Category: Stock Market

It turned out to be a dream end to the trading week for the All Ordinaries Index (ASX: XAO) on Friday. At the market close, the All Ords index had gained a healthy 0.7% to finish at 7,345.8 points.

But it was an even better session for some All Ords shares, largely thanks to the ongoing avalanche of earnings reports.

So let’s check out three All Ords shares that saw major share price action on the back of FY22 earnings.

Three All Ords shares with big price moves on Friday

Cobram Estate Olives Ltd (ASX: CBO)

Cobram Estate shares had a very pleasing day of trading this Friday. The All Ords olive oil producer rocketed 8.93% to close at $1.525 a share. This morning, Cobram announced $140 million in group sales for FY22, which puts the company at a 49% market share of extra virgin olive oil in Australian supermarkets.

However, total revenue fell 44.3% from FY21 to $165.5 million. Earnings before tax (EBT) also fell by 49.5% to $2.5 million. On the bottom line, Cobram reported a net loss after tax of $0.7 million, down from the $35.2 million profit reported for FY21.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

Next up is automotive dealership company Peter Warren. Peter Warren shares initially bounced as high as $2.67 this morning — a 5.1% gain — but finished the day up 0.79% at $2.56. This follows the company dropping its FY22 earnings this morning, too. 

For FY22, Peter Warren reported revenue growth of 5.6% to $1.71 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20.4% to $130.1 million, while profits before tax also rose by 6.8% to $80.8 million.

Superloop Ltd (ASX: SLC)

Superloop shares also saw some major price action today. But unlike the other ASX All Ords shares here, this one disappointed investors. Superloop shares closed the day down a nasty 5.63% at 75.5 cents each.

Clearly, the market didn’t like what the company had to say this morning about FY22.

Superloop reported revenue growth of 137% for FY22 to $262.5 million. Underlying EBITDA was also up significantly, rising 37% to $25.4 million.

However, the company’s gross margin fell from 27.6% in FY21 to 23.5% in FY22. Superloop’s net loss after tax widened to $52.6 million for the financial year, up 82.5% from FY21’s loss of $32 million.

The post 3 ASX All Ords shares that saw major price action on FY22 results appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Universal Store share price slides lower as earnings tighten in FY22
• City Chic share price dives another 12% in dire week
• Brokers name 3 ASX shares to buy today
• How does VGS stack up against other ASX index funds?

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 PWR Holdings Limited and SUPERLOOP FPO. The Motley Fool Australia has positions in and has recommended PWR Holdings Limited. 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 City Chic Collective Ltd (ASX: CCX) share price is currently down 10.3% at $1.79 today after trawling another 12% low for most of today. This means shares in the ASX-listed plus-sized apparel global retailer are now down by almost 30% since 24 August.

The ASX retail share has fallen hard after the release of the company’s FY22 results.

What did City Chic tell investors?

The company reported that sales rose by 39% to $369.2 million, with comparable sales growth of 25.5%. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 11.3% to $47.1 million. Underlying net profit after tax (NPAT) increased by 14.5% to $28.5 million.

City Chic also said that its global customer base increased 30% over the year to 1.4 million active customers, with growth in all regions.

Online comparable sales growth was 33.8%, with 82% online penetration. It said that 56% of its revenue came from the northern hemisphere. The ‘partner business’ grew to $30 million for FY22, with $22 million of that coming in the second half.

However, there was one factor that saw a big swing to a negative position. Operating cash flow sank from a positive $15.2 million in FY21 to negative $51.9 million in FY22. Management said there was a working capital increase of $90.3 million with an investment in inventory of $128.9 million.

City Chic said its inventory is expected to normalise in FY23. Inventory jumped from $67 million at 27 June 2021, to $125.7 million at 26 December 2021 and then up to $195.9 million at 3 July 2022. The company said that 48% of inventory is available for sale, while 52% is secured for release over future periods.

Management said that the inventory supported growth with reduced product cost and supply chain risk.

Outlook for FY23

City Chic said it expected another year of profitable growth, despite the ongoing global economic uncertainty. This was due to City Chic’s increasing market share across geographies and channels and the investments in its distribution infrastructure.

The company said that to hedge against anticipated promotional activity within the ‘plus market’, it would implement price increases where appropriate to mitigate the risk of ‘margin compression’.

In the first seven weeks of FY23, City Chic advised that trading was “broadly” in line with the prior corresponding period, with a return to positive momentum in August,

Australian stores were “trading above expectations and ahead of last year given the impact of store closures”. Australian online sales were below last year in the first two weeks of July but have performed well since, trading above last year.

The US market was “volatile”, with the City Chic website trading above last year, as better dressing demand remains “strong” and the Avenue website trading “below” last year, but showing week on week improvements. The UK “continued to show growth”.

Its partner business has “continued to perform well” and is expected to drive incremental revenue growth throughout FY23.

City Chic share price snapshot

Over the last month, the City Chic share price is down more than 25%. And City Chic shares have tanked 70% since the beginning of 2022.

The post City Chic share price dives another 12% in dire week appeared first on The Motley Fool Australia.

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More reading

• Why City Chic, Macquarie Telecom, Polynovo, and Smartgroup shares are sinking
• 3 ASX All Ords shares sliding following earnings updates
• Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking
• City Chic share price plummets 13% as cash flow sinks in FY22
• 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target on this supermarket giant’s shares to $20.10. This follows the release of a full year result that fell a touch short of the broker’s expectations but ahead of consensus estimates. And while it notes that Coles’ Ocado and Witron costs are now expected to be higher, these should still be a big boost to earnings in the future once operational. Overall, the broker has seen enough to stay positive on the retailer. The Coles share price is trading at $17.65 today.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this pizza chain operator’s shares slightly to $90.00. The broker believes that Domino’s is over the worst of its issues now and that it is onwards and upwards from here. So much so, it is forecasting double-digit earnings growth in both FY 2023 and FY 2024. Outside this, the broker highlights that the engine of Domino’s growth is the rollout of new stