Earnings season has provided the strongest clue yet as to which companies are best equipped to deal with elevated inflation and rising interest rates, while M&A activity took centre stage this week.

Which shares excelled?

Aerial imagery firm Nearmap (ASX: NEA) has been one of the biggest stories this week, and for good reason, with the company receiving a $1 billion takeover bid. The offer, launched by private equity giant Thoma Bravo, is valued at $2.10 per share, a 39% premium above the preceding trading price, and an 83% premium based on the day before the company first received the offer in early July. 

The private equity suitor was granted non-exclusive access to due diligence back in July, but in recent days it was afforded exclusive access so that it could form a binding offer. That means the clock will be ticking until early next week, at which point Nearmap shareholders should receive an update. 

It comes at a time where shares in Nearmap have been weighed down by legal issues in the US, although this week the company did publish its FY22 results, where annualised contract value (ACV) came in at the top-end of its guidance.

Elsewhere, intellectual property group IPH (ASX: IPH) put in a stellar performance on Thursday, with the company full-year results for FY22 and a major acquisition delighting shareholders. IPH will make its first move outside the Asia-Pacific region thanks to the purchase of Canadian IP firm Smart & Biggar for almost $400 million. 

The deal is expected to be EPS accretive by as much as 10% in the first full year of ownership. Meanwhile, the firm FY22 results also pointed to a solid performance, with revenue up 6% year-over-year, and underlying NPAT increasing by an impressive 14%.

Another winner from earnings season has been Brambles (ASX: BXB), which this week topped its prior guidance. Sales revenue grew 9% year-over-year, while net profit after tax leapt 18% over the same timeframe. The company made a strong finish to the year, benefitting from price increases that partly offset the effects of inflation. For the year ahead, management expects sales revenue to grow between 7-10%, and profits to increase by 8-11%.Coal stocks continue to defy calls from their critics, with New Hope Corporation (ASX: NHC) the latest name to rally. It was but one of many coal stocks taking flight this week as European coal prices surged on angst about energy supply across the continent, with key energy players hamstrung by drought conditions, and nations like Germany stockpiling coal for a potentially bleak winter.Two other stocks hitting the right notes this week include BHP (ASX: BHP) and Treasury Wine Estates (ASX: TWE), which have both gained ground on stellar results amid earnings season. 

In the case of the ASX largest company, BHP saw its underlying EBITDA hit a record of US$40.6 billion after increasing 16% versus 12 months ago, with coal one of the biggest tailwinds for the miner. If anything, the company coal division took the limelight away from its traditional iron ore focus, which has slipped amid deteriorating prices. Nonetheless, the mining giant will pay a final fully-franked dividend of US$1.50 per share.

Treasury Wine delicately managed a downturn in revenue to deliver a 2.6% increase in net income, securing higher profit margins despite a host of inflationary and supply chain challenges. The company expects to pass through higher prices in FY23, with its premium and luxury portfolios the major drivers of the strong FY22 result.

Which shares dragged on the market?

After a rampaging fortnight, battery metals stocks have seen a pull-back this week, with the likes of Vulcan Energy Resources (ASX: VUL), Lake Resources (ASX: LKE), and Novonix (ASX: NVX) among the worst performers on the ASX over recent trading sessions. The sell-off hasn't had a direct cause, rather it is likely that traders have been taking profits following major rallies in a short period of time. Weak production figures were the catalyst for a sharp fall in the share price of Beach Energy (ASX: BPT) earlier this week. The oil and gas player has been a beneficiary of higher energy prices, with earnings increasing markedly, however, production levels dived 15% to 21.8 million barrels of oil equivalent. Furthermore, its oil and gas reserves were 17% lower than a year prior, with operating costs expected to increase as its Trefoil development proves more time consuming than expected.Earnings from Telix Pharmaceuticals (ASX: TLX), Bendigo and Adelaide Bank (ASX: BEN), and Magellan Financial (ASX: MFG) were also received poorly by their respective shareholders.

While Telix managed to boost revenue a whopping 726%, its losses ballooned by 118%, and the lack of guidance for the second-half of the year may have concerned investors. 

Bendigo Bank margins took a hit as competition heats up in the home loan market, with net interest margins down 21 basis points to just 1.74%. Onlookers were also concerned about commentary suggesting the bank will share a greater portion of its revenue with community bank partners as rates and margins begin to improve.

Magellan managed to limit the downside to its disappointing FY22, with profit before tax and performance fees down 11%, albeit the firm funds under management (FUM) dropped like a stone across the period.

And capping off the week underperformers, goldies Regis Resources (ASX: RRL), Ramelius Resources (ASX: RMS), and St Barbara (ASX: SBM) have trended lower following a dip in gold prices, and the latest profit warning from the sector amid elevated inflation, while uranium duo Energy Resources of Australia (ASX: ERA) and Paladin Energy (ASX: PDN) have also been on the back foot.

We'll be back next week with another Weekly ASX Trading Wrap Up — until then, have a great week!