The Generation Development Group Ltd (ASX: GDG) share price is little changed on Monday afternoon after the company released an update to the market before the open.

At the time of writing, Generation Development shares are up 0.73% to $4.15. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.1%.

The stock has fallen sharply in recent months and is down around 30% over the past month. It is now trading near the lower end of its 52-week range of $3.87 to $7.77.

Here is what investors need to know.

Company addresses takeover speculation

In an announcement to the ASX, Generation Development Group responded to a recent media report.

The company referred to an article in the Australian Financial Review, which suggested it could be considering a potential acquisition of Ironbark Asset Management.

In its response, GDG confirmed it is not currently in discussions to acquire Ironbark.

Management said the group regularly reviews potential merger and acquisition opportunities. However, it also said any transaction must meet its investment criteria and strategic objectives before moving forward.

The company added that it remains in full compliance with its ASX listing obligations.

What does Generation Development do

Generation Development is a financial services company focused on investment and retirement products.

Its key businesses include Generation Life, which provides investment bonds and lifetime annuities, and Lonsec, which offers investment research and ratings to financial advisers.

The group also owns Evidentia, a managed accounts business that supports advisers with portfolio solutions.

The company has grown in recent years through acquisitions, including taking full ownership of Lonsec and expanding its managed accounts offering.

These businesses are aimed at benefiting from long-term growth in Australia’s wealth and retirement sector.

Half-year results in focus

Looking ahead, Generation Development is due to report its half-year results at the end of the month.

The market will be watching closely for any updates on funds under management (FUM), net inflows, and earnings growth across Generation Life, Lonsec, and Evidentia. Any commentary around margins, adviser activity, and cost discipline could also influence sentiment following the recent share price weakness.

Where to from here

Investors will likely focus on the company’s ability to grow FUM and increase earnings across its divisions.

The retirement savings market remains a structural growth area, particularly as more Australians look for tax-effective investment options outside superannuation.

With the share price around $4.15, investors appear to be waiting for clearer signs of earnings growth or a new strategic development before reassessing the stock.

The post ASX wealth manager addresses takeover rumours. Here’s what happened appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a relatively positive start to the week. In afternoon trade, the benchmark index is up 0.2% to 8,935.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4.5% to $8.90. Investors have been buying this infant formula company’s shares following the release of its half-year results. A2 Milk delivered a strong first-half performance and upgraded its guidance for FY 2026. With respect to the latter, management now expects revenue growth in the mid double-digit percentage range (from low double-digits) compared to FY 2025 continuing operations. A2 Milk’s managing director and CEO, David Bortolussi, said: “Our upgraded outlook means we are now on track to achieve our $2 billion medium term sales ambition in FY26, a full year ahead of plan. This is testament to the execution of our team and the strength of the a2 brand.”

Aurizon Holdings Ltd (ASX: AZJ)

The Aurizon Holdings share price is up 6% to $3.81. This has been driven by the release of the rail freight operator’s half-year results this morning. Aurizon reported a 16% increase in net profit after tax to $237 million. This allowed the company to increase its 90%-franked interim dividend by 36% to 12.5 cents per share. Aurizon’s managing director and CEO, Andrew Harding, said: “Today’s results underscore the strength of Aurizon’s two largest business units, Network and Coal and the continued growth of Bulk and Containerised Freight.”

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is up almost 7% to $81.81. The catalyst for this has been the release of the retail giant’s half-year results. JB Hi-Fi revealed a 7.3% increase in total sales to $6.1 billion and a 7.1% lift in net profit after tax to $305.8 million. Management advised that its focus on value supported its performance. JB Hi-Fi’s CEO, Nick Wells, said: “We are pleased to report record sales and strong earnings for HY26, as we built on the momentum of the previous year. In a retail environment where customers are seeking value, our brands continue to resonate strongly and our teams continue to execute to a high standard.”

Magnetic Resources NL (ASX: MAU)

The Magnetic Resources share price is up 27% to $2.03. This follows news that the gold explorer has received and accepted a takeover offer from Genesis Minerals Ltd (ASX: GMD). Magnetic shareholders will receive $1.40 cash and 0.0873 new Genesis shares for every share they own. This implies a value of $2.00 per share and values Magnetic Resources at ~$639 million. Genesis executive chair, Raleigh Finlayson, said: “This transaction creates substantial value for both groups of shareholders, delivering genuine synergies while combining the right assets with the right people. Magnetic’s Lady Julie Gold Project will add more than 2Moz at an attractive high grade to Genesis’ Laverton inventory, further bolstering the mine life and production outlook.”

