Author: openjargon

Coles Group Ltd (ASX: COL) shares are under pressure on Friday.

At the time of writing, the supermarket giant’s shares are down a disappointing 9% to $20.21 following the release of its half-year results.

While the market appears disappointed with parts of the results, there is at least one piece of good news for income investors. That is a higher fully franked dividend.

The Coles dividend

Coles’ board declared a fully franked interim dividend of 41 cents per share, up from 37 cents a year ago.

This follows August’s fully franked final dividend of 32 cents per share. That means, on a trailing basis, Coles will have paid a total of 73 cents per share over the past 12 months (32 cents final + 41 cents interim).

Based on the current share price of $20.21, that equates to a trailing dividend yield of approximately 3.6%, fully franked.

Key dates investors need to know

The interim dividend has an ex-dividend date of 10 March. To be entitled to the 41 cents per share payout, investors must own Coles shares before that date.

Once shares trade ex-dividend, new buyers are no longer eligible for that upcoming payment.

But for those that are eligible, Coles has named its payment date as 30 March.

In addition, the company revealed that its dividend reinvestment plan (DRP) will operate with no discount for this dividend.

What did Coles report today?

For the 27 weeks ended 4 January 2026, Coles reported a 2.5% lift in sales revenue to $23.6 billion, a 10.2% increase in group EBIT (excluding significant items) to $1.231 billion, and a 12.5% jump in profit after tax (excluding significant items) to $676 million.

Supermarkets delivered EBIT growth of 14.6%, with margins improving to 5.8%.

However, reported net profit after tax fell 11.3% to $511 million due to a $235 million provision relating to the Federal Court judgment in the Fair Work Ombudsman proceedings.

How does this compare to expectations?

According to a note out of Morgans, its analysts were expecting a 3.5% increase in revenue and a 16.5% jump in underlying net profit after tax to $699 million.

As you can see, Coles has fallen short of this, which may explain why its shares are tumbling today.

And with Woolworths Group Ltd (ASX: WOW) reporting stronger sales growth earlier this week, it seems that Coles could be giving back market share to its key rival.

The post Everything you need to know about the latest Coles dividend appeared first on The Motley Fool Australia.

More reading

• Why is the Coles share price crashing 8% on Friday?
• Coles Group shares: Profit jumps, Supermarkets excel
• 5 things to watch on the ASX 200 on Friday
• 35 ASX All Ords shares with ex-dividend dates next week
• Here’s the share price I would buy Coles stock at

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XJO) shares are 0.06% higher at 9,119.8 points on the final day of earnings season today.

The ASX 300 reached a new all-time high of 9,134.4 points in earlier trading.

Meanwhile, the brokers have been busy reviewing company reports and re-rating ASX 300 shares as buys, holds, or sells.

Let’s take a look at what Morgans thinks of these two ASX 300 companies following their 1H FY26 reports.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo Interactive share price is $9.91, up 2.2% on Friday.

This ASX 300 gaming share has fallen 14.2% over the past 12 months.

Jumbo Interactive reported revenue of $85.3 million, up 29%, and total transaction value of $524.1 million, up 15.6%, for 1H FY26.

Underlying EBITDA climbed 22.6% to $37.5 million, and underlying net profit after tax (NPAT) increased 22.6% to $22.8 million.

Statutory NPAT was $15.5 million, down 13.4%.

Jumbo Interactive shares will pay a fully-franked interim dividend of 12 cents per share.

Morgans maintained its buy rating on the ASX 300 gaming share, commenting:

Jumbo Interactive (JIN) reported a solid 1H26 result, with most headline metrics pre-released.

While Lottery Retailing was impacted by a softer jackpot cycle, offshore segments delivered encouraging growth and margin expansion.

Managed Services continues to build momentum, with Canada EBITDA guidance upgraded and the UK tracking nicely.

Underlying SaaS trends remain healthy ex-Lotterywest.

