NVIDIA stocks dropped in after-hours trading even after meeting earnings expectations, as Qantas and Wesfarmers posted healthy profit reports that lifted Australian markets amidst a hectic reporting season. The ASX started the day flat as investors absorbed blended corporate reports.
ASX 200 Starts Flat in Busy Session
The ASX 200 began the day marginally lower, down by 0.1 per cent to 8,955 points at 10:10 am AEST. Declines in energy, technology, and healthcare shares were offset by gains in industrials and financials.
Qantas led early gains with its double-digit surge, with Wesfarmers not far behind, and Medibank lower. Domino’s Pizza, down 22 per cent, and Woolworths, down 14.7 per cent, were the worst. The index has lost 0.69 per cent over the past five days but is only 1.08 per cent below its 52-week high.
Nvidia Results Disappoint After Hefty Build-Up
Nvidia Results Disappoint After Strong Build-Up
Nvidia, the largest publicly traded company in the world, reported quarterly results after Wall Street closed. The company made $ 1.05 per share, slightly above the expected $ 1.01, on revenue of $ 46.74 billion.
Despite beating analyst expectations, the company issued revenue guidance of around US$54 billion for the third quarter of the fiscal year. Some estimates had been around the US$60 billion range, which raises alarm if the AI-driven demand rush can be sustained. Shares fell around 3 per cent in after-hours trading to the range of US$176.
Wall Street appears to gain despite an after-hours decline
US shares rose on Wednesday before Nvidia earnings. The S&P 500 increased 0.2 per cent to an all-time high. The Dow Jones increased 0.3 per cent and Nasdaq Composite increased 0.2 per cent.
The gains were observed in the technology areas at the expense of communication services. Non-etheless, the post-hours decline at Nvidia took a toll on sentiment, as investors rely on the company as a guide to AI spending rate.
There was a slight decline in the treasury yields to 4.24 per cent on the 10-year yield, and it was 4.26 per cent. Dealers are expectantly waiting the September Federal Reserve meeting where futures are priced on a probable quarter-point reduction.
Qantas Posts Healthy Full-Year Profit
Qantas Delivers Strong Full-Year Profit
In Sydney, a statutory net profit after tax increased by 27.9 per cent to 1.61 billion by Qantas. The airline also announced a final dividend of 16.5 cents a share, fully-franked and a special dividend of 9.9 cents a share.
There was an increase of 10.5 per cent in the early trading of Qantas shares to $12.28. The airline attributed the outcome to an increase in passenger traffic and recovery in corporate flying. Chief executive Vanessa Hudson said that the premium international travel was still in high demand, which supported the belief in the carrier regarding the Project Sunrise ultra-long-haul flights.
The airline also changed its delayed fleet modernisation plan reaffirming the order of 20 more Airbus A321XLRs and development of its A350-1000ULR aircraft that is planned to be delivered in October 2026.
Wesfarmers Profit Rises to $2.93 Billion
Wesfarmers Profit Rises to $2.93 Billion
Bunnings, Kmart, and Officeworks owner Wesfarmers posted a 14.4 per cent increase in full-year profit to $2.93 billion. Revenue was 3.4 per cent higher at $45.7 billion.
The company announced a fully-franked dividend of $1.11 a share and recommended a further $1.50 a share capital distribution, subject to shareholder approval. Wesfarmers also announced leadership succession plans, with Ken MacKenzie to succeed Michael Chaney as chairman in 2026.
Shares edged 0.1 per cent higher to $91.80 following the release. Managing director Rob Scott said the group had achieved productivity gains to offset cost pressures while continuing to deliver value for customers.
Medibank Reports Higher Profit
Medibank Reports Higher Profit
Health insurer Medibank reported a statutory net profit of $500.8 million, a 1.7 per cent increase for the year. On an underlying basis, profit was 8.5 per cent higher at $617.8 million.
The company was assisted by a 5.1 per cent increase in health insurance revenue and a significant rise in other operating revenue. Medibank added nearly 38,500 policyholders in resident and non-resident classes, with CEO David Koczkar describing the market as buoyant.
Medibank declared a final fully-franked dividend of 10.2 cents a share. Its shares fell 2.5 per cent to $5.02 in early trading.
Also Read: Australia’s Inflation Surge: Implications for ASX Blue-Chip Companies and Global Investors
Market Outlook
Investors are heeding the trend of AI-linked spending following Nvidia’s result. Earnings were in line, yet guidance dashed expectations for the industry’s growth.
Reporting season remains in focus in Australia with corporate updates from Qantas, Wesfarmers and Medibank driving trading direction. Market players are also tracking global monetary policy trends, specifically expectations for US interest rate cuts.
