Month: May 2022

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Apple (NASDAQ: AAPL) climbed higher on Monday, adding as much as 4.1%. As of 12:57 p.m. ET, the stock was up 3.1%. 

The catalysts that sent shares higher were several reports that were good news for Apple shareholders. 

So what

A report over the weekend suggested that the iPhone maker is looking to increase its production outside China, according to The Wall Street Journal. Detractors have long derided Apple’s heavy reliance on China to assemble its popular electronic devices, which many believe is the company’s Achilles’ heel. The report cited China’s “Zero-COVID” policy among other factors. Apple already has manufacturing operations in Vietnam and India, which could eventually get a greater share of the company’s device quotas. Having alternative facilities would certainly work in Apple’s favor, giving the company greater flexibility.

Well-known Apple analyst Ming-Chi Kuo suggested that the tech giant plans to release the latest version of its HomePod smart speaker near the end of 2022. The company has lagged rivals in the smart speaker market, but could eventually take market share if it can crack the code regarding utility, design, and price point. Previous rumors suggested that Apple was working on devices with viewing screens and cameras, though these reports are, as yet, unconfirmed. 

Finally, UBS analyst David Vogt reported that a recent survey of 7,000 smartphone users suggests that demand for the iPhone is rising in China, with purchase intent up 6% year over year, marking its highest level in six years, according to the UBS Evidence Lab. The iPhone 13 is taking share from Chinese smartphone providers. The news was mixed, however, as purchase intent in the U.S. is down 4%. 

Now what

Apple stock has slumped 22% so far this year, dragged down by the bear market, inflation, and the specter of a recession hanging overhead.

These fears stand in stark contrast to the company’s fiscal second-quarter results, as Apple posted record revenue for the quarter that ended March 26. The results were fueled by an all-time revenue record from its services segment and second-quarter revenue records for the iPhone, Mac, and wearables, home, and accessories segments. 

Given the company’s continuing strong execution, I suggest Apple stock is a buy at this level.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Apple stock jumped on Monday appeared first on The Motley Fool Australia.

More reading

• If you’d invested $1,000 in Apple in 2010, this is how much you would have today
• Why Apple stock slipped on Thursday
• Why Apple Stock is falling today
• The single greatest investing lesson I ever learned
• 4 ASX shares of the most trusted brands in Australia

Danny Vena has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/5TzW6Bn

Fortescue Metals Group Limited (ASX: FMG) shares and BHP Group Ltd (ASX: BHP) shares have been getting plenty of attention this year.

And for good reason.

With iron ore prices surging above US$200 per tonne from May through July last year (currently at US$136 per tonne), the S&P/ASX 200 Index (ASX: XJO) mining giants have seen revenues and profits soar. And investors have been rewarded not just with higher share prices this year, but record dividend payouts.

At the current share price, BHP pays a 10.2% trailing dividend yield and Fortescue shares pay a whopping 14.7% yield, both fully franked.

Try getting that from your bank.

But for investors looking to add just one of the ASX 200 miners to their portfolios, which is the better buy? BHP or Fortescue shares?

BHP or Fortescue shares?

For some insight into that question, we turn to Ord Minnett (courtesy of The Australian).

According to the wealth manager, Fortescue’s operating track record beats that of BHP.

Fortescue “on balance is slightly ahead of its peers over the past decade with four upgrades and three downgrades” on its iron ore guidance, raising shipment guidance for the past three years, Ord Minnett noted.

“Fortescue’s shipment guidance has been lowered only once in the past seven years, in FY19 due to the impact from Cyclone Veronica.”

BHP, on the other hand, has had the same number of upgrades as downgrades, giving a slight edge to Fortescue shares.

“Overall, we still regard Fortescue as the best Pilbara operator, with recently increased FY22 shipments guidance of 185–188 million tonnes (Mt) looking achievable,” Ord Minnett analysts said.

Fortescue’s FY22 cost guidance is in the range of US$15.75 to US$16.00 per wet tonne.

Ord Minnett currently has a hold rating on Fortescue shares with a target price of $19. Fortescue shares, up 1.4% in early trade today, are currently trading for $21.

How has Fortescue been tracking?