Following the update, we believe JIN can delever by FY27F, assuming a normalisation in Australian jackpot activity and continued offshore earnings growth.

The broker kept its 12-month share price target unchanged at $14.90.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is $1.07, up 3.9% on Friday.

This ASX 300 gaming share has soared 47.9% over the past 12 months.

Tabcorp smashed expectations with a 61.5% increase in NPAT (before significant items) to $35.7 million for 1H FY26.

This led to a 21.3% surge in the Tabcorp share price on the day.

Group revenue was $1,344.9 million, up 1% year over year, and EBITDA (before significant items) was $217.4 million, up 14.3%.

Tabcorp shares will pay an unfranked interim dividend of 1.5 cents per share, up 50% on last year.

After reviewing the numbers, Morgans maintained its accumulate rating on this ASX 300 gaming share.

The broker said:

Tabcorp Holdings (TAH) reported a very strong 1H26 result, with resilient turnover, improved margins and disciplined cost control driving double-digit EBITDA growth despite a softer wagering yield environment through the Spring Carnival and Footy Finals period.

New and exclusive products resonated well, particularly with younger cohorts, with digital turnover among 18-24 year olds up +14%.

The broker increased its 12-month price target on Tabcorp shares from $1.07 to $1.20.

The post What is Morgans saying about Jumbo Interactive and Tabcorp shares? appeared first on The Motley Fool Australia.

More reading

• Are Tabcorp shares a buy after soaring 24% following its half-year result?
• Here are the top 10 ASX 200 shares today
• Tabcorp shares surge higher after net profit smashes expectations
• Tabcorp FY26 half-year result: Earnings grow, dividends rise
• Jumbo reports half-year results. Here’s what investors need to know

Motley Fool contributor Bronwyn Allen 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 Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

TPG Telecom Ltd (ASX: TPG) shares slipped 3% to $3.93 during lunch hour trade. This followed the company’s release of its FY25 results. The market reaction suggests investors were hoping for a little more from the telco’s turnaround story.

Over the past 12 months, TPG shares have declined 13%. They are trailing the S&P/ASX 200 Index (ASX: XJO), which has jumped 11% higher over the same period.

Return to profitability

TPG Telecom is one of Australia’s largest telecommunications providers. In recent years, the company has reshaped itself into a leaner, mobile-focused operator.

For FY25, TPG Telecom delivered a return to profitability. The telco posted a $52 million net profit after tax (NPAT), compared with a $140 million loss in FY24.

Service revenue edged 2.2% higher to approximately $4.18 billion. The growth was driven by a 4.2% lift in mobile service revenue as subscriber growth gathered pace. EBITDA rose strongly with 18.4% to $1,660 million; on guidance basis, up 2.0% to $1,637 million.

Higher revenue per user

TPG Telecom pointed to its regional mobile network expansion as a key driver of its 2025 results. It managed to add 228,000 new mobile subscribers over the year.

Growth skewed heavily toward its digital-first brands and enterprise, government and wholesale (EGW) division. The average revenue per user edged higher to $35.5. That’s a sign the telco isn’t just adding customers but extracting more value from them.

The balance sheet saw a significant reset over the year. TPG Telecom repaid billions in borrowings. It also returned substantial capital to shareholders through dividends, with total ordinary dividends of 18 cents per share declared for FY25.

Simplified business paying dividends

There are clear strengths in TPG Telecom’s story. Mobile momentum is building, cash flow has improved substantially, and the simplified business model appears to be gaining traction.

CEO and Managing Director Iñaki Berroeta said:

2025 was a transformational year for TPG Telecom. We delivered another year of mobile subscriber growth, cementing our position as Australia’s leading challenger telco… We are well-positioned to unlock further value for customers and shareholders. We are targeting continued growth in our share of Mobile Service Revenue, growing EBITDA margins as we keep costs strongly under control, and ongoing growth in free cash flow, earnings per share and return on capital.

