Category: Stock Market

The Star Entertainment Group Ltd (ASX: SGR) share price is having a day to forget.

In morning trade, the casino operator’s shares are down a massive 19% to $1.52.

This means the Star share price is down approximately 60% over the last 12 months.

Why is the Star share price crashing?

Investors have been selling down the Star share price on Monday after the company released a very disappointing earnings and guidance update.

According to the release, the company’s first half earnings have been impacted by operational changes arising from the Bell and Gotterson Reviews, a step-up in remediation costs, and increased competition in Sydney from Crown Sydney.

First half revenue grew 30% on pre-COVID levels for The Star Gold Coast and 9% for Treasury Brisbane, but fell 13.5% for The Star Sydney. This led to overall group revenue falling 1% on pre-COVID levels.

In respect to its ongoing remediation actions, Star revealed that it has continued to invest in improved compliance capabilities and incurred remediation costs of ~$20 million during the half. This includes a significant increase in headcount including the use of ‘surge’ third party consultants to improve compliance processes as it seeks to return to licence suitability.

In light of this, Star expects to report underlying EBITDA of $195 million to $205 million during the first half. Though, it is worth noting that this excludes provisions for fines and one-off legal costs which will be treated as significant items.

Full year guidance

Unfortunately, things aren’t expected to get any easier in the second half. In fact, its second half profits are expected to be softer half on half.

This is expected to lead to full year underlying EBITDA of $330 million to $360 million. This is based on the assumption that market conditions and the regulatory environment do not materially change.

Non-cash impairment

Star also revealed that it is writing down the value of its Sydney business due to operational changes implemented following the Bell Review, amendments to the NSW Casino Control Act, and the potential for an increase in NSW casino duty rates from FY 2024.

Management is anticipating a non-cash impairment charge in the range of $400 million to $1.6 billion in its half year results.

It notes that the high end of this range is based on the implementation of NSW casino duty rate increases as proposed by the NSW Government, whereas the low end of the range assumes no change in NSW casino duty rates.

Management commentary

Star’s CEO and Managing Director, Robbie Cooke, commented:

We have been pleased with the ongoing strength of trading across our Queensland based properties, while trading at The Star Sydney has been impacted by operational changes associated with the outcome of the Bell Review as well as competition from Crown Sydney

Whilst the outcome of recent regulatory and legislative developments remains uncertain, we have taken a prudent approach to assessing the carrying value of our assets, which has resulted in a non-cash impairment charge which will be recognised in our 1H FY23 results.

The post Why did the Star Casino share price just dive 19% to an all-time low? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ordinaries shares going gangbusters on Monday
• Aurizon share price tumbles 7% as profits are derailed
• 2 ASX dividend shares that could generate $1,000 annual income with just $10,000
• Why is the Appen share price diving 10% on Monday?
• Beach Energy share price gains as dividend doubled

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OI5cJCg

It’s been a pretty disappointing start to the trading week for the All Ordinaries Index (ASX: XAO) so far this Monday. At the time of writing, the All Ords has lost 0.14% of its value, putting the index at just over 7,620 points.

But not all All Ords shares are having such a down day today. So let’s take a look at three All Ords shares that are making their investors very happy.

3 ASX All Ords shares bucking the market on Monday

Audinate Group Ltd (ASX: AD8)

Audio visual technology share Audinate is our first All Ords stock worth a look today. Audinate shares are tearing it up this Monday. The company is currently enjoying a massive 11.85% rise at present, putting the Audinate share price at $8.02 a share:

This comes after Audinate reported its half-year results for the first half of FY2023 this morning. As we covered this morning, the company reported an impressive 39.3% rise in revenues to US$20.6 million, while gross profits were up 30% to US$14.5 million. Clearly, investors have been delighted by what the company had to say.

