Category: Stock Market

It’s probably fair to say that this week has been one of, if not the, worst week in the history of the Star Entertainment Group Ltd (ASX: SGR) share price. Star, an ASX 200 gaming and casino share, fell off a cliff on Monday when the company released an earnings and guidance update.

As we covered at the time, Star reported a big drop in revenue from its Sydney casino, as well as a large rise in costs and headcount. The company also told investors to expect a non-cash impairment charge of between $400 million and $1.6 billion when the company delivers its next earnings report.

It’s probably an understatement to say that investors were not impressed. By the end of Monday’s session, Star shares fell almost 21% to their lowest price on record. Yesterday, the pain kept coming. The company fell another 13.4% to find a new all-time low of $1.28 a share.

Take a look at the damage for yourself:

But today, it appears the wounds have been staunched.

Star share price finally finds a bottom

The Star share price is currently on the rebound so far this Wednesday. At the time of writing, the ASX 200 gaming stock has rebounded by a pleasing 8.19% back up to $1.39 a share.

There’s been no fresh news from Star since its dramatic guidance update on Monday. So it appears investors have finally decided that the Star share price has found its bottom. That would explain why the shares are bouncing back up so far this Wednesday. But even so, the company is still sitting at a horrible 25.9% loss from where it closed last week.

The company is also down more than 78% from its last all-time high. That was back in early 2018 and saw the company above $6 a share.

At the current Star Entertainment share price, this ASX 200 gaming share has a market capitalisation of $1.41 billion.

The post Star Entertainment share price rebounds 8% on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why Ansell, Breville, Star, and Temple & Webster shares are falling
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Appen, Lendlease, Nuix, and Star shares are sinking today
• Why did the Star Casino share price just dive 19% to an all-time low?

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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The S&P/ASX 200 Index (ASX: XJO) is tipping into negative territory today as the big four banks act as an anchor. Meanwhile, other ASX 200 shares are getting plenty of attention for their latest results.

Currently, the benchmark index is 1.22% worse off than where it finished yesterday — hovering around 7,340 points. Some of the biggest hindrances to the Aussie market today include Treasury Wine Estates Ltd (ASX: TWE), Lifestyle Communities Ltd (ASX: LIC), and Computershare Limited (ASX: CPU).

That aside, let’s dive into three companies that have reported today.

Earnings ignite these ASX 200 shares

One company that is seeing its share price driven higher today is GUD Holdings Limited (ASX: GUD). Shares in the automotive parts and water systems seller are jumping 7.86% to $8.92 as investors absorb what appears to be a solid half-year result.

It was a period of phenomenal growth for GUD in the latest six-month period. Primarily driven by acquisitions, revenue was dialled up 55.7% year-on-year to $517 million. Meanwhile, the company’s net profit after tax (NPAT) increased by a blistering 88.7% to $45.6 million.

In terms of outlook, management painted a reasonably positive outlook. The APG brand is expected to benefit from normalisation in sales toward higher historic volumes. Likewise, the remaining automotive business is anticipated to benefit from aging vehicles.

Another ASX 200 share relishing in a commendable result is Netwealth Group Ltd (ASX: NWL). The financial services platform provider’s share price is currently up 4.82% to $13.92.

The three key figures that shareholders ought to be pleased with are the company’s funds under administration (FUA), revenue, and NPAT.

Ultimately, the business relies upon its FUA on the platform. Fortunately, funds on Netwealth increased 12.2% to $62.4 billion in the first half. Similarly, revenue and earnings were grown to the tune of 18.9% and 12.9% respectively.

Despite a strong performance so far in 2023, the Netwealth share price is still down 6.13% over the past year.

Failure to impress with these figures

The third and final ASX 200 share with robust numbers out today is Pro Medicus Ltd (ASX: PME). The imaging software provider’s shares are currently up 0.29% to $65.24 apiece.

Perhaps one of the biggest success stories on the Australian share market may not have lived up to expectations today.

In its half-year report, Pro Medicus served up revenue of $56.89 million — representing an increase of 28.3%. Even better, net profits were 31.5% bigger than the prior corresponding period, perched at $27.19 million.

The improved financials were attributed to some major wins in North America with customers such as Novant Health, Allina Health, and Inova Health.