However, risks remain. Competition across mobile and broadband markets is intense, and TPG Telecom must continue executing well to defend margins. Any missteps in its mobile-led strategy could quickly weigh on earnings and the price of TPG shares.

What next for TPG shares?

Looking ahead, TPG Telecom has provided guidance for FY26 EBITDA of $1,665 million to $1,735 million, with capital expenditure of around $750 million. The company expects continued mobile growth and tight cost control to support these targets.

Management is also targeting dividend growth for TPG shares backed by sustainable profits and cash flow. It will also push ahead with further efficiencies as it streamlines the business.

The post Why TPG shares are down on strong full-year results appeared first on The Motley Fool Australia.

More reading

• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• 35 ASX All Ords shares with ex-dividend dates next week
• 5 ASX dividend shares paying 4% a year on average in 2026!

Motley Fool contributor Marc Van Dinther 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 Bapcor Ltd (ASX: BAP) have collapsed on Friday after the automotive parts retailer delivered a heavy first-half loss. The company also unveiled a deeply discounted $200 million equity raising to strengthen its balance sheet.

At the time of writing, the Bapcor share price is down a massive 48.69% to 88 cents, marking a record low for the company.

Here’s what spooked investors.

Profit slump and balance sheet pressure

For the 6 months to 31 December 2025, Bapcor reported statutory revenue of $973 million, down 3.9% year on year.

Underlying EBITDA fell 40.4% to $76.9 million, while underlying net profit after tax (NPAT) dropped 87.3% to just $5.5 million.

On a statutory basis, the company posted a loss of $104.8 million. That included $110.3 million of significant items, largely related to impairments, inventory write-downs, restructuring costs, and accounting adjustments following an internal review.

Net debt rose to $387.3 million, up from $304.5 million a year earlier. Net leverage ballooned to 3.39x EBITDA, compared with 1.65x previously.

Free cash flow was negative $5.3 million for the half.

The board has elected not to declare an interim dividend.

$200 million raising at a steep discount

Alongside the results, Bapcor announced a fully underwritten $200 million equity raising to shore up its balance sheet.

The offer price has been set at 60 cents per share.

That represents a 48.4% discount to the theoretical ex-rights price of $1.16 and a 65% discount to the last close of $1.715 on 18 February.

Approximately 333 million new shares will be issued, representing around 98% of existing shares on issue.

The raising comprises a $150 million accelerated non-renounceable entitlement offer and a $50 million institutional placement.

Management said the funds will improve financial flexibility and resilience, with pro forma leverage expected to reduce to around 2.13x at 31 December 2025.

Banking terms revised

Given the sharp deterioration in earnings, Bapcor has also secured temporary amendments to its banking covenants.

Lenders have agreed to lift the net leverage covenant to 3.5x for upcoming test periods and lower the interest cover requirement before it resets in 2027.

While management framed this as a proactive balance sheet reset, the need for covenant relief highlights the pressure the business is under.

January trading offered limited reassurance. Group like-for-like sales were down 0.9%, with trade sales falling 2.4%. Networks, retail, and New Zealand recorded modest growth.

Foolish Takeaway

Today’s sell-off points to concerns around earnings stability and balance sheet strength.

Issuing new shares equivalent to roughly 98% of existing stock is highly dilutive. Shareholders who don’t participate will see their ownership materially reduced.

The need to loosen leverage and interest cover tests suggests earnings have deteriorated faster than expected.

On the positive side, the $200 million raise reduces balance sheet risk and gives management breathing room to execute its turnaround plan.

At 88 cents, the stock may look cheap. But from here, management needs to prove that margins can recover and that cash flow can stabilise. Until that happens, the share price may struggle to turn around.

The post Bapcor shares crash 49% after shock loss and $200m emergency capital raise appeared first on The Motley Fool Australia.

More reading

• Down 50% from recent highs: Is it time to buy these ASX stocks?

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 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.

Block Inc (ASX: XYZ) shares are ending the week with a bang.