HT&E Ltd (ASX: HT1)

Next up, we have All Ords media and advertising share HT&E. Here, There and Everywhere, the company formerly known as APN News and Media, has had no fresh news or earnings out today. But that didn’t stop the company’s shares from rocketing 10% to $1.32 apiece at one stage this morning. They’ve now settled 3.75% higher at $1.245 a share:

This could have something to do with speculation that HT&E could be the target of a takeover offer. According to reporting in The Australian, the company’s financials have spurred some potential suitors, including some private capital firms, to weigh up their options.

Helios Energy Ltd (ASX: HE8)

Finally today, we have the All Ords oil and gas hopeful Helios Energy. Helios shares are another ASX winner this Monday, with the company up a lucrative 8.59%, to 10.75 cents per share:

Helios hasn’t put anything new out today. However, ASX energy shares are collectively surging today, thanks to rising oil prices. As my Fool colleague flagged this morning, WTI crude rose 2.2% last Friday, while Brent crude was up 2.4% to US$86.52 a barrel.

Thanks to these gains in the oil markets, oil shares ranging from All Ordinaries small-cap players like Helios to giants like Woodside Energy Group Ltd (ASX: WDS) are putting on very pleasing performances.

The post 3 ASX All Ordinaries shares going gangbusters on Monday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Audinate share price jumps 13% on record half
• ‘Great product, dominance in one area’: Expert names unique ASX share to buy
• 3 small-cap ASX shares Celeste is riding off into the sunset on
• Guess which ASX All Ords share is leaping higher on a return to profit
• ASX shares investors rejoice! RBA says inflation has now peaked

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

from The Motley Fool Australia https://ift.tt/8YA4dU9

The Aurizon Holdings Ltd (ASX: AZJ) share price has landed on the unfavourable side of shareholders today following its first-half results.

In the first hour of trade, shares in the freight rail company are being exchanged at $3.43 — a 7% thumping. If Aurizon shares close around their current level today it will be their worst performance since 20 March 2020.

Aurizon share price suffers amid dismantled earnings

• Revenue up 12% compared to the prior corresponding period (pcp) to $1,694 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) down 7% to $673 million
• Net profit after tax (NPAT) down 34% to $169 million
• Interim dividend down 33% to 7 cents per share fully franked
• Above-rail coal volumes and network volumes down 8% and 2% respectively

The first half was a mixed bag, but ultimately the detractors prevailed.

Record grain haulage and the completed acquisition of One Rail meant Aurizon benefited from a strong result under its Bulk unit. This portion of the business contributed $521 million in revenue (up 51%) and $100 million in EBITDA (up 33%).

Meanwhile, the Coal unit weighed heavily on Aurizon’s EBITDA — contributing only $230 million, down 20% pcp. This subdued performance was attributed to a reduction in volume due to wet weather and lower contract rates.

What else happened in the first half?

During the first half, Aurizon announced the sale of its East Coast Rail business. The Aurizon share price rallied 4% on 16 December last year as shareholders were informed of the sale for $425 million in cash. It was stated that proceeds were initially used to repay debt.

Speaking of debt, Aurizon increased its debt by a total of $70 million during the half to fund its One Rail acquisition. The enlarged debt profile increased the company’s interest expense to $104 million.

What did management say?

Aurizon managing director and CEO, Andrew Harding, highlighted the major acquisition of One Rail during the period. The potential to expand into growing areas such as copper, lithium, and rare earths was noted by Harding.

Consistent with our strategy, we delivered strongly on key initiatives to diversify and expand the business in rapidly growing markets and regions. These were substantial steps in our aspiration to double the size of the Bulk business over the decade through organic growth and acquisitions.

Furthermore, the freight company’s CEO explained the challenges faced in the first half, stating:

These achievements were accomplished during a challenging period operationally, with prolonged flooding on the East Coast together with a number of significant third-party derailments and incidents that resulted in reduced volumes and revenue.

What’s next?

The Aurizon share price is likely feeling the effects of the company’s FY23 EBITDA guidance being reduced today.

