Azzet reports on three ASX stocks with notable trading updates today.
Cogstate lifts on FY guidance update
After shedding 12% in the past month, shares in Cogstate (ASX: CSG) were up over 10% at the open after the healthcare smallcap upgraded its financial guidance for FY25 on the back of a strong performance and an improved outlook.
As compared to the previous year, the neuroscience technology company expects to see a 20% to 24% increase in revenue.
As a result, full-year revenue is expected to reach between $52 million and $54 million, while profit before tax is also projected to improve between 69% and 97% over the previous year.
While today’s update did little more than suggest that the positive financial outlook reflects Cogstate’s strengthened position in the neuroscience technology industry, tomorrow’s webinar on Webinar - Driving Innovation in CNS Trials - may provide greater insights ahead of FY25 results on 22 August.
The Canaccord Genuity analyst rating maintained a Buy rating with a price target of $1.50.
The company’s shares were trading at $1.46 this morning, roughly 50% up on last September.
In FY24, the company reported group revenue of $43.4 million, up 7% on the previous period and group profit before tax of $7.1 million, up 135%.
Cogstate’s market cap is $247 million; the share price is up 31% over one year and up 40% year to date.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Strong Buy.
Collins Foods soars on chipper FY26 outlook
Shares of Collins Foods (ASX: CKF) were up as much as 26% at the open - before profit taking quickly brought that back to around 10% - after the KFC and Taco Bell operator reported a patchy result accompanied by a more chipper FY26 outlook.
While the stock reported a 2.1% increase in FY25 revenue from continuing operations to a record of $1.5 billion, slightly ahead of its estimate – underlying earnings from continuing operations were flat at $228.5 million.
Underlying net profit after tax from continuing operations was down 14.8% to $51.1 million.
But after factoring in $40.8 million in restaurant impairments during the year, the company had 88.5% drop in net profit after tax to $8.8 million for FY25.
The company declared a total dividend of 26 cents per share, down from 28 cents a year earlier.
However, what seems to have sparked investors' imaginations today was management’s expectations of a much better FY26 outlook.
The company told the market that it targets year-on-year group underlying net profit after tax growth in the low to mid-teens in FY26.
The company’s CEO Xavier Simonet said that while trading conditions were subdued, particularly in the first half, the strength of the KFC brand held firm.
“In FY25, we sharpened our priorities to focus on same-store sales growth and profitable network expansion in Australia and Europe. Our teams delivered a resilient performance this year in a challenging consumer environment,” Simonet said.
“Market share increased in both Australia and the Netherlands, underpinned by improvements in brand health, compelling marketing campaigns, product innovation, everyday value initiatives, and a heightened focus on operational excellence.”
Simonet also noted that tax cuts and lower interest rates were beginning to support improvements in consumer sentiment, with same-store sales improving in the second half in Australia and the Netherlands.
Collins Foods has a market cap of $1 billion; the share price is down 8% over one year and up 17% year to date.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Brookside Energy drops following market update
Shares in Perth-based Brookside Energy (ASX: BRK) were down around 3.5% at the open after the small-cap energy company operating in the oil and gas industry told the market it had secured a fifth Drilling Spacing Unit (DSU) on its SWISH Play acreage in Oklahoma.
SWISH is in the southern part of the Anadarko Basin, in the SCOOP (South Central Oklahoma oil province) area, where larger American companies have now followed Brookside's steps.
This development is expected to boost its development drilling inventory by 26%.
It’s understood that the 960-acre unit lies adjacent to existing DSUs and targets the Sycamore and Woodford formations.
Two horizontal wells are planned, mirroring successful nearby developments.
Brookside is also assessing potential in emerging sub-plays and preparing for a possible NYSE listing.
CEO David Prentice said the addition supports the company’s strategy to scale production and return capital.
But while the expansion supports Brookside’s growth and shareholder value strategy, the market didn’t get too excited about today’s update.
This could be due to there being precious new information within today’s update that hadn’t already been revealed to the market last week.
Failing that, the market clearly now wants to some runs on the board with positive drill results.
Given that the miner will have to raise additional funds once drilling commences this may concern investors; Plans to list on NYSE will also cost the miner up to US$500,000.
As part of its low-cost, high-margin development strategy, the miner plans to expand its development program into the emerging zones as the plays mature and early commercial success is confirmed.
What appears to have renewed investor interest in acreage in this part of the Anadarko Basin is Oklahoma’s largest and most successful independent E&P company, Continental Resources, which is actively advancing these plays.
For the quarter ended 31 March, Brookside generated $18.1 million in cash receipts, net operating cash flow of $4.55 million and closed with a strong cash balance of $12.7 million, a quarter-on-quarter increase.
Brookside Energy has a market cap of $38 million; the share price is down 32% in one year and up around 10% in the last month.
The stock’s shares appear to be in a long-term bearish trend confirmed by a falling 200-day moving average.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