At the time of writing, the payments giant’s shares are up 30% to $96.60.

This follows the release of its fourth-quarter and full-year results this morning.

Block shares rocket on results day

For the three months ended 31 December, Block reported a 24% increase in gross profit to US$2.87 billion.

This was driven by a 33% lift in Cash App gross profit to US$1.83 billion and a 7% increase in Square gross profit to US$993 million.

For the 12 months, gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion.

FY 2025 adjusted operating income came in at US$2.08 billion, representing a 20% margin.

But there was something else that gave Block shares a huge lift today. Job cuts.

What was announced?

Block has announced that AI tools are making it possible to undertake a major reduction in its head count. Block’s founder and CEO, Jack Dorsey, explained:

Today we shared a difficult decision with our team. We’re reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation. I want to use this letter to explain why I believe this is the right path for our company, and what Block looks like going forward.

The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week. I don’t think we’re early to this realization. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively.

Outlook

Looking ahead, the company is guiding to gross profit of US$12.2 billion, which represents 18% annual growth.

This is expected to be achieved with an operating income margin of 26%.

The company’s COO and CFO, Amrita Ahuja, commented:

We’re executing well on our growth strategies across the business. At Investor Day we shared our preliminary view of gross profit for 2026, which called for 17% year-over-year gross profit growth. We now expect to deliver gross profit growth of 18% year over year in 2026, to $12.20 billion. We are focused on sustaining momentum and we plan to continue to invest in significant long term growth initiatives across our agentic AI infrastructure, proactive intelligence products, high ROI go to market expansion, Neighborhoods, and high return on capital lending products.

The post Why are Block shares rocketing 30% on Friday? appeared first on The Motley Fool Australia.

More reading

• Block Q4 2025 earnings: Profit jumps as AI transformation begins
• 5 oversold ASX shares to buy before the end of February
• 3 beaten down ASX shares I’d load up on at these prices
• Here are the top 10 ASX 200 shares today
• Are these ASX shares too cheap to pass up?

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 Block. 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.

Cleanaway Waste Management Ltd (ASX: CWY) reported its first-half results this week, and on the back of an increase in underlying profit, the company boosted its dividend payout by almost 20%.

The analyst teams at Macquarie, Barrenjoey and Morgans have all had a look at the result, and all three believe the shares are currently trading at a discount.

Results beat expectations

We’ll get to where they think the shares will go later, but first, let’s have a look at the profit result.

Cleanaway this week reported first-half revenue of $2.205 billion, up 13.7%, driven by the strong performance of its solid waste segment, the company said.

Profit from operations fell 21.2% to $137.2 million, with this result including $91 million in one-off items, while underlying net profit was 17.8% higher at $109.7 million.

Cleanaway also boosted its interim dividend by 19.6% to 3.35 cents per share, fully franked.

Cleanaway Managing Director Mark Schubert said regarding the result:

We are pleased to upgrade our FY26 underlying EBIT guidance to between $480 million and $500 million following a robust first half and outlook. This upgrade to guidance demonstrates both the underlying strength of our business and the delivery on commitments we have made to shareholders to build a stronger, more profitable business. We have a track record of growing revenue, expanding margins, improving capital efficiency, and returning value to shareholders, and we have a strategy and plan to continue this performance in the years ahead. Our refreshed strategy is designed to deliver strong and growing free cash flow.

The previous EBIT guidance range was for earnings of $470 to $500 million.

Mr Schubert said the new strategy would deliver “at least” $35 million in annualised cost savings from FY27, “with initial benefits of $15 million to be realised in the second half of FY26”.

Cleanaway shares looking cheap

Now to the brokers, and Barrenjoey is the least bullish on the company, with a neutral rating and a 12-month price target of $2.80 on Cleanaway shares, compared with $2.55 currently.

Barrenjoey said the company’s EBIT of $228 million was 3% ahead of consensus expectations, but it had reduced its price target to $3 due to changes in cash flow forecasts.

