Last week earnings season kicked off with the release of a number of half year and full year results.
Here's a review of some of the movers and shakers from week one:
Credit Corp Group Ltd (ASX: CCP)
This debt collector's shares pushed higher last week after the release of its full year results. Credit Corp posted an 8% increase in revenue to $324.2 million and a 9% lift in net profit after tax to $70.3 million. Looking ahead, the company expects similar growth in FY 2020. It has forecast a purchased debt ledger investment of $220 million to $240 million and FY 2020 profit growth of 7% to 10%.
GUD Holdings Limited (ASX: GUD)
The GUD share price tumbled lower last week after the products company released a weaker than expected full year result. GUD reported 9% lift in revenue from continuing operations and a 10% increase in underlying profit. Not only did this fall short of expectations, its guidance was a little underwhelming. Management said it expects "further revenue and EBIT growth in both the automotive and water businesses, although economic sentiment and recent demand suggests growth will be modest."
ResMed Inc. (ASX: RMD)
This sleep treatment-focused medical device company's shares raced to an all-time high last week after its fourth quarter and full year result impressed the market. ResMed reported a 13% increase in revenue to US$705 million in the fourth quarter, leading to it posting an 11% increase in full year revenue to US$2.6 billion. In constant currency, ResMed saw its revenue rise 15% for the quarter and 13% for the year. The good news for shareholders is that management spoke positively about its outlook and appears confident in its growth prospects. This could mean another solid year of growth for the company in FY 2020.
Rio Tinto Limited (ASX: RIO)
This mining giant fell a touch short of expectations in the first half of FY 2019. It recorded underlying EBITDA of US$10.3 billion, which was an 11% increase on the prior corresponding period. This was driven by a 3% lift in gross revenue to US$21.8 billion and the widening of its underlying EBITDA margin to 47%. One big positive was that the miner generated total free cash flow of US$4.7 billion, allowing it to announce a cash return of US$3.5 billion. This comprises a record interim ordinary dividend of US$2.5 billion, equivalent to 151 US cents per share, and special dividend of US$1 billion, equivalent to 61 US cents per share.
