AU Morning Wrap: ASX Rises; Cochlear Jumps 7% on Profit Outlook

A rebound in tech shares lifted U.S. stock indexes Monday, while yields on longer-term bonds stabilized after briefly threatening their highest levels in more than a decade.

The healthcare sector rallied over 2 per cent, buoyed by Cochlear. Its shares climbed 7.3 per cent after it reported a 4 per cent rise in statutory profits to $301 million for the 12 months to June.

CSL added 2.7 per cent. The blood plasma collector recorded a full-year underlying profit 10 per cent to $US2.61 billion ($4 billion).

Winemaker Treasury Wine rose 1.5 per cent. It lifted its final dividend payout to shareholders to 17¢ a share from 16¢ a year earlier.

Family tracking device Life360 surged 14 per cent after its revenue increased 45 per cent year-on-year to $US70.8 million ($109.1 million).

The shares soared 3.5¢ to 24.5¢ after the company reported "successful testing" at the lithium brine project which it said had “proved the concept of extraction and injection to support the production of high purity battery grade lithium carbonate”.

The company, which says it has provided more than 600,000 implantable hearing devices, on Tuesday reported a 4 per cent rise in statutory profits to $301 million for the 12 months to June.

On its preferred underlying measure, earnings were up 10 per cent to $305 million, within guidance. Margins were slightly squeezed as some sales, marketing and general expenses outpaced the rate of sales revenue growth.

Its normalised net profit before tax backing out investment gains and losses and certain non-cash items lifted 10 per cent to $521 million.

It guided for normalised net profit before tax between $555 million and $605 million in financial 2024, which is an 11 per cent increase at the mid-point of the guidance range.

But the bank has still announced a new on-market share buyback, reflecting its strong capital position, with plans to acquire up to $1.5 billion of its ordinary shares over the next 12 months.

The third quarter earnings came in just below expectations and was 5.8 per cent higher than the previous third quarter – but down 5 per cent on the quarterly average over the first half. Revenue declined 2 per cent, mainly due to lower margins.

Treasury Wines lifted its final dividend payout to shareholders to 17¢ a share from 16¢ a year earlier, with profit margins increasing overall because of the 14.2 per cent rise in earnings from the Penfolds business to $365 million.

Underlying net profit after tax and amortisation at constant currencies was up 20 per cent, showing a strong rebound from pandemic troubles in its core CSL Behring business of immunoglobulin-based treatments for chronic immune system deficiencies.

Earnings per share grew just 6 per cent to $US5.41 (17 per cent at constant currencies) and the company declared a final dividend of $US1.29 a share, making $US2.36 in total dividends (up 6 per cent), or $3.59 a share for Australian shareholders.

The San Francisco-based company released unaudited results for the quarter and the first half on Tuesday.

The tech company, which has rapidly shifted gears to cut its losses, said that its adjusted EBITDA for the quarter was $US5.7 million versus an adjusted EBITDA loss of $US18.7 million in the previous year, thanks to strong subscription revenue growth and cost-cutting.

Profit before tax for the year was $US12 million, 9.7 per cent lower, with the reported figure impacted by tax adjustments over in the 2022 year. Over the 2022 financial year the company benefited from shoppers upgrading their bedrooms and home offices.

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