Australian Stocks Trend Higher, Flight Centre Soars 8%

Marcus Jacob
27 Aug, 2013
New York City

Australian stocks edged higher in late afternoon trading as investors focused on better than expected earnings from Flight Centre. Billabong said annual net loss widened and debt increased. Seven Group lowered earnings outlook.

[R]4:30 PM Sydney – Australian stocks edged higher in late afternoon trading as investors focused on better than expected earnings from Flight Centre. Billabong said annual net loss widened and debt increased. Seven Group lowered earnings outlook.[/R]

Australian stocks closed higher in late afternoon trading as investors bid up Flight Centre stock on better than expected earnings.

Earnings announcement remained the focus of the market and Whitehaven swung to a net loss of $82.2 million in fiscal 2013 and miner said weak dollar will help results in the current year but prices are expected to be weak in the short term.

Australian dollar dropped to 89.53 U.S. cents and in stock trading turnover rose to 731 million shares worth $4.2 billion.

The ASX 200 index rose 5.80 to close at 5,141.20 and the broader All Ordinaries gained 3.70 to 5,130.80.

Stocks in Review

Rio Tinto fell 7 cents to $59.74 and BHP rose 2 cents to $35.60. Woodside Petroleum Limited gained 13 cents to $37.91.

Westpac slipped 7 cents to $31.61 and National Australia Bank added 11 cents to $32.66.

Beach Energy Limited gained 2.2% to $1.38 after the oil and gas explorer reported revenue in the year ending in June soared 13.1% to $698.2 million from $618.6 million a year earlier. Net profit for the year declined 6% to $153.7 million compared to $164.2 million and diluted earnings per share dropped 11.73 cents from 14.22 cents a year ago.

The earnings declined in the year on a loss linked to notes right conversion.

Billabong International Limited declined 5.3% to 53.5 cents after the surf-wear retailer said revenue in the year ending in June plunged 13.5% to $1.34 billion from $1.44 billion a year ago. Net loss in the year widened to $859.5 million compared to $275.6 million a year earlier.

As at June 30, the company said net debt increased to $207 million from $161 million and the company decline to provide earnings guidance for the current financial year.

The company agreed for $294 million refinancing deal with a group led by Altamont Capital Partners and others.

Flight Centre Limited soared 8.5% to $48.41 after the travel manager reported revenue in the year ending in June jumped 8.7% to $2 billion. Net profit for the year surged 23% to $246.1 million compared to $200.1 million in the prior year.

Noni B Limited declined 3% to 65 cents after the women’s apparel and accessory retailer stated sales in the year ending in June rose 1.5% to $121.5 million. Net in the year swung to a loss $3.5 million compare to a net profit of $2.7 million a year ago.

Seven Group Holdings Limited plunged 7.5% to $7.12 after the investment group reported revenues in the year ending in June jumped 6.3% to $4.75 billion from $4.47 billion a year earlier. Profit for the year nearly doubled to $488.6 million compared to $176.7 million and diluted earnings per share surged $1.49 from 43 cents a year ago.