February month is a crucial period for most investors on ASX as many players listed start releasing their half-year or full-year results. It is an important period for investors as they can track how their companies have performed and how they navigate the existing environment. It gives investors an idea of what management did during the entire financial period and their outlook for the coming period. Based on some of these points, these investors take buying or selling decisions.
On 20 February 2023, two ASX 200 stocks plunged significantly. Both these companies have released their 1H FY2023 results. In this article, we look at the results of these companies and identify the reasons impacting their share performance.
Private health insurer nib holdings limited (ASX: NHF) announced 1H FY2023 results and noted an increase in underlying operating profit by 13.3% to AU$125.1 million. The Group’s underlying revenue grew 9.3% to AU$1.5 billion. The Company’s major businesses all performed well. It witnessed strong results from the Australian Residents Health Insurance and New Zealand businesses and a recovery in the International Inbound Health Insurance business and nib Travel. The Company announced an interim dividend of AU 13 cents, which was AU 11 cents per share in the previous corresponding period.
The Company delivered strong results. Still, the Company’s stock dropped after the Company’s CEO and Managing Director, Mark Fitzgibbon, highlighted that inflation, rising interest rates, and slowing economic growth suggest some level of caution. He said that the claims are still lower than expected and expect volume to improve at some point.
The Company’s outlook is positive. However, it feels that there still exists noise around COVID-19, deferred medical treatment, and claims exposure. Although the Company’s provisioning is prudent at present. Still, it will take some time to settle.
Steel manufacturer BlueScope Steel Limited shares dropped following its weak 1H FY2023 results and guidance. BlueScope today reported 1H FY2023 net profit after tax (NPAT) declined AU$1,045 million to AU$599 million.
The Company’s underlying EBIT in 2H FY2023 is expected to be in between AU$480 million to AU$550 million mainly because of softer Asian and Midwest steel spreads. However, it would depend on the spread, foreign exchange, and market conditions.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.