Stocks of the Hour: Xero, Orica and GraincorpCraig Foley
Cloud-based accounting platform Xero (ASX:XRO) has reported its net profit grew by almost 6 times to $18.4 million. Xero has attributed its full-year performance to a record surge in its subscriber base in the second half of the fiscal year. The company's revenue grew by 18 per cent while their earnings increased by 493 per cent from last year’s $3.1 million. The figures indicate a strong rebound from the first half’s pandemic challenges attracting an extra 288,000 new users to its platforms in the second half which is the firm’s highest ever rise in a six-month period. Shares in Xero (ASX:XRO) are trading 9.4 per cent lower at $122.22.
Explosives systems company Orica (ASX:ORI) reports a 54 per cent drop in their half-year net profit to $77 million when compared to the same time last year while sales revenue dropped by 9 per cent to $2.6 billion impacted by lower volumes and currency exchange rates. The company has also announced the intention to sell the Minova business which provides ground control solutions for the mining and construction industries. The company will pay an interim dividend of 7.5 cents a share on 9 July. Shares in Orica (ASX:ORI) are trading 1.1 per cent lower at $13.27.
GrainCorp (ASX:GNC) has upgraded its full year guidance following its strong half year results reinstating its interim dividend, due to a rebound in growing conditions on Australia's east coast following the drought last year and a boost in global demand. Their revenue jumped 30.8 per cent to $2.56 billion as grain receivables jumped in the wake of suitable moisture conditions for crop planting. This has helped the company upgrade its FY21 earnings guidance to $255-$285 million from $230-$270 million. A fully franked interim dividend of 8 cents per share was declared to be paid in July, its first since 2018. Shares in GrainCorp (ASX:GNC) are trading 6.6 per cent higher at $5.50.
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