So far in 2022 Fortescue shares have gained around 5%. That compares to a 5.8% loss posted by the ASX 200 and a 13% share price gain by rival BHP.

For longer-term investors, the Fortescue share price is up 330% in five years, compared to a 100% gain for BHP shares and a 24% gain delivered by the ASX 200.

The post Better buy, BHP or Fortescue shares? appeared first on The Motley Fool Australia.

More reading

• Keen to bag the special BHP dividend? Here’s what you need to do
• Here’s why the Fortescue share price is surging on Monday
• Why is the Woodside share price having such a strong start to the week?
• How are ASX 200 mining shares responding to the election outcome?
• Down 15% since early March, is the Rio Tinto share price an ASX mining buy?

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.

from The Motley Fool Australia https://ift.tt/wqyTM58

With the new Australian government now sworn in, many investors are undoubtedly wondering what impact new policy might have on financial markets and their ASX shares.

The S&P/ASX 200 Index (ASX: XJO) has bounced off its low on 12 May, climbing its way to close at 7,148 yesterday.

However, with the full election result not yet finalised, what impact does this uncertainty have on the market?

Uncertainty a ‘small negative’ for ASX shares, expert says

Chief economist at RBC Capital Markets Su-Lin Ong reckons the wait to confirm the election’s full outcome won’t weigh too heavily on investor gains.

In fact, Ong says a majority Labor government will likely yield a “temporary positive reaction from markets simply on a quick conclusion”, as quoted by the Australian Financial Review.

On the budgetary outlook under Labor, Ong said:

Parliamentary Budget Office election costings suggest that the budget would be $7.4 billion worse over the next four years with $18.9 billion in additional spending partly offset by $11.5 billion in savings measures.

However, on the topic of interest rates, the economist noted that Labor’s refreshed budget – planned for October – should push the Reserve Bank of Australia (RBA) towards a normalisation of monetary policy.

“This has more mixed longer-term implications for markets all else being equal – slightly positive for the Aussie dollar and marginally negative for bonds,” Ong said.

It also appears the new government’s spending patterns are set to be a shade higher than if the coalition was to have retained government, according to Ong.

The post Minority or majority government? Economist says outcome will have little impact on ASX shares appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Challenger share price today?
• Is Macquarie a quality ASX dividend share worth buying?
• Is a big scary bear coming for ASX 200 shares, or could it be just a playful cub?
• 5 things to watch on the ASX 200 on Tuesday
• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/DWjLwUy

The Pushpay Holdings Ltd (ASX: PPH) share price won’t be going anywhere on Tuesday.

Prior to the market open, this donation technology company requested that its shares be placed in a trading halt.

Why is the Pushpay share price in a trading halt?

The Pushpay share price has been paused while the company prepares a response to the receipt of a takeover approach.

The company commented:

Pushpay advises it has recently received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire the Company. The Board has appointed Goldman Sachs to assist as financial advisor. There is no certainty that these expressions of interest or approaches will result in any transaction.

Who is interested?

The suitors are BGH Capital and Sixth Street, which this morning revealed that they have acquired an aggregate 20% stake in Pushpay.

The release confirms:

This morning, before market open, associated interests of BGH Capital and Sixth Street released substantial product holder notices to NZX under which those parties disclosed an aggregate relevant interest in PPH shares of 20.343% as a result of an agreement between them under which they have agreed to co-operate in respect of a potential acquisition of PPH. The request for the trading halt is to provide PPH with sufficient time to review the co-operation agreement and prepare an appropriate update to the market.

One thing that has not been revealed, however, is the price that BGH Capital and Sixth Street is willing to pay to acquire the company.

With the Pushpay share price down 42% from its 52-week high, shareholders will no doubt be hoping the offer isn’t opportunistic and instead lands at least somewhere close to previous highs.

We should find out by Thursday when the Pushpay share price is scheduled to resume trading again.

The post Pushpay share price halted following takeover approach appeared first on The Motley Fool Australia.

