ASX ends lower as softer earnings drive hefty declines
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The news: The Australian market closed lower after weaker-than-expected earnings saw five ASX 200 companies shed more than 10% from their market cap.
The ASX 200 fell 0.68% to end at 8,251.9, with 7 out of 11 sectors finishing in red.
ASX 200 declines:
- Johns Lyng Group (-33.4%) — Reported a 33% fall in first-half net profit and trimmed its full-year guidance, as the number of insurance claims during the period tumbled.
- Viva Energy (-26.9%) — Saw a 20% decline in full-year net profit, as cost-of-living pressures and illicit tobacco trade weighed on demand at its convenience business.
ASX 200 gains:
- Helia Group (17.2%) — Increased its final dividend, announced a special dividend and doubled its ongoing $100 million share buyback to $200 million.
- Zip (13.9%) — Guided for full-year cash earnings of $147 million, outstripping market expectations, and announced leadership changes at its Australia and New Zealand business.
Earnings news:
- PolyNovo (-17.7%) — Reported double-digit increases in first-half net profit, sales and revenue after market closed on Monday, but Morningstar called the stock "materially overvalued".
- Domino's Pizza (-10.5%) — Posted a lower first-half profit and a flat interim dividend, citing inflation and lower sales in Asia and Europe.
- Nine Entertainment (3.7%) — Reported a drop in first-half profit, but flagged a further $100 million in costs cuts until FY27, on top of the company’s previous guidance of $50 million in 2025.
- Woodside Energy (2.8%) — More than doubled its full-year net profit, with improved production performance at its Sangomar oil field offsetting lower realised oil and gas prices during the period.
- DroneShield (-8.6%) — Swung to a full-year loss, as a lack of sales conversions weighed on revenue.
- AUB Group (3.5%) — Recorded a 13% increase in first-half underlying profit and lifted its interim dividend to 25 cents a share from 20 cents a year ago.
- Ingenia Communities (1.2%) — Increased first-half settlement numbers and reiterated its upgraded earnings guidance for the full year.
- Sims (1.5%) — Posted a sharply lower profit compared to a year ago, but raised its dividend on stronger underlying earnings.
- G8 Education (-4.8%) — Fell despite seeing a 20.8% jump in full-year statutory earnings as occupancy levels grew.
- Centuria Industrial REIT (2.4%) — Notched an improved first-half profit and reiterated its bullish outlook on Australia's urban infill market.
Other news:
- Westgold Resources (2.9%) — Agreed to sell its Lakewood processing facility to ASX small cap Black Cat Syndicate (4.9%) in an $85 million deal.
- Lifestyle Communities (-11%) — Fell despite upbeat reactions from UBS and Citi to its first-half result and the appointment of former REA Group executive Henry Ruiz as CEO.
- APA Group (8.2%) — Extended Monday's rally after securing upgrades from UBS and Jarden.
The Australian dollar is buying 63.53 US cents.
What’s ahead: Companies due to report on Wednesday include troubled software group WiseTech Global, supermarket giant Woolworths, and Westfield owner Scentre Group, as well as Worley, Steadfast Group, Light & Wonder, Appen, Bapcor, National Storage REIT, and Flight Centre Travel Group.