Due to prolonged adverse weather, management is now forecasting group underlying EBITDA between $1,420 million and $1,470 million in FY23. This reflects a guidance cut of 4% compared to previous expectations.

Lower EBITDA from Coal and Network are the detractors in the forecast. Whereas, Aurizon is anticipating increased revenue and earnings under its Bulk banner.

Aurizon share price snapshot

Despite their blue-chip stature, Aurizon shares have not been the place to be so far in 2023. While the S&P/ASX 200 Index (ASX: XJO) has marched 6.7% higher year-to-date, the freight company’s shares have fallen 8.2%.

However, the company has provided its shareholders with an above-industry-average dividend yield. Currently, Aurizon is yielding around 5.8% before factoring in today’s interim payment.

The post Aurizon share price tumbles 7% as profits are derailed appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 4 best ASX dividend shares to buy right now: expert

Motley Fool contributor Mitchell Lawler 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 recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/0dUpSVy

The two ASX dividend shares I’m about to share could deliver enormous annual passive income for investors. With just a $10,000 investment, they can potentially each make dividend returns of more than $1,000.

If the dividend yield is at least 10%, then shareholders could get returns that are close to the S&P/ASX 300 Index (ASX: XKO) total return from just the dividend income.

Of course, dividends are not guaranteed. And normally there’s a reason that the dividend yield is so high. Typically, it’s a combination of a low price/earnings (p/e) ratio and a fairly high dividend payout ratio.

With interest rates currently rising and inflation biting into household finances, some ASX retail shares have been sold down. This could give investors the opportunity to snare some solid companies at lower prices and elevated dividend yields.

Even if the dividend is lower than forecast, the yield could still be above 10%, so we can see that there is a margin of safety.

Dusk Group Ltd (ASX: DSK)

Dusk is a retail company that specialises in exclusive home fragrance products designed in-house. It sells candles, ultrasonic diffusers, reed diffusers and essential oils, as well as fragrance-related homewares.

In the first 19 weeks of FY23, the ASX dividend share saw total sales growth of 23.9%, with stores now open after lockdowns. The business is opening new stores in Australia, expanding into New Zealand and benefiting from growth in its membership numbers.

Commsec forecasts that the annual dividend per share could potentially be 17 cents in FY23. At the current Dusk share price, that suggests the FY23 grossed-up dividend yield could be 13.5%.

With a $10,000 investment, that would generate $1,350 of annual passive income in year one.

Adairs Ltd (ASX: ADH)

Adairs is another ASX retail share. It sells homewares and furniture through its Adairs stores, Focus on Furniture stores and the Mocka brand.

The company has benefited from household demand for home improvement over the last few years.

That strong demand may not continue forever, but Adairs has seen growth in the first 16 weeks of FY23. Compared to locked-down COVID times at the start of FY22, total sales are up 45.5%, and sales excluding Focus were up 7.6%. This was thanks to consumer spending remaining “resilient”.

Adairs expects to open four to six new Adairs stores in FY23 and two to three new Focus stores. The ASX dividend share forecasts FY23 earnings before interest and tax (EBIT) to be between $75 million and $85 million.

On Commsec, the projection is that Adairs could pay an annual dividend per share of 18 cents with a grossed-up dividend yield of 11%.

With a $10,000 investment, that translates to an annual passive income of $1,100 in year one.

The post 2 ASX dividend shares that could generate $1,000 annual income with just $10,000 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• This ASX 300 dividend share is projected to pay a 14% yield by 2025
• Here’s how I’d start building a second income this February, for $30 a week
• How I’d invest $200 a month in ASX shares to make a $20,000 passive income for life
• I think these 2 cheap ASX shares are buys for value investors
• Why is this ASX retail share suddenly plunging 4% today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Dusk Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4jlf2wO

The Appen Ltd (ASX: APX) share price is taking a tumble, down 9.9% in Monday morning trade.

The artificial intelligence (AI) data services company saw its shares rocket last week, gaining 28% over the past four trading days. With no price-sensitive news out last week, that surge looks to have been driven by investor exuberance surrounding OpenAI’s ChatGPT.