More reading

• Pushpay share price down 5% on full-year results and weak guidance
• Why AUB, Block, BrainChip, and Pushpay shares are sinking
• Why Jumbo, Nufarm, Pushpay, and Vulcan Steel charged higher
• Pushpay share price soars 23% following takeover approach

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 positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Fd17XKL

The Challenger Ltd (ASX: CGF) share price is seesawing on Tuesday after the company said its FY22 earnings will come in at the top end of its guidance.

The tightened guidance comes as the ASX investment management group held its investor day on Tuesday.

The Challenger share price slipped 0.9% in early trade before clawing back losses to trade 0.5% higher. It then sunk back into the red but recovered again and at the time of writing is up 0.26% at $7.58.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.07% in early trade.

Challenger share price edging higher on revised guidance

Management expects the company’s normalised net profit before tax guidance for FY22 to come in at the upper end of its $430 million to $480 million guidance range.

Challenger credits its optimism to its growing franchise and strong balance sheet. It also highlighted its Life Prescribed Capital Amount (PCA) ratio of 1.61, which is towards the upper end of its target.

But some investors may have been hoping for more given that the Challenger share price has gained more than 50% in the past year.

Diversifying the income base

The group also reported progress on diversifying its business. It is expanding the Challenger brand to include banking services and asset management.

Challenger is also advancing two key partnerships. One is with Apollo Global Management Ord Shs (NYSE: APO). Both parties are exploring a range of opportunities to help customers achieve financial security in retirement.

Challenger is hoping to form a joint venture (JV) with Apollo to build a lending platform. The companies are also looking to work together on investment and life risk opportunities, and product and distribution.

Meanwhile, Challenger is also aiming to form a JV with SimCorp. The JV will provide an investment operations platform serving customers in Asia Pacific, including Australia.

Challenger said in its ASX announcement:

The proposed joint venture will leverage the capabilities of both Challenger and SimCorp to provide Australia’s first fully technology-led, integrated front-to-back cloud-based investment operations platform.

The initiative will provide investment administration as a service to Challenger, Fidante and third-party clients.

SimCorp and Challenger have a 17-year business relationship and the JV is scheduled to start operating in 1HFY23.

Challenger share price leading the pack

The Challenger share price has performed strongly over the past year and is faring better than the Macquarie Group Ltd (ASX: MQG) share price, which is up 21% in the last 12 months.

Challenger is also well ahead of ASX-listed fund managers like the Magellan Global Fund (ASX: MGF) share price and Platinum Asset Management Ltd (ASX: PTM) share price. These shares have lost 13% and 61%, respectively, over the period.

The post What’s going on with the Challenger share price today? appeared first on The Motley Fool Australia.

More reading

• Is Macquarie a quality ASX dividend share worth buying?
• Is a big scary bear coming for ASX 200 shares, or could it be just a playful cub?
• 5 things to watch on the ASX 200 on Tuesday
• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how
• Here are the top 10 ASX shares today

Motley Fool contributor Brendon Lau has positions in Macquarie Group Limited. 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 Challenger Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/L3AXRgi

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of electric vehicles leader Tesla (NASDAQ: TSLA) broke a three-day losing streak on Monday, bouncing back a respectable 2.3% as of 12:05 p.m. ET.

The company announced today that it will resume production at its Shanghai gigafactory as early as tomorrow at levels prior to the recent COVID-19 lockdowns there. 

So what

If you recall, earlier this month, Tesla’s production numbers on electric vehicles in China fell as low as 200 cars per day, as measures imposed by the government to contain the spread of COVID-19 dried up the supply of auto parts to Tesla’s factory. By today, according to a report by Reuters, the company said it’s got production back up to 1,000 units per day — and occasionally more — but that still works out to an annual production rate of maybe 365,000 units, which is well below the factory’s rated capacity.  

That’s the bad news. The good news is that Reuters reports that Tesla now thinks it will be able to get its production capacity back up to its target of 2,600 units per day — and that will work out to roughly 949,000 cars per year.

Now what

As I pointed out last week, 949,000 will be a magic number for Tesla. It will mean that at just one single factory — Gigafactory Shanghai — Tesla will be producing more cars in a year than all of its factories worldwide produced in 2021. It will put the company back on track toward its goal of producing 1.5 million electric cars per year.