Over at Morgans, they have a price target of $3.11 on Cleanaway shares, saying the result was a mixed bag and the next catalyst for the shares would be Cleanaway’s investor day, which will be held in April.

Morgans said the strong performance of the solid waste services division, which contributes about 75% of earnings, was a positive.

And lastly, the Macquarie team has the most bullish price target on Cleanaway shares at $3.40.

Macquarie said the valuation was looking attractive given the company’s growth prospects and, “visibility is improving as conditions firm, efficiency gains momentum and cost-out accelerates”.

The post This waste management company should deliver double-digit returns according to three brokers appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• This ASX 200 stock just boosted its dividend by 20%
• Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance
• This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away?

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This S&P/ASX 200 Index (ASX: XJO) stock has slumped hard. Over 12 months, Treasury Wine Estates Ltd (ASX: TWE) shares have plunged 58% at the time of writing.

Over the past year, the ASX 200 stock has hit multi-year lows amid earnings guidance withdrawals, paused interim dividends, and major write-downs that shook investor confidence.

Is there more drama to come from the owner of Penfolds, 19 Crimes, and Lindeman’s, or are things starting to look up?

Bad news show

Earlier this month, Treasury Wine reported a statutory net profit after tax (NPAT) loss of $649.4 million. That’s down from a $221 million profit in H1 FY 2025.

The half-year loss blew out after the company booked a $751 million post-tax hit, driven by non-cash impairments tied to its US assets.

It sent the price of the $3.8 billion ASX 200 share lower as shareholders reassessed a strategy that was once built on premium wine growth and global brand strength.

Portfolio of luxury wines

On the surface, the ASX 200 company has real strengths. Its portfolio of premium and luxury wines still resonates in markets worldwide. Strength in brands and margins when conditions normalise underpins the bull thesis.

This downturn could represent a compelling entry point for contrarian buyers who believe in the long-term wine category and this premium ASX 200 stock’s place in it. 

No dividend, first time in decade

But there are real risks that make value investors nervous. The shift away from dividend payouts, the suspension of guidance, and weak demand in key markets underline deeper structural issues.  

Especially the decision to suspend the ASX 200 stock’s dividend didn’t go down well with investors. That means that FY 2026 will be the first year in more than a decade that stockholders won’t receive two dividends from the global wine company.

The board of Treasury Wine said its near-term focus is on market execution, cash flow, and accelerating the benefits from its Project Ascent program. This aims to achieve $100 million in annual cost savings over two to three years.

The company forecasts better earnings in the second half of FY 2026.

What next for the ASX 200 shares?

Analysts have responded differently, with some maintaining hold ratings and modest price targets that sit well below past highs.

Morgans has stuck with its hold rating on Treasury Wine Estates after sizing up its 1H FY26 result. And it wasn’t exactly impressed.

Morgans added:

TWE reiterated that 2H26 EBITS is expected to be higher than the 1H26. It is too early to call whether TWE can grow earnings in FY27.

We think this will not occur until FY28 given the priority to reduce customer inventory in the US and China.

It will take time for new management to deliver more acceptable returns and for TWE to rebuild credibility with the market.

Still, Morgans nudged its 12-month price target up from $5.25 to $5.30 a share, implying potential upside of 15% from current levels.

The post This ASX 200 premium stock crashes 58% – bargain or value trap? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ords shares at 52-week lows: Are they a buy?
• I’m listening to Warren Buffett and buying cheap ASX shares
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why I think these quality ASX 200 shares are trading at a discount

Motley Fool contributor Marc Van Dinther 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mesoblast Ltd (ASX: MSB) shares are bouncing around in morning trade on Friday.

At one stage, the biotech stock was up almost 9% to $2.63.

But those gains didn’t last and its shares are now down 3% to $2.33.

What’s going on with Mesoblast shares?

Investors have been buying (and then selling) the biotech stock following the release of its half-year results and an operational update.

