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☕️ Earnings deluge

☕️ Earnings deluge

Good luck to all the sell side research analysts and portfolio managers.

Good morning.

Good luck to all the sell side research analysts and portfolio managers out there. This week is one of the heaviest in the August reporting season, with the likes of JB Hi-Fi, Lendlease, CSL, Telstra, Origin Energy and Magellan set to deliver results, among many others.

We’ll have a much clearer sense for where the market and economy is headed by the end of the week. Origin is particularly interesting to us here at LOI because it’s in a live deal situation, with its $18.7 billion takeover by Canada’s Brookfield awaiting regulatory approvals.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Nick Scali shares were bid up to a 6-month high after the company reported a 26% jump in full-year profits to $100.1 million off the back of 15% growth in revenue to $507.7 million. It also maintained its 35 cent final dividend.

Expensive furniture is not what you would expect to be doing well in this economy, but then again there are all sorts of quirks in the economy right now. And there were some company specific factors at play, including reduced freight costs. Whether these numbers bode well for other discretionary retailers remains to be seen — the company did acknowledge that the start to the current quarter had been sluggish, with orders in July down relative to last year.

THE QUICK SYNC

China condemned the visit of Taiwan’s vice-president to the US. (CNBC)
McDonald’s quietly removed the ESG abbreviation from some parts of its website. (Bloomberg)
Viet Dinh, the top lawyer at Rupert Murdoch’s Fox Corp, is stepping down. (CNN)
FTX founder Sam Bankman-Fried was thrown in jail after his bail was revoked. (Guardian)
The Matildas’ quarter-final victory in the Women’s World Cup was one of the most watched shows in Australia in more than 20 years. (SMH)

TRADING FLOOR

M&A:

Grant Thornton sends out preliminary sale documents for Aurora Metals. (AFR)
Would-be bidders on Aurora Metals’ assets have until the 21st of August to express interest. (The Australian)
Kelly Partners drafts Jefferies Australia to consider capital structure and ownership options. (AFR)
Morgan Stanley’s infrastructure investing arm is competing for Alinta Energy’s power assets in the Pilbara. (AFR)
Pacific Equity Partners snaps up a significant stake in Household Capital. (AFR)
Cettire has sold $100m worth of stock after the luxury fashion e-commerce retailer recorded its first profit as an ASX-listed company. (BNA)
Body Fit Training (BFT) signs contracts with partners in Spain and Malaysia. (BNA)

Capital Markets:

None

VC:

Ilume, a pet-tech start-up tracking system, is trying to raise $10m to $20m. (AFR)

Others:

Neuren Pharmaceuticals is receiving its first royalties payment based on $35.19m of quarterly sales earned by its blockbuster drug Daybue. (The Australian)
James Hogan is joining Bank of America’s equities team at the end of the month. (AFR)
ASIC accuses $13.6b Active Super of greenwashing its investments in gambling and coal. (BNA)
Azure Minerals was one of the central talking points of last week’s Diggers and Dealers conference in Kalgoorlie. (The Australian)

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