3 ASX 200 shares flying on strong earnings updates

Man with rocket wings which have flames coming out of them.Man with rocket wings which have flames coming out of them.

S&P/ASX 200 Index (ASX: XJO) shares, all together, are down 0.3% today.

The benchmark index is under some selling pressure following a 0.3% loss overnight on the Dow Jones Industrial Average Index (DJX: .DJI) and a slightly smaller retrace by the S&P 500 Index (SP: .INX) as investors eye another potential interest rate hike by the US Federal Reserve.

But that’s not stopping these three ASX 200 shares from racing higher today following some strong earnings updates.

Earnings, profits and dividends all higher

Up first, we have logistics solutions provider, Qube Holdings Ltd (ASX: QUB).

The ASX 200 share closed yesterday trading for $2.99. Shares are currently trading for $3.25, up 8.5%. That puts the Qube share price up more than 15% so far in 2023.

Investors are bidding up the share price after the company reported some very strong half-year results for the six months ending 31 December, along with a positive growth outlook for the full year.

The company saw a 23% year on year increase in underlying revenue to $1.50 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 31% to $145 million. And net profits after tax (NPAT) increased by 41% to $125 million.

The Qube board rewarded shareholders with a 3.75 cents per share interim dividend, fully franked. That’s up 25% from the interim dividend paid out in 1H FY22.

Which brings us to…

ASX 200 share leaps 8% on full-year results

Also charging higher today is employee management services provider Smartgroup Corporation Ltd (ASX: SIQ).

Smartgroup shares closed yesterday trading for $5.69. Shares are currently changing hands for $6.14 apiece, up 7.9%. That sees shares up more than 20% so far in 2023.

This comes following the release of the company’s full-year results.

Investors look to be bidding up the ASX 200 share with the report that net profits after tax and amortisation (NPATA) came in at the top end of guidance. Full-year NPATA was $61 million, though that was down 12% from 2021.

Revenue, meanwhile, increased by 1% for the full year to $225 million.

Operating EBITDA came in at $93 million, down 9% year on year, which Smartgroup attributed to continuing car supply constraints and higher operating costs. Its EBITDA margin came in at 42% for the year.

Citing the company’s strong cash flow conversion, the board declared a final fully franked dividend of 15 cents per share and a special dividend of 14 cents per share, also fully franked.

This sees the ASX 200 share paying out a total of 46 cents per share in dividends for 2022, representing a trailing yield of 7.5%.

And finally…

ASX 200 gambling share in the spotlight

The Lottery Corporation Ltd (ASX: TLC) is also setting the bar high today.

The ASX 200 gambling company’s shares closed yesterday trading for $4.86. Shares are currently trading for $5.15, up 5.9%. The Lottery Corporation’s share price is now up more than 14% in 2023.

The ASX 200 share reported its own strong half-year results this morning.

Highlights included revenue of $1.92 billion, up 7.7% from 1H FY22. EBITDA leapt 15.8% to $409 million.

The company also declared its maiden interim dividend of 8 cents per share, along with a special dividend of 1 cents per share, both fully franked.

Lottery Corporation’s separation from Tabcorp Holdings Ltd (ASX: TAH) remains on track.

The post 3 ASX 200 shares flying on strong earnings updates appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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