3 ASX shares rocketing 10% on positive earnings updates

These three ASX shares have gone significantly higher after the companies posted details of their FY22 profits.

| More on:
Three rockets heading to space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a big week in the August earnings season with scores of ASX businesses reporting their results. Today, these three ASX shares are taking off after their companies posted details of their FY22 profits.

Let's take a look.

Slater & Gordon Limited (ASX: SGH)

The Slater & Gordon share price is up 9.57% to 63 cents today. This follows the law firm releasing its full-year FY22 results and a business update this morning.

The company said its results proved it had turned things around in the second half of FY22 after COVID-19 lockdowns caused problems in 1H FY22.

It reported a net profit after tax (NPAT) of $2.2 million for the full year. This was achieved from a net loss position of ($7.5 million) after 1H FY22. But the full-year result is well down on the $14.5 million of NPAT in the prior corresponding period (pcp).

The firm's net asset position improved to $184 million, up from $180.5 million pcp.

Slater & Gordon CEO John Somerville said:

When we reported our half year results in February, we said we had started to see signs of improvement following the lifting of lockdowns and we are pleased that the second half saw the continuation of that trend with the business returning to deliver an overall profit for the year.

Our firm continues to make good progress on its improvement and growth plans, but we recognise we still have more work to do.

360 Capital Group Ltd (ASX: TGP)

The 360 Capital Group Ltd share price is soaring 10.12% today to 93 cents. This is also on the back of full-year FY22 results released today.

The company reported operating revenue of $53.9 million, up 157% pcp. Its operating profit was $30.9 million, up 240% pcp. Operating earnings per share (EPS) came in at 14.1 cents per share, up 236% pcp.

The group also announced a special dividend of eight cents per share payable on 7 October. Shareholders will receive this on top of the six cents per share in total ordinary dividends paid this year.

The company says its principal investing continues to drive profits. It has also simplified the business to focus on its core strengths of real estate investing and funds management.

Part of that simplification process was selling its 19.9% stake in Irongate Group to Charter Hall Group (ASC: CHC). It also bought certain assets as part of the transaction.

This improved the balance sheet. After settlement on 15 July, the company had more than $160 million in cash, no bank debt, and $49.4 million in liquid assets.

This provides "the opportunity to capitalise on market volatility and dislocation given the Group's 16-year track record of real estate investing".

Close The Loop Inc (ASX: CLG)

Close The Loop Inc is a relatively new entrant to the ASX. It began trading in December 2021.

As my colleague Sebastian reported at the time, the Close the Loop share price skyrocketed 55% on its first day of trading to a high of 31 cents. That's well beyond its initial public offering (IPO) price of 20 cents.

The company describes itself as "an end-to-end solutions provider from design and manufacturing, through to collection and recycling of products".

It released its full-year FY22 statutory accounts, a trading update, and an investor presentation today.

ASX investors appear to be very happy with what Close the Loop told them today, with the share price up 9.52% to 46 cents this afternoon.

It reported revenue of $89.2 million, which was 20.7% above the prospectus forecast and up 32.3% pcp. Its earnings before interest, tax, depreciation and amortisation (EBITDA) was $14.3 million, 16.3% above prospectus forecast and up 8.3% pcp.

The company said: "Strong organic revenue growth across all divisions contributed to significant earnings uplift."

Close the Loop also made various acquisitions during the year. It increased its net tangible assets per share from 0.96 cents at 30 June 2021 to 7.31 cents at 30 June 2022.

Group CEO Joe Foster said:

Close the Loop Group's strong performance in our first full year reporting period as an ASX-listed company has ensured we have achieved or exceeded key prospectus metrics and delivered on our strategic pillars.

We acquired complementary and earnings accretive businesses in Oceanic Agencies and Crasti & Co. and, in July, added Alliance Paper. These three acquisitions add to the cumulative power Close the Loop has in its ability as the only ASX-listed company operating in all parts in the circular economy – from product design, manufacturing, collection and recycling and then eventually recovering it as new packaging or secondary products, or simply packaging to packaging.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Earnings Results

Which ASX shares delivered the biggest profit jumps of the earnings season?

These companies revealed at least a 70% profit boost in their latest earnings reports.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Earnings Results

Why this ASX 300 share is leaping 14% despite being branded a 'sell'

Falling profits are putting investors off the fund manager.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Technology Shares

Life360 share price rockets 24% after smashing FY23 earnings expectations

This tech stock delivered a very strong result this morning. How strong was it?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

Two workers at an oil rig discuss operations.
Earnings Results

2 ASX energy shares going gangbusters on today's earnings results

The ASX energy shares are drawing investor interest today after releasing their half-year earnings results.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »

Man and woman sitting at casino table playing poker
Earnings Results

Star Entertainment share price jumps 5% on strengthening outlook

ASX 200 investors are bidding up the Star Entertainment share price on Thursday.

Read more »