I think it is fair to say that Wednesday was one of the busiest days so far during earnings season.
While the likes of iSentia Group Ltd (ASX: ISD), Insurance Australia Group Ltd (ASX: IAG), and a2 Milk Company Ltd (Australia) (ASX: A2M) may have grabbed the headlines, they certainly weren't the only ones reporting.
Three results you might have missed are summarised below:
The Bega Cheese Ltd (ASX: BGA) share price edged lower despite the food company posting a massive 382% increase in statutory net profit after tax to $138.7 million. Although revenue only increased 3% to $1,226.7 million, profit grew at an explosive rate thanks to the sale of its infant nutritional assets to U.S. giant Mead Johnson. This sale generated a profit after tax of $124.5 million. If you exclude this one-off, earnings rose just 4% in FY 2017.
The Star Entertainment Group Ltd (ASX: SGR) share price climbed 5% to $5.36 on Wednesday after the casino and resort operator posted a full-year statutory net profit after tax of $264.4 million on revenue of $2,432.2 million. This was a 36% and 3% increase year-on-year, respectively. I felt Star delivered a solid result and can't say I'm surprised to see its shares climb higher. And with the tourism boom in full swing, I think there could still be reasonable upside left for its shares. Especially considering they are changing hands at less than 17x statutory earnings.
The Worleyparsons Limited (ASX: WOR) share price stormed higher by 5% to $12.72. The mining services company reported a full-year statutory net profit after tax of $33.5 million. This was an increase of 42.5% on FY 2016 and was driven largely by a significant reduction in overhead costs, improved customer delivery, and an optimised portfolio of operations. Pleasingly, the full benefits of the overhead savings achieved in FY 2017 are expected to be reflected in FY 2018's earnings. Whilst I think Worleyparsons is in much better shape now, at 26x underlying earnings I think its shares are a little on the expensive side.
