Guzman Y Gomez (ASX: GYG), Pro Medicus Ltd (ASX: PME), and James Hardie Industries PLC (ASX: JHX) shares are making waves today.

Two of the big name ASX shares are outpacing the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) in late morning trade on Friday, while one is charging higher.

Here’s what’s grabbing investor interest.

James Hardie shares lift on $1.4 billion asset sale

James Hardie shares are in the green today, up 0.6% at $43.05 apiece.

Investors are responding positively after the ASX 200 building materials company announced that it is divesting its European operations.

The company will sell its Fermacell business to Holcim for €840 million (AU$1.38 billion). James Hardie also intends to close its European fibre cement operations.

The ASX 200 stock will use the proceeds to pay down some $600 million in debt as well as funding a new $250 million share buyback. The company expects the deal to close in the first half of calendar 2027.

Commenting on the sale helping lift James Hardie shares today, CEO Aaron Erter said:

We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership.

Guzman Y Gomez shares jump on earnings surge

Like James Hardie shares, Guzman Y Gomez shares are outperforming today.

And strongly.

At the time of writing, shares in the ASX 200 Mexican fast-food restaurant chain are up 8%, changing hands for $25.89 each.

This follows the release of Guzman Y Gomez’s full-year FY 2026 results.

Investors look to be supporting the stock, with GYG now having completed its painful exit from its US operations and eying growth in its core Aussie markets.

While GYG achieved a statutory net profit after tax (NPAT) increase of 31.6% from FY 2025 to $40.6 million, the company reported a statutory group NPAT loss of $26.7 million due to its US exit.

In other core financial metrics, Guzman Y Gomez shares are likely attracting attention, with the company reporting a 28.7% year-on-year increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $85 million.

Management also announced an additional $100 million share buyback.

Which brings us to…

Pro Medicus shares slide despite new contract win

Joining Guzman Y Gomez and James Hardie shares in turning heads today, we find Pro Medicus.

At the time of writing, shares in the ASX 200 health imaging company are down 3.1%, trading for $199.71 apiece.

Pro Medicus shares are sliding despite the company announcing a new $25 million, seven-year contract with United States-based healthcare provider Valley Health. The contract covers the full range of Pro Medicus’ cloud-based medical imaging solutions.

The post Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday appeared first on The Motley Fool Australia.

More reading

• Pro Medicus signs A$25m US contract: What it means for investors
• Guzman y Gomez delivers record FY26 results, launches new buyback
• James Hardie sells European business, launches share buyback
• Investing in AI stocks on the ASX? Here’s what you should buy
• My top 5 ASX 200 shares to buy and hold

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Global Lithium Resources Ltd (ASX: GL1) shares have jumped substantially in recent weeks, as the company has secured key approvals for its Manna lithium project in Western Australia.

The shares are up slightly more than 200% over the past 12 months, but the analyst team at Shaw and Partners believe the share price has a long way to go yet.

They’ve got a buy rating on the shares, and a very bullish share price target, which I’ll get to shortly.

First, let’s look at the company’s recent announcements.

Approvals coming thick and fast

Firstly, in early August, GL1 announced that it had received approval for the Mining Development and Closure Proposal (MDCP).

The company said at the time:

The approved MDCP enables the establishment of important early works and critical infrastructure at the Manna mine site, directly supporting the integrated Manna-Nova strategy. The proposed Manna mine, located 110km east of Kalgoorlie-Boulder, is planned to operate for at least 14 years. The Project’s MDCP approval contemplates the development of multiple open pits, comprising one main (Manna Main) and two satellites (Manna North and Manna South), waste rock and dry stack tailings, ore stockpiles, accommodation village, bore field, topsoil stockpile areas and associated mining infrastructure.

The company said the approval would also give more confidence to a final investment decision for the mine, which is targeted for the fourth quarter of 2026, with the first direct shipping ore then targeted for the second quarter of 2027.

Then on 20 August, GL1 announced it had received the Native Vegetation Clearing Permit for the mine, completing the primary state approvals needed to begin early works. The company’s groundwater licence was also approved.

GL1 Managing Director Dr Dianmin Chen said:

Three major approvals in a fortnight is a credit to the professionalism of DMPE and DWER and to the depth of our own team’s technical work. Manna is now cleared on the ground, cleared to take water, and ready to move into construction. These approvals pave the way for starting early works and then mining operations at Manna, which will generate jobs, boost economic activity in the region, and benefit all stakeholders including our local communities for many years to come.

