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ASX 200 drops lower

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) dropped by 0.30% to 6,679 points today.

Here are some of the highlights from the ASX:

ARB Corporation Limited (ASX: ARB)

Four-wheel drive accessory company ARB gave a market update today regarding its FY21 first half revenue and profit expectations.

It said that its sales revenue for the first half was $284 million, which represents growth of 21.6% compared to the prior corresponding period.

The revenue growth has led to profit before tax guidance of a range of between $70 million to $72 million, including $9.8 million of one-off government benefits.

ARB said that investors shouldn’t read too much into the result because of the uncertain climate, but it has a positive short-term outlook based on a strong customer order book and another record sales month in December 2020.

It was one of the top performing ASX 200 shares, rising by 6.5% today.

Pushpay Holdings Ltd (ASX: PPH)

Another business to rise on the back of an update was Pushpay, the electronic donation business gave a profit update for FY21 and also announced a new CEO. The Pushpay share price rose 2.7%. 

The new CEO will be Molly Matthews, who is currently the company’s chief customer officer. She will become the CEO on 1 March 2021.

In terms of FY21 profit guidance, the company said that the month of December 2020 was better than expected. Its processing volume achieved in December 2020 combined with continued operating leverage improvements supported a guidance update.

Pushpay upgraded its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance from a range of US$54 million to US$58 million, to a range of US$56 million to US$60 million.

Polynovo Ltd (ASX: PNV)  

The Polynovo share price fell around 12% after giving the market an update.

It said that the FY21 first half revenue was up 31% compared to the corresponding period. There was “strong” sales growth of 75% in the first quarter of FY21, however, sales were then slower than expected in October and November.

In the US, first quarter sales were up 70% and second quarter sales grew 16%, leading to first half sales rising by 41%.

Polynovo Chair David Williams said: “While we have experienced a few bumps from COVID-19, we have built a significant base of new customers which holds us in a strong position. We will continue to expand our customer base which will enhance our success as the pandemic eases.”

Altium Limited (ASX: ALU)

The Altium share price dropped 2% today after the technology business gave another update.

Altium reported that its total first half revenue was down 3% to US$89.6 million because of COVID-19 conditions in the US and Europe, as well as challenging economic conditions in China for licence compliance activities.

The company said that the Americas underperformed with a decline of 10% in revenue for the half as the unprecedented levels of COVID-19 negatively impacted the sales performance.

NEXUS recorded a decline in growth of 14% for the half due to the timing of deals with a significant pipeline in the second half.

Altium said China underperformed with a decline of 15% in revenue for the half as licence compliance activities have become more challenging at the low end of the market due to uncertain economic conditions after COVID-19 in China.

However, Altium did share some positives. It said that board and systems revenue was stronger in the second quarter relative to the first quarter. The first quarter revenue was down 11% year on year, but improved to be flat year on year in the second quarter. This was notwithstanding the significant restructuring undertaken in Altium’s sales organisation to enable the company’s pivot to the cloud.

Electronic manufacturing has rebounded with Octopart benefiting from this recovery and achieving 19% revenue growth for the half. Management said this was a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half.

There was also strong growth in term-based licences over the first half, up 166%.

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Tristan Harrison owns shares of Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and PUSHPAY FPO NZX. The Motley Fool Australia has recommended ARB Limited and PUSHPAY FPO NZX. 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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