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.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Explore the markets with our free course
Learn how shares work – and discover the wide range of markets you can trade CDFs on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade over 12 000 popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