But after Appen reported that it expects a significant non-cash impairment charge, investors are hitting the sell button today.

Why the impairment charge?

The Appen share price is under pressure after the company reviewed the value of cash generating units (CGU) and its assets. Following that review, the ASX tech stock said it expects to recognise a non-cash, pre-tax impairment charge of $204 million in its financial results for the year ended 31 December.

The company said the charge “reflects the impairment of goodwill and certain intangibles associated with the new markets (excluding China) CGU”. These are comprised of the Global Product, Enterprise, Government and Quadrant business units.

Also likely pressuring the Appen share price today is the company’s reduction in future revenue growth assumptions.

As the impairment is non-cash and a non-operating item, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) and underlying net profits after tax (NPAT) won’t be impacted. And Appen highlighted that it found no indicators of impairment in its larger Global Services CGU.

Appen is scheduled to release its full-year results on 27 February.

The ASX tech stock said it expects to report revenue at the higher end of its guidance range of US$375 million to US$395 million. EBITDA is expected to come in at the lower end of the guidance range of US$13 million to US$18 million.

Appen share price snapshot

As you can see in the chart below, the Appen share price was enjoying a strong rebound in 2023. Even with today’s big slide factored in, the ASX tech share remains up 20% year to date.

The post Why is the Appen share price diving 10% on Monday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Appen, Endeavour, Imugene, and Treasury Wine shares are pushing higher
• Appen share price soars again, up 29% since Monday
• Beaten-up ASX 300 tech share Appen is booming 10% today
• Why Appen, Janus Henderson, Lithium Energy, and Pinnacle shares are charging higher
• Why Appen, Gold Road, Healius, and Pinnacle shares are dropping today

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

from The Motley Fool Australia https://ift.tt/TiCV5nt

The Insurance Australia Group Ltd (ASX: IAG) share price is in the green in morning trade, up 3.18%.

The S&P/ASX 200 Index (ASX: XJO) insurance stock closed on Friday trading for $4.71 per share. Those shares are currently changing hands for $4.86 apiece.

This comes following the release of the company’s half-year results for the six months ending 31 December (1H FY23).

Read on for the highlights.

IAG share price gains on profit boost

• Gross written premium (GWP) of $7.06 billion, up 7.5% from 1H FY22
• Underlying insurance margin of 10.7%, down from 15.1% from the prior corresponding half year
• Net profit after tax (NPAT) leapt 171% year on year to $468 million
• Common equity tier 1 (CET1) multiple increased nine points to 1.11
• Declared a six cents per share (cps) dividend, 30% franked, in line with 1H FY22’s unfranked six cps dividend

What else happened during the half year?

The IAG share price could also be receiving some tailwinds after the insurer reported adding more than 100,000 direct customers across Australia and New Zealand over the six months.

Retention levels for motor insurance were 91% while home insurance retention rates were 95%.

The company attributed its GWP growth to higher rates driven by inflation pressures, along with growing home and motor policies in its Australian DIA business.

Impacted by some large events over the half year, IAG’s natural perils costs came in at $524 million. That’s $70 million higher than the allowance.

Excluding the business interruption provision release of $252 million post-tax, underlying NPAT was $216 million, up 25% from the $173 million reported in 1H FY22.

What did management say?

Commenting on the results helping boost the IAG share price today, CEO Nick Hawkins said:

We delivered an improved net profit after tax and reported margin in the first half in challenging economic conditions. We maintained good cost discipline, our businesses are in good shape, and our focus on growth and profitability delivered the strongest first half gross written premium growth in seven years…

Our digital transformation is progressing well… New mobile, automation and online features were introduced across IAG in the first half, delivering simpler and faster experiences for our customers, partners and brokers.

What’s next?

Looking at what could impact the IAG share price in the months ahead, the ASX 200 insurer upgraded its FY23 forecast GWP growth from mid-to-high single-digit growth to around 10%.

