Day: August 19, 2021

When was the worst-ever day on the AGL (ASX:AGL) share price chart?

shocked man with hands over his face with a declining graph in background representing falling CleanSpace share price

AGL Energy Limited (ASX: AGL) has an incredible lineage that spans three different centuries. Originally formed as The Australian Gas Light Company in 1837, what we know as AGL Energy today has weathered many storms. As you might suspect, that means the AGL share price has had its fair share of highs and lows.

While its listed life began in 1871 on the Sydney Stock Exchange, the company went on to hit the ASX in 2006. Since then, investors have been a part of a bumpy ride. Over the course of the past 12 months, the AGL share price has eroded 53.4% in value.

Despite its long life on the markets, many would be surprised to know that AGL’s worst-ever day on the ASX wasn’t all too long ago.

AGL share price’s worst day ever

The worst day for the AGL share price occurred only a little more than a month ago on June 30, when it fell 9.99%.

It began with an announcement before the market opened. The announcement was titled ‘Update on demerger, dividend actions and earnings guidance’.

Investors weren’t too pleased with what was contained in that release. The company provided more detail around its intention to demerge and be listed as two separate entities on the ASX — which all seemed fairly straightforward.

Where it might have gone off track for shareholders is when AGL mentioned it would be terminating its special dividend program. This meant the scrapping of the additional 25% of underlying profit after tax paid out in the form of a dividend in FY21 and FY22. The news was likely a massive blow to income-focused investors of AGL, leading to a selloff in the share price.

In short, the board made the decision to preserve roughly $400 million to $500 million in cash heading into the demerger. Though it sounds like a good plan on paper, shareholders know not everything goes to plan.

Adding another blow to the AGL share price, it was revealed the company also expected underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be within the lower half of its previous guidance.

Furthermore, for investors that had been hoping for a turnaround in the business, water was poured on that fire. AGL suggested a “material step-down” in earnings for FY22 as lower wholesale electricity prices of the past two years are realised.

From then to now

Since the AGL share price suffered its worst day on the ASX things haven’t gotten much better. On 12 August 2021, the company reported its full-year results for FY21, which was met with disappointment.

According to the release, AGL’s revenue dropped 10% compared to the prior year and underlying profits sank 33.5% to $537 million.

Perhaps expectedly, the AGL share price has gone on to fall a further 11% since its worst day.

At the time of writing, shares are swapping hands at $7.19 apiece, a fall of 0.14% on yesterday’s closing price.

The post When was the worst-ever day on the AGL (ASX:AGL) share price chart? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AGL Energy right now?

Before you consider AGL Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AGL Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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Sydney Airport (ASX:SYD) share price slumps as losses skyrocket by 80%

A traveller holds her head in her hands at the airport amid border closures and dflight disruptions

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is slumping lower this morning. That’s after the company posted its financial results for the 6-months ending 30 June 2021.

At the time of writing, shares in Australia’s gateway airport are down 0.13%, trading for $7.71. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has started the day up 0.46%.

Let’s take a closer look.

Sydney Airport share price in focus after revenue drops 30%

  • Net loss after tax benefit of $97.4 million. This is up 81.7% on the prior corresponding period’s (pcp) loss. This includes a 36% drop in aeronautical revenue and a 40.6% plunge in retail revenue.
  • Revenue down 31.3% on the pcp to $351 million.
  • Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp.
  • A negative cash flow of $565.5 million for the 6 months.

What happened in the first 6 months for Sydney Airport?

The biggest drag on Sydney Airport’s financials – and the Sydney Airport share price – for the period is undoubtedly the COVID-19 pandemic. Overall passenger numbers declined 36.4% on the pcp – including a 91% plunge in international arrivals.

A brief glimmer of hope came about in April when the Trans-Tasman travel bubble between Australia and New Zealand opened up. Before the pandemic, New Zealand was the number 2 departure spot for wannabe tourists in Oz. As quickly as hope appeared, it vanished. The New Zealand government, along with every state and territory, shut their borders to NSW as the state’s delta outbreak began to take hold. The first cases and initial border restrictions occurred at the end of the period.

What did management say?

Sydney Airport CEO, Geoff Culbert, said

It was a challenging six months, but we were encouraged to see passenger traffic rebound strongly every time borders were open. From January to April, we recovered to 65% of our pre-COVID domestic passengers and in just over two months between late April and June, trans-Tasman traffic recovered to more than 40% of pre-COVID levels.

We’re optimistic that this trend will repeat itself as the vaccine program gains momentum and we see a sustained easing of restrictions.

