Episode 29: Slowing growth arrives to shut down the equities party
This week, mega-cap earnings disappoint as investors ask “where’s the revenue”, US economy starts to show cracks and middle east conflict flares up (again)
ResMed (RMD) – Shares rallied 1.5% after quarterly revenue rose 9% to $1.2 billion in FY24 Q4. Dividends increased to 53¢ per share, driven by strong sales of breathing devices, masks, and software.
Fortescue (FMG) – Shares declined as JPMorgan sought buyers for $1.9 billion in stock post-Monday. Investor concerns include C-suite instability, rising costs, and slumping iron ore prices, with shares down 30.8% YTD.
Rio Tinto (RIO) – Reported a $5.8 billion profit after tax for H1, driven by $12.1 billion in underlying earnings. CEO focuses on expanding lithium and copper divisions for future growth, particularly in Latin America.
Rex Airlines – Entered voluntary administration, leading to 360 immediate job cuts and grounding of all Boeing 737 flights. Potential acquisition by PAG as regional services face uncertainty.
Trade of the Week: Monash IVF (MVF) – Entered at $1.35 with a target price of $1.55. The stock is range-bound, with earnings expected on August 20, 2024. A 15% trailing stop is set at $1.20.
ASX Earnings Season Webinar Series