IAG is now forecasting a reported insurance margin of around 10% compared to previous FY23 guidance of 14% to 16%. And its full 2023 financial year natural perils allowance was increased to $1.15 billion following the storms and flooding in Auckland.

“Despite the challenges from the high inflation and perils experience impacting our business in the half, I believe we have a sound basis for confidence as we move into the second half,” Hawkins said.

IAG share price snapshot

As you can see in the chart below, the IAG share price is back in the green for the past 12 months, up 2% since this time last year.

The post IAG share price marching higher on 25% profit boost appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Why Brainchip, Core Lithium, IAG, and Nick Scali shares are dropping today
• IAG share price tumbles on broker downgrade

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.

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

The Audinate Group Ltd (ASX: AD8) share price is having a strong start to the week.

In morning trade, the media networking solutions provider’s shares are up 13% to $8.10.

This follows the release of the ASX tech share’s half year results this morning.

Audinate share price jumps on record half

• Revenue up 39.3% to a record of US$20.6 million (A$30.8 million)
• Gross profit up 30% to US$14.5 million
• Net loss after tax of A$0.4 million
• Positive operating cashflow of A$1.8 million
• Cash and equivalents balance of A$37.9 million
• Sales backlog remains at record levels

What happened during the half?

For the six months ended 31 December, Audinate reported a 39.3% increase in revenue to US$20.6 million and a 30% lift in gross profit to US$14.5 million. This was underpinned by 44.9% growth in sales of chips, cards & modules (CCM) and 22.4% growth in software sales.

The successful launch of its next-generation Brooklyn 3 product was a key driver of its CCM growth during the period. This launch was made in response to sudden and ongoing chip shortages affecting the old Brooklyn 2 module.

Management notes that this product was launched with a higher average selling price (18% increase) and a slightly lower gross margin percentage resulting in an improved average revenue per unit compared to the old Brooklyn module. The good news is that from FY 2024 onwards, the company has a pathway to cost down to improve its gross margin.

Audinate’s software revenue grew 22.4% to US$4.7 million. This was thanks to OEM software product sales, including Dante Embedded Platform, IP Core, and Other Software Royalties.

On the bottom line, while the company recorded a small loss after tax of A$0.4 million, this was an improvement from a A$2.1 million loss a year earlier.

And with Audinate recording a 231% improvement in operating cashflow from a small base to $1.8 million, the company finished with a cash and equivalents balance of $37.9 million.

Management commentary

Audinate co-founder and CEO, Aidan Williams, commented:

We are very pleased that Audinate has again been able to deliver record growth in revenue and EBITDA, as well as improved operating cashflow. Our ability to manage chip supplies, the record demand for Dante products and our ability to successfully pass through price increases have offset the effects of supply chain pressures we first flagged two years ago.

Outlook

Audinate continues to have a significant lead over its rivals, which bodes well for the future.

At the end of the period, the total number of Dante-enabled products grew to a record high of 3,688 products. This represents a 12x lead on the next alternate technology.

Thanks to a combination of this leadership position, strong demand for Dante, a buoyant industry outlook, and an improving (but still constrained) chip supply, management believes it is well-placed for the second half and beyond.

Particularly given that it enters the half with a record backlog and a software revenue run-rate to support USD revenue growth in the historical range. The company also expects its fledgling video business to contribute revenue of at least US$3 million in FY 2023.

Mr Williams added:

Our first half results have been excellent in an environment that remains challenging for both Audinate and our customers. I am optimistic about the second half, in particular the prospects of meaningful further traction in video and ongoing revenue growth as supply chain pressures ease.

The post Audinate share price jumps 13% on record half appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘Great product, dominance in one area’: Expert names unique ASX share to buy

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

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

The Endeavour Group Ltd (ASX: EDV) share price is charging ahead after the company dropped its earnings for the first half of financial year 2023 this morning.

Shares in the drinks retailer and hotel operator are trading 4.69% higher at $7.14 each right now.

