Azzet reports on three ASX stocks with notable trading updates today
Nuix tanks after pulling guidance
Shares in Nuix (ASX: NXL) were down around 20% at the open after investors reviewed an after-hours update that the investigative analytics and intelligence software provider posted at 5.49 last night.
Attempts to bury the release after the market closed did little to soften today’s reaction to a waffly and awkward explanation of a “lengthening of the procurement cycle associated with larger and more complex transactions and the increase in uncertainty and volatility in the geopolitical and global economic landscape.”
While the deal pipeline remains strong, the company told investors that the previously flagged level of uncertainty in customer decision making means that closure times around specific transactions have become more difficult to predict.
Having weighed up prevailing market dynamics, management took its cue from Ford in the U.S. and withdrew its guidance for FY 2025.
That means the company no longer wants to be held to the previously estimated Annualised Contract Value (ACV) target range of 11-16% in constant currency.
All other strategic targets related to revenue growth and underlying cash flow are also off the table.
In his short and succinct note to the market today, Nuix CEO Jonathan Rubinsztein reminded investors that there are doubts about the timing of deal closures, not the quality of Nuix’s pipeline, which remains strong.
“The recent rise in uncertainty in the geopolitical landscape has made predicting the timing of contract executions, including some large individual transactions, more difficult, broadening the range of potential outcomes for this financial year,” Rubinsztein noted.
“We remain confident that the strategic steps we are taking, including with Nuix Neo, position us well for further innovation and growth.”
Nuix’s market cap is $636 million. The share price is down 11% in one year and down 69% year to date.
Multiple indicators confirm a long-term bearish trend for the stock.
Consensus is Strong Buy.
JB Hi-Fi drops on disappointing update
Shares in JB Hi Fi (ASX: JBH) were down around 5% at the open after posting its third quarter FY25 sales update.
At face value, the ASX 200 retailer’s continued year-on-year sales growth at its Australian and NZ JB Hi-Fi stores plus growth at The Good Guys and e&s looked good.
Sales growth at JB Hi-Fi Australia was 6.5%; while JB Hi-Fi NZ posted quarterly growth of 17.5%; sales growth at The Good Guys was 4.6%; and sales were increased by 1.0% at e&s.
While there’s nothing shabby about these figures, brokers and the broad market took issue with the FY25 year-to-date measure.
Having run the rule over the retailer’s first three quarters of FY 2025, sales growth failed to impress:
• 0% at JB Hi-Fi Australia
• 2% at JB Hi-Fi New Zealand
• 8% at The Good Guys
• 2% at e&s
Commenting on today’s quarterly result update CEO Terry Smart pointed to Q3 FY 25 sales in a challenging and competitive retail market.
“As we approach the important end of financial year trading period, we remain focused on delivering consistently high levels of customer service and exceptional value for our customers,” said Smart.
Macquarie Group hasn’t read too much into today’s market update.
While the stock has risen 63% over the past 12 months, the broker expects to see further upward momentum in the stock’s share price.
Underscoring the broker’s Outperform rating and $111.00 price target is consumer behaviour towards technology shifting, which since COVID has become a necessity in the household.
A month ago Bell Potter upgraded JB Hi-Fi from 'hold' to 'buy' and retained its target price of $99 after concluding that the recent market sell-off has left the stock well valued.
JB Hi-Fi’s market cap is $10.9 billion making it the ASX’s 51st largest stock; its share price is up around 8% year-to-date.
The stock appears to be in a strong bullish trend as confirmed by multiple indicators.
Consensus is Hold.
Temple & Webster seesaws higher
After falling by around 4% at the open, shares in Temple & Webster (ASX: TPW) were trading 4% higher at noon (as high as $18.06) after the market took better stock of today’s market update.
What clearly caught the market off-guard earlier today were management’s revelations that the US-China tariff war had been a net positive for the business, with inbound shipping rates dropping 20%.
In direct contrast to JB Hi-Fi’s market update today, the online furniture and homewares retailer posted 18% growth in 2H revenue over the previous period.
Since 1 March, the group has delivered a 23% lift in revenue growth with earnings margins now expected to be at the top end of the guidance range.
Commenting on today’s market update, CEO Mark Coulter told investors that if deflationary effects continue, “combined with some of the macro tailwinds… we should see market conditions improve.”
The stock is expected to be a primary beneficiary of further Reserve Bank (RBA) rate cuts.
At the time of writing the ASX 30 Day Interbank Cash Rate Futures May 2025 contract was trading at $96.02, indicating a 62% expectation of an interest rate decrease to 3.60% at the next RBA Board meeting on 20 May.
In the half year, the furniture retailer’s net profit surged 117.9% year-on-year to $9 million with revenue soaring 23.6% to $313.7 million.
Early this year, management flagged the possible use of $139 million cash on its balance sheet to launch an international brand expansion once it finds the right opportunities.
A few weeks ago, Citi put a buy rating and a $21.10 price target on the stock.
Temple & Webster has a market cap of $2.1 billion, putting it just outside the ASX200; the share price is up 45% in one year and up 36% year to date.
The stock appears to be in a long-term uptrend as confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