The post Why A2 Milk, Aurizon, JB Hi-Fi, and Magnetic Resources shares are storming higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in furniture retailer Nick Scali Ltd (ASX: NCK) have copped a hiding since the company reported its first-half results last week. Has that created a buying opportunity, or are there fundamental issues with the business?

The shares fell sharply on the day of the profit announcement, closing at $18.48 on Friday, down from $23.79 the previous day.

The shares have slid another 3.4% to be changing hands for $17.85 on Monday.

But it’s fair to say analysts are divided on the company’s fortunes going forward.

Firstly, let’s have a look at the results.

Solid local result

Nick Scali last Friday reported a net profit after tax of $41 million, up 23.1% on the previous corresponding period, on revenue of $269.3 million, up 9.2%.

While the company’s Australia and New Zealand division performed well, revenue in its much smaller UK division fell sharply by 38.5%.

Executive Chair Anthony Scali said regarding the results:

The first half delivered solid sales and profit growth in Australia/New Zealand with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders. Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in Australia/New Zealand and the improvement in gross profit margin in both the UK and Australia/New Zealand. We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the UK.

Analysts divided

Macquarie analysts have had a look at the result, and they like what they see, with an outperform rating on the stock and a price target of $21.60.

They said the first-half result was “strong, outperforming margin expectations and revenue in line”.

Net profit, they said, was 9% up on consensus expectations.

Macquarie said the market was expecting a better outlook than that delivered by the company last week, which was behind its previous share price appreciation and explained the sharp falls on Friday.

Barrenjoey analysts are not so bullish on the stock, with a neutral rating and a $17 price target, indicating they think further falls are on the cards.

They said the company would be impacted by increasing interest rates, which they have factored into their valuation.

They added:

We think a major reason for Nick Scali’s share price rally from less than $14 to more than $25 since April-24 is confidence around executing its UK expansion well. Longer term we think this will be a successful foray, but that there will be bumps along the way. If we assume our $200m valuation for the UK is fair (remember Nick Scali paid nothing for this business) it implies investors are paying 17.2x FY27 P/E for the Australia New Zealand business. Since listing over 20 years ago, Nick Scali has only once traded on more than 17x P/E (mid 2007), so while the quality of the business has improved over this period, we just don’t think there is much margin of safety here, especially as rates move higher.

The post Buy, sell or hold? Where to from here for plunging Nick Scali shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When choosing between two popular exchange-traded funds (ETFs), the right answer is rarely black and white. Often, it comes down to what role you want the investment to play in your portfolio and how much volatility you are prepared to accept along the way.

Two of the most widely used ASX ETFs are the BetaShares Nasdaq 100 ETF (ASX: NDQ) and the Vanguard Australian Shares Index ETF (ASX: VAS). Both provide diversified exposure, both are low cost, and both can form the backbone of a long-term portfolio.

But they are built very differently.

What the NDQ ETF offers

The NDQ ETF tracks the Nasdaq 100 Index, which is heavily weighted toward global technology and innovation leaders.

The ETF provides exposure to some of the world’s most influential stocks across areas such as artificial intelligence, cloud computing, semiconductors, digital payments, and platform-based business models. These businesses often reinvest heavily in research and development and have scalable models capable of growing earnings at a strong pace.

The trade-off is volatility. Growth-focused stocks can experience sharper share price swings, particularly when interest rates move or sentiment shifts. The BetaShares Nasdaq 100 ETF’s performance can be strong over long periods, but it is unlikely to deliver a smooth ride every year.

For investors comfortable with fluctuations in pursuit of higher long-term growth, I think that profile can be appealing.

What VAS offers

The VAS ETF takes a very different approach. It tracks the top 300 stocks on the Australian market, offering broad exposure to banks, resources, healthcare, consumer businesses, and infrastructure. It is diversified across sectors and tends to provide steady dividend income from established Australian companies.

Because the Australian market is heavily weighted toward financials and mining, the Vanguard Australian Shares Index ETF is more tied to domestic economic conditions and commodity cycles. It generally delivers less dramatic growth than a technology-focused ETF, but it can offer more stability and income.

For investors with a lower risk tolerance or those seeking reliable dividends, the VAS ETF may feel more comfortable in my opinion.

The long-term return question

Over the very long term, total returns are driven largely by earnings growth. That is where the key difference lies.

The NDQ ETF’s holdings are concentrated in stocks that have historically grown earnings at a faster rate than the broader Australian market. While that does not guarantee future outperformance, I think it provides a reasonable case for stronger long-term growth potential.

