Small-cap companies shine with strong quarterly results and key milestones

The S&P/ASX Small Ordinaries Index rose 3.18% over the past five days, closing at 3,352.80 on Friday. Several small-cap companies reported strong quarterly results, including Tryp Therapeutics starting a BED trial, Pantoro Gold hitting the upper-end of production guidance, and Resolution Minerals strengthening its US critical minerals push. Nova Minerals began its 2025 drilling campaign at the RPM deposit in Alaska, and Lumos Diagnostics reported FY25 revenue of US$12.4 million, up 12% year-on-year. Firebird Metals expanded its IP protection in China, and Elixir Energy is funded for a two-well campaign in Queensland.

The second quarter earnings season has begun on a positive note, with more companies reporting positive surprises than negative ones. According to data from FactSet, analysts expect S&P 500 companies to report a 5.6% jump in earnings per share during the second quarter, marking the slowest pace of earnings growth since the fourth quarter of 2023 [1].

Through Friday, with 12% of the index having reported results, the second quarter earnings growth was tracking to 5.6%, in line with estimates. The earnings season started with major Wall Street banks like JPMorgan (JPM), Goldman Sachs (GS), and Bank of America (BAC) reporting results. These firms indicated that they have largely moved on from President Trump's trade war, signaling an adjustment to the shifting policy environment [1].

While companies like Johnson & Johnson (JNJ) and 3M (MMM) expect a smaller financial hit from tariffs than previously forecast, valuations pose another challenge. For instance, despite posting an earnings and revenue beat and raising guidance, Netflix (NFLX) stock fell 5% on Friday due to its 40% year-to-date rally [1].

Next week, the focus will be on the "Magnificent Seven" firms, including Alphabet (GOOGL, GOOG) and Tesla (TSLA), which are expected to lead S&P 500 earnings growth. Other notable companies reporting earnings include Cleveland Cliffs (CLF), Domino's Pizza (DPZ), and Steel Dynamics (STLD) on Monday, and Capital One (COF), Coca-Cola (KO), and DR Horton (DHI) on Tuesday [1].

Meanwhile, Fastenal Company (FAST) achieved a significant milestone by surpassing the $2 billion threshold in quarterly revenue for the first time in the second quarter of 2025. The company reported an 8.6% increase in sales, with contract customer sales climbing by an impressive 11%. Despite the positive results, Wall Street analysts' forecasts indicate potential challenges, with a notable downside from the current stock price. The consensus recommendation is a "Hold" status, suggesting caution for investors [2].

Nova Minerals (NASDAQ:NVA) closed its underwritten public offering of 1.2 million American Depository Shares (ADS) for $11.1 million. The proceeds will be used for resource and exploration field programs, including additional drilling and exploration, feasibility studies, and general working capital [3].

The S&P/ASX Small Ordinaries Index rose 3.18% over the past five days, closing at 3,352.80 on Friday. Several small-cap companies reported strong quarterly results, including Tryp Therapeutics starting a BED trial, Pantoro Gold hitting the upper-end of production guidance, and Resolution Minerals strengthening its US critical minerals push. Nova Minerals began its 2025 drilling campaign at the RPM deposit in Alaska, and Lumos Diagnostics reported FY25 revenue of US$12.4 million, up 12% year-on-year. Firebird Metals expanded its IP protection in China, and Elixir Energy is funded for a two-well campaign in Queensland [4].

References:
[1] https://finance.yahoo.com/news/live/earnings-live-second-quarter-earnings-season-off-to-strong-start-with-tesla-google-on-deck-202455792.html
[2] https://www.gurufocus.com/news/2976359/fastenal-fast-achieves-record-quarterly-revenue-surpasses-2-billion
[3] https://mining.com.au/nova-minerals-closes-nasdaq-offering/
[4] [Provided Writing Topic]