And Tesla could be back on that track by as early as tomorrow. Even if coronavirus complications prevent Tesla from hitting its 1.5 million-car target this year, just knowing the company has reached its goal of producing 1.5 million cars per year will be reason to celebrate. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock finally bounced today appeared first on The Motley Fool Australia.

More reading

• Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off
• Why Tesla stock fell again today
• Why Tesla stock got dented today
• Why Tesla stock is falling again today

Rich Smith 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 Tesla. 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. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/HXDOVqg

There’s one crucial result that ASX share investors need to watch as the final numbers are counted from the federal election last weekend.

That’s according to AMP Ltd (ASX: AMP) chief economist Dr Shane Oliver, who summarised the policy differences that a new Labor government would bring in.

“Following its loss in the 2019 election which was partly blamed on a ‘radical’ tax and spend agenda, the ALP adopted a ‘small target’ approach this time, so its economic policies are not significantly different to those of the outgoing Coalition government,” he said on the AMP blog.

“However, there are still some areas of difference and uncertainty.”

A minority government could cause upheaval with ASX shares

With Labor committed to repairing the national budget through economic growth rather than austerity, the big risk for ASX share investors is if it becomes a minority government.

“The main risk for markets may come if… it has to rely on the Greens to form government and they push the new government down a far less business-friendly path, such as implementation of the Greens’ proposed super profits tax.”

But there could be a circuit-breaker in the “teal” independents who have taken over from traditionally Liberal seats in wealthy metropolitan areas. 

“Labor’s — and the teals — desire to be more than a one-term wonder should work against the new government moving too far to the left on economic policies.”

In the federal house of representatives, a party requires 76 seats to clinch a majority.

According to the Sydney Morning Herald, Labor has secured 74 seats as of Tuesday morning, with seven electorates still to be decided.

Australia endorses the ‘sensible centre’

Without massive policy differences, Oliver reckons market reaction to a new Labor government will be minimal.

If anything, overseas factors will have more of an influence on ASX shares.

“Investment markets will quickly move on to other things. So far that seems to be the case,” he said.

“With the share market down 3.5% over the last eight weeks there is potential for a rebound ahead as political uncertainty is reduced. But the Australian share market remains vulnerable to ongoing global concerns about inflation, interest rates, and recession and these will likely dominate.” 

For Oliver, the 2019 election saw the electorate reject “left-wing” tax and spending policies, and this time voters dismissed “right-wing” views on topics like climate change and gender equality.

“In this sense, it may be seen as a good thing for sensible centrist policymaking in Australia.”

The post The ONE THING that could rock ASX shares from the election result: expert appeared first on The Motley Fool Australia.

More reading

• Why missing the market bottom is okay: expert
• When might the dividend drought break for AMP shares?
• What was the highest ever AMP share price?
• Why this top broker says the AMP share price is 27% over-valued
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/HwcR6Na

Macquarie Group Ltd (ASX: MQG) is one of the largest businesses on the ASX. But is it one of the best ideas as an ASX dividend share for income in the S&P/ASX 200 Index (ASX: XJO)?

Many of the biggest ASX 200 shares are known for being dividend payers, such as Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

So where does Macquarie fit in?

Macquarie is a global investment bank with exposure to four main segments with different businesses – Macquarie Asset Management (MAM), banking and financial services (BFS), commodities and global markets (CGM), and Macquarie Capital.

Macquarie dividend

Macquarie’s board has committed to a dividend policy to pay out between 50% to 70% of annual profit.

In the company’s recent FY22 result, the board decided the final dividend would be based on a 50% dividend payout ratio which, in dollar terms, was a dividend of $3.35 per share. This led to the overall FY22 payout ratio being 50%, with an annual dividend of $6.22 per share.

At the current Macquarie share price, that annual dividend translates into a partially franked dividend yield of 3.6%. On top of that, Macquarie shares have risen by 20% over the last year so the past 12 months have been handy for shareholders.

I like the above-mentioned dividend yield considering it doesn’t factor in the franking credits and it’s only based on a 50% dividend payout ratio.

Why could a 50% dividend payout ratio be attractive?

It would be understandable to want as much dividend income as possible each year.

However, Macquarie operates across the world in a number of segments. There are investment opportunities everywhere and the business has proven it can identify the right areas to target.