The VAS ETF, by contrast, reflects the structure of the Australian economy. It offers stability and income, but its growth prospects are tied to mature sectors that may expand more gradually.

So which is the better buy?

I think both ETFs are sensible investments, and many portfolios could justify holding both.

If I had to choose just one based purely on long-term return potential, I would favour the BetaShares Nasdaq 100 ETF. I believe the quality and growth profile of its underlying stocks give it a stronger chance of delivering higher returns over an extended period.

However, that higher growth potential comes with higher volatility. For investors who prefer steadier returns and dividend income, the Vanguard Australian Shares Index ETF may be the more suitable choice.

Foolish takeaway

The NDQ ETF and the VAS ETF serve different purposes.

The BetaShares Nasdaq 100 ETF offers exposure to global innovation and potentially stronger long-term growth. The Vanguard Australian Shares Index ETF provides broad Australian market exposure and more predictable income.

The better buy ultimately depends on your risk tolerance and objectives. For me, I lean toward the NDQ ETF for its growth potential, but I can easily see why many investors would prefer the stability that the VAS ETF offers.

The post Which is the better buy: the NDQ ETF or the VAS ETF? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 8,929.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down 8% to $3.37. This follows the release of the audio-visual networking solutions provider’s half-year results. Audinate posted a 12% increase in revenue to US$21.1 million and a 12% lift in gross profit to US$17.4 million. Looking ahead, management is guiding to US-dollar gross profit growth of 13% to 15% over FY 2025. This is expected to be underpinned by strong forward orders secured in the first half. It seems the market was expecting stronger growth than this.

Australian Clinical Labs Ltd (ASX: ACL)

The Australian Clinical Labs share price is down 11% to $2.16. This pathology services provider’s shares are under pressure today after it announced the exit of its CEO, Melinda McGrath. The company revealed that McGrath will not be renewing her contract following its conclusion on 30 August 2026. She said: “I would like to take this opportunity to thank our pathologists and scientists for their leadership, and the broader Clinical Labs team for their passionate commitment to the service of our patients and referring medical practitioners. In particular, I would like to recognise the Clinical Labs executive and broader leadership teams, whose drive and innovative approach to the development of the business has been outstanding.”

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down 4.5% to 32.5 cents. This morning, this coal miner released a business update which revealed that sustained weakness in the U.S. High-Vol markets has caused realised pricing at its US-based Logan operation to remain below cash operating costs. As a result, the complex is now operating at a loss. In response, management said: “The Company is taking steps to preserve liquidity and protect shareholder value. Production is being immediately curtailed to cover contractual commitments carried over from 2025, which are expected to be fulfilled by March 2026.”

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 5% to $4.97. Investors have been selling this wine giant’s shares following the release of its half-year results. As many had expected, the Penfolds owner has decided to suspend dividends while it battles through a challenging period. The company’s CEO, Sam Fischer, said: “Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth. Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term.”

The post Why Audinate, Australian Clinical Labs, Coronado, and Treasury Wine shares are sinking today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Audinate Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares are outperforming today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Friday trading for $87.69. During the Monday lunch hour, shares are changing hands for $89.18 apiece, up 1.7%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Wesfarmers shares have gained 12.7% over the past 12 months, outpacing the 4.6% one-year gains delivered by the benchmark index. The ASX 200 stock notched a fresh all-time closing high of $94.76 a share on 21 August.

As for that passive income, Wesfarmers traditionally pays two fully franked dividends a year.

But, in the year just past, management announced a capital management initiative that saw shareholders receive an extra distribution of $1.50 per share. That came in the form of a fully franked special interim dividend of 40 cents per share and a capital return of $1.10 per share.

Eligible stockholders will have received both payments on 4 December.

Leaving the capital return out of the equation, Wesfarmers has paid out $2.46 a share in fully franked dividends over the last 12 months. That sees the ASX 200 stock trading on a fully franked trailing dividend yield of 2.8%.

Which brings us back to our headline question.

Should you buy Wesfarmers shares for the passive income on offer?

Bell Potter Securities’ Christopher Watt noted that investors will find out what kind of passive income is on offer from Wesfarmers shares this Thursday, when the company reports its half year results (H1 FY 2026).

“The industrial conglomerate’s interim results for fiscal year 2026 are scheduled to be released on February 19,” he said (quoted by The Bull). “The results could serve as a positive catalyst, with growth most likely led by Bunnings and Kmart Group.”

According to Watt:

Wesfarmers posted statutory net profit after tax of $2.926 billion in full year 2025, an increase of 14.4% on the prior corresponding period. While its valuation remains stretched, operating momentum and productivity investments in digital and supply chain capabilities support earnings resilience.