Global Lithium Resources shares looking cheap

Shaw and Partners said GL1 had substantially derisked the Manna project by securing the approvals.

The broker added:

Instead of committing to a standard greenfield build, GL1 management’s capital-light approach has successfully preserved Manna’s cash and strategic optionality. This positions Manna to capture the near-term market window, where lithium prices are expected to benefit from sustained supply deficits and growing demand over the next three years.

Shaw and Partners has a price target of $1.75 on GL1 shares, compared to 67.5 cents currently.

The post Up more than 200% over a year, could this ASX lithium company double again? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Reporting season can make the share market look ridiculous.

A company reports rising revenue and profit, only for its share price to sink. Another company remains unprofitable, yet its share price rockets higher.

These reactions can appear irrational. However, they make more sense once investors understand that the market is not simply grading the result.

It is grading the surprise.

A voting machine and a weighing machine

Benjamin Graham, the investor and author who mentored Warren Buffett, famously said:

“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”

Reporting season provides a perfect demonstration.

In the short term, investors are voting on whether a result was better or worse than expected. Those expectations have been shaped by broker forecasts, company guidance, industry conditions, and the narrative surrounding the business.

If a company reports a $50 million loss when analysts feared a $100 million loss, its shares could rise sharply. The business still lost money, but the result was better than expected.

Meanwhile, a company might increase revenue by 20%, only to see its share price tumble because the market expected 30% growth, margins contracted, or management issued a weaker outlook.

The number matters, but the gap between the number and expectations often matters more on the day.

Codan shares jump on strong results

Codan Ltd (ASX: CDA) shares closed more than 12% higher after the technology company released its FY26 results.

Codan reported a 30% increase in revenue to $875 million and a 69% rise in net profit after tax to $175.2 million. Its full-year dividend increased by 70% to 48.5 cents per share.

Importantly, Codan also said its communications division had entered FY27 strongly. That forward-looking commentary gave investors new information to weigh, despite Codan having already upgraded its FY26 profit guidance in April.

Zoom out further and the relationship becomes clearer. Codan shares have more than doubled over the past 12 months while the company’s revenue, profit margins, and earnings have risen strongly.

The daily jump was a vote on the latest result and outlook. The longer-term rise increasingly reflects the growing weight of the business.

Why IDP Education shares crashed

IDP Education Ltd (ASX: IEL) provided the other side of the lesson.

Its shares closed more than 20% lower following the release of the company’s FY26 results.

IDP reported adjusted operating earnings (EBITDA) of $122.9 million, within the guidance range provided earlier in the year. The company also produced strong cash conversion and reduced its overhead cost base by more than originally targeted.

However, the market was more interested in what came next.

Looking ahead, IDP expects challenging market conditions to persist in FY27, with tightening migration and student visa policies likely to weigh on volumes for a third year.

IDP shares are now down around 64% over the past 12 months. Over that period, the company’s revenue and profits have fallen steeply.

Again, the one-day move was a vote on expectations. The longer decline has increasingly weighed the deterioration in earnings.

Foolish takeaway

Reporting-day volatility should not be ignored, but it should be interpreted in context.

The first question is what the market expected. The second is what has genuinely changed. The third is whether that change matters to the company’s earnings power several years from now.

Investors can then examine the outlook, margins, cash flow, competitive position, and management’s capital allocation. These factors usually matter far more than whether a company narrowly beat or missed a broker forecast.

Sometimes a violent share price move signals a genuine structural change. Other times, it is simply a reaction to expectations that were too optimistic or pessimistic.

That distinction is why short-term market timing is so difficult. Investors must correctly predict the result, what everyone else expected, and how the market will react to the difference.

Over longer periods, much of that noise fades. Share prices may still wander, but earnings, cash flow, and business quality gradually place more weight on the scales.

The post What ASX reporting season share price swings really mean appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• IDP shares crash 24% to historic low on Thursday: What happened?
• Codan FY26: Profit surges 69% with higher dividend
• IDP Education posts steep FY26 profit drop but stays on transformation track
• These 2 oversold ASX shares look super cheap right now

Motley Fool contributor Leigh Gant 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.