Azzet reports on three ASX stocks with notable trading updates today:
Resmed soars on tariff exemption
Shares in Resmed (ASX: RMD) were up over 6% at the open following a basket of positive news within today’s market update.
What captured the market’s attention today were two major announcements.
Firstly, the sleep device maker announced that products manufactured in Australia and Singapore will remain exempt from United States trade tariffs.
The exemption means that ResMed’s medical devices and masks - manufactured in regions outside the U.S. - fall under a global agreement that ensures duty-free treatment for products designed to support individuals with disabilities.
But despite this favourable outcome, ResMed’s CEO, Mick Farrell, flagged the unpredictable nature of trade policies, especially in light of the evolving stance of the U.S. administration.
In light of that unpredictability, the company is doubling its manufacturing capacity within the United States.
A new production facility is being established in California, highlighting ResMed’s commitment to maintaining a strong domestic base to serve its largest market.
The second major market update today was Resmed’s third-quarter financial results in which the company reported an 8% increase in revenue, reaching US$1.3 billion.
The result was in line with broker expectations.
While gross margin improved 140 basis points, Resmed’s earnings per share (EPS) came in slightly below forecasts at US$2.37.
Operating income rose 14% to US$426.3 million, and operating cash flow was $579 million.
Resmed’s Chairman and CEO, Mick Farrell, believes 3Q results prove that sleep health customers recognise Resmed’s products and software solutions as the gold standard for care.
“Our positive fiscal year 2025 performance continued in the third quarter, with strong top-line revenue growth, margin expansion, and double-digit EPS growth resulting from solid customer demand for our best-in-class products and software solutions,” he said.
Resmed has a market cap of $21 billion, making it the ASX’s 28th largest stock; the share price is up 23% in one year and down 3% year to date.
The stock’s shares appear to be in a near-term downtrend, confirmed by its 20-day moving average.
Consensus is Moderate Buy.
Liontown rallies on strong 3Q update
Shares in Liontown Resources (ASX: LTR) were up around 3% at the open after the lithium miner delivered a better-than-expected 3Q FY25 update.
The miner reported a 17% increase in revenue for the March quarter, with both production and sales of spodumene concentrate on the rise.
During the quarter, concentrate production rose 12% to 95,709 dry metric tonnes (dmt), while sales were up 15% to 93,940 dmt.
A key milestone during the quarter was commercial production at its flagship Kathleen Valley process plant.
Preparation for the commencement of underground production also progressed as planned, with the first stopping blast occurring on schedule in early April, ensuring operational milestones continue to be achieved.
While Liontown's average lithium grade was steady at 5.2%, the average realised price was 1% higher quarter on quarter at US$815 per dmt.
Equally noteworthy, the lithium miner's unit operating costs were down 18% to $816 per tonne.
This resulted in positive cash flow of $14 million being generated from operating activities for the three months.
At the end of the quarter, Liontown had a cash balance of $173 million.
Liontown has a market cap of $1.3 billion, making it an ASX300 stock; the share price is down 48% in one year and up 9.5% year to date.
The stock’s shares appear to be weak, with little demand from investors.
Consensus is Hold.
Eagers chalks up new 52-week-plus high
Shares in Eagers Automotive (ASX: APE) were up around 2.5% at the open after the automotive retail group posted a mixed market update.
While the company posted record revenues of $11.2 billion, up 13.6% over the year, profit fell by more than 20% to $225.6 million, with acquisition costs and impairment on leased assets in the NZ operation offsetting the company’s bottom line.
The company ended the year with corporate debt of $813 million, net of cash on hand, up from $495.1 million in June 2024.
The company believes it is well-positioned to fund future growth, with total available liquidity of $773.9 million.
Despite some uncertainty in the economic backdrop, the company also flagged signs of positive industry dynamics emerging in 2025, along with a resilient new car market with demand supported by the company’s material order bank.
“Into these industry dynamics, we expect to deliver another $1 billion in revenue growth in 2025 - taking turnover to approximately $12.2 billion, representing growth of 43% since 2022,” said CEO Keith Thornton.
Eagers has a market cap of $4.7 billion, making it an ASX200 stock; the share price is up 43% on the year and up 54% year to date.
The stock appears to be in a strong bullish trend, 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.
