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When the Going Gets Tough… In our Mid-Week Alert last week, we provided a brief notification to members about the latest update on Silver Chef’s (ASX:SIV) fiscal year 2018 (FY18), with the company announcing that it expects a statutory loss of $48 million, largely related to the company’s exit of its unprofitable GoGetta business. There was also a brief on the company’s dividend suspension and capital management plan. Today, in anticipation of the results due out on Thursday, we cover the

Qantas (ASX:QAN)

Speculative

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Fat Prophets take some profits Qantas has continued a trend of the last few years, releasing full year numbers which were impressive on a number of counts. The airline delivered a 15% increase in annual profit after tax to $980 million. Net free cash flows rose 10% to $1.44 billion. Higher earnings are flowing back to shareholders with a 10 cent per share dividend and a $332 million on market share buyback programme. Qantas shares have performed impressively since we backed the

Spark New Zealand (ASX:SPK)

Core

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Light on the Horizon for Spark Spark New Zealand’s (ASX:SPK) reported profit in FY18 continued to be somewhat hamstrung by its cost reduction plan dubbed the “Quantum Programme”. However, we believe the short-term pain will lead to long-term gains and are content with the annualised benefits flowing through. Implementation costs are expected to moderate this fiscal year. Adjusted for the Quantum costs, the operating profit performance was adequate and positive for yield hunters; the declared total dividend for the year was

Vocus Communications (ASX:VOC)

Speculative

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Rome wasn’t built in a day Amidst plenty of action in the telco sector in the past week, shares in Vocus Communications’ (ASX:VOC) have also got a lift with a strong full year result. Full year revenue and underlying earnings were both in line with revised guidance given in February. Underlying net profit after tax was 16% lower at $127.1 million, but was weighed down by higher depreciation and amortistation costs after an extensive capital investment programme. Net profit came in a

Rio Tinto (ASX:RIO)

Core

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Good first half Higher commodity prices and an improved operational performance for the first half delivered strong tailwinds for Rio Tinto’s 30 June 2018 first half result. Rio Tinto (ASX:RIO) reported a higher underlying profit for the half, albeit a tad below consensus. The cost of doing business in the first half rose on higher activity levels and cost pressures. An easing in net cash flow from operations, and a pick-up in capital spending had a negative impact on the balance

Estia Health (ASX:EHE)

Speculative

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Reaching Stability Aged Care specialist, Estia Health (ASX:EHE) has reported its Fiscal Year 2018’s results which have not been well received by the market with shares seeing a drop of some 6% over a couple of days since the release. Today, we take a closer look to see if this move was warranted. What’s New? In our last of the stock back in July (FAT-AUS-884), the most pressing development then was the announcement that CEO and Managing Director, Ms Norah Barlow, would be

Domain Holdings Australia (ASX:DHG)

Speculative

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Underlying Growth Property site Domain Holdings Australia (ASX:DHG) recently delivered its first results since the demerger, showcasing top line growth on the back of strength in the digital space and despite headwinds from a softer property market. Management’s efforts to control costs have also underpinned margin strength. With the group set to benefit further from the combination of Nine with Fairfax, we maintain our BUY rating. What’s New? At end of July (FAT-AUS-884) we focussed our update on the proposed merger between Fairfax

Fairfax Media (ASX:FXJ)

Speculative

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Underlying Picture remains Attractive Fairfax Media (ASX:FXJ) swung to a loss in FY18, with the statutory numbers impacted by significant items. The underlying picture was more positive however and we continue to like the growing digital contribution. The Australian Metro Media business has turned around nicely over the past couple of years. The pending $4.2 billion merger with Nine Entertainment is a game changer, which should see the combined entity strengthened considerably. We expect the deal to get the green light from

About these archived stock reports

These are archived Fat Prophets equity research stock reports and share analysis. They do not constitute current investment advice, financial product advice, or a recommendation to buy, sell or hold any financial product. They are provided for historical reference only, and reflect the market conditions, company information, forecasts and opinions available at its original publication date. The information may no longer be current or applicable. Past performance is not a reliable indicator of future performance.

This is general information only and does not take into account your objectives, financial situation or needs. Before acting on anything in this report, you should consider its appropriateness to your circumstances and seek advice from a licensed financial adviser.

DISCLAIMER Fat Prophets has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites. Fat Prophets research is based upon information known to us or which was obtained from sources which we believed to be reliable and accurate at time of publication. However, like the markets, we are not perfect. This report is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore discuss, with their financial planner or advisor, the merits of each recommendation for their own specific circumstances and realise that not all investments will be appropriate for all subscribers. To the extent permitted by law, Fat Prophets and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special, or consequential loss or damage) arising from the use of, or reliance on, any information within the report whether or not caused by any negligent act or omission. If the law prohibits the exclusion of such liability, Fat Prophets hereby limits its liability, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.

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