Category: Stock Market

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Macquarie, its analysts have retained their outperform rating on this lithium miner’s shares with a trimmed price target of $19.00. While the broker was disappointed that Allkem has downgraded its Mt Cattlin production guidance, it expects the Sal de Vida and Olaroz operations to be supportive of its medium term production growth. The Allkem share price is trading at $11.45 on Wednesday.

Coles Group Ltd (ASX: COL)

A note out of Citi reveals that its analysts have retained their buy rating on this supermarket giant’s shares with an improved price target of $20.20. This follows the release of a first-half result that came in comfortably ahead of Citi’s expectations. Looking ahead, the broker believes shopping trends are favourable for Coles and feels the market is being too negative on the Ocado partnership. The Coles share price is fetching $18.18 this afternoon.

Hub24 Ltd (ASX: HUB)

Analysts at Morgans have retained their add rating on this investment platform provider’s shares with an improved price target of $31.90. Morgans notes that Hub24’s first-half underlying EBITDA came in well ahead of its forecasts thanks to higher earnings on pooled cash. The broker remains confident on the future, particularly given the potential for larger transition wins and the runway to secure more clients being intact. The Hub24 share price is trading at $28.83 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 dividend shares to buy now before their dividend payouts
• Here’s the latest ‘bearish news’ from brokers on ASX 200 lithium stocks
• Is Coles now one of the best ASX 200 dividend shares?
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 lithium shares having such a stellar run today?

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has positions in and has recommended Coles Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX share market is a very fruitful place to find ideas to grow annual passive income. To achieve an annual income of $1,000 from $20,000, I’d need an average dividend yield of at least 5%.

There aren’t many places where we can find a yield of 5%, as well as the potential for capital growth.

ASX dividend shares can provide a combination of dividend income and share price returns.

With that in mind, these are some of the higher-yielding ASX dividend shares that I’d use and split $20,000 between.

Metcash Limited (ASX: MTS)

Metcash is a diversified business that supplies food to IGAs and liquor to retailers like IGA Liquor, Bottle-O, Cellarbrations and Porters Liquor around the country. The company also has a hardware division, which owns the brands Mitre 10, Home Timber & Hardware and Total Tools.

The company is targeting a dividend payout ratio of 70% of underlying net profit after tax (NPAT). This results in the company paying a healthy dividend yield each result.

I think the sectors in which it operates are fairly defensive and that the overall business can benefit from factors like investments in productivity, with population growth being a useful tailwind.

The last two dividends amount to 22.5 cents per share, which is a grossed-up dividend yield of 7.9%.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the smaller ASX retail shares. It sells a variety of advanced hair removal products, as well as beauty and oral care.

Despite all of the impacts on the economy over the past year, the business just reported that total sales increased by 3.8% to $131.9 million, while the NPAT went up 4.5% to $13.7 million, and the interim dividend was increased by 4.4% to 4.7 cents per share.

The business achieved earnings per share (EPS) of 10.8 cents (up from 10.6 cents per share in the first half of FY22), so the dividend payout ratio is only 44%. This was the sixth consecutive increase in the interim dividend since its initial public offering (IPO) in 2016.

With the gross profit margin higher in the first seven weeks of FY23 second half, this has helped gross profit in dollar terms, despite total sales being down 2.1% year over year.

The latest two dividends from the ASX dividend share amount to 10.2 cents, which equates to a grossed-up dividend yield of 12.1%.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current describes itself as “a global multi-boutique asset management business” that partners with “exceptional investment managers”. In other words, it invests in fund managers, helps them grow and reaps the rewards of that.

The different asset managers and investment styles have created a portfolio of pleasing earning generators for the ASX dividend share.

Consistent earnings growth is not guaranteed, but the company’s underlying funds under management (FUM) continue to grow.

In the three months to 31 December 2022, the business saw its portfolio FUM rise from A$171.2 billion to A$175.1 billion.

The business has increased its annual dividend each year since 2018. The last 12 months of dividends amount to a grossed-up dividend yield of 7.5%.

