Amcor plc

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Bullish +53

ASX Preview: Australian Shares Set to Rise as US-Iran Tensions Ease; Amcor Posts Higher Fiscal Q3 Adjusted Earnings, Net Sales

📈 Australian shares are poised to rise as easing US-Iran tensions lower oil prices and boost gold, softening the dollar to support equities.

📊 Overnight global benchmarks rose, with the S&P 500 up 1.5%, the Nasdaq up 2%, and the Dow Jones up 1.2%.

💰 Amcor reported fiscal third-quarter adjusted earnings of $0.96 per share on net sales of $5.91 billion, compared to $0.90 earnings and $3.33 billion in sales a year ago.

📈 Australia's benchmark index rose 1.3% or 113.1 points to close at 8,793.60 on Wednesday following bank gains after the RBA rate hike.

🤝 President Trump cited "great progress" towards a US-Iran peace deal and announced a pause on naval operations in the Strait of Hormuz.

🏭 The Australian Industry Group reported that industry activity remained in contraction in April due to manufacturing, construction weakness, and fuel cost pressures.

💧 The Australian Industry Index rose by 9.8 points in April but remained in negative territory at -24.4.

🤝 DigiCo Infrastructure REIT agreed to sell its Chicago facility for $750 million, expected to release AU$360 million in net cash proceeds upon financial close.

💰 DPM Metals reported first-quarter adjusted earnings of $0.76 per basic share, more than doubling from the previous year, though shares fell 2%.

📉 NexGen Energy reported a first-quarter loss of CA$0.24 per share with no revenue other than interest income, causing shares to drop 3%.

📉 Australian shares rallied on Wednesday as banks' shares gained after the Reserve Bank of Australia's rate hike decision.

🌍 Brent crude oil futures fell below $108 per barrel amid expectations of reduced risk from Middle East conflict.

🤝 DPM Metals reported first-quarter adjusted earnings of $0.76 per basic share, up from $0.32 a year earlier on revenue of $310.4 million.

📉 Westpac Banking reported fiscal first-half earnings of AU$1.014 per share excluding notable items on net operating income of AU$11.28 billion.

🏴‍☠️ Regis Resources agreed to acquire Vault Minerals in a merger of equals to create a major gold producer with a pro forma market cap of about AU$10.7 billion.

Bullish Signals
  • Amcor reported higher fiscal Q3 adjusted earnings of $0.96 per share compared to $0.90 a year earlier.
  • Net sales for Amcor increased to $5.91 billion in the third quarter, up from $3.33 billion in the same period last year.
  • ResMed posted fiscal Q3 non-GAAP earnings of $2.86 per share with revenue reaching $1.43 billion, showing significant growth over the previous year.
  • Coles Group sales revenue rose to AU$10.7 billion for the fiscal third quarter, demonstrating consistent top-line expansion.
  • ANZ Group Holdings delivered cash earnings of AU$1.242 per share with operating income reaching AU$11.2 billion.
  • Westpac Banking reported first-half adjusted earnings of AU$1.014 per share with net operating income of AU$11.28 billion.
Risk Factors
  • Persistent weakness in manufacturing, construction, and rising fuel-driven cost pressures caused Australia's industry activity to remain in contraction at negative 24.4 in April.
  • The Australian Performance of Manufacturing Index declined to negative 27.9 due to growing strain from supply chain disruptions and continued weakness in orders.
  • Australia's home value index registered its slowest pace of growth since January 2025 amid declines in key markets Sydney and Melbourne.
  • Middle East-driven supply chain disruptions and surging fuel costs continue to weigh on new orders and keep business sentiment subdued despite some macroeconomic improvements.
Full Analysis
Amcor (ASX:AMCR) reported fiscal third-quarter adjusted earnings of $0.96 per share, representing a 7% increase from the previous year's adjusted earnings of $0.90 per share. Net sales for the quarter reached $5.91 billion, compared to $3.33 billion in the same period a year earlier. These figures were reported alongside broader market context involving Australian equities and macroeconomic factors such as US-Iran geopolitical tensions, oil price volatility, and domestic economic indicators including manufacturing and construction activity metrics from the Australian Industry Group. The article covers the wider ASX 200 market environment where shares rallied on Wednesday following Reserve Bank of Australia rate hike reactions and positive geopolitical news regarding potential peace deals involving Iran. Other corporate developments mentioned include Orica's first-half earnings, DigiCo Infrastructure REIT's agreement to sell a Chicago facility for $750 million which is expected to release approximately AU$360 million in net cash proceeds, and various earnings updates from Westpac, ANZ Group Holdings, ResMed, Coles Group, Regis Resources, DPM Metals, and NexGen Energy across different trading days. Macroeconomic data points highlighted include the S&P/ASX 200 Index rising 1.3% or 113.1 points to close at 8,793.60 on Wednesday, Brent crude oil futures falling below $108 per barrel, and Australian industry activity remaining in contraction in April with the Australian Industry Index at negative 24.4. Additional macroeconomic indicators mentioned include Australia's services activity edging into expansion in April while inflation driven by fuel costs weighed on business sentiment, and the manufacturing sector returning to modest growth in April despite supply chain disruptions linked to Middle East tensions.