According to the release, for the six months ended 31 December 2025, Mesoblast reported total revenue of US$51.3 million. This is up sharply from US$3.2 million in the prior corresponding period.

The company’s Ryoncil product generated gross sales of US$57 million and net revenue of US$48.7 million after adjustments. The product also delivered gross profit (excluding amortisation) of US$44.2 million during the half.

While the company still reported a net loss of US$40.2 million, this was an improvement on last year’s US$47.9 million loss.

Mesoblast also ended the period with US$130 million in cash and entered into a US$125 million five-year non-dilutive credit facility, strengthening its balance sheet.

Commercial rollout gathering pace

Operationally, the rollout of Ryoncil continues to build momentum.

To date, 49 transplant centres have been onboarded, with a target of 64 centres representing 94% of US transplants. Coverage now extends to 280 million US lives, supported by federal Medicaid and commercial payers.

Importantly, 84% of patients in real-world settings have been able to complete the initial 28-day treatment regimen and remain alive, consistent with prior clinical experience.

Growth pipeline progressing

Beyond Ryoncil, the company continues advancing its second-generation product, rexlemestrocel-L.

A confirmatory Phase 3 trial in chronic low back pain is nearing completion of its 300-patient enrolment target, while the company plans to move toward full FDA approval for its chronic heart failure program next quarter.

Outlook

Mesoblast advised that it believes it is well-placed to continue growing revenue over the remainder of the financial year. It has guided to full-year FY 2026 Ryoncil net revenue of between US$110 million and US$120 million.

It is possible the market was expecting stronger growth in the second half and have been selling Mesoblast shares today to reflect this.

Commenting on its performance and outlook, Mesoblast’s chief executive, Dr Silviu Itescu, said:

Today we report strong operational and financial performance for the first half of FY2026, a period that marks an important inflection point in Mesoblast’s evolution from clinical development to sustainable commercial execution. Sales momentum for Ryoncil continued to build, driving meaningful revenue and reinforcing the product’s value in addressing significant unmet medical need and the strength of our commercial strategy.

Importantly, we have improved the Company’s financial position with positive cash flow generated from Ryoncil sales, disciplined cost management, and a strategic refinancing, providing greater flexibility to support expansion and late-stage clinical programs. As we enter the second half of FY2026, we remain focused on accelerating commercial uptake, advancing regulatory and label expansion opportunities, and maintaining financial discipline to deliver sustainable long-term shareholder value.

The post What’s going on with Mesoblast shares today? appeared first on The Motley Fool Australia.

More reading

• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026
• 2 ASX shares tipped to storm higher this year
• Why this ASX healthcare share could double its value in 2026
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares forecast to soar 100% (or more) in 2026

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.

Wilsons Advisory has this week launched its Australian Equity Focus Portfolio, an in-house effort to outperform the S&P/ASX 200 Index (ASX: XJO) over a rolling three to five-year period.

The Wilsons team said they’re looking to invest “across the spectrum of sectors and styles, however, stock selection typically reflects a bias towards reasonably priced, high-quality businesses with sustainable growth, consistent with our investment philosophy”.

Looking to beat the market with quality companies

That investment philosophy is based around five core principles, with the first being that earnings are the primary driver of shareholder returns.

The team is also looking for “high-quality businesses with strong competitive advantages, high returns on capital, and robust balance sheets, which tend to outperform over the long run”.

They will also be keeping an eye on the macroeconomic outlook, which “informs sector tilts and stock selection”.

The Wilsons team said regarding their approach:

Our portfolio construction process combines bottom-up fundamental analysis with top-down sector and commodity views. It is designed to ensure that stock and sector weightings directly reflect our level of conviction, with capital systematically allocated toward our highest-conviction ideas. For Industrials, position sizing is primarily driven by bottom-up stock conviction rankings, based on a rigorous assessment of business quality, valuation and momentum (with an emphasis on earnings). This is overlaid with top-down sector tilts where applicable, which can scale final position sizes up or down. For Resources, we adopt a top-down starting point, forming views on relative commodity attractiveness before assessing preferred exposures within each commodity based on company-specific fundamentals.