Nevertheless, it seems investors might be concerned about whether the premium valuation is still compatible following these results. For reference, Pro Medicus currently trades on a price-to-earnings (P/E) ratio of 154 times.

Though, longer-term shareholders couldn’t be upset. Shares in the software company are still up almost 41% compared to this time last year.

The post 3 ASX 200 shares on the move amid strong earnings updates appeared first on The Motley Fool Australia.

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More reading

• Why Cochlear, GUD, Netwealth, and Wesfarmers shares are charging higher
• How to create a second income from ASX growth shares
• Here are the top 10 ASX 200 shares today
• ASX shares: Is this my once-in-a-lifetime chance for mega returns?
• Buy these 2 ASX 200 shares growing earnings as we speak: expert

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended Netwealth Group and Pro Medicus. The Motley Fool Australia 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.

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ASX 200 stocks are in the red today with the S&P/ASX 200 Index (ASX: XJO) down 1.24%.

But as is usually the case, there are outliers.

Here are three ASX 200 stocks basking in the green today after their half-year results were released.

Seven Group Holdings Ltd (ASX: SVW)

The Seven Group share price is up 2.23% to $23.81 after the company reported its 1H FY23 results. This ASX 200 stock is now up 14.3% in the year to date.

Seven Group reported underlying revenue of $4.6 billion, up 16% compared to the prior corresponding period (pcp) of 1H FY22. It reported earnings before interest and taxes (EBIT) of $595 million, up 16%. The EBIT is also 6% above consensus expectations among brokers.

Earnings per share (EPS) from continuing operations for the year is 94 cents, up 18%. The ASX 200 stock will pay a dividend of 23 cents on 5 May.

CEO and managing director Ryan Stokes said:

The result highlights the quality of SGH’s Industrial Services businesses and the “core plus” nature of the Group portfolio, with solid momentum and earnings growth of more than 20% at WesTrac, Coates and Boral. The results for the half were supported by continued strength in customer activity across the resources, construction, and infrastructure sectors.

Seven upgraded its full-year FY23 guidance to “low to mid-teen per cent EBIT growth”. It previously expected high single-digit growth. UBS says the broker consensus is 15%.

According to The Australian, UBS analyst Lee Power reckons this is a “solid result” and the guidance “may be conservative, accounting for potential volatility across both Media and Energy in the 2H.”

Vicinity Centres (ASX: VCX)

The Vicinity Centres share price is up 1% to $2.03 after the real estate investment trust (REIT) reported its 1H FY23 results. The ASX 200 stock is now up 1.76% in the year to date.

Vicinity Centres announced a statutory net profit after tax (NPAT) of $176.3 million. This was down substantially on the pcp of 1H FY22 when an NPAT of $650.2 million was recorded.

There was a net property valuation loss of $109.2 million, reflective of the current market downturn due to rising interest rates. Funds from operations (FFO) was $357.1 million, up 24.1% pcp.

Vicinity Centres will pay shareholders a distribution of 5.75 cents per share on 7 March, up 22.3% pcp.

The A-REIT said FFO growth was driven by a 20.5% increase in net property income to $459.6 million.

This growth partly reflects the comparison to the pcp when COVID-19 lockdowns were in place.

However, the company said there was also “continued strength of retail sales leading to improved cash collections, rental growth, and higher percentage rent”.

Vicinity’s CEO and managing director, Peter Huddle commented that the retail sector “continues to enjoy elevated growth, despite near-term uncertainty … “.

He said this is due to solid ongoing consumer demand supported by low unemployment and robust income growth and savings rates.

The ASX 200 stock now has a revised guidance for FY23, with FFO per share expected to be in the range of 14 cents to 14.6 cents.

Huddle said:

… our revised FFO per security guidance range for FY23 exceeds the original FY23 FFO guidance
range announced to the market on 16 August 2022. This outperformance reinforces the resilience of our operating and financial performance in the somewhat uncertain retail environment.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up 1.1% to $4.61 after the company released its 1H FY23 report. The ASX 200 stock is now up 5.5% in the year to date.

The company reported revenue of $4.3 billion, up 5% on the pcp of 1H FY22. EBIT before significant items totalled $360 million, up 8%, with an improved EBIT margin of 8.4%.

