One of the big earnings results winners this season was ASX financials stock HMC Capital Ltd (ASX: HMC). 

Investors were gobbling up this stock following its full-year results. 

During FY26, HMC Capital expanded across all major verticals. 

Included in the results yesterday:

• Operating EPS (pre-tax) of 40.4 cents per share, in line with FY26 guidance
• Underlying EPS (pre-tax) of 30.2 cents, excluding discontinued operations
• Fee-generating AUM grew 15% to $16.9 billion
• Recurring funds management revenue up 22% to $165.5 million
• FY26 dividend declared at 12.0 cents per share
• Tangible assets and undrawn debt capacity of $1.9 billion. 

Investors were seemingly pleased with this ASX financials stock as its share price rose over 11% on the back of the announcement. 

Despite the rise, HMC shares still sit well below yearly highs. In good news for prospective investors, the team at Bell Potter see yesterday’s gain of a sign of what’s to come in the next 12 months. 

Great results 

Bell Potter’s view is very positive, essentially arguing that the FY26 result sets up a stronger FY27 and that there is further upside beyond current guidance.

This ASX financials stock delivered FY26 pre-tax EPS of 40.4c, slightly ahead of Bell Potter’s expectations and well above consensus. 

More importantly, management guided to FY27 underlying EPS of at least 35c, versus 30.2c in FY26, implying roughly 16% underlying earnings growth.

The broker also highlighted that the balance sheet provides another potential upside lever. 

HMC has around $500m of undrawn debt capacity, while its FY27 guidance does not assume any further capital recycling. 

Given HMC has previously generated significant earnings from recycling its investments, Bell Potter believes there could be another $25–50m of underlying earnings upside if capital is deployed or recycled effectively.

As a result, Bell Potter has increased its FY27-FY29 post-tax EPS estimates by 25-30%.

Buy rating retained for this ASX financials stock

Based on this guidance, Bell Potter has retained its buy recommendation for this ASX financials stock. 

The broker has also upgraded its price target $4.20 (previously $3.85), which indicates an upside potential of approximately 29%. 

We recently upgraded HMC to Buy, with today’s result giving us confidence that HMC is turning the corner from an earnings momentum perspective, and indeed HMC has articulated a clear message that earnings upside to items not included in guidance (eg capital recycling) exist. As headwinds turn to tailwinds, HMC screens inexpensively trading at just 9.3x 1yr forward underlying earnings.

The post This ASX financials stock just soared 11% on results and is tipped to keep rising appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Just a few years ago, Domino’s Pizza Enterprises Ltd (ASX: DMP) was the bell of the ball. During the pandemic, Domino’s shares were trading for over $160 each. 

However COVID-era growth proved unsustainable and inflation, higher interest rates, weaker franchisee economics and disappointing international expansion hurt profits.

Fast forward to 2026, and Domino’s shares have hovered around $20 per share – a huge pullback from pandemic levels. 

Yesterday, the popular pizza franchise released its full-year results, prompting a heavy sell-off among investors. 

What did Dominos report?

As reported by The Motley Fool yesterday, the company’s FY26 results showed an 11% decline in revenue to $2,046.1 million and a statutory net loss after tax of $134.2 million.

Other results included: 

• Underlying NPAT: $121.6 million, up 4.0%
• EBITDA: $325.4 million (underlying, down 6.1%)
• Final dividend: 32.5 cents per share, unfranked (total FY26 dividend 57.5 cents, down 25.3%)
• Net tangible assets per share: $5.04. 

Investors were clearly not impressed with the result, as the share price dipped 6%. 

However, the team at Bell Potter has a more balanced view moving forward. 

What is Bell Potter’s view on Dominos shares?

Bell Potter viewed Domino’s result as broadly in line with expectations, with underlying NPAT of at the top end of guidance, supported by cost reductions and lower interest costs. 

Free cash flow of $164.1m was also strong, helped by lower capex, working capital improvements, capital management and favourable tax timing.

