Key takeaways:

• A preview of earnings season has delivered some surprise results to the upside

Local shares have continued their strong start to the new year, outperforming US stocks this week as rate hike fears recede.

Which shares excelled?

Leading the way this week is Nanosonics (ASX: NAN), a developer of infection prevention solutions. The company reported its half-year result for FY23, revealing a 35% increase in total revenue, resulting in $81.6 million in sales. 

The catalyst for the company growth was favourable pricing benefits arising from its move to a direct sales model. It also reported higher sales for consumables and trophon2 upgrade units, bolstered by a larger global total installed base. 

In addition to higher sales, Nanosonics also managed to boost gross profit margins by 2 percentage points, from 77% to 79%. In terms of the bottom line, operating net profit soared nearly 250% to $11.4 million. After a strong half, management also guided to a strong outlook, upgrading revenue growth to between 36% to 41%, and also providing a higher guidance for gross margins.

Another name unveiling earnings this week was Tyro Payments (ASX: TYR). The digital payments operator reported a 45% increase in group revenue compared with the prior corresponding period, totalling $216.6 million. That translated into a 600% increase in EBITDA, or $19.5 million in earnings. 

The main driver for the result was a 27% increase in payment transactions, however, the company also managed to achieve an $11 million reduction in its cost base on an annualised level. Taking the opportunity to upgrade its forecast transaction value for the year, management also expects the business to achieve positive free cash flow by the end of FY23. That comes despite expectations the second half of the year will see softer consumer activity.

Sticking with the consumer segment, a preview of first-half results for Super Retail Group (ASX: SUL) point to better-than-expected times. The company is forecasting a record first-half sales result when it hands down its report next month, expecting just shy of $2 billion in revenue, or 11% growth. 

In what was a good sign for the retailer, Super Retail inventory balance finished the period approximately $30 million below the last recorded figure, while positive cash flow has also provided steady footing. Supercheap Auto and Rebel continue to represent solid contributors for the business, but growth was highest from outdoor recreational equipment provider Macpac.

Grange Resources (ASX: GRR) has spent the week capitalising on upbeat sentiment surrounding iron ore. While the commodity took a backwards step at the start of the week, with the Chinese government warning traders against speculating over iron ore prices, interest has remained afloat over recent days. BHP record production figures for the first-half also provided a tailwind for the sector, with Grange one of the key movers.A selection of other winners this week includes PEXA Group (ASX: PXA), Energy Resources of Australia (ASX: ERA), Stanmore Resources (ASX: SMR), Sayona Mining (ASX: SYA), and Viva Energy Group (ASX: VEA).

Which shares dragged on the market?

Weaker lithium prices have weighed on Core Lithium (ASX: CXO) this week, with the stock particularly vulnerable given the significant amount of shorts on its share register. While a strong quarterly update from sector peer Allkem (ASX: AKE) sparked some interest in battery metals this week, lithium carbonate and hydroxide prices in China fell below 500,000RMB for the first time in months. The company is targeting first production of spodumene concentrate at its Finniss project in the first half of 2023.Liontown Resources (ASX: LTR) shares are also in the doghouse after the company revealed the construction costs at its Kathleen Valley Lithium Project in Western Australia will exceed previous estimates. The news, which sees estimated capital costs to first production reach $895 million, has shareholders worried that another capital raise could be on the cards. However, on a more positive note, Liontown has optimised plant capacity to deliver a 20% improvement in throughput rates.A modest pull-back in commodity prices weighed on the likes of Capricorn Metals (ASX: CMM) and 29Metals (ASX: 29M). That followed an improvement in the US dollar, and weaker signs regarding commodities demand as concerns about the economy build. Capricorn Metals was also at the mercy of a change in broker recommendation, with Canaccord cutting the stock to a hold' rating.While plenty of names impressed with their trading updates, it was a different story for Hub24 (ASX: HUB). It would appear the investment platform fell short of investors' expectations, with one broker, Citi, even going as far as to slash their price target for the stock after its funds under administration value missed Citi forecast.Elsewhere, shares in Nickel Industries (ASX: NIC) are sliding this week following the launch of a major capital raise. The nickel producer is eyeing $673 million in fresh funding to help it buy a stake in two nickel-producing assets. As part of that proposal, management detailed a strategic framework agreement with major shareholder Shanghai Decent, focused on the electric vehicle battery supply chain. 

At the same time, the company also released its quarterly report, reporting record nickel metal production, and a near-doubling in EBITDA margins, but that was accompanied by the tragic news that two contractors died at its Oracle Nickel Project in Indonesia.

Other stocks on the outer this week include Judo Capital (ASX: JDO) and Alumina (ASX: AWC).

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