The S&P/ASX 200 Index (ASX: XJO) reached a new record high yesterday as earnings season continued.
However, shares in these three popular ASX companies fell after their 1H FY26 reports were released.
Zip Co Ltd (ASX: ZIP) shares were absolutely smashed and lost a third of their value, despite positive results.
Some brokers have already reviewed the numbers and updated their ratings and 12-month price targets on these stocks.
Let’s take a look.
Goodman Group (ASX: GMG)
The Goodman share price closed at $29.82 on Thursday, down 4% for the day and down 12.8% over the past 12 months.
Yesterday, Goodman Group reported a 1.5% fall in operating profit to $1.2 billion for 1H FY26.
The property group also reported an 8.3% decline in operating earnings per share (OEPS) to 58.5 cents.
The property group reported work in progress (WIP) worth $14.4 billion across 51 projects.
Almost three-quarters of these projects are data centres.
Management said it expects WIP to increase to approximately $18 billion by the end of FY26.
Goodman will pay a 15-cent interim dividend.
After reviewing the 1H FY26 report, Macquarie reiterated its buy rating on Goodman Group shares.
The broker has a 12-month share price target of $34.73.
Wesfarmers Ltd (ASX: WES)
The Wesfarmers share price closed at $84.24 yesterday, down 5.6% for the day and up 10% over 12 months.
Yesterday, Wesfarmers revealed a 3.1% lift in revenue to $24,212 million for 1H FY26.
Net profit increased 9.3% to $1,603 million and earnings before interest and tax (EBIT) rose 8.4% to $2,493 million.
The operating cash flow was $2,491 million, down 3.3% year-on-year. Basic EPS rose to 141.4 cents per share.
Wesfarmers will pay a fully franked interim dividend of $1.02 per share, up 7.4% on 1H FY25.
Managing Director Rob Scott said:
Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions â Bunnings, Kmart Group and WesCEF.
During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions⦠The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.
After going over the report, UBS reiterated its hold rating on Wesfarmers shares.
The broker has a 12-month target of $90.
Zip Co Ltd (ASX: ZIP)
Zip shares closed at $1.85 on Thursday, down 34.4%.
Stock in the buy now, pay later operator is down 27.7% over the past 12 months.
Yesterday, Zip reported a cash EBTDA of $124.3 million, up 85.6% year-over-year, with total income of $664 million, up 29.2%.
Total transaction volume (TTV) rose 34.1% to $8.4 billion. The operating margin improved to 18.7%, up from 13% in 1H FY25.
Net bad debts increased slightly to 1.7% of TTV, up from 1.56% a year ago, but in line with management’s target.
The number of active customers increased 4.1% to 6.6 million.
The number of retailers using Zip payment services lifted 10.5% to 90,600.
You may be wondering why Zip shares were punished yesterday, despite these positive numbers.
My colleague, James Mickelboro, provided some insights in his report.
James wrote:
With Zip shares having rallied strongly since last April, the combination of margin mix pressure, slightly higher credit losses, and a more measured second-half outlook could have triggered heavy profit-taking today.
Despite the big share price drop, UBS retained its buy rating on Zip with an unchanged target of $5.20.
The post Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares appeared first on The Motley Fool Australia.
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More reading
- 3 beaten down ASX shares I’d load up on at these prices
- 5 things to watch on the ASX 200 on Friday
- Is the Zip share price crash a buying opportunity or a warning sign?
- Why are Goodman shares sinking 7% today?
- Why Goodman, Lovisa, Medibank, and Zip shares are falling today
Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia has recommended Goodman Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.