Chris’ February 2024 reporting season analysis shows that well-performing companies with robust cash flow and quality results are experiencing positive market responses. Companies that have not met consensus estimates, and present a softer outlook, are being sold off. Volatility is comparable to previous reporting seasons and discussions about interest rates and consumer confidence seem more optimistic.
Chris also assesses the performance of PWR Holdings, a long-term investment for Alvia, noting its robust result and strong revenue growth. The Gold Coast-based company, initially known for its cooling devices for supercars, is widening its operation into electric vehicles and high-end aerospace and defence applications. Additionally, Chris highlights the performance of Garmin, a US-listed giant in consumer technology. The company has consistently innovated and remained at the cutting edge of developments for the past three decades. Despite macroeconomic headwinds and sensitivities surrounding interest rates, Garmin witnessed increased sales of its high-end devices, reflecting the high value it offers to customers. Chris also outlines the turnaround potential of Domino’s, despite it currently being in a difficult phase.