With the S&P/ASX 200 Index (INDEXASX: XJO) bouncing back today, here are 3 ASX shares that are seeing particularly strong gains. Let's take a look at why each of these companies is moving higher today.
Bega Cheese Ltd (ASX: BGA)
The Bega Cheese share price has soared by 8.7% so far today to be currently trading at $4.36. The dairy manufacturer released its half-year results to the market yesterday, which saw its share price sliding by more than 10% in early trade only to close down by 1%.
In a more upbeat market today, it appears that investors are now taking a more optimistic view of Bega's earnings result. Bega reported revenue of $741.2 million in the half, up 14% on 1H19, with the Bega Cheese segment performing particularly well. Meanwhile, statutory earnings before interest, tax, depreciation and amortisation (EBITDA) was down 1% to $39.3 million.
Earnings were impacted by reduced milk supply and margins in the dairy industry, particularly in Northern Victoria, as well as a reduction in volumes at Tatura Milk. Bega has maintained its full-year FY20 guidance of normalised EBITDA in the range of $95 million to $105 million.
Afterpay Ltd (ASX: APT)
The Afterpay share price has surged by 7.7% so far today to currently be trading at $35.15. This comes after Afterpay shares were hit savagely over the past week and a half, and in particular over the last two days.
As of close of trade yesterday, the Afterpay share price was down 10.5% over the last two trading days. Zooming out further, Afterpay shares were down by 19.4% since 20 February, triggered by the market sell-off due to concerns about the wider impact of the coronavirus.
In Afterpay's 1H20 results released last week, the company reported underlying sales increased by 109% to $4.8 billion. Along with this, Afterpay posted a record number of customers globally of 7.3 million, up 134% over the prior year. It appears there is an upward correction to Afterpay's share price playing out today amongst more positive investor sentiment.
Xero Limited (ASX: XRO)
Xero is another ASX tech share that has been hit harshly since 20 February due to market concerns about the impact of the coronavirus. Today, the Xero share price has risen 7.2% to be currently trading at $79.94.
This rise doesn't appear to be linked to any recent announcement, but rather a reaction to the overly harsh market sell-off of shares recently. Despite all the market turmoil, Xero is still one of the leading tech shares on the ASX.
With this, I believe Xero is still well-positioned for strong long-term growth, with its core markets of Australia and New Zealand continuing to see an improving upward trend in gross profit margin. Xero is also gaining further traction in overseas markets by addressing regulatory and tax issues that are hindering adoption in markets such as the US and UK.