Here are the highlights of the company’s 1H 2023 results.

Endeavour share price lifts as hotel earnings double

• After-tax profit lifted to $364 million – a 17% increase on that of the prior comparable period (pcp)
• Sales reached $6.5 billion – a 2.5% increase
• Earnings before interest and tax (EBIT) lifted 15.8% to $644 million
• Earnings per share (EPS) came in at 20.3 cents – up 16.7%
• Declared 14.3 cents per share interim dividend – a 14.4% year-on-year improvement
• Ended the period with a $1.3 billion net debt position

The company’s retail operations (which include BWS and Dan Murphy’s) EBIT slumped 9.3% last half to $418 million, while sales slipped 3.7% to $5.4 billion as the company cycled previous COVID-19 peaks.

Meanwhile, EBIT at its hotels business surged 111.6% to 256 million and sales rose 55.3% to $1.1 billion. That reflected the recovery of the group’s hotels business.

What else happened last half?

It was a big half-year for Endeavour. It expanded its network with 21 new liquor stores and five new hotels. Meanwhile, it renewed 60 retail stores and 34 hotels.

Both BWS and Dan Murphy’s saw record sales in the weeks leading up to the festive season, while the number of active My Dan members rose 9% year-on-year to 4.9 million.

The company also launched its MixIn retail media business and acquired the Shingleback Wines brand.

What did management say?

Endeavour managing director and CEO Steve Donohue commented on the results driving the company’s share price today:

Our team has delivered strong results group-wide, with a standout December from the first restriction-free festive season in three years.

Pleasingly, our [first half] EBIT result of $644 million was 15.8% higher versus prior period, reflecting both the return of hotels to full operation and our careful management of the deleverage impacts of lower retail sales as we cycle COVID-19 driven peaks.

On a three-year comparative basis, both Hotels and Retail sales are trading well ahead with 4.7% and 4.5% [compound annual growth rates (CAGRs)] respectively.

What’s next?

Endeavour’s retail sales remained stable over the first five weeks of this half, rising just 0.2% on those of the prior year. Sales at its hotels, however, lifted 31.5% year-on-year.

The company expects to see some volatility ahead but hasn’t yet seen any material softening in key customer indicators amid current economic uncertainty.

Finally, the company agreed to acquire winery Cape Mentelle last month.

Endeavour share price snapshot

The Endeavour share price has been outperforming the S&P/ASX 200 Index (ASX: XJO) in recent times

The stock has gained 12% so far this year compared to the index’s 7% lift. Meanwhile, the last 12 months have seen Endeavour shares soar 15% while the ASX 200 has risen just 3%.

The post Endeavour share price jumps as sales reach $6.5b appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why Appen, Endeavour, Imugene, and Treasury Wine shares are pushing higher
• 10 ASX stocks to buy before they report this earnings season: Goldman
• Buy these ASX 200 shares for a passive income boost: analysts

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.

from The Motley Fool Australia https://ift.tt/IAkuDo9

There are plenty of blue chip ASX 200 shares to choose from on the Australian share market.

But three of the best, according to Morgans, are listed below. Here’s why the broker thinks highly of these blue chips:

Treasury Wine Estates Ltd (ASX: TWE)

This global wine giant could be an ASX 200 share to buy according to Morgans. Its analysts believe the company is well-placed for strong growth over the next few years thanks to a recent restructure. Morgans said:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $15.71 price target on the wine company’s shares.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 share that the broker rates highly is Bunnings and Kmart owner Wesfarmers. Morgans likes the conglomerate due to its highly regarded management team and strong retail portfolio. It said:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES’s businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.

The broker has an add rating and $55.60 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Finally, this banking giant could be an ASX 200 share to buy according to Morgans. Its analysts are positive on Australia’s oldest bank due its return on equity improvement potential, which is being underpinned partly by its bold cost cutting plans. Morgans explained:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Its analysts have an add rating and $25.80 price target on Westpac’s shares.

