AU Morning Wrap: Fortescue Drops, Declares A$1 Dividend; Appen Slumps 21%

Moomoo News AU wrote a column · Aug 28, 2023 08:34

G'day, mooers! Check out the latest news on today's stock market!
• US stocks close higher after a bumpy week
• ASX rises; Fortescue, Appen shares tumble
• Stocks to watch: Fortescue Metals, NextDC, Appen
- Moomoo News AU

AU Morning Wrap: Fortescue Drops, Declares A$1 Dividend; Appen Slumps 21%

Wall Street Summary

Stocks moved between gains and losses after Powell's speech, before closing higher. The $Spenda Ltd (SPX.AU)$ added 0.7%, with all 11 sectors posting gains. Some investors said the choppy trading was likely because of lower summer trading volumes, with many on vacation.

The $Dow Jones Industrial Average (.DJI.US)$ climbed 0.7%, and the $Nasdaq Composite Index (.IXIC.US)$ rose 0.9%.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ rose 0.4 per cent, or 31.6 points, to 7146.8 at market open amid a busy morning of company earnings.

The energy sector was the best performer, tracking a higher oil price. $Woodside Energy Group Ltd (WDS.AU)$ shares rallied 1.4 per cent, $Ampol Ltd (ALD.AU)$ jumped 2.4 per cent and $Viva Energy Group Ltd (VEA.AU)$ added 3.6 per cent.

In company news, Fortescue Metals was among the worst performing stocks. Its shares dropped 3.7 per cent after it reported its full-year results. The iron ore giant's revenue decreased 3 per cent to $US16.9 billion ($26.3 billion) in financial year 2023.

Sharp losses by data centre player NextDC dragged the technology sector lower. Its shares declined 4.3 per cent even as the company's revenue increased 25 per cent, to $362.4 million, ahead of guidance.

Appen shares plunged 21.2 per cent after its revenue dropped 24 per cent to $139.5 million in the first half. The company warned it continued to face headwinds due to the broader technology market slowdown as customers evaluate their AI strategies.

Stocks to Watch

$APM Human Services International Pty (APM.AU)$: Allied health business APM says statutory net profit jumped 72 per cent to $158.5 million in financial year 2023.

The company's revenue increased 43 per cent to $1.9 billion.

It declared a full-year dividend of 10¢ a share and a final dividend of 5¢ a share.

$Nextdc Ltd (NXT.AU)$: Data centre player NextDC revenue increased by $71.1 million, or 25 per cent, to $362.4 million, ahead of guidance while EBITDA increased 20 per cent to $182.6 million.

For the full year ended June 30, NextDC posted an after tax loss of $25.64 million, after energy costs increased 270 per cent in calendar 2023 compared to 2022.

The $7 billion company's stock is up more than 50 per cent so far this year to $13.62, off the back of the artificial intelligence boom and big capital raise.

$Fortescue Ltd (FMG.AU)$: Fortescue Metals has declared a fully franked final dividend of $1 a share.

The iron ore giant's revenue decreased 3 per cent to $US16.9 billion ($26.3 billion) in financial year 2023.

Its underlying earnings before interest, taxes, depreciation, and amortisation dropped 6 per cent to $US10 billion.

Net profit after tax fell 23 per cent to $US4.8 billion.

Fortescue Metals says Dino Otranto has been appointed chief executive.

The iron ore giant said in a statement that Fiona Hicks decided to leave the company after just under six months in the role.

Otranto joined the company as chief operating officer of its iron ore division in 2021.

$Appen Ltd (APX.AU)$: Artificial intelligence data services company Appen's revenue dropped 24 per cent to $139.5 million in the first half, as the company warned it continues to face headwinds due to the broader technology market slowdown as customers evaluate their AI strategies.

The firm reported a statutory net loss of $43.3 million for the six months ended June 30, which included $5 million related to the cost reduction program and one-off costs of $1.3 million associated with strategy refresh.

Appen had a cash balance of $55.2 million as at 30 June 2023 which includes the proceeds of the $60 million equity raising, kicked off in May.