NPAT was $92 million, including $150 million for flagged construction provisions, and down 46% pcp.

The company is guiding a full-year FY23 EBIT before significant items in the range of $800 million to $855 million. It noted that bad weather in New Zealand in January and February would impact their results.

Fletcher Building will pay a dividend of 21.2 NZ cents per share (18 AU cents) on 6 April.

Fletcher Building CEO Ross Taylor said:

We are confident that our strategy positions us well to continue to drive performance and deliver growth, against the backdrop of a dynamic operating environment.

The post 3 ASX 200 stocks moving higher on strong results announcements appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 stocks smashing new 52-week highs on Wednesday
• 2 ASX All Ords shares leaping higher with one up 8% on half-year results
• Here are the top 10 ASX 200 shares today
• 3 ASX All Ordinaries shares going gangbusters on Monday
• Guess which ASX All Ords share is leaping higher on a return to profit

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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The Magellan Financial Group Ltd (ASX: MFG) share price has been devastated in recent years. It’s currently more than 85% lower than the all-time high it posted back in February 2020.

But there could still be hope for the S&P/ASX 200 Index (ASX: XJO) funds management business.

One top broker has reportedly doubled down on the stock, upgrading it to a buy ahead of the release of the company’s half-year earnings.

And the market appears to be bidding the Magellan share price higher in response. Right now, the stock is trading at $9.40 – 6.58% higher than its previous close.

For comparison, the ASX 200 is down 0.86% at the time of writing.

Let’s take a closer look at what one broker thinks the future could hold for the embattled financials giant.

Magellan share price rockets 7% amid broker upgrade

The Magellan share price is having a day in the sun amid reports UBS has upped its expectations for the stock. The broker has slapped a buy rating following years of tipping it a sell, the Australian Financial Review reports.

The stock has also been predicted to climb to $10. That represents a potential 6.4% upside on its current level.

It comes after the fund manager revealed another $500 million outflow for the month of January.

Though, thanks to favourable market movements, it ended the month with $46.2 billion of funds under management (FUM) – a 2% month-on-month improvement. Of that, $19 billion was retail and the other $27.2 billion was institutional.

And UBS is said to see value at such levels. The broker believes its FUM will fall before steadying at around $40 billion. Analysts said, courtesy of the publication:

Performance has remained elusive given style-headwinds, however the Global one-year track record is -3.3% vs benchmark and assuming 2% [per annum] alpha going forward would see the three-year track record hit benchmark returns by late 2024.

The broker also reportedly likes Magellan’s balance sheet, saying cash and investments are behind around half of its market capitalisation. That’s said to imply the company (excluding C&I) is trading on around 8 times sustainable earnings with a 12% fully franked dividend yield.

No doubt more eyes will be on the Magellan share price when the fund manager releases its earnings for the first half of financial year 2023 tomorrow.

The post The Magellan share price is surging 7%. Is it time to buy back in? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Magellan share price pops then drops on ASX FUM update
• A rare day in the green: Magellan share price soars 5%
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager
• Should you buy Seek, Magellan, or Virgin shares?

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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It’s been a pretty horrible day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) in general so far this Wednesday. At the time of writing, the ASX 200 has lost a nasty 1.06%, putting the index down to around 7,350 points.

But not all ASX 200 shares are in the wars today. In fact, let’s talk about four that are not only rising, but have just hit new 52-week highs today.  

4 ASX 200 stocks at new 52-week highs on Wednesday

Altium Limited (ASX: ALU)

ASX 200 tech share Altium is one such company that is defying the market’s gloom today. At present, the Altium share price has risen by a decent 1.94% to $39.70 a share. But earlier this morning, the software-as-a-service (SaaS) provider rose as high as $40.34. That’s a new 52-week high for Altium shares.

We haven’t had any news out of Altium itself for almost a month. So perhaps a rise in the US tech sector overnight is helping to boost sentiment for shares like Altium today. This company’s shares are up a pleasing 15.4% year to date, so this could also be an extension of that trend.

Carsales.com Ltd (ASX: CAR)

Another ASX 200 tech share in Carsales is our next stock to check out. Carsales is also having a massive day today. The online marketplace operator has had a very bouncy day indeed. Carsales shares are presently deep in the red, nursing a 1.26% loss to $22.66 a share.

