ASX Earnings: Profit Slides on Accelerated Spending To Protect Economic Moat

We lower our fair value estimate for wide-moat-rated ASX by 3% to AUD 72.50 following its full-year results. ASX reported underlying earnings of 254 cents per share, a 3% decrease from the prior year and 6% below our forecast on higher-than-expected costs. At current prices, ASX shares trade materially below our fair value estimate. We believe the market is overly focused on near-term growth in expenses and capital expenditures, while we view these as vital investments to secure ASX’s long-term economic moat.