And Watt sounded a positive note on the value enhancing passive income the company has been paying to shareholders.

“Capital management initiatives – such as a payout of $3.56 a share that includes special distributions – further enhances total return,” he said.

However, following on Wesfarmers’ strong share price performance, Watt isn’t ready to pull the buy trigger on the ASX 200 dividend stock just yet.

“The current valuation leaves a hold recommendation,” he concluded.

The post Are Wesfarmers shares a good buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) has returned to the top of the list after its short interest increased to 17.4%. Production concerns have been weighing on this uranium producer’s shares.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 16.1%. Short sellers don’t appear to have faith in the pizza chain operator’s turnaround strategy.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 14.4%. This wine giant is releasing its half-year results today. Short sellers seem to believe the company will disappoint the market.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is down week on week. Valuation concerns and a poor performance in the US could be why short sellers are targeting this burrito seller.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.5%, which is up week on week. This radiopharmaceuticals company has been struggling with delays to FDA approvals.
• Polynovo Ltd (ASX: PNV) has short interest of 12.1%, which is flat since last week. This medical device company’s shares are trading on high multiples. Short sellers may not expect its growth to justify this premium valuation.
• IDP Education Ltd (ASX: IEL) has 11.5% of its shares held short, which is up week on week. This student placement and language testing company has been having a tough 18 months due to student visa changes in key markets.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11%, which is down week on week. Short sellers appear to be betting against this travel agent delivering on its revenue margin targets.
• IPH Ltd (ASX: IPH) has short interest of 11%, which is flat week on week. Weaker volumes and market share losses appear to be why short sellers are targeting this intellectual property services company.
• PWR Holdings Ltd (ASX: PWH) has short interest of 10.1%, which is down slightly week on week. This automotive cooling products company’s shares trade on lofty multiples.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PWR Holdings, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended PWR Holdings and Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, IPH Ltd , PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

New Hope Corp Ltd (ASX: NHC) shares are jumping higher today following the release of the miner’s quarterly results.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed on Friday trading for $4.72. In late morning trade on Monday, shares are changing hands for $4.82 each, up 2.1%.

For some context, the ASX 200 is up 0.1% at this same time.

With today’s intraday gains factored in, New Hope shares are now up 8.5% over the past 12 months, handily beating the 4.6% one-year returns delivered by the benchmark index.

And that’s not including the 34 cents a share in fully franked dividends New Hope paid out over this period. The ASX 200 coal stock trades on a fully franked 7.1% trailing dividend yield.

Part of that outperformance has been driven by New Hope’s own operational successes on and beneath the ground. The miner has also enjoyed a rebound in global coal prices. Thermal coal is trading near its recent 12-month highs of US$116 per tonne, up from US$94 per tonne last April.

And looking to the months ahead, Fairmont Equities’ Michael Gable forecasts more outperformance to come (courtesy of The Bull).

Here’s why.

New Hope shares still in the buy zone

“I believe global demand for coal will remain elevated moving forward,” said Gable, citing the first reason you might want to buy New Hope shares today.

As for the second reason the ASX 200 coal stock could continue to outperform, Gable said:

New supply is also constrained due to ESG (environmental, social, governance) concerns. Governments around the world are keeping coal in the mix when it comes to power generation and the price of coal was recently starting to rise again.

Gable rounded off with the third reason, concluding, “Strong buying support is emerging in coal producers, such as NHC, and I believe it’s still early enough to buy back into this company.”

What did the ASX 200 coal stock report?

For the three months ending 31 January, New Hope reported a 4.8% quarter-on-quarter increase in Run of Mine (ROM) coal production to 4.1 million tonnes. Coal sales of 2.9 million tonnes were up 8.2%.

As mentioned up top, New Hope shares have enjoyed tailwinds from rising global coal prices. Over the quarter, the miner achieved an average realised sales price of $139.0 per tonne, up 1.8% from the prior quarter.

New Hope reported quarterly underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $106.9 million, in line with last quarter.

Commenting on the results, New Hope CEO Rob Bishop said:

Our operations delivered improved productivity and output on the back of better mining conditions and logistics performance. We are focused on maintaining safe, reliable production and delivering value to our shareholders.

The post 3 reasons to buy New Hope shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Australian Clinical Labs Ltd (ASX: ACL) have hit their lowest levels since listing on the ASX after the company announced its Chief Executive Officer is leaving.

Shares in the company hit a low of $2.08 before recovering slightly to be changing hands for $2.16, down 10.7%, on Monday.