Foolish takeaway

While I was aiming for an average dividend yield of 5%, the above three ASX dividend shares have an average yield of just over 9%. That means $20,000 invested evenly between them would generate $1,833 of annual passive dividend income. They could be mixed with lower-yielding names, but still good options like Telstra Group Ltd (ASX: TLS).

The post How I’d invest $20K in ASX shares to target $1,000 in annual passive income appeared first on The Motley Fool Australia.

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More reading

• How much do you need in ASX shares to give up work and live only off dividend income?
• Here are the top 10 ASX 200 shares today
• 2 ASX dividend stocks I think are dirt-cheap right now
• 3 ASX dividend shares for lazy investors
• Top ASX value shares to buy in February 2023

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Something strange is happening with the Bitcoin (CRYPTO: BTC) price in 2023.

At the time of writing, BTC is trading for US$24,173 (AU$35,385). That’s up 46% from what the world’s original crypto was worth on 1 January, according to data from CoinMarketCap.

That’s also more than four times the 11% gains posted by the Nasdaq Composite Index (NASDAQ: .IXIC) so far in 2023.

What’s strange about that?

Is the Bitcoin price correlation to stocks vanishing?

Here’s what we wrote in early January when we covered the 65% Bitcoin price drop over the course of 2022:

If nothing else, 2022 showed that [Bitcoin] is closely linked to the performance of growth stocks. And highly susceptible to the impacts of rising interest rates.

Yet here we are, less than two months later, with central bankers still ratcheting up interest rates to combat stubbornly high inflation, and Bitcoin has proven surprisingly resilient.

Here’s what we mean.

According to figures supplied by Bloomberg (using yesterday’s slightly higher Bitcoin price), “A 40-day correlation between Bitcoin and the S&P 500 has slid below 0.3 to the lowest since 2021 from a May record above 0.8.”

A correlation of 1 would mean the Bitcoin price moves precisely in line with the S&P 500 Index (SP: .INX).

Crypto research company Kaiko noted, “Crypto has been decoupling from traditional assets in 2023 … crypto-specific events increasingly drive the market.”

JPMorgan Chase strategist Nikolaos Panigirtzoglou pointed to the greater influence of retail investors in 2023, with many corporates having abandoned their forays into crypto in 2022 following several digital token meltdowns and exchange collapses.

“This positive retail impulse year-to-date is naturally more dominant in crypto given the absence of institutional investors at the moment,” Panigirtzoglou said.

“It became one of the themes to watch in 2022, crypto market correlation with traditional markets, as investors around the world reacted to rising inflation and subsequent rate hikes,” eToro market analyst and crypto expert, Simon Peters said.

“If the Bitcoin price does indeed move differently to macroeconomic events then it could provide significant support for using it as a hedge against other markets – akin to gold,” Peters added.

A word of caution

With that said, crypto investors should proceed with caution before making too much of this nascent trend. Or non-trend.

Let’s not forget the Bitcoin price crashed by 65% in 2022.

And the world’s top crypto remains volatile, trading as low as US$21,460 and as high as US$25,134 over the past 30 days.

Whether 2023 will see it continue to be decoupled from moves in global share markets remains to be seen.

The post Something strange is happening with the Bitcoin price in 2023 appeared first on The Motley Fool Australia.

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More reading

• Bitcoin price slumps 5% amid regulation fears

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

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S&P/ASX All Ords (ASX: XAO) shares may be in the red today but Step One Clothing Ltd (ASX: STP) sure ain’t following suit.

The ASX retailer, which is a nano-cap share with a market capitalisation of $57.5 million, released its 1H FY23 results today, revealing a return to profit that has sent investors into a frenzy.

The ASX All Ords share opened at 35 cents, up 13% on yesterday’s close. It hit an intraday high of 38 cents in afternoon trading, representing an impressive 22.5% gain.

The Step One Clothing share price is currently 37 cents, up 19.4% as the market close nears.

Let’s see what news this ASX company revealed today.

ASX All Ords share skyrockets on 238% profit surge

The key news today is that group net profit after tax (NPAT) was $5.275 million in 1H FY23.

