The ASX reporting wrap-up: Suncorp, Transurban, ELMO

Just what the investor ordered. Here's a recap of the companies that reported today…

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published August 9, 2021 5:50 pm AEST

Monday has drawn to a close… The week has only begun, and the ASX share market is already alive with companies reporting their earnings. Markets reacted quite differently between three big-name ASX shares that released their results today.

We'll quickly unwrap the results and then wrap it back up for tomorrow:

A businessman presents a company annual report in front of a group seated at a table — Image source: Getty Images

Those that delivered today

Suncorp Group Ltd (ASX: SUN)

Shares in the Queensland-based financial services company climbed 7.84% to $12.79. This followed the release of the company's FY21 results, which revealed a solid performance.

The takeaway points:

Revenue down 4% to $14,187 million
Cash earnings up 42.1% to $1,064 million (vs Goldman Sachs estimate of $1,005 million)
Net profit after tax up 13.1% to $1,033 million
Final dividend of 40 cents per share and special dividend of 8 cents per share
$250 million on-market share buyback

Transurban Group (ASX: TCL)

Shares in ASX-listed Transurban didn't fare as well, slipping 1.96% to $14.03. Controversy regarding the company's West Gate tunnel project appears to have weighed on investor sentiment. In addition to this, the company's financials were down across the board.

The takeaway points:

Transurban reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $1.81 billion – down 3.3% on FY20
Approximately $2.26 billion revenue – down 0.3% year-on-year
Free cash decreased 13.5% to around $1.27 billion
Dividends totalling 31.5 cents over FY21, including a 21.5 cent final dividend

ELMO Software Ltd (ASX: ELO)

Lastly, from bad to worse, the ELMO Software share price took a thumping after releasing its FY21 results. Shares in the cloud-based HR platform provider sank 7.62% to $4.97.

The takeaway points:

Annualised recurring revenue (ARR) of $83.8 million, up 52.1% on FY2020 figures. Organic growth of 26.0% in mid-market and small business operations, as well as recent acquisitions, helped deliver this result.
Full-year revenue climbed to $69.1 million, up 37.9% on FY2020 figures.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.4 million compared to a $2.9 million loss in FY2020.
Gross profit of $59.9 million compared to $42.8 million in FY2020.

ASX shares reporting tomorrow

Tuesday is set for another handful of results to be reported by ASX-listed companies. These include Challenger Ltd (ASX: CGF), James Hardie Industries PLC (ASX: JHX), and Megaport Ltd (ASX: MP1).

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