The company, which also released its first half results on Monday, said that CEO Melinda McGrath, “has confirmed that she will not be renewing her contract following its conclusion on 30 August 2026”.

Ms McGrath, the announcement said, had been with the company for 10 years, including leading it through its listing on the ASX in 2021.

Ms McGrath said in a statement:

I would like to take this opportunity to thank our pathologists and scientists for their leadership, and the broader Clinical Labs team for their passionate commitment to the service of our patients and referring medical practitioners. In particular, I would like to recognise the Clinical Labs executive and broader leadership teams, whose drive and innovative approach to the development of the business has been outstanding. It has been a privilege to work with them over the past ten years. I wish them and the Board the best in the future as they continue to grow the business.

The company said a recruitment process had started, and shareholders would be kept up to date.

Underlying result positive

In a separate announcement the company said it had generated $365.4 million in revenue in the first half, down 1%, while net profit was 52.4% lower at $5.6 million.

On an underlying basis net profit was up 9.1% at $13.1 million.

The company said in its announcement to the market that revenue fell because of “subdued market conditions and … portfolio rationalisation”.

The company added:

While market growth was tempered, there was continued strength in Genetic and Reproductive Health testing, with above market expansion in carrier screening and improved performance in non-invasive prenatal testing and fertility related services. Oncology genomic testing volumes increased significantly, supported by the introduction of EndoPredict to the Medicare Benefits Schedule, resulting in strong uptake from oncologists. Specialist referral growth remained positive, particularly in outpatient settings.

Australian Clinical Labs said it was also in the final stages of testing for artificial intelligence-enabled back-office tools, which it said, “are expected to unlock meaningful cost savings in late FY26 and onward”.

The company will pay an interim dividend of 3.75 cents per share, in line with the same period last year.

Australian Clinical Labs was valued at $465.2 million at the close of trade on Friday.

The post Australian Clinical Labs shares hit record low as CEO to exit appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Aurizon Ltd (ASX: AZJ) shares are among the better performers in the S&P/ASX 200 Index (ASX: XJO) on Monday after the company’s first-half profit beat consensus estimates, it boosted its interim dividend, and also beefed up its on-market share buyback.

But does that mean the company’s shares are a buy? We’ll get to that later. Firstly to the result.

A solid set of numbers

The rail transport company reported EBITDA of $891 million, up 9% on the same period the previous year, with earnings driven by “higher volumes, a regulatory revenue uplift and disciplined cost control”.

The company also boosted its dividend payout ratio to 90% of underlying net profit, up from a range of 70% to 100% previously, and will pay an interim dividend of 12.5 cents per share, up from 9.2 cents.

The company also said it would extend its on-market share buyback by $100 million, making it now worth up to $250 million.

Managing Director Andrew Harding said it was a solid result.

Today’s results underscore the strength of Aurizon’s two largest business units, Network and Coal and the continued growth of Bulk and Containerised Freight. Revenue growth was driven by regulatory uplift and higher volumes, while disciplined cost control — including the successful execution of last year’s $60 million cost‑out program — further strengthened our position. This strong performance has flowed through to increases in our net profit after tax, free cash flow and earnings per share. We are also making good progress executing against key strategic objectives.

On the outlook, the company maintained its full-year guidance for underlying EBITDA in the range of $1.68 to $1.75 billion, with the full-year dividend now expected to be 22 to 23 cents per share, up from a previous guidance of 19 to 20 cents per share.

The network division was expected to post increased earnings compared with FY25 due to an increase in regulatory revenue, while the coal division was also expected to increase earnings driven by increased volumes and flat unit costs.

Analysts applaud a solid result

Jarden analysts said the result was a strong beat on core earnings per share, coming in 9% above expectations.  

They said the strength in the coal and bulk freight divisions was reassuring, while containerised freight appeared to still be a drag.

The Jarden team said, “Coal, Bulk and Network beats should drive share price strength”.

RBC Capital Markets analysts said the result was positive, with the interim dividend comfortably beating consensus estimates of 9.7/9.8 cents per share.

Aurizon shares were 5.2% higher in early trade on Monday at $3.77, after briefly trading as high as $3.92, which was a 12-month high.

Both analysts think Aurizon is fully priced at current levels, with Jarden having a price target of $3.45 on the shares and RBC a $3.40 target.

Aurizon was valued at $6.15 billion at the close of trade on Friday.

The post A bigger than expected dividend has Aurizon shares performing well, but are they fully-priced? appeared first on The Motley Fool Australia.

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