This is a vast improvement on 1H FY22 when the company recorded a $3.816 million loss.

Here are the highlights of 1H FY23 for the online innerwear business:

• Revenue of $35.9 million, 5.7% down on the prior corresponding period (pcp) of 1H FY22
• Statutory earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $7.5 million, up 395% pcp
• Proforma EBITDA of $7.5 million, up 0.5% pcp
• Gross margin remains at a strong level of 80.7%, down 2.4% pcp
• Average order value up 16% pcp to $90.26
• Strong financial position, with closing cash of $32.6 million and no debt.

What else happened in 1H FY23?

The company increased its customer base by 136,000 people in 1H FY23, which was lower than the growth achieved in 1H FY22 with 193,000 new customers. (Bear in mind, inflation wasn’t going crazy and discouraging discretionary spending over the 1H FY22 period).

The company now has more than 1.2 million global customers. Step One Clothing says global supply chains are now improving and this will allow it to reduce the amount of inventory it has been holding.

What did management say?

Step One Founder and CEO, Greg Taylor said:

This half we successfully pivoted from prioritising top-line growth to a focus on profitability in response to challenging trading conditions in our key markets. Simultaneously, we continued to build our position as a leading brand for sustainable and quality innerwear products.

Our products continue to resonate well with our customers, reflected in an increase in average order value, and over 136,000 new customers added in the first half. We continue to maintain a strategic focus on our core offering as we explore product adjacency opportunities.

What’s next?

Taylor said an international expansion would be on the horizon once the global economy settles down.

Taylor said:

I remain steadfast in my belief in the products and my commitment to continuing to build this business.

I am confident that as macro-economic conditions ease Step One will be well positioned to pursue its international ambitions.

A quick history on this ASX All Ords share

Step One Clothing began trading on the ASX in November 2021 after its initial public offering (IPO) when shares were offered to early investors for $1.53 a piece.

Since then, the ASX All Ords share has fallen 86%.

However, things are looking up in 2023 with a year-to-date share price gain of 42%.

This is a vast outperformance against the All Ords, with shares up a collective 5.3% over the same period.

The post Guess which ASX All Ords share is surging 19% on a return to profit appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries stocks climbing on strong earnings updates
• Guess which ASX All Ords share is rocketing 5% after sales tripled
• 3 ASX 200 stocks moving higher on strong results announcements
• 2 ASX All Ords shares leaping higher with one up 8% on half-year results
• 3 ASX All Ordinaries shares going gangbusters on Monday

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 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.

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It’s been yet another red day for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. After falling yesterday, the ASX 200 is backing up those losses with another day of red ink for investors. At the time of writing, the index has sunk by another 0.48% to just over 7,300 points.

But rather than dwelling on those sobering figures, let’s instead check out the ASX 200 shares that are at the top of the share market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Pilbara Minerals Ltd (ASX: PLS)

First ASX 200 cab off the rank today is the leading lithium producer Pilbara Minerals. So far this Wednesday, a sizeable 19.45 million Pilbara shares have been swapped on the ASX.

We did get some news out of the company this morning, which revealed a $250 million debt facility has been approved for Pilbara with government agencies Export Finance Australia and Northern Australia Infrastructure Facility.

But that hasn’t been enough for investors who have sent the Pilbara share price down by around 3.42% so far today. It’s probably a combination of these events that has resulted in so many shares changing hands.

Sayona Mining Ltd (ASX: SYA)

Next up, we have Pilbara’s fellow ASX 200 lithium stock Sayona. This Wednesday has seen a notable 20.1 million Sayona shares switch owners on the markets thus far. We also haven’t seen any Sayona-specific news during this session.

But that hasn’t stopped this lithium stock’s share price from dropping too. In this case, Sayona shares have slumped by 1.4% so far to 21 cents a share. This is probably the reason why this company has appeared on this list today.

Origin Energy Ltd (ASX: ORG)

Our final ASX 200 share for today is energy stock Origin. Origin Energy has seen a hefty 34.43 million shares bought and sold this Wednesday so far. This one isn’t too difficult to figure out. Origin shares have pole vaulted in value today. The company is currently up a pleasing 12.98% to $7.92 a share.