But this morning saw the company rocket, with the shares hitting $23.53 soon after open. That’s Carsales’ new 52-week high.

Investors have been showing a renewed appreciation of Carsales shares ever since the company announced its latest half-year earnings on Monday. Revenue, profits and earnings were all up across the board, and Carsales jacked up its interim dividend by almost 12%. So this probably explains today’s new high.

Seven Group Holdings Ltd (ASX: SVW)

Next up we have the ASX 200 diversified investment company Seven Group. Seven is having a fantastic session this Wednesday. The company is currently up a healthy 3.03% to $24 a share but rose as far as $24.53 just before midday today.

This one is pretty clear. Seven has also just reported its own half-year earnings this morning. This saw a 16% rise in revenues, while net profits were up 17% and earnings per share (EPS) rose 18%. Obviously, investors have been impressed by what seven had to show.

Lottery Corporation Ltd (ASX: TLC)

Finally today, let’s talk about ASX 200 gaming share Lottery Corporation. Lottery Corp shares are currently up by 0.9% at $5.04 each. But this morning saw this company rise as high as $5.10 per share. That’s (you guessed it) a new 52-week high for Lottery Corp.

Unlike Carsales and Seven Group, we haven’t had any earnings from Lottery Corp recently. So this rise appears to just be the result of some investor goodwill. Lottery Corp shares have been on the SX for less than a year. The company was spun out of Tabcorp Holdings Ltd (ASX: TAH) in May last year.

The post 4 ASX 200 stocks smashing new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Are whales dipping in and out of this ASX 200 travel share?
• 3 ASX 200 shares just upgraded by brokers, one with 50% upside

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 positions in and has recommended Altium. The Motley Fool Australia has recommended Carsales.com. 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 leading investors from Wilson Asset Management (WAM) have shared two undervalued ASX shares on their radar.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

Meanwhile, WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

But does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 15% per annum since its inception in August 1999. That’s before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.5% per annum over the same timeframe.

With that in mind, here are the two ASX shares WAM Capital has outlined in its recent monthly update.

Myer Holdings Ltd (ASX: MYR)

Myer is a retailer that operates 57 department stores; it also has an online offering as well.

WAM noted that Myer recently revealed details of its FY23 half-year result, which showed total sales growth of 24.8%. This was its “strongest sales result on record for the first five months of a financial year”.

The fund manager noted that Myer said its sales following Christmas had “continued to outperform strongly” compared to the prior corresponding period.

Myer is expecting its net profit after tax (NPAT) for the 26 weeks to 28 January 2023 to be between $61 million to $66 million. This would represent year-over-year growth of between 89% to 104%, which was more than the market’s expectations.

WAM thinks that a tougher economic environment will impact Myer over the next 12 months. But, more foot traffic in its city stores and increases in inbound tourism will “allow the business to maintain its strong momentum”.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

The other ASX share that the fund manager picked out was Fisher & Paykel. It’s described as a leading designer, manufacturer, and marketer of products and systems for use in respiratory care, surgery, and the treatment of obstructive sleep apnoea.

WAM pointed out that Fisher & Paykel Healthcare upgraded its revenue guidance for FY23. The ASX healthcare share is expecting full-year operating revenue to be between $1.55 billion to $1.6 billion.

Why did the company bump up its expectations? It was because of higher COVID-19 cases in China and an earlier-than-expected start for the flu season in the US, which contributed to a “rapid surge” in demand for the company’s products.

The fund manager finished with the following optimistic view on the ASX share:

We believe Fisher & Paykel Healthcare Corporation’s runway for growth remains strong with falling freight and logistics costs providing greater confidence that the company can achieve its 30% operating margin target in the medium-term.

The post 2 ASX shares to buy that have ‘strong momentum’: expert appeared first on The Motley Fool Australia.

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More reading

• Why Accent, Iluka, Myer, and QBE shares are charging higher today
• Why Block, Codan, Latin Resources, and Myer shares are storming higher
• Myer share price leaps 6% amid supercharged sales
• Why Fisher & Paykel, Netwealth, Stanmore, and Terracom shares are dropping
• Here are the top 10 ASX 200 shares 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 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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The S&P/ASX 200 Index (ASX: XJO) has come under pressure on Wednesday largely due to weakness in the banking sector. In afternoon trade, the benchmark index is down 1% to 7,357.7 points.

