IAG: 1H22 Earnings

Posted on | by Leon Hinde

Insurance Australia Group is under Algo Engine sell conditions.

1H22 cash NPAT of A$173m. Outer year growth could be material for IAG and we’ll be watching for a return to algo buy conditions later this year.

Risks to our IAG valuation and target price revolve around the pricing and claims
environment for insurers in Australia and New Zealand, including catastrophe
events.

Aurizon Holdings: 1H22 Earnings

Posted on | by Leon Hinde

Aurizon Holdings is under Algo Engine buy conditions. 1H22 underlying EBITDA was down 1.5% to $727m and underlying NPAT was $257m.

We expect Bulk to continue being strong, with record crop production across Australia and new
contracts, although a soft volume outlook for Coal leaves low single-digit earnings growth at best for FY22.

The dividend was $0.105 with a payout of 75%. The forward div yield is now 5.7% and EPS growth likely to be flat to +2%. OneRail transaction is progressing with key ACCC assessment due in
March.

Carsales.com: 1H22 Earnings

Posted on | by Leon Hinde

Carsales.Com delivered a solid 1H22 result particularly on the revenue line. The outlook has seen slight downgrades and the focus for investors will be the performance of the international businesses in FY23.

EBIT is expected to grow by 10% and the forward yield now represents 2.5% and the stock trades on 27x FY23 earnings.

Seek: 1H22 Earnings

Posted on | by Leon Hinde

Seek is under Algo Engine buy conditions.

The 1H22 performance looks strong, with revenue from continuing operations increasing 59% to $517m, reported profit up 152% to $126m. Total reported profit rose 32% to $88.1 million.

The company expects full-year revenue to be in the range of $1bn to $1.1bn and EBITDA to be in the range of $490m – $515m, NPAT to be in the range of $230m – $250m.