The main negative was weaker sales, with network sales down 4% and FY26 same-store sales growth (SSSG) declining 4.1%, led by Asia, ANZ and Europe. 

More concerning were the first eight weeks of FY27, when SSSG fell 5.8%, a significant deterioration from the -0.9% seen in FY26 and -1.3% in FY25, which likely contributed to the sharp share price decline.

Bell Potter has downgraded its revenue and EBITDA forecasts for FY27-29 to reflect the ongoing weak sales environment and softer consumer conditions, although it expects sales to recover to low single-digit growth by FY28. 

Despite the revenue downgrades, lower expected interest costs have led Bell Potter to raise its NPAT forecasts by 7%/6%/5% for FY27/28/29, respectively.

Hold recommendation for Domino’s shares

Based on this guidance, the team at Bell Potter has retained its hold recommendation on Domino’s shares. 

However, the broker raised its price target to $20.15 (previously $18.50). 

This updated target indicates roughly 7% upside. 

Without SSSG, operating leverage remains limited; and without leverage, temporary cost-out measures can only support earnings for so long before underlying operating profits come under pressure. We therefore remain HOLD rated pending clearer evidence of a sustained improvement in trading.

The post After crashing 6% on results, what is Bell Potter’s view on Domino’s shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares were hit hard again on Wednesday after the counter-drone company released its half-year results.

The DroneShield share price finished the day down 11% to $1.74.

It continues what has been a pretty rough run for shareholders. The stock is now down around 17% over the past month and 48% since the start of 2026.

That’s a big change from where DroneShield was trading last year, when the shares were attracting plenty of attention.

With the share price now back near its lowest levels of the year, investors may be wondering whether the worst of the sell-off is finally behind it.

So, have DroneShield shares finally found a bottom?

Revenue growth continues as profits slip

Looking at the headline numbers, there was plenty to like on the revenue side.

DroneShield reported record first-half revenue of $125.8 million, up 74% from the same period last year.

Recurring revenue also rose 229% to $11.5 million, supported by a growing number of software-enabled devices in the field.

However, this came in below the $14.2 million estimate DroneShield provided in July.

Profitability also went backwards.

Underlying EBITDA came in at a $12.4 million loss, compared with an $8 million profit a year earlier.

DroneShield also reported a statutory net loss after tax of $32.2 million, while gross margin slipped to 60% from 65%.

The company said it has been investing heavily to support future growth, including in production, systems and staff.

There are still some good signs

Despite the first-half loss, there were still a few positives to take away from the result.

DroneShield had $240 million of committed FY26 revenue as at 21 August, up 36% from the same time last year.

That already covers between 89% and 96% of its full-year revenue guidance of $250 million to $270 million, giving the company a decent head start heading into the second-half.

There is also another $43 million of committed revenue for FY27 and beyond.

DroneShield is in a strong position financially as well, finishing June with $180 million in cash and term deposits and no debt.

This gives the company plenty of room to keep investing as it ramps up production and brings new products to market.

Have DroneShield shares bottomed out?

Calling the bottom isn’t easy, as you’re essentially trying to predict what every buyer and seller in the market is going to do.

Even the best investors in the world can’t pick the exact bottom every time.

Nonetheless, there are a few reasons to think much of the bad news could already be reflected in the share price.

There is still plenty going right in the business. Revenue is growing quickly, committed revenue continues to build and the balance sheet remains strong.

But investors will also want to see more of that growth flow through to margins and earnings, particularly after the first-half loss.

If DroneShield delivers on guidance and improves profitability in the second-half, investors could take another look.

The post Down 48% in 2026: Have DroneShield shares finally bottomed out? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy the dip on DroneShield and WiseTech shares
• Are DroneShield shares a buy, sell or hold following their half-year FY26 results today?
• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday
• DroneShield share price in focus as record revenue meets interim loss
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.