Four ASX shares that aren’t letting that hold them back today are listed below. Here’s why they are charging higher:

Cochlear Limited (ASX: COH)

The Cochlear share price is up over 6% to $222.72. This follows the release of the hearing solutions company’s half year results. While Cochlear reported a decline in its half year profit, it continues to expect solid full year profit growth thanks to the launch of the new Nucleus 8 Sound Processor and the continuing recovery from COVID surgery delays.

GUD Holdings Limited (ASX: GUD)

The GUD share price is up over 6% to $8.80. Investors have been buying this diversified products company’s shares after it reported a 55.7% increase in half year revenue and an 88.7% jump in net profit. This was driven by a strong core automotive result combined with full six-month contributions from APG and Vision X.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 5% to $13.91. This has been driven by the investment platform provider’s half year results. Netwealth reported an 18.9% increase in total income to $102.8 million and record underlying EBITDA of $47.4 million. This was driven by a 10.2% increase in funds under administration to $62.4 billion.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up 2.5% to $49.82. The catalyst for this has been the release of the conglomerate’s half year update. Wesfarmers reported a 27% increase in revenue to $22.56 billion and a 14.1% lift in net profit after tax of $1.38 billion. Strong performances from Bunnings and Kmart played a role in this solid performance.

The post Why Cochlear, GUD, Netwealth, and Wesfarmers shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the boosted Wesfarmers dividend
• Wesfarmers shares take off as bargain hunting sees Kmart earnings add 110%
• Cochlear share price surges 6% on solid half and buyback
• Wesfarmers share price in focus as revenue jumps 27%
• Earnings preview: Here are the ASX shares reporting on Wednesday

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 Cochlear and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and Wesfarmers. The Motley Fool Australia has recommended Cochlear. 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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Wesfarmers Ltd (ASX: WES) shares are up 2.3% to $49.82 per share on the back of a big interim dividend boost, announced this morning.

That came as the diversified S&P/ASX 200 Index (ASX: XJO) retail share reported its half-year earnings results for the six months ending 31 December (H1 HY23).

Here’s everything you need to know about the boosted Wesfarmers dividend.

What’s happening with the Wesfarmers dividend?

The Wesfarmers board declared a fully franked 88 cent per share (cps) interim dividend.

That’s an increase of 10% from the 80 cents per share paid out in the first half of the 2022 financial year.

Wesfarmers said the payout reflects “Wesfarmers’ dividend policy, which takes into account available franking credits, balance sheet position, credit metrics and cash flow generation and requirements”.

The big lift was made possible by a 14.1% year-on-year increase in net profit after tax (NPAT), which came in at $1.38 billion.

ASX 200 investors who want to receive the payout should note the ex-dividend date is next Monday, 20 February.

If you own shares before they trade ex-dividend you can expect the 80 cents per share payout on 28 March.

Wesfarmers also operates a dividend reinvestment plan (DRP). This enables you to automatically reinvest all or a portion of the payout into new shares.

If you wish to participate in this, the DRP election date is a week from today, Wednesday 22 February.

The post Everything you need to know about the boosted Wesfarmers dividend 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 positions in and has recommended Wesfarmers. 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 S&P/ASX 200 Index (ASX: XJO) is taking another turn for the worse so far this Wednesday. At the time of writing, the ASX 200 has lost a disappointing 0.7%, putting the index down to around 7,380 points. But the ANZ Group Holdings Ltd (ASX: ANZ) share price is faring even worse.

ANZ shares are having a clanger today. The ASX 200 bank share has tumbled by a nasty 2.3% and is back down to $25.14 a share. This latest drop means that ANZ stock has now fallen close to 3% since last Thursday:

So what’s going on with this big four bank today that has ANZ shares so vastly underperforming the broader market?

Well, there are a few things that could be contributing to these losses.

Why is the ANZ share price having such a woeful Wednesday?

Firstly, most ASX 200 bank shares are down today, so it’s not just ANZ shares feeling the pain.

National Australia Bank Ltd (ASX: NAB) shares are down by 2.34% at present. The Westpac Banking Corp (ASX: WBC) share price is down by 2.9%, while Commonwealth Bank of Australia (ASX: CBA) has lost a notable 3.35%.

