The S&P/ASX 200 Index (INDEXASX: XJO) continued to climb higher on Wednesday after a number of strong ASX earnings results.
ASX Financials (+1.76%) was the strongest industry sector yesterday as Commonwealth Bank of Australia Ltd (ASX: CBA) dragged the index higher.
Communications Services (-0.66%) and Industrials (-0.56%) struggled yesterday on a mixed day for the index.
Here’s a recap of the biggest ASX news, events and movements that you missed on another solid day of trade on Wednesday.
CBA shows that ASX banking stocks are still alright
The largest of the ASX 200 shares posted a better than expected half-year result yesterday.
Commonwealth Bank shares jumped 4.08% to $88.18 per share yesterday and hit a new 52-week high in the process.
The bank’s operating income came in at $12,416 million, which was flat on 1H 2019 numbers, while cash earnings fell 4.3% to $4,477 million.
While that might not be the bumper result you’d expect, that beat consensus estimates of $4,405 million and sent Commonwealth Bank shares soaring.
Wednesday’s results bode well for the other ASX banking shares, which are worth watching before they report their results in April or May.
IDP Education shares soar after bumper result
Total revenue surged 20% to $379 million for the half-year on the back of strong divisional performance. IDP’s gross profit jumped 24% to $222.2 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) surged 53% higher to $106.2 million.
The ASX education group recorded a 41% jump in adjusted earnings per share and sent its shares surging higher on Wednesday.
There was also the 37% increase in the group’s interim dividend to 16.5 cents per share, which helped boost its value higher.
Blackmores shares plummet – and we haven’t even seen any results
The Blackmores Limited (ASX: BKL) share price slumped 12.79% lower on Wednesday after the ASX supplements group emerged from a trading halt.
Concerns over the coronavirus outbreak hit Blackmores shares hard yesterday. There are concerns over rocketing demand for health supplements amid the scare while the group’s China sales and e-commerce sales are under pressure.
Blackmores’ earnings before interest and tax numbers could be under pressure as it tries to improve gross margin with less discounting in the final quarter of the year.
The group is expected to release its results on 25 February but I wouldn’t hold my breath for strong earnings.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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 Scott Phillips.