As my Fool colleague Brooke covered this morning, this seems to be the result of a new takeover offer from the consortium led by Brookfield Asset Management. The offer of $8.90 a share is lower than what the consortium previously offered.

But perhaps in light of Origin’s latest earnings report, investors might have been expecting worse. Regardless, this is almost certainly the cause of the high volumes on display here.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• 3 reasons I prefer buying ASX shares over an investment property
• Why Origin, Santos, Service Stream, and WiseTech shares are racing higher
• Why is the Star Entertainment share price on ice today?
• Pilbara Minerals share price dips despite cash injection
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million

Motley Fool contributor Sebastian Bowen 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.

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With earnings season now in its fourth week, there have been countless results releases and companies declaring their latest dividends this month.

The good news for investors is that it isn’t too late for investors to get hold of some of these dividends.

Here are three buy-rated ASX 200 shares that are due to go ex-dividend shortly:

Coles Group Ltd (ASX: COL)

Income investors might want to consider this supermarket giant operator’s shares before they trade ex-dividend for its fully franked 36 cents per share interim dividend on Thursday 2 March. If bought before that date, investors will then receive this dividend later that month on 30 March.

This morning, the team at Morgans responded to Coles’ half-year results by retaining its add rating with an improved price target of $19.60.

Telstra Group Ltd (ASX: TLS)

This telco giant could be an ASX 200 dividend share to buy before it trades ex-dividend next week on Wednesday 1 March. Earlier this month, the telco giant released its half-year results and declared a fully franked interim dividend of 8.5 cents per share. This will be paid to eligible shareholders at the very end of next month on 31 March.

Goldman Sachs responded to Telstra’s half-year results by reiterating its buy rating with a $4.60 price target.

Whitehaven Coal Ltd (ASX: WHC)

This ASX 200 coal miner’s shares are due to trade ex-dividend on Thursday for its massive 32 cents per share fully franked interim dividend. This will then be paid to eligible shareholders next month on 10 March.

Citi certainly thinks investors should be snapping up shares for this dividend. Last week, it put a buy rating and $9.25 price target on its shares.

The post 3 ASX 200 dividend shares to buy now before their dividend payouts appeared first on The Motley Fool Australia.

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More reading

• Hoping to hop on the huge Whitehaven dividend? You’d better hurry
• Is Coles now one of the best ASX 200 dividend shares?
• These ASX 200 dividend shares are top of Macquarie’s income portfolio
• Everything you need to know about the boosted Coles dividend
• Coles share price lifts on ‘impressive’ earnings beat

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

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Ah… ASX shares versus property. The age-old debate. Shares and property are without a doubt the two asset classes that most people choose to invest their money in.

Both classes have positives and negatives, and both have returned very pleasing results over many decades. And both have their benefits and drawbacks… not to mention diehard supporters.

But when the rubber hits the road, I personally prefer shares to property. Here are three reasons why:

Why I prefer investing in ASX shares over property

It’s easier to get started

The whole point of investing over the long term is to enjoy the wonders of compound interest. And compound interest becomes more powerful the more time one gives it to work its magic.

Unfortunately, it can take years and years to save up enough to get a deposit for a property and get your foot in the door. That’s years that your money is sitting in a bank account and not compounding.

On the other hand, you can get started with ASX shares with as little as $500 (and sometimes even less than that). That means you can start putting your money to work in compounding assets almost as soon as you decide to start investing.

Diversification is simple

You will hear about the benefits of diversification endlessly when you start your investing journey. It’s the application of the old adage that one shouldn’t put all of one’s eggs in one basket.

Achieving a diversified ASX share portfolio is not difficult. It’s a relatively simple task of finding 10-20 quality ASX shares that are exposed to different industries. Using an index fund makes building a diversified portfolio even easier.

But with property, only the most elite investors can really build a diversified property portfolio. When you buy a property, it will be located in one suburb, in one state, in one country.

You can’t get any less diversified than that. If you sank $1 million into a single ASX share, most investors would tell you it is incredibly risky. But with property, there’s no other option for most investors starting out.