On the latter, CBA actually reported its half-year results for the six months ending 31 December 2022 this morning.

As we covered at the time, CBA reported a 12% rise in operating income to $13.59 billion, while cash net profits rose 9% to $5.15 billion. Commonwealth Bank also reported an 18 basis point lift to its net interest margin, bringing it to 2.1%.

This enabled CBA to announce a $1 billion increase to its share buyback program, as well as a 20% hike to its interim dividend to $2.10 per share.

But investors must have been hoping to see better numbers. As my Fool colleague posited this morning, perhaps investors are concerned that CBA’s net interest margins have already peaked.

So with such a negative reaction from the markets to CBA’s numbers this morning, it was always going to be hard for ANZ shares to eke out a gain today.

We also had some news out of ANZ itself which could be playing a role here too. The bank announced a new capital notes offer this morning, with the intention of raising $1 billion to “help meet its capital requirements”

So it’s likely that a combination of these events is responsible for the disappointing ANZ share price performance we are seeing this Wednesday. Even so, this big four bank remains up by a healthy 8.9% in 2023 so far.

At the current ANZ share price, this ASX 200 bank share has a trailing dividend yield of 5.8%.

The post Why is the ANZ share price tumbling on Wednesday? appeared first on The Motley Fool Australia.

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• Earnings preview: Here are the ASX shares reporting on Wednesday
• CBA share price on watch amid strong profit growth and $1b buy-back
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 Westpac Banking. 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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ASX All Ords shares are trading lower this morning with the S&P/ASX All Ordinaries Index (ASX: XAO) down 0.67%.

However, these two All Ords companies are outperforming their peers after reporting strong half-year results.

Pact Group Holdings Ltd (ASX: PGH)

This ASX All Ords share shot up a whopping 8.4% this morning to $1.10 after the packaging manufacturer reported its FY23 half-year results. The company’s share price is currently 2.17% higher at $1.037.

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand with a growing overseas business.

Pact reported $998 million in revenue for the half, which was 8% up on the prior corresponding period (pcp) of 1H FY22.

Its underlying earnings before interest and taxes (EBIT) was $75 million, 3% above the top of its guidance range but down 8% pcp.

Underlying net profit after tax (NPAT) was $26 million, down 33% pcp but “in line with the performance of the business and increased finance costs”, the company said.

The All Ords business said the recovery of costs and volume growth had driven the increased revenue.

It noted increased demand for sustainable packaging and recycled products, new contract wins, and contract re-pricing of existing contracts during the half.

The ASX All Ords share will not pay an interim dividend, reflecting “the desire to preserve cash to allow the Company to reduce debt and continue its capital program in line with its Vision to lead the Circular Economy”.

Pact reiterated its guidance for FY23 underlying EBIT to be slightly ahead of FY22 underlying EBIT.

Redbubble Ltd (ASX: RBL)

Rebubble also reported its FY23 half-year earnings this morning. The ASX All Ords share was not out of the blocks as fast as Pact Group but is steadily climbing in lunchtime trade. The Redbubble share price is currently up 3.19% at 48.5 cents.

Redbubble is an online artwork and design marketplace selling a range of products. The All Ords company reported a 1% lift in revenue to $343.8 million for 1H FY23 compared to the pcp of 1H FY22.

Gross profit is down 6% at $101.3 million and the gross profit margin fell 2.5%.

Operating expenses excluding brand investment were 20% higher at $63.6 million.

Looking forward, Redbubble CEO Michael Ilczynski said:

Enhancing the Redbubble marketplace’s content quality and search and discovery is a primary focus for the Group to ensure customers can find products among four billion listings which appeal to their
specific interests and needs.

We are uniquely positioned to benefit from recent improvements in AI, which could revolutionize search and discovery of artists’ content and greatly enhance new and existing customers’ experience.

Early signs are positive and we expect to roll-out implementation of this technology at scale this calendar year.

The post 2 ASX All Ords shares leaping higher with one up 8% on half-year results appeared first on The Motley Fool Australia.

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More reading

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• Guess which ASX All Ords share is leaping higher on a return to profit
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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 Redbubble. 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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