In FY22, Macquarie generated $4.7 billion of net profit after tax (NPAT). Five years ago, in FY17, it made $2.2 billion of net profit. Over the past five years, Macquarie has more than doubled its profit and the Macquarie share price has doubled as well.

By retaining half of the net profit each year, the company can invest that money back into the business and make more profit.

Macquarie made a return on equity (ROE) of 18.7% in FY22 and 14.3% in FY21. In other words, Macquarie has made a return of at least 14% on the money in the business in the last two years, compared to a dividend yield which is in the low-to-mid single digits. Shareholders seem to get a stronger return by leaving profit in the business.

I think Macquarie has struck a good balance between rewarding shareholders with dividends and investing for profit.

Foolish takeaway

I think Macquarie is a very effective ASX dividend share in the large cap space. It can provide a balance between dividends and growth over the long term.

At the time of writing, the Macquarie share price has dropped 13% over the last month, so it’s now cheaper. While there could be more volatility ahead, I think Macquarie is well-positioned to get through whatever happens next.

The post Is Macquarie a quality ASX dividend share worth buying? appeared first on The Motley Fool Australia.

More reading

• Is a big scary bear coming for ASX 200 shares, or could it be just a playful cub?
• 5 things to watch on the ASX 200 on Tuesday
• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how
• Here are the top 10 ASX shares today
• Why have ASX 200 shares popped then dropped on Monday?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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 Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Vu4k5Nn

The TechnologyOne Ltd (ASX: TNE) share price is on the slide on Tuesday morning.

In response to the release of the enterprise software company’s half-year results, investors have sold down the TechnologyOne share price by 3% to $10.08.

TechnologyOne share price fall despite strong first-half growth

• Total revenue up 19% to $172.5 million
• SaaS annual recurring revenue (ARR) up 44% to $225.1 million
• Total ARR up 23% to $288.5 million
• Profit after tax up 18% to $33.2 million
• Interim dividend up 10% to 4.2 cents per share

What happened during the first half?

For the six months ended 31 March, TechnologyOne reported a 19% increase in revenue to $172.5 million and a 44% jump in SaaS ARR to $225.1 million.

Management advised that this reflects an acceleration of customers moving to its global SaaS enterprise resource planning (ERP) solution. More than 138 large enterprise customers made the shift, which is the highest number to date for any comparable period. This was driven by its ‘end of on-premise program.’ Pleasingly, the majority of remaining on-premise customers are committing to transition before 2024 when its on-premise support will cease.

Another driver of its growth was its UK business, which was firing on all cylinders during the half. It delivered a profit before tax of $2.3 million, which is more than double the same period last year. But management isn’t resting on its laurels and sees significant growth opportunities in the coming years. Particularly given how the total addressable market in the UK is three times greater than the APAC addressable market.

Management commentary

TechnologyOne’s CEO, Edward Chung, was pleased with the half. He commented:

These are strong half year results for TechnologyOne and validate the strength of our SaaS strategy, which continues our strong growth trajectory in both Australia and the UK.

This half-year, we delivered a break-even cash flow generation result, with cash and cash equivalents up 16%. Cash flow generation will be strong over the full year, and we expect it to represent approximately 85% of net profit after tax. Cash flow generation will progressively align to NPAT by FY24.

TechnologyOne’s Chair, Adrian Di Marco added:

Our results are due to the continuing strong demand for our global SaaS ERP solution. Today, 97%+ of our revenue comes from our SaaS and Continuing Business. This is an outstanding achievement for the company to have transitioned from a traditional on-premise company to a SaaS company over the last 5+ years. In light of the company’s strong results, and our confidence going forward, the dividend for the half year has increased to 4.20 cents per share, up 10% on the prior year.

Outlook

Looking ahead, TechnologyOne expects to deliver profit before tax growth of 10% to 15% and SaaS ARR growth of greater than 40% in FY 2022.

Mr Chung also dismissed concerns that the economic environment could stifle its growth. He said:

There is concern in the financial press about the deteriorating economic environment because of inflation and increasing interest rates. Over the past 35 years we have continued to grow strongly in challenging economic environments such as this. We will do so again.

