How has the Xero share price performed since reporting FY22 results?

Man ponders a receipt as he looks at his laptop.Man ponders a receipt as he looks at his laptop.

The Xero Limited (ASX: XRO) share price is slipping in early trade today, down 0.87%.

Xero shares closed yesterday at $81.85 and are currently trading for $81.14.

A top performer for many years, the Xero share price hit a record high of $155.75 on 1 November last year. Since then, it’s been falling hard, with shares hitting one-year lows on 12 May following the release of the company’s results for the full 2022 financial year (FY22).

It’s been four weeks now since the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider reported those results.

So, how has it been tracking since then?

What’s been impacting the ASX 200 tech share?

The Xero share price had been steadily declining for just over six months when the company reported its FY22 results.

Highlights of those results included a 29% year-on-year increase in operating revenue to NZ$1.1 billion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at NZ$212.7 million, an increase of 11% from FY21. Yet the company still booked a net loss after tax of NZ$9.1 million.

While revenue and earnings growth were strong, they fell shy of expectations, and the Xero share price ended the day down 11.6% at $76.90.

Since that low, investors have been doing more buying than selling, seeing Xero shares gain 19.7% by 30 May when they closed at $92.02.

But Xero hasn’t proven immune to the forces that have been pulling down most tech shares. Namely hot-running inflation and the accompanying rising interest rates. Those concerns saw the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) slip again overnight, taking the year-to-date losses for the index to 24%.

With shares following the Nasdaq’s lead and slipping today, Xero is now up 5.5% from the close on the day it reported its results.

Xero share price snapshot

The Xero share price is down 37% in the last 12 months, compared to a loss of 3% posted by the ASX 200.

Long-term shareholders, however, will have little to complain about.

If you’d bought Xero shares five years ago, you’d still be sitting on gains of 240%, or 10 times the 24% gains posted by the ASX 200 over that same period.

The post How has the Xero share price performed since reporting FY22 results? appeared first on The Motley Fool Australia.

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More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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

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