The S&P/ASX 200 (ASX: XJO) was once again buoyed by the materials sector on Monday, with Fortescue Metals Group Limited’s (ASX: FMG) strong earnings result sending the stock 6.6% higher and the sector up 2.7%.
Both financials and consumer discretionary remain under pressure, down 0.7% and 1.0% as ASX reporting season comes to an end.
Fortescue’s bumper dividend
It was all about Fortescue on Monday, with the company more than doubling its final dividend to $2.11 per share, representing a 10% yield on its own. The company has been a clear beneficiary of the surging iron ore price with revenue 74% higher and net profit more than doubling to US$10 billion.
Fortescue shares were up 6.6%, but it is unlikely to be smooth sailing with the iron ore price slumping and Fortescue’s lower quality product likely to be the first hit as Brazilian supply returns.
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Temple & Webster shares shoot higher
E-commerce furniture retailer Temple & Webster Group Ltd (ASX: TPW) is among one the few such companies to broach its pandemic highs.
The Temple & Webster share price jumped 10.6% on Monday on the back of a trading update, reiterating an 85% increase in revenue.
For the full year, earnings jumped 141% and most importantly the group made a profit, albeit of just $14 million on revenue of over $300 million.
The group’s more diverse product range has seen sales growth continue at 49% into August, outpacing the last trading update of 39% growth in July.
Altium share price slumps
Technology software designer Altium Limited (ASX: ALU) was the latest tech darling stock to feel the brunt of earnings season, falling 14.3% on a weaker than expected result.
The company reported revenue growth of just 6.4% but a tripling of profit to US$107 million. Recurring revenue growth, or subscription based, was 29% stronger and now represents two third of its total. The group has struggled in a highly competitive environment.
Crown’s nothing result
Crown Resorts Ltd (ASX: CWN) barely moved as revenue was confirmed to have fallen over 30% in the financial year, resulting in a $261 million loss.
The dividend remains on hold whilst the multiple Royal Commissions are underway but takeover offers are clearly in the wings once the air has cleared.
Funerals pay dividends for InvoCare
Funeral home operator InvoCare Limited (ASX: IVC), which ultimately profits from the investment of prepaid funeral expenses, jumped 8.7% after reporting a profit recovery, hitting $44 million in the first half.
Operating revenue was 13% higher with earnings up 31%, benefitting from a $38 million gain on its investment portfolio.
ASX 200 today
The ASX 200 is expected to follow US markets higher at the open on Tuesday. Today marks the end of ASX reporting season, with the likes of Cettire Ltd (ASX: CTT), PointsBet Holdings Ltd (ASX: PBH) and Regis Resources Limited (ASX: RRL) set to report.