Investing in ASX shares is just cheaper

When it comes to buying ASX shares, it’s about as cheap as you can get. The only real cost to buying an ASX share is brokerage. And brokerage is getting cheaper every year it seems.

A single trade will usually cost you $20 at most. And some brokerage platforms are now offering $3 brokerage or even free trades. After that, the only charges you are likely to pay are income tax on your dividends (minus any franking credits you get) and capital gains tax on any profits you make selling your shares.

In stark contrast, it’s hard to list the costs of buying a property on two hands.

There’s income tax you will pay if you rent the property out. Not to mention capital gains tax and land tax if you don’t use your property for your own home. But then there’s also the dreaded stamp duty when you buy, as well as conveyancing and legal fees, pest and building inspections, and council rates or strata charges.

All in all, everyone wants a piece of the action when you buy a property. Not so much with your ASX shares.

The post 3 reasons I prefer buying ASX shares over an investment property appeared first on The Motley Fool Australia.

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More reading

• Why is the Star Entertainment share price on ice today?
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million
• Is Coles now one of the best ASX 200 dividend shares?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen 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.

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S&P/ASX 200 Index (ASX: XJO) shares are down a collective 0.3% today amid companies continuing to release their results during the first earnings season of 2023.

Here we take a peek at the results from an ASX retail share, an ASX financial share, and a real estate investment trust (REIT).

Lovisa Holdings Ltd (ASX: LOV)

Shares in this ASX 200 jewellery retailer are up 0.6% to $24.20 in early afternoon trading. Lovisa reported continuing strong sales and profit growth, with 86 new stores (net) opened during the period. The Lovisa store network now totals 715.

Here are the highlights of Lovisa’s 1H FY23 report:

• Revenue up 44.8% to $315.5 million compared to the prior corresponding period (pcp) of 1H FY22
• Comparable store sales up 12.5% pcp
• Gross margin of 80.3% with gross profit up 48.4% pcp to $253.2 million
• Net profit after tax (NPAT) up 31.9% pcp to $47.7 million
• Operating cash flow of $115.8 million, up 49.4% pcp
• Net cash of $24 million

The ASX 200 retail share will pay a fully franked dividend of 38 cents per share on 20 April.

AUB Group Ltd (ASX: AUB)

Shares in ASX 200 insurance broker AUB Group are up 0.85% to $26.61 in early afternoon trading. The insurer said ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions led to revenue growth and margin expansion in its Australian broking division. The 1H FY23 results include three months of contribution from Tysers, with its “revenue and profit … above expectations”.

Here are the highlights of AUB’s half-year report:

• Underlying NPAT of $46.7 million, up from $30.6 million pcp
• Underlying earnings per share (EPS) of 48.18 cents, up from 40.3 cents pcp
• NPAT of $400,000, down from $29.7 million, largely due to acquisition expenses
• FY23 underlying NPAT guidance upgraded to a range of $112.9 million to $121.4 million

The ASX 200 financial share will pay a fully franked dividend of 17 cents per share on 4 April.

Scentre Group (ASX: SCG)

This ASX 200 property share is up 2.6% to $2.90 in early afternoon trading. Scentre Group presented its full-year results for 2022 today.

Here are the highlights for the year ending 31 December:

• Revenue up 7.8% pcp to $2,458 million
• Profit after tax up 18.1% to $970.2 million
• Operating cash flow per share up 29.3% to 22.78 cents per share
• Operating profit per share attributable to Scentre Group members up 20.8% to 19.71 cents

The A-REIT announced last week that it will pay a partially franked distribution of 8.25 cents per share on 28 February.

The post 3 ASX 200 shares defying the market following earnings announcements appeared first on The Motley Fool Australia.

