AU market earnings: Qantas profits tumble as airfare prices moderate
Wesfarmers posts a 3.7% profit increase driven by Bunnings and Kmart, while Qantas and Mineral Resources report significant profit drops amid challenging market conditions.
[AI generated]
This video was created on 29 August for IG audiences by ausbiz.
Mixed profits amid market pressures
- Wesfarmers reported a 3.7% rise in annual profit to $2.56 billion, driven by strong sales at Bunnings and Kmart, with moderate growth expected in FY25
- Qantas saw a 28% decline in profit to $1.25 billion due to increased market competition and higher spending on customer initiatives
- Mineral Resources reported a 53% drop in profit to $114 million and will not pay a final dividend, focusing on conserving cash amid a downturn in lithium prices.
Wesfarmers, Qantas, and Mineral Resources report mixed profits
Wesfarmers reported a 3.7% rise in annual profit to $2.56 billion, driven by strong sales at Bunnings and Kmart, with moderate growth expected in FY25. Qantas saw a 28% decline in profit to $1.25 billion due to increased market competition and higher spending on customer initiatives. Mineral Resources reported a 53% drop in profit to $114 million and will not pay a final dividend, focusing on conserving cash amid a downturn in lithium prices.
Broker adjustments
- Fortescue: Bell Potter lifted the target price to $17.58, upgrading the stock to "hold" from "sell," while Ord Monette upgraded it to "accumulate" with a price target of $20 per share
- Lovisa: downgraded by Bell Potter from "buy" to "hold" due to lower-than-expected new store openings and weaker comparables in the second half, with the price target cut to $33 per share
- Tabcorp: Macquarie downgraded the stock to "neutral" from "outperform" after a disappointing result driven by rising costs and lower wagering revenues. The broker is awaiting strategic changes under the new CEO.
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