The post 3 of the best ASX 200 shares to buy now: broker appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX 200 shares I would buy if I was starting from scratch: expert
• Big yields and strong gains ahead for these ASX shares: analysts
• Here are the top 10 ASX 200 shares today
• Why Appen, Endeavour, Imugene, and Treasury Wine shares are pushing higher
• Do Wesfarmers shares really offer 13% upside AND passive income?

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

from The Motley Fool Australia https://ift.tt/d5usxXY

S&P/ASX 200 Index (ASX: XJO) shares can be quality businesses that are trading at a good discount. The investment team at the Contact Australia Ex-50 fund have outlined three businesses that look unmissable.

The Contact fund managers believe that investor sentiment domestically remains “too negative”. They noted that economic uncertainty is not new – there’s “always something to worry about and the bear case is often easier to believe.”

Higher interest rates are creating “headwinds” for valuations and consumer sentiment, but Contact also pointed to several positive signals including:

• Unemployment at record lows, a “critically important metric”
• Earnings expectations have “moderated significantly”, particularly in consumer-facing industries where consensus forecasts now expect a significant reduction in year over year growth
• Cash positions remain above average for a lot of investors, which would help in a market decline

The fund manager thinks that investing in quality businesses for the long term will continue to do well. Contact believes that market multiples are not “excessive by historical standards”, particularly in the S&P/ASX Small Ordinaries Index (ASX: XSO) which suffered in 2022.

With that in mind, there were three ASX 200 shares that it pointed to in its latest monthly update.

Ampol Ltd (ASX: ALD)

Ampol describes itself as the nation’s leader in transport fuels. It was previously called Caltex Australia. It supplies the country’s largest branded petrol and convenience network (with 1,900 branded sites, including around 690 company-operated retail sites), as well as refining, importing and marketing fuels and lubricants. Across its retail network, it serves approximately 3 million customers each week.

It also has a growing presence in New Zealand as the owner of Z Energy Limited. It sells approximately 40% of all fuel volumes across the country. Ampol also owns a 20% equity stake in Seaoil, a fuel company in the Philippines.

Contact said that Ampol recently reported a “solid” quarterly update, which highlighted the “continued improvement in retail shop and fuels profitability”. It continues to generate “sound refining margins” as well.

The fund manager said that Ampol is trading on a single-digit price/earnings (P/E) ratio multiple and a fairly high dividend yield. The investment team believe it’s “attractively priced”.

Deterra Royalties Ltd (ASX: DRR)

Deterra owns royalties, with its key exposure being to iron ore which relies on the BHP Group Ltd (ASX: BHP) mining area C (MAC) royalty. Deterra receives an ongoing royalty of 1.232% of Australian free on board (FOB) revenue from the MAC royalty. Plus, it receives extra revenue for increased annual mine production above a certain level.

Contact said that the ASX 200 share is benefiting from strong iron ore prices, despite the production of mining area C being marginally below expectations.

The fund manager pointed out that Deterra generates “outstanding” returns on capital and offers a “compelling income stream”

TPG Telecom Ltd (ASX: TPG)

TPG is a telco that owns a number of brands including TPG, Vodafone Australia and iiNet.

Contact pointed out that Vodafone Australia announced price increases for its mobile plans.

The fund manager noted that the ASX 200 share’s lowest-priced plan had increased by 13% to $45 per month with no additional data.

The investment team also said that the mobile market is now “more rational and operators are delivering average revenue per user (ARPU)”. Contact said this bodes well for earnings stability.

The post 3 ASX 200 shares that this fund manager loves at these prices appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX 200 shares I would buy if I was starting from scratch: expert
• This little-known ASX share offers ‘inflation protection at a reasonable price’: fund manager
• 2 ASX 200 shares to buy while energy shortage rages on: experts
• Here are the top 10 ASX 200 shares today
• 20+ years of growing dividends. Why I plan to buy more of this ASX 200 stock in 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 recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/u3gTOtB