Last week was another busy one for investors with an endless stream of results releases.
Three results which were arguably among the best released over the period are summarised below. Here’s what you need to know about them:
Cochlear Limited (ASX: COH)
This hearing solutions company released a surprisingly strong half year result last week. For the six months ended 31 December, Cochlear posted an underlying net profit of $125.3 million. Impressively, despite facing tough trading conditions caused by COVID-19, Cochlear’s profit was down only 4% in constant currency from its record first half profit in the prior corresponding (and COVID-free) period.
Looking ahead, a strong second half is expected by management. It has provided full year underlying net profit guidance of $225 million to $245 million. This represents a 46% to 59% increase on FY 2020’s profits.
This went down well with analysts at Macquarie. In response to its result, the broker retained its outperform rating and lifted its price target to $245.00.
Goodman Group (ASX: GMG)
Goodman Group is on form again in FY 2021 and delivered a strong half year result. The global integrated property company reported a 16% increase in operating profit to $614.9 million for the six months ended 31 December. This was driven by new developments, strong demand, and like-for-like net property income growth of 3%.
Also going down well with investors was management’s guidance for the full year. It now expects operating profit growth of 12% in FY 2021. This compares to its previous guidance of 9% year on year growth.
Macquarie was also impressed with this result. It responded by upgrading Goodman’s shares to an outperform rating with an improved price target of $20.39.
Zip Co Ltd (ASX: Z1P)
This buy now pay later provider has continued its meteoric growth in FY 2021. Last week it released its half year results and reported a 141% increase in total transaction volume (TTV) to $2.32 billion. This underpinned a 130% jump in half year revenue to $160 million.
Zip’s stellar growth was driven largely by a significant lift in active customers. At the end of December, the company had a total of 5.7 million active customers, which was an increase of 217% over the prior corresponding period. In addition to this, it revealed that it now has more than 38,500 merchants across the United States, Australia, New Zealand, and the UK. Looking ahead, Zip advised that it has global momentum and the foundations to accelerate growth in the second half.
In response to the result, analysts at Morgans retained their add rating and lifted their price target to $12.00.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.