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:
The Australian sharemarket saw a solid rise, with the S&P/ASX 200 Index gaining 0.6% (43.1 points) to reach 7869.9, driven by strong performances in industrial and healthcare stocks. Pro Medicus surged 9.7% following a 36.5% increase in net profit to $82.8 million. Seven Group Holdings also climbed 7.6% after projecting high single-digit earnings growth for FY25.
Commodities were mixed, with iron ore futures falling 2.3% due to weak demand in China, pulling down BHP and Rio Tinto shares. In contrast, Evolution Mining jumped 7.9% as its profits nearly tripled, supported by rising gold prices amid geopolitical tensions.
Other notable movements included AGL Energy’s 2.1% rise after a profit surge, Commonwealth Bank’s 0.8% gain following a $9.8 billion profit report, and Orora’s 6.4% increase on revenue growth. However, ASX Ltd shares fell 2.8% amid legal challenges, and Seven West Media rose 3.2% despite reporting a significant drop in profit. The market was further boosted by optimism from a rally on Wall Street and a rate cut by the Reserve Bank of New Zealand.
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%)