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More reading

• Two ASX shares with bucketloads of growth potential: experts
• 3 ASX 200 shares trading ex-dividend before the end of this week
• Love all around: 2 ASX All Ords stocks smashing new 52-week highs on Valentine’s Day
• How to create a second income from ASX growth shares
• Here are the top 10 ASX 200 shares today

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 Lovisa. The Motley Fool Australia has recommended Aub Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped into the red. At the time of writing, the benchmark index is down 0.4% to 7,309.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 2% to $99.50. This has been driven by the banking giant’s shares trading ex-dividend on Wednesday. Eligible shareholders can now look forward to receiving CBA’s $2.10 per share fully franked interim dividend at the end of next month on 30 March.

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down over 5% to $2.01. This follows the release of the coal miner’s full-year results this morning. Coronado Global reported a 66.2% increase in revenue to US$3,571.5 million and a 307.4% jump in net profit to US$771.7 million. The latter was a touch short of Goldman Sachs’ estimate of US$780 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price has crashed 25% to $53.79. Investors have been hitting the sell button in a panic today after the pizza chain operator’s performance deteriorated in December and led to an even weaker than expected half-year result. The company has been struggling in its battle with inflation.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 10% to 57.5 cents. This follows the release of the gold miner’s half-year results, which revealed a 52% decline in gross profit to $70 million and a statutory loss of $407 million. The latter reflects the non-cash impairment of its Atlantic and Simberi operations.

The post Why CBA, Coronado Global, Domino’s, and St Barbara shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 mining shares getting totally hammered on results announcements
• What took a 24% bite out of the Domino’s dividend?
• Why is the CBA share price sliding on Wednesday?
• Domino’s share price crashes 23% following disappointing first-half result
• Hoping to pocket the next CBA dividend? Here’s what you need to do

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

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Two S&P/ASX 200 Index (ASX: XJO) mining shares are tumbling as much as 9% on the release of earnings today. That’s despite one posting a whopping 300% jump in profits.

Let’s take a closer look at the news seemingly driving them deep into the red on Wednesday.

Right now, the ASX 200 is trading 0.28% lower at 7,316 points.

2 ASX 200 mining shares tumbling on earnings today

The St Barbara Ltd (ASX: SBM) share price is suffering on the release of the company’s first-half earnings, tumbling 9.4% to trade at 58 cents.

The ASX 200 gold mining share posted a $70 million gross profit – down 52% – amid higher operating costs and lower production.

It also posted a $407 million statutory loss for the half – down from the prior comparable period’s (pcp) $14 million profit. The company didn’t declare a dividend for the period.

St Barbara managing director and CEO Dan Lougher commented on today’s release, saying:

Our financial results reflect the operational difficulties we have endured during the first half of the financial year, exacerbated by the non-cash impairment of Atlantic and Simberi. However, there is plenty to look forward to in the second half of FY23 and beyond.

Indeed, the company announced plans to merge with peer Genesis Minerals Ltd (ASX: GMD) and demerge its non-Leonora assets in December.

Joining the ASX 200 mining share in the red today is its coal producing peer Coronado Global Resources Inc (ASX: CRN). Its stock is down 5.4% right now, trading at $2.015.

It comes after the company dropped its full-year earnings, detailing a 66% jump in revenue, reaching US$3.6 billion, and a US$772 million profit – up 307% year-on-year. That saw it declaring a 5 US cent per share dividend for the period.

The lift in earnings was mainly due to soaring coal prices. Indeed, its average realised price per tonne of metallurgical coal sold was US$265.80. That’s nearly double that of the prior year.

Meanwhile, the energy producer saw its saleable production and sales volumes each fall 7%.

Commenting on the results, managing director and CEO Gerry Spindler said:

Our record financial results and returns have occurred despite the impacts to production from considerable wet weather conditions in Queensland and global economic circumstances that have driven significantly higher inflation.

Expectations are that weather patterns will improve in 2023 and global inflationary impacts will ease, which should translate to improved production and costs for our business.

I remain extremely confident in our ability to address all challenges presented to the company and in our ability to continue to provide enhanced value and returns to all shareholders.

Coronado expects coal prices to stay high. It hopes to produce between 16.8 million metric tonnes and 17.2 million metric tonnes in 2024. It also expects to realise a mining cost per tonne sold of between US$84 to US$87.

The post 2 ASX 200 mining shares getting totally hammered on results announcements appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper 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.

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