We're nearing the end of this year's August reporting season and investors appear content, having seen some spectacularly great results so far. With around 75% of companies having reported, analysts are concluding that this year's results have been better than expected (or should I say better than feared).
Statistics from Citi Group indicate that nearly 55% of companies have exceeded expectations, while 71% of companies have grown profits, and 67% of companies have increased their dividend payout. Correlating well with these statistics is that nearly 60% of companies have outperformed the wider market on the day of releasing their results. Of these, small cap stocks have seen the biggest rise, with jumps of 10% to 20% relatively common.
Here are three small-cap stocks that have rocketed over the last week:
HR Services provider Chandler Macleod Group Limited (ASX: CMG) shares jumped nearly 15% last Tuesday when the company announced a strong finish to the financial year and a share buy-back of up to 5% of issued capital. While underlying profit fell, it fell less than expected and the positive end to the financial year and outlook into 2015 excited analysts and investors. A full-year yield of nearly 10% on the pre-announcement price is sure to excite investors too.
Nanosonics Ltd. (ASX: NAN) shares rose 13% last week after the company announced a 44% increase in sales, 64% rise in gross profit and a narrowing of group losses to 55% lower than the previous year. The company produces devices that quickly and effectively disinfect and sterilise medical instruments. The technology is dominant in the US and the company is increasing the proportion of revenue from parts sales that provide recurring revenue.
Finally, testosterone treatment supplier Acrux Limited (ASX: ACR) shares rose 15% between Monday and Wednesday last week after the company announced a strong profit result and solid dividend payout. Acrux shares have risen 110% in just three months as investors have been convinced that safety concerns over testosterone treatments should have little impact on the company.
