Telling results from Origin Energy, AGL and Treasury Wine Estates
Aussies digest telling earnings results from Origin Energy $Origin Energy Ltd(ORG.AU$ and Treasury Wine Estates $Treasury Wine Estates Ltd(TWE.AU$
Investors are digesting a lot of earnings results today and a higher an expected unemployment read.
I often speak about why it pays to lean into trends and be observational’when investing. And today we are seeing savvy and observational investors rewarded by earnings beats from companies who are reporting better than expected results, due global and Aussie economics and our climate.
For example, we are all paying higher prices for electricity (we see that with our bills and in the CPI data).
As such Origin Energy $Origin Energy Ltd(ORG.AU$ today reported better than expected results in the half year while guiding for stronger profits in its full year (due to higher energy prices and tariff repricing). As such Origin Energy's shares popped up 2.6% to three month highs. We also saw this recently with AGL $AGL Energy Ltd(AGL.AU$, its shares rose 10.2% on the day it reported results, which moved AGL shares up off its one-year lows.
Meanwhile, as 'downy mildew' hit Australia (it tends to happen every 9-10 years) and this will probably impact the outlook for wine and will further restrict grape supply - which is why estimates suggest wine production could drop to a 60 year low.
Treasury Wine Estates $Treasury Wine Estates Ltd(TWE.AU$ shares are rallying up 2.5% on reporting a slightly better than expected half year but rosy outlook in second half. A factor that contributed to this was that its gaining traction with its top line stable of wines and that’s offset weakness elsewhere.
Aside from that, I think we might see bets increase that China will scrap the tariffs on Australian wine imports. TWE anticipates a determination to be made in March 2024, which was in line with the five-month review period announced last October. China has had the 169% tariff in place since 2020.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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