Earnings
Pro Medicus Defies Growth Warning with Profit Surge
Pro Medicus, a leading medical imaging software company, reported a 36.5% increase in full-year profit, primarily driven by strong revenue growth in North America, which constitutes 90% of its turnover. Despite the robust financial results, CEO Sam Hupert cautioned that sustaining such high growth rates will be challenging as the company scales. Hupert refrained from providing specific forecasts for the coming year but expressed confidence in maintaining a trajectory of strong, profitable growth. Pro Medicus, valued at $13.7 billion, has seen significant appreciation in its stock since its 2000 flotation.
Evolution Mining’s Profits Triple Amid Gold Surge
Evolution Mining reported a near tripling of its full-year profits, driven by a significant surge in gold prices amid global economic uncertainty and conflicts in the Middle East. The miner sold gold at an average price of $3190 per ounce, nearly double its production cost of $1477 per ounce. Evolution’s revenue soared by 70% to $3.2 billion, with net profits reaching $422.3 million, compared to $163.5 million the previous year. The company will pay a final fully franked dividend of 5 cents per share, more than double the previous year’s final dividend.
What's Affecting Markets Today
RBNZ Cuts Cash Rate by 25bp to 5.25%
The Reserve Bank of New Zealand (RBNZ) has reduced the cash rate by 25 basis points to 5.25%, marking its first rate cut since 2020. This decision comes as the central bank acknowledges that the economy is contracting faster than anticipated. The New Zealand dollar dropped from 60.78¢ to 60.30¢ following the announcement. Despite market expectations for a rate cut, economists were divided. The RBNZ emphasized the need for restrictive monetary policy to combat domestic inflationary pressures. It revised its cash rate projections, expecting a decline to 4.92% by Christmas and 3.85% by 2025.
ASX Stocks
ASX 200 - 7,854.9 (+0.4%)
Key Highlights:
Leaders
LRS – Latin Resources (+13.64%)
WC8 – Wildcat Resources (+10.42%)
IPX – Iperionx (+10.35%)
HGH – Heartland Group (+9.95%)
IMM – Immutep (+9.68%)
Laggards
HTA – Hutchison Telecom (-7.14%)
FEX – FENIX Resources (-5.48%)
SXG – Southern Cross Gold (-4.80%)
PYC – PYC Therapeutics (-4.76%)
INR – Ioneer (-4.00%)
