Key takeaways:

• Results from Healius, Dicker Data, Nick Scali, and Boral occupy the headlines

• Newcrest Mining is at the centre of Australia largest proposed mining takeover

As reporting season produces surprises, and investors assess what is potentially one of the largest transactions in Australian corporate history, the ASX is staring at its first weekly loss of the year.  

Which shares excelled?

One of the major stories from this week was M&A news involving Australia largest gold producer, Newcrest Mining (ASX: NCM). On Monday morning, the company confirmed that it was the target of a takeover bid from US-listed Newmont Corporation (NYSE: NEM). The all-scrip offer, valuing the company in excess of $24 billion, was set at a premium of 21% versus Newcrest share price before the news.

Already the world largest gold producer by market cap and production, a tie-up between the two would transform Newmont into an even bigger force in the industry. If the two businesses were to merge, the new entity would produce almost twice as much gold as the next highest producer, Barrick Gold (NYSE: GOLD). While the conditional bid would represent the largest ever seen in the gold industry, early reports suggest Newcrest shareholders believe a higher premium is warranted.

For the second week running, and despite a Friday sell-off, Mesoblast (ASX: MSB) is on the winners list after chalking up another big advance earlier in the week. The big news propelling the biotech share higher was an update out of the US Food and Drug Administration (FDA) Office of Tissues and Advanced Therapies.

The regulatory body granted the company rexlemestrocel-L treatment with Regenerative Medicine Advanced Therapy (RMAT) designation, which helps potentially fast track its assessment when the company files a Biologics License Application (BLA). Mesoblast is developing rexlemestrocel-L for the treatment of chronic low back pain (CLBP) associated with disc degeneration.

Building products supplier Boral (ASX: BLD) released its first-half earnings for FY23. Revenue increased by 12% versus a year ago, while net profit after tax came in at $56.8 million, a 53% improvement. A key driver behind the underlying improvement in the company performance, despite inflationary challenges, was price and cost discipline. Operating cash flow also grew, up 37%, providing shareholders encouragement to back the stock.Mining services firm Mader Group (ASX: MAD) makes an appearance among this week best performing stocks. With the mining sector in full swing at the moment thanks to buoyant commodity prices, the company share price hit a new all-time high. Year-to-date, shares in Mader are up 28%, and over the last year, the stock is trading more than 90% higher.Some of the other winners this week include Medibank Private (ASX: MPL), which announced a modest increase in its insurance premiums, as well as Tyro Payments (ASX: TYR), Beach Energy (ASX: BPT), and Maas Group (ASX: MGH).

Which shares dragged on the market?

IT distribution business Dicker Data (ASX: DDR) disappointed its shareholders this week, with its full-year results for FY22 falling short of expectations. Although the company reported a 25% improvement in revenue to $3.1 billion, and EBITDA rose 9.3% to $129.8 million, net profit after tax actually fell 0.3% to $73.4 million on the back of higher costs. That prompted the company to slash its dividend, with inventory management and debt expenses also proving concerns.Furniture retailer Nick Scali (ASX: NCK) delivered a significant boost in earnings for the half, but that wasn't enough to satisfy the company shareholders. Net profit after tax jumped 70% to $60.6 million, with revenue surging 57.4% versus the prior corresponding period thanks to fulfilment of outstanding orders and sales from newly acquired businesses. 

Unlike a number of other companies to report earnings lately, Nick Scali managed to decrease its cost of doing business, and even raised its dividend to 40 cents per share. Nonetheless, sales from January 2023 were lagging the prior period by 12.1%, providing uncertainty for shareholders.

A week after kicking off earnings season, it appears investors have given more thought to the results handed down by Credit Corp (ASX: CCP). Net profit for the receivables management company fell 30% in the first half of FY23 following provisioning and higher resourcing costs in the US. 

Although Credit Corp has forecast a rebound in the second half of the financial year, it appears investors are having doubts about the business in light of a more hawkish' outlook from the Reserve Bank of Australia following its ninth interest rate hike.

Another name struggling amid reporting season is pathology and diagnostics business Healius (ASX: HLS). Following a boom period during the pandemic, the company revenue has fallen off a cliff, down 34% to $889 million in the most recent half. Meanwhile, Healius' EBITDA plummeted 64% to $182 million. With less COVID testing occurring, profit margins were cut dramatically, and it appears investors may be expecting something similar from industry peer Sonic Healthcare (ASX: SHL), which also encountered selling pressure.Making up the rest of this week underperformers are Centuria Capital (ASX: CNI), Polynovo (ASX: PNV), Lifestyle Communities (ASX: LIC), as well as battery metals quartet Sayona Mining (ASX: SYA), Novonix (ASX: NVX), Ioneer (ASX: INR), and Core Lithium (ASX: CXO).

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