Earnings season has a way of making investors feel both anxious and excited. After all, for most companies, we’re only given an in-depth look at how they’re performing fundamentally twice a year, so any surprises (good or bad) can move that company’s share price, sometimes significantly.
Thankfully, there have been plenty of great surprises for investors so far this earnings season, including some this week.
Indeed, shares of BWX Ltd (ASX: BWX) have surged 11.1% at the time of writing today after the business reported its first-half earnings. The company, which develops and markets skin and hair care products, said its revenue rose 36.4% versus the prior corresponding period to $37.5 million, while its gross margin had increased from 58.9% to 65.1%. Its core Sukin branded products performed very well during the period, with sales rising 59.4%.
Premier Investments Limited (ASX: PMV) also provided a positive trading update, although it won’t release its actual earnings report until late in March. Despite weak Australian retail figures earlier this week for December, Premier Investments said its total first-half sales rose around 7.1% compared to the prior corresponding period, with earnings before interest and tax (EBIT) expected to rise as much as 10.6%.
Investors were also pleasantly surprised by the results from Transurban Group (ASX: TCL), which owns and operates a number of major freeways in Australia and the United States. Not only did the company increase its proportional toll revenue by 10.9% to $1.07 billion and its proportional earnings before interest, tax, depreciation and amortisation (EBITDA) by 12.1% in the first-half, it also upgraded its distribution guidance (i.e. dividends) to 51.5 cents per security. That’s a 13.2% increase on the FY16 distribution.
Indeed, there are still a number of big-name businesses that are yet to report their earnings but the number of positive reports so far do give investors reason to be confident.
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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia owns shares of BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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