What’s next for Sydney Airport

The biggest story affecting the Sydney Airport share price at the moment is the attempt to take over the business by a consortium of infrastructure investors. Twice the consortium has tried to buy all the shares in the company and twice it has been rebuffed by the board.

On the second attempt, the board gave the following rationale.

In coming to this conclusion, the current environment does not change the Boards’ view of the long-term value. The Boards also note the rapid increase and acceleration in Australian vaccination rates in recent weeks and the governments’ plans to progressively ease restrictions as the population reaches vaccination targets which will then see the re-opening of travel.

Sydney Airport share price snapshot

Over the past 12 months, the Sydney Airport share price has increased 47.1%. This has been driven mostly by the initial takeover attempt. Its share price has still not recovered since the March 2020 coronavirus selloff.

Sydney Airport has a market capitalisation of approximately $20.8 billion.

The post Sydney Airport (ASX:SYD) share price slumps as losses skyrocket by 80% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sydney Airport right now?

Before you consider Sydney Airport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

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Inghams (ASX:ING) share price leaps 7% as FY21 profits double

A young girl hugs chickens in a barn

The Inghams Group Limited (ASX: ING) share price is climbing on Friday after the company reported its latest full-year result.

In early trade, shares in the poultry producer are up 7.6%, trading at $4.19.

Inghams share price flies as net profit doubles

Ingham’s this morning provided its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

The Inghams share price is climbing higher on the result with investors bidding up the Aussie food producer’s shares in early trade.

What happened in FY21 for Inghams?

Ingham’s reported core poultry volume growth of 4.2% with overall trading volume now ahead of COVID-19 trading levels.

Solid sales volumes throughout the year underpinned this morning’s earnings figures. This, combined with operational efficiencies, net feed cost benefits and frozen poultry inventory reductions, helped boost earnings.

Ingham’s reported solid performance across each of its Retail, QSR, Food Service and Wholesale segments. Australian export volumes were lower in part due to the impact of bird flu in some farms outside the Inghams network.

What did management say?

CEO and managing director Andrew Reeves was positive in today’s release, saying:

These strong financial results are underpinned by solid poultry volume growth and a recovery across the majority of our key channels during the year.

Operationally, we are in a strong position and our optimisation strategy has made a positive contribution to the results we have delivered.

What’s next for Inghams and its share price?

Inghams is focused on its optimisation program including 320 improvement project opportunities in FY22. The company’s Auckland processing facility is also scheduled for completion by 31 December 2021.

The Inghams share price was up 23.0% prior to Friday’s open and is outperforming the S&P/ASX 200 Index (ASX: XJO) in the year to date.

The post Inghams (ASX:ING) share price leaps 7% as FY21 profits double appeared first on The Motley Fool Australia.

Should you invest $1,000 in Inghams right now?

Before you consider Inghams, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Inghams wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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BHP (ASX:BHP) share price slides for 4th straight session, down 14% this week

A young girls clings in fright to a big red slide.

It has been a painful week for the BHP Group Ltd (ASX: BHP) share price following the collapse of iron ore prices and the release of the company’s highly anticipated FY21 results.

Buy the rumor, sell the news

The BHP share price was up a solid 24.5% year to date in the week prior to its FY21 results being released.

Shares in the iron ore major closed at $52.81 last Friday, even though iron ore prices had already collapsed below ~US$170/tonne.

BHP released its FY21 results on Tuesday 17 August. On that day shares fell 1.42% to $51.33.

But this was just the beginning of the harsh correction.

The BHP share price would free fall 8.06% on Wednesday to $47.70 and slide another 6.35% on Thursday to a 5-month low of $44.67.

It seemed the market anticipated record earnings due to sky-high iron ore prices for most of FY21. And instead, it used this as an opportunity to sell.

The BHP share price has tumbled 14.21% this week, with its year-to-date return shrinking to just 3.74%.

What else is driving the BHP share price lower?

BHP has acknowledged the potential challenges ahead, with its economic and commodity outlook report citing:

…the increasing likelihood of stern cuts to steel output in China in the current half year, as affirmed by China’s peak industry body in early August, is testing the bullish resolve of the futures markets. Prices have decreased materially in late July and early August, but they remain extremely high relative to history at around $160/t at the time of writing.

Going forward, we expect that, in addition to structural market based drivers, safety and environmental inspections are likely to have a material influence on the average level and seasonal volatility of Chinese domestic iron ore production. 

The volatility in iron ore price could drive uncertain performance in the BHP share price in FY22.

The post BHP (ASX:BHP) share price slides for 4th straight session, down 14% this week appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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