Weekly Reports | Aug 16 2024
Reporting season rumbles on with the winners taking a victory lap; Pro Medicus flexes its reliable muscles; Temple & Webster delivers margins and market share; Ai PCs, the potential growth driver for JB HiFi.
-Pro Medicus' Visage leads global SaaS margins
-Temple & Webster executes yet again
-PC sales turning the corner?
By Danielle Ecuyer
Quote of the week comes from Morgan Housel. It seems terribly aposite in light of the last two weeks and is dripping in irony.
"Be grateful that you lack the intelligence and sophistication needed to blow yourself up in a leveraged yen carry trade during a bull market"
Reporting season is throwing up a few anomalies (again) where analysts scratch their heads trying to align share prices against fundamental prospects and valuations.
This week's results proved to be no different, with three examples including Pro Medicus ((PME)), Temple & Webster ((TPW)) and JB HiFi ((JBH))),
Some share prices trade far and beyond targets, with analysts left to either stand by their conviction on fundamental analysis versus those who audibly sigh with a mea culpa.
Pro Medicus squashes the naysayers (again)
Wilsons describes Pro Medicus as a company which defies "valuation rules".
When searching for reasons the analyst's summary says it all - a "market enamored by the quality, defensibility and growth rate of their US Visage business".
The market adoration is "not unfair", Wilsons believes. The latest FY24 results are a salient reminder to the non-believers of what durable earnings growth looks like.
Management's ability to gain market share in a cost-efficient manner stands out, with volume growth supporting margin expansion a key part of the Visage model.
Notably, the US client base diversification continues which improves the earnings quality with a macro backdrop of longer-term growth in the medical diagnostic market.
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE