financial results today.
• Eagers Automotive and Smartgroup Corporation were on the list of top gainers on ASX 200.
• Blackmores and Qantas were on the list of top laggards on the ASX 200.

On 23 February 2023, ASX sectors ended mixed. Out of 11 sectors, 6 sectors ended higher with ASX 200. Several factors influenced the market today. Amongst those factors, the results of most ASX players played a vital role in influencing their performance today.

Do Read:

1. Global Factors influencing ASX stocks on 23 February 2023

2. ASX 200 Ended Lower By 0.40%; Weighed Down By Materials And Consumer Staples Sectors

February is an exciting period for investors as many ASX-listed companies start releasing their financial results. During this time, investors are pretty alert as they are eager to know how the companies in their portfolio have performed and accordingly take their decision.

On 23 February 2023, many players released either their half-yearly results or full-year results. In this article, we will look into a few players on ASX 200 that gained huge market attention following the release of their results.

Eagers Automotive Limited (ASX: APE)

Australia’s leading automotive retail group, Eagers Automotive Limited (ASX: APE), announced record full-year results for the period ended 31 December 2022. The Company’s strong results were supported by strong demand for new and pre-owned cars, sustainable strong return on sales via a reset cost base and constant focus on technology-enabled productivity improvements, successful acquisition and integration of the ACT and South Australia multi-franchised dealership groups along with continued disciplined investment in strategic partnerships.

FY2022 Highlights:

• Statutory Profit Before Tax declined from AU$456.8 million in FY2021 to AU$442.2 million in FY2022.
• Announced record Underlying Operating Profit Before Tax of AU$405.2 million. It increased from AU$401.8 million in FY2021.
• Announced record ordinary fully franked dividend of AU49 cents per share (cps), which was AU42.5 cps in the previous corresponding period.

Management Commentary on FY2022 result:

Eagers Automotive’s Outlook:

In FY2023 and beyond, APE will focus on:

• Delivering revenue growth linked with investments, new strategic partnerships, and greenfield opportunities.
• Maintain sustainable strong return on sales and cost base discipline and deliberate productivity improvements.
• Play a significant role in transitioning to new energy and low-emission vehicles via its partnership and leverage its scale and retail expertise in the Australian market.    

Smartgroup Corporation Ltd (ASX: SIQ)

Smartgroup Corporation Ltd (ASX: SIQ), a leading specialist employee management services provider, announced a 1.3% growth in revenue numbers to AU$224.697 million. However, there was a marginal fall of 0.1% in the net profit in FY2022 (period ended 31 December 2022) to AU$58.781 million.

The final dividend for the year ended 31 December 2021 is AU 19 cents and a special dividend of AU30.0 cents.

Smartgroup has continued to generate a strong operating cash flow of AU$71.6 million, representing 117% of NPATA. Also, the Company has maintained a strong balance sheet with a net debt position of AU$27.2 million.

Smartgroup’s Outlook:

The Company maintained a steady performance in FY2023. It started positively in FY2023.

In FY2023:

• NPATA is expected to be at the top end of the guidance range of AU$60- AU$61 million.
• Leasing demand is expected to be strong.
• Strong initial interest is expected to continue into 2023. The Company expects an increase in the range and supply of new EV makes/models to improve availability and price points.

Blackmores Limited (ASX: BKL)

Blackmores Limited announced solid 1H FY2023 results and delivered a 17% increase in Underlying Net Profit After Tax to AU$24.4 million.

• Revenue declined by 1.6% to AU$338.0 million compared to the previous corresponding period. The revenue was driven by growth in Australia by 3.9% and China by 6.1%, counterbalanced by a decline in International due to 1H FY2022, including substantial COVID-19 surge demand.
• Underlying EBIT was down 5.5% to AU$36.2 million.
• Underlying EPS improved by 17% to AU$125.4 million.
• The Company announced an interim dividend of AU 87 cents.

Blackmores’ Outlook:

In the remaining FY2023, markets are likely to remain to some extent uncertain, with continuing themes of cost inflation and rising interest rates affecting consumer sentiment and shopper behaviour.

Within this environment, BKL remains focused on executing its strategic and commercial plans and leveraging the Group’s channel and geographic diversity. In Australia/New Zealand, BKL will continue to invest in its core brands and execute its pipeline of higher-margin new products while implementing price/mix plans to help offset additional inflationary pressure.

In International, the Company will continue to monitor market activity within category segments with slower growth. It will continue to execute its new product development across all markets.       

Qantas Airways Limited (ASX: QAN)

After 3 years and AU$7 billion in statutory losses due to the pandemic, Qantas Airways Limited (ASX: QAN) has returned to profit in 1H FY2023. In 1H FY2023 (period ended 31 December 2022), the Company’s underlying profit before tax was AU$1.43 billion.

In 1H FY2023:

• Statutory Profit After Tax was AU$AU$1 billion.
• Statutory EPS was AU 53.9 cents.
• Net debt declined to AU$2.4 billion.
• Announced on-market share buy-back of up to AU$500 million.
• There was a substantial improvement in operational performance and customer satisfaction.

While the Company delivered a strong 1H FY2023 result, it expects the capex to increase by up to AU$400 million to between AU$2.6 billion and AU$2.7 billion in FY2023. QAN is rephrasing its long-term capex pipeline connected with new aircraft orders in the coming years ahead on commercially beneficial terms.

Further, the board is in the process to repair its balance sheet. As a result, it decided to return up to AU$500 million via an on-market share buy-back. This process will start in March 2023. It will buy up to AU$300 million of QAN shares on-market to fund employee entitlements as per the recovery and retention plan.

Qantas Outlook:

In FY2023 and into FY2024, the travel demand is expected to remain strong. Group Domestic capacity is expected to increase from 94% to 103% in the second half of FY2023. QAN expects its international capacity to increase from 60% to 81% in 2H FY2023. Fares are expected to moderate during 2H FY2023 as capacity increases but will continue significantly above FY2019 levels.

Stock Performance Highlights:

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