Wednesday was a particularly thrilling day on the ASX with a significant number of popular companies reporting.
Of particular interest was the large share price moves experienced by some key stocks.
Here are three companies which have all reported this week to subsequently pique my interest.
CSL Limited (ASX: CSL)
In my opinion, CSL is one of the very best businesses on the ASX and I'd love the opportunity to buy shares in this company at a reasonable price – that day may be getting closer after a 5% fall in the biopharmaceutical's share price.
The market reacted negatively to the 10% fall in CSL's profits which is an understandable response for a growth-obsessed market. The result was also tainted by company guidance for an 11% increase in profits in the current financial year – a level which is lower than some analysts were purportedly expecting.
For investors who don't put undue weight on next quarter's earnings and other short term metrics, the long term outlook for CSL remains bright.
CSL is a business with numerous competitive advantages especially its intellectual know-how for producing complex therapies from blood plasma.
Sonic Healthcare Limited (ASX: SHL)
Shares in Sonic rallied 6% on Wednesday to an all-time high of $23.66 after the medical diagnostics group unveiled a very strong set of results.
Revenue rose 20% to $5 billion, while profits surged 30% to $451 million. Although Sonic did benefit from favourable currency movements, even after stripping these out the results were outstanding.
Sonic operates across not just Australia but also the USA and Europe, providing shareholders with a diversified revenue and earnings exposure. Management has guided towards a rise of just 5% in underlying earnings this year and with the stock trading on a multiple of around 21.5 times earnings, Sonic is a stock I'll be monitoring for a more attractive entry point.
BWX Ltd (ASX: BWX)
BWX could be described as enjoying "market darling" status since its initial public offer (IPO) less than one year ago. With the share price having roughly doubled, it was going to take an unexpectedly strong result to send the shares even higher.
The full year results were indeed solid with revenue up around 20% to $54 million and profit increasing 25% to $12 million. Of even greater importance however was management's guidance for EBITDA to grow by 30% in the current year.
While I'm not certain that there is a sufficient margin of safety yet, I've added BWX to my watch list because after the near 20% slump in the skin care manufacturer's share price over the past two days, the stock is getting closer to my buy zone.
