Azzet reports on three ASX stocks with notable trading updates today.
Flight Centre defies guidance downgrade
Shares in Flight Centre (ASX: FLT) were up around 2% heading to lunch despite the ASX200 travel stock taking a razor to its full year profit guidance with United States tariffs expected to curb projected growth.
The market appears to have overlooked a major downgrade in underlying FY25 profit - from $365-$405 million to the $300-335 million range – in favour of numerous measures to cut costs.
In an attempt to address underperformance, the travel group is targeting a 15-20% cut in capital expenditure in FY26 and plans to reduce its full-time staff headcount in non-customer facing areas.
What also clearly found favour with the market today was an announced on-market share buy-back of up to $200 million over the next 12 months.
While early April trading results point to ongoing uncertainty - which looks likely to slow growth in the heavily weighted May-June period - management reassured the market that Flight Centre remains on track to deliver a record total transaction value (TTV).
While recent U.S. developments have exacerbated inconsistent trading conditions, the group’s global leisure business is again on track to exceed pre-pandemic profitability levels.
Then there's corporate business which generally continues to trade solidly in most regions, while major productivity initiatives are also underway to boost future profits.
“Stronger overall results are expected in FY26 and beyond as trading conditions stabilise and as the strategies that are already in place gain momentum,” the company noted.
Within the loss-making Canada leisure business, the group is investigating expansion opportunities in the independent agency and agent sector, a category with strong growth potential in that market.
Meanwhile, in Asia, the company expects a return to sustainable profitability from FY26, after a challenging FY25 related predominantly to an internal system change that led to invoicing delays for some clients.
The group has also invested heavily during the 2H to ensure that technology, infrastructure, resourcing and processes are appropriate for a region of Asia’s size and complexity.
Flight Centre’s market cap is $2.8 billion; the share price is down 39% in one year and down 23% year to date.
The group’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Brambles sinks after guiding to lower revenue
Shares in Brambles (ASX: BXB) were down around 5% in afternoon trading after the crates and pallet manufacturer guided to 4-5% FY25 sales revenue growth - down from 4-6% - after citing an uncertain market outlook on consumer demand.
In the nine months to March, the group reported a 1% rise in sales revenue to US$4.9 billion. However, it noted declining sales volumes in the latest quarter.
Management told the market that third quarter 2025 performance reflected ongoing price realisation and net business growth. However, like-for-like volumes declined due to adverse weather events in the U.S. and macroeconomic uncertainty in all regions.
Moreover, the group guided to free cash flow before dividends upgraded to US$900-$1,000 million (previously US$850-950 million) in light of lower pooling capex given softer like-for-like volumes and better asset efficiency.
Commenting on the FY25 outlook, Brambles’ CEO, Graham Chipchase told the market to expect ongoing price realisation and improved net new business momentum through the balance of the year.
Chipchase expects like-for-like volumes will be challenged given the weakness in the third quarter and the expected continuation of macroeconomic uncertainty in the fourth quarter.
“Despite these challenges, we expect to generate strong operating leverage as demonstrated by underlying profit guidance being reconfirmed, driven by ongoing supply chain and asset productivity initiatives as well as overhead cost control measures,” he said.
“… better than anticipated benefits from asset efficiency initiatives combined with the lower volume growth outlook for the year are expected to deliver pooling capital expenditure savings which underpin the US$50 million upgrade to Free Cash Flow before dividends.”
Brambles has a market cap of $27 billion making it the ASX’s 22nd largest stock. The share price is up 38% in one year and up 2% year to date.
The stock appears to be in a long-term uptrend.
Consensus is Moderate Buy.
Alkane flags merger with Mandalay Resources
Shares in Alkane Resources (ASX: ALK) were up around 2% heading into the close after the Perth-based mid-cap gold miner announced plans to acquire Canada's Mandalay Resources in an attempt to create a combined diversified gold and antimony producer.
Under the proposed deal, shareholders will receive 7.875 Alkane common shares for each Mandalay common share held, which is equivalent to a market capitalisation of around $1 billion.
This will result in ownership stakes of 55% and 45% for Alkane and Mandalay shareholders respectively.
The deal – which brings Australia’s only operating antimony mine to the ASX – aims to expand trading liquidity, lower costs and drive a valuation re-rating.
Operating under the name of Alkane Resources, the combined company plans to produce an estimated 160,000 gold equivalent ounces in 2025 and over 180,000/oz in 2026.
The combined company expects to hold a robust pro forma cash balance of $188 million as of 31 March 2025.
The merger introduces the Costerfield mine in Victoria – Australia’s only domestic producer of the critical mineral antimony - to Australian investors.
Antimony - which is widely used in ammunition, infrared missiles, nuclear weapons and night-vision goggles - is flagged by management as having strategic importance following a fivefold price increase after China banned exports.
In addition to the Costerfield mine, new Alkane will own the Tomingley gold mine in NSW, the Bjorkdal mine in Sweden and the large-scale Boda-Kaiser development project.
Alkane has a market cap of $469 million; the share price is up 20% over one year and up 51% year to date.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
