Reporting season is mercifully coming to an end this week.
If you're overwhelmed by all the financial figures, Morgans analyst Andrew Tang has helpfully picked out the best buys based on the latest results announcements.
Here are four of those ASX shares to consider adding to your portfolio:
'Positive earnings momentum is obvious'
TPG Telecom Ltd (ASX: TPG) shares have had a rough time since the company was born out of a merger between Vodafone Australia and TPG.
Since that first day on the ASX in July 2020, the stock price has dropped more than 42%.
But Tang was pleased with the latest report.
"TPG FY22 result was, pleasingly, in line with expectations," Tang said on the Morgans blog.
"Revenue was up 1.5% year-on-year and underlying EBITDA (excluding the gain on tower sales and restructuring costs) was up ~4% year-on-year to $1,793 million."
As well as hitting Morgans' target for the financial year just gone, the future was also positive.
"FY23 guidance is ~3% ahead of consensus," said Tang.
"This was the first time since merging that positive earnings momentum is obvious across the group."
Morgans thus has an add rating on TPG shares.
This business is 'now through the worst'
On the other hand, food and drinks producer Bega Cheese Ltd (ASX: BGA)'s fortunes were downbeat in the latest results.
"BGA's 1H23 result was weak with net profit after tax [NPAT] down 74%," said Tang.
"Margins (especially in the 1Q) were materially impacted by higher milk and other inflationary costs and the lag impact of implementing price rises (didn't take effect until the 2Q)."
The 2023 financial year earnings outlook was downgraded to the lower end of the previously flagged range.
"Rising interest rates will further impact NPAT. We have made large cuts to our forecasts."
Despite all this doom and gloom, Tang has upgraded the stock to a buy.
"While we continue to have concerns about the dairy industry, we think Bega is now through the worst of it," Tang said.
"With low double-digit price rises, further efficiencies, synergy realisation and asset sales, BGA expects a much improved result in FY24."
Tang's team highly rates Bega's new leadership team, expecting it to "deliver improved returns over the coming years".
Bega shares are down more than 26% over the past 12 months.
Economic slowdown is a worry, but this stock is still a buy
Like many technology stocks, online task marketplace Airtasker Ltd (ASX: ART) has seen its shares devastated in recent times.
The stock price has lost a painful 62% over the past year.
Tang felt the latest results showed the business is heading in the right direction.
"Gross merchandise volume growth of +58% on prior comparable period (to ~$132 million) and revenue growth of +57% on prior comparable period (to ~$22 million) was a resilient performance from the local services marketplace, in our view."
There was "some softness" seen on posted tasks due to the slowing economy, admitted Tang.
"We note supply side normalisation (labour) has begun and assisted completion rates and helped underpin Airtasker's GMV growth."
The Morgans team has thus lowered its future expectations, but still rates Airtasker as a buy.
2022 was all the hard work, now sit back for 2023
Petrol station real estate owner Waypoint REIT Ltd (ASX: WPR) reported results that met Tang's expectations, due to its focus last year on selling "non-core assets", capital management, and balance sheet clean-up.
"The portfolio is valued at $2.9 billion across +400 properties with metrics stable," he said.
"Revaluations saw cap rates expand 16 basis points over 2022. Net tangible assets at $3.02."
This compares to Waypoint's share price closing Tuesday at $2.73.
Tang's team sees this year as one of consolidation rather than reform.
"After two years of steady asset sales (~15% of portfolio), 2023 is expected to be less active."
The main feature of any real estate trust, the dividend yield, is expected to remain attractive.
"CY23 distributable EPS guidance to be in line with CY22 which equates to a distribution yield of +6%."