Mining looking strong

The Wilsons team said at the moment they are positive towards the resources sector for a number of reasons, including resilient global growth, a softer US dollar, government policy that is looking to onshore production, and structural demand tailwinds such as the energy transition.

They added:

Within the commodity complex, we are particularly positive towards base metals (copper, aluminium), gold, and critical minerals (rare earths), where we see favourable supply/demand dynamics and supportive medium-term pricing. We remain neutral on energy and modestly underweight iron ore, reflecting less attractive supply/demand dynamics.

The Wilsons portfolio is underweight on banks versus the ASX 200, albeit they are looking more favourably on the sector following the reporting season, and the portfolio has no exposure to retail and domestic cyclicals.

As the Wilsons team said:

As we have written about previously, the monetary policy backdrop has become increasingly challenging for companies exposed to domestic consumer spending, with the RBA having raised rates in February and markets fully pricing at least one further hike later this year. This environment presents risks to retailer earnings and valuations at a time that valuations are already relatively full – particularly for high-quality large cap exposures.

Now to the top 10 companies, and BHP Group Ltd (ASX: BHP) tops the list followed by Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), Santos Ltd (ASX: STO), Evolution Mining Ltd (ASX: EVN), Brambles Ltd (ASX: BXB), and finally Woolworths Group Ltd (ASX: WOW).

The post In Wilsons Advisory’s ideal portfolio, what are the 10 top stock picks? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• 35 ASX All Ords shares with ex-dividend dates next week
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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 Goodman Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Coles Group Ltd (ASX: COL) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $22.19. In morning trade on Friday, shares are changing hands for $20.50, down 7.6%.

For some context, the ASX 200 is just about flat at this same time.

This follows the release of Coles’ half-year results, covering the 27 weeks to 4 January (H1 FY 2026).

Here’s what we know.

Coles share price tumbles on profit decline

The Coles share price is under heavy pressure today despite the supermarket reporting broadly strong growth figures.

That includes a 2.5% year-on-year increase in sales revenue to $23.6 billion.

Supermarkets sales revenue of $21.37 billion was up 3.6%, although revenue from the company’s liquor division slipped 3.2% to $1.94 billion.

Online shopping showed further growth, with supermarkets eCommerce sales up 27% year on year amid increasing digital engagement.

And earnings before interest, taxes, depreciation and amortisation (EBITDA) – excluding significant items – of $2.21 billion was up 7.8% from H1 FY 2025.

On the bottom line, the supermarket reported net profit after tax (NPAT) – excluding significant items – of $676 million, up 12.5%.

But the Coles share price could be under pressure today with NPAT, including significant items, of $511 million, down 11.3% year on year.

The significant items for the six months come to $235 million, or $165 million after tax. These were recorded as a result of the September Federal Court judgment relating to Fair Work proceedings involving historical underpayment of employees.

On the passive income, management declared a fully-franked interim dividend of 41 cents per share, up 10.8% from last year’s interim payout.

If you’d like to bank the interim Coles dividend, you’ll need to own shares at market close on 9 March. Coles stock trades ex-dividend on 10 March. You can then expect to receive that passive income payout – representing a 2% return at current levels – on 30 March.

What did management say?

Commenting on the half-year results, Coles CEO Leah Weckert said, “We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024.”

As for the second half of FY 2026, Weckert said:

As we look ahead, we are well positioned, with a strong balance sheet and cash flow generation, to continue to invest in areas that will strengthen and expand our core customer proposition and deliver value for shareholders.

As at 4 January, Coles held cash and cash equivalents of $598 million.

With today’s intraday losses factored in, the Coles share price remains up 1.6% over 12 months, not including dividends.

The post Why is the Coles share price crashing 8% on Friday? 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.