Mr Chung also confirmed that the company is on track to deliver total ARR of $500 million+ by FY 2026. This is up from its current base of $288 million. In addition, thanks to the economies of scale from its global SaaS ERP solution, it also expects its profit before tax margin to expand to 35% by then.

The post TechnologyOne share price slides despite strong first-half SaaS growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX tech shares I would buy after the heavy sell-off
• You won’t find more profitable ASX tech shares than these companies right now
• Why are ASX 200 tech shares having such a stellar start to the week?
• Why I would invest $10,000 into these ASX 200 shares right now

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.

from The Motley Fool Australia https://ift.tt/acGfwgm

Amid all of the volatility on the ASX share market, experts have found some ASX growth shares that look like buys right now.

A lower share price may mean that the business is better value for investors now.

Both of the below businesses are growing globally and achieving rapid revenue growth.

City Chic Collective Ltd (ASX: CCX)

City Chic describes itself as a global retailer that specialises in plus-size women’s apparel, footwear, and accessories. It operates a number of different brands including City Chic, Avenue, Evans, CCX, Hips & Curves, and Fox & Royal.

Its clothes are being sold in ANZ, the US, the UK, Europe, and the Middle East.

The business is growing quickly. In the first half of FY22, it generated sales growth of 46%. In a recent update regarding the second half, it revealed that it saw “strong” total sales growth of 25%, with USA total sales growth of 47% and global partner sales growth of 465% (showing an extension of its omni-channel presence in key markets).

It’s also expecting FY22 second-half earnings before interest, tax, depreciation, and amortisation (EBITDA) to beat the first half.

The ASX growth share is aiming to expand in the plus-size market which is forecast to grow by around 7% annually. City Chic notes that the average annual spend in plus-size is currently materially less than the rest of the women’s apparel market. There is also a forecast of strong growth in online channels in the global plus-size market.

It’s currently rated as a buy by the broker Macquarie, with a price target of $6.70. It’s positive about the business over the longer term. It thinks the City Chic share price is valued at 14x FY23’s estimated earnings.

The City Chic share price is down 1.2% to $2.48 in early trade on Tuesday.

IDP Education Ltd (ASX: IEL)

IDP Education is a business that provides English language testing, student placement, and English language teaching services.

Closed borders had been a serious limiting factor on IDP Education’s earnings, but the company said the strength of its business model, impactful innovation, and attractive policy landscape delivered a “strong rebound of results” in the first half of FY22.

It saw “strong volume increases” in English language testing and northern hemisphere study destinations. It said that English language testing volumes increased by 79%, with testing revenue rising 62% to $256.7 million.

Total student placement volumes were up 33% for the year, with a growing demand for northern hemisphere countries leading to a 63% increase in multi-destination student placement volumes.

Australian student placement volumes have been subdued. However, there have been “early signs” of a rebound in interest, coinciding with a relaxation of border restrictions.

Total revenue rose 47% to $396.8 million, with earnings before interest and tax (EBIT) rising by 61% to $77.9 million and net profit after tax (NPAT) going up by 68% to $50.8 million.

Regarding India, one of the ASX growth share’s key markets, the company said it has supportive long-term demographics, wealth, and global mobility fundamentals.

The company said it’s “strongly positioned in the rebound” and its footprint is expanding in key markets.

Outgoing CEO and managing director Andrew Barkla said:

We have invested for long-term growth and are seeing the benefits of this through increased demand for our services. Our unique digital platforms and trusted human connections will ensure our people, customers and institutions benefit from even stronger support.

UBS thinks IDP Education is a high-quality business with good growth potential. It rates it as a buy, with a price target of $35.90, implying a potential upside of around 50%. The broker’s projections put the IDP Education share price at 37x FY23’s estimated earnings.

The IDP Education share price has opened 0.34% higher at $23.88 on Tuesday.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 retail shares getting hammered on Thursday?
• Top brokers name 3 ASX shares to buy next week
• Buy these great value 2 ASX growth shares: experts
• Why Block, IDP Education, Monash IVF, and Xero shares are dropping
• Why is the IDP Education share price sinking 7% today?

Motley Fool contributor Tristan Harrison 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 Idp Education Pty Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eml8Gq2