Azzet reports on three ASX stocks with notable trading updates today.
Technology One soars on guidance upgrade
Shares in Technology One (ASX: TNE) were up over 13% at the open after the ASX 200 tech stock announced stronger than expected 1H FY25 results and guidance.
For the six months ended 31 March, the company reported a 19% jump in revenue to $291.3 million and a 21% increase in annualised recurring revenue (ARR) to $511.1 million.
Having reached its target of exceeding $500 million in ARR in the first half - 18 months ahead of schedule – the company is now focusing on achieving a new ambitious long-term target.
In addition to posting a record interim dividend of 6.6 cents per share, up 30%, the company stepped up its profit guidance for FY25 to a range of 13% to 17%.
Given that each vertical in the APAC region is not exceeding 15% of its addressable market, management is now targeting $1 billion-plus in ARR by FY30.
1H FY25 highlights
All verticals delivered ARR growth during the half.
However, the key drivers were Local Government, Education, and Government.
- Local government 20% ARR growth.
- Education Sector, ARR grew 27%.
- Government Sector, ARR grew 28%.
- Profit After Tax of $63.0m, up 31%.
- UK ARR of $43.1 million, up 50%.
- SaaS and Recurring Revenue of $265.0 million, up 19%.
- Free Cash Flow of $24.0 million, up over 100%.
Commenting on today’s result, the company’s CEO, Ed Chung told investors the company is well positioned to deliver strong growth over the full year.
“As we continue to grow our SaaS+ business, we will also continue to transition our traditional new project implementation business to this new method of operation,” he said.
“While this will continue to impact our revenue, profit and margin in FY25, this is an integral part of our strategy to grow our SaaS+ business and the recurring revenue base in the long-term.”
Technology One’s market cap is $12.1 billion making it the ASX’s 49th largest stock; the share price is up 133% in one year, up 19% year-to-date and up 32% in the last month.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Hold.
James Hardie steadies ahead of tomorrow’s update
The decision by broker UBS to slash its price target on James Hardie (ASX: JHX) does not bode well for long-suffering shareholders who hope positive commentary in tomorrow’s March quarter update can staunch the stock’s 24% fall this year.
Looming over the broker’s sentiment towards the stock is the uncertain impact of tariffs and interest rates which has already seen U.S. building materials downgrade their operating outlook.
Despite slashing its price target 17% to $50 a share, UBS maintains a Buy rating on the stock, while Macquarie maintains a Hold rating on it, valuing the business at $40.20 per share.
Macquarie is forecasting a net profit of US$697 million, above consensus estimates of US$693 million.
However, the broker's forecast excludes the proposed acquisition of outdoor living company AZEK and the corresponding increase in debt.
Given that market conditions are worsening, particularly in the R&R market, the broker expects tomorrow’s update to include a more cautious commentary on market conditions.
The company is understood to be around a third of the way through targeting US$100 million in manufacturing cost reductions.
Meanwhile, Bell Potter maintain a buy rating on the company with a $63 price target.
Critical within tomorrow’s update will be any guidance on the FY26 outlook and attempts to address investor concerns about AZEK transaction execution.
James Hardie has a market cap of $16.5 billion; the share price is down 30% over one year and up 10% in the last month.
The stock’s shares appear to be weak with little demand from investors.
Consensus is Moderate Buy.
Monash IVF falls after cutting guidance
Shares in Monash IVF (ASX: MVF) were down by around 11% at noon after the human fertility services company took a scalpel at profit guidance only weeks after confirming the incorrect embryo transfer at its Brisbane clinic.
Today’s fall follows an initial share price tumble on 11 April after revelations that an Australian woman had unknowingly given birth to a stranger's baby, after her fertility clinic - Monash IVF - accidentally implanted another woman's embryo into her.
Since then, the stock has recovered 21% to $0835, but after today’s profit guidance cut, it is currently trading at $0.755.
Monash IVF now expects FY25 underlying group net profit to be around $27.5 million, compared to previously provided guidance at the time of the release of the company’s 1H FY25 27 February 2025 of between $30.0 million and $31.0 million.
“The revised guidance reflects the Company’s assessment of softer market and operating conditions in March 2025 that worsened in April 2025 across all of the Company’s geographic markets,” the company said.
“Operating conditions have improved in May 2025 with month-to-date at stronger levels than March and April but not sufficiently to offset the impact from these months.”
Meanwhile, the company continues to monitor key indicators and any implications that may arise from the Brisbane incident including:
- Queensland and Australian new IVF patient registrations.
- Returning IVF patients for stimulated cycles and frozen embryo transfers.
- Transfer of medical records.
- Human material to alternative IVF providers.
“These indicators are currently consistent with the performance levels observed in the months leading up to the announcement of the Brisbane incident,” the company noted.
Monash IVF will release its FY25 results on 22 August 2025.
The company has a market cap of $294 million; the share price is down 47% over one year and up around 5% over one month.
The stock’s shares appear to be in a long-term bearish 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.
