Azzet reports on three stocks with price moving updates today.
Cleanaway slides on FY26 earnings outlook ~
Shares in Cleanaway Waste Management (ASX: CWY) were trading 2.2% lower by 1:50 pm AEST (3:50 am GMT) after the waste management company downgraded its earnings outlook, citing higher fuel and logistics costs driven by the Middle East war.
Management told the market to expect earnings before interest and tax of $460 million to $480 million, down from previous guidance of $480 million to $500 million, implying a hit of about $20 million.
It’s understood that around $20 million adverse EBIT impact can be directly attributed to higher fuel, supplier and logistics costs.
While timing lags are expected to impact FY26, most fuel cost increases are likely to be recovered over time through contractual pass-through mechanisms.
However, on a more comforting note, the company has not experienced fuel supply disruptions and continues to rely on long-term supply agreements to manage volatility.
Nor were there any material deterioration in volumes, customer churn, bad debts or broader trading conditions.
Recovery of elevated fuel costs should occur as contracts are repriced and fuel markets stabilise, but management was quick to flag further uncertainty in Middle East project activity.
Commenting on today’s update, management told the market that Cleanaway will keep monitoring fuel markets and trading conditions, particularly any further impacts from the Middle East conflict.
Management also expects most contracts to reflect fuel price increases by the start of FY27, which should help recover the bulk of the current cost challenges.
The business intends to keep its finger on the pulse of maintaining operational efficiency, using levers like fleet optimisation and procurement actions to help navigate volatility.
Strategic relationships and contractual protections are also expected to support resilient long-term performance.
“The impacts of the war have also created volatility and higher levels of uncertainty in some areas of our business, particularly in relation to projects. We are continuing to monitor this closely,” the company said.
The stock’s declining share price since last December may have a lot to do with its long and poor record for workplace safety, with the latest death taking the number of workers who have died at Cleanaway facilities to nine over the past three and a half years.
Late February, the company reported a 17.8% jump in interim net profit after tax to $109.7 million, from $93.1 million in the previous period.
Net revenue was 13% higher at $1.87 billion, while earnings before interest and tax rose 16.9% to $228.3 million.
Earnings from the solid waste services division saw an 11% increase to $196.7 million.
The company declared a fully franked interim dividend of 3.35 cents per share, edging higher than the consensus estimate of 3.1 cents.
Cleanaway Waste Management has a market cap of $5 billion; the share price is down 13% in one year and down 3% in the last month.
The stock’s shares appear to be weak with little demand from investors.
Consensus is Strong Buy.
Westpac slides on disappointing update
Shares in Westpac (ASX: WBC) were trading 4.3% lower following the big-four bank’s pre-market trading update that warned of a profit hit and increased risks due to global geopolitical conflicts.
Ahead of its full 1H FY26 financial results on 5 May, the bank today flagged to the market plans to address macroeconomic pressures and portfolio adjustments.
As a prelude to greater expected fallout from a more challenging economic environment - due to higher inflation and interest rates - the bank told the market it is lifting its credit provisions at its upcoming half-year results to create a buffer against potential losses.
What was also on the minds of investors today was the bank’s net interest margins (NIM) within its treasury and markets division, which more than halved in the second quarter, dropping to 7 basis points from 15 basis points.
Here’s a look at other key numbers announced today:
- Lending and deposit growth stood at 4% and 3%, respectively.
- Core Net Interest Margin (NIM) remained stable in 2Q26.
- Productivity initiatives contributed to a 2% decline in expenses.
Meanwhile, the sale of the RAMS mortgage portfolio to a consortium including Pepper Money Limited, KKR, and PIMCO remains on track for completion in the second half of 2026.
The 1H26 result will include a Notable Item for RAMS transaction costs, reducing reported net profit after tax by A$75 million, following its reclassification to Group Businesses.
Commenting on today’s update, management told the market that with the impact of the fuel crisis yet to play through, overall asset quality metrics had improved over the second quarter, while its high-quality capital ratio had strengthened.
But with the supply shock from the energy market disruption expected to result in higher inflation and higher interest rates, the bank expects a slowdown in economic growth to create a more challenging environment for some customers.
“The revised economic outlook has been reflected in our base case provision scenario, and a new portfolio overlay has been added for energy-intensive sectors,” the bank noted.
Ahead of the 5 May result, analysts expect Westpac to report an interim net profit of around $3.6 billion, up 1% half-on-half.
Westpac has a market cap of $142 billion; the share price is up 36% in one year and up 4% in the last week.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus is Moderate Sell.
PainChek jumps on Sabra Health contract
Shares in PainChek (ASX: PCK) were trading 43.3% higher at $0.215 after the healthcare small cap signed a master services agreement with Sabra Health Care REIT that will see Sabra fund PainChek’s deployment for up to 20,000 beds across 329 skilled nursing, long-term care and senior housing facilities in the U.S. and Canada.
The agreement is expected to run for 12 months, with an option to terminate after that period on 90 days’ notice.
Sabra will initially fund the deployment of PainChek on behalf of its operating partners, which is expected to reduce the friction for adoption across the network.
What appears to have captured the market’s excitement today is the deal’s potential pricing economics.
PainChek is expected to be paid between $55 and $75 per bed under a tiered pricing model.
With the initial commitment covering 20,000 beds, that implies potential revenue of around $1.1 million to $1.5 million.
PainChek also expects to capitalise on Sabra’s ongoing expansion.
As part of the broader operating arrangement, PainChek will be rolled out across Sabra’s existing facilities.
What’s also exciting for investors is the prospect of this model being seen as a blueprint for replicating this model across the REIT segment and at scale.
It’s understood that the North American market alone has around 2.5 to 3.0 million skilled nursing and senior housing beds across long-term care facilities.
Healthcare REITs control an estimated 40% of that base - around 1 million beds – with Sabra alone owning 36,000, making it one of the top five healthcare REITs by property count.
Here’s the proposed project rollout:
- Phase 1 (2026) Initial five operators, with around 3,000 beds deployed by year-end. Revenue of roughly $195,000 annualised.
- Phase 2 (2027) An additional 10 operators in the queue, taking cumulative deployed beds to around 8,000 to 10,000. Revenue ramps to roughly $650,000 to $750,000 annualised by year-end.
- Phase 3 (2028) Expansion across the remaining portfolio, taking deployment to around 15,000 to 20,000 beds. Revenue reaches roughly $975,000 to A$1.3 million annualised by year-end.
To the uninitiated, PainChek has built a global footprint spanning Australia, North America, Europe and parts of Asia, where its smartphone and tablet app supports best-practice pain management in aged care and other clinical settings.
With regulatory clearance in multiple major jurisdictions, the company is already embedded in over 2,000 aged care facilities, underscoring its focus on digitally transforming pain assessment for residents who struggle to self-report.
Having supported over 18 million digital pain assessments, the company is positioning itself as a specialist provider of digital clinical tools for nurses, carers and clinicians in long-term and residential care settings.
PainChek has a market cap of $42 million; the share price is down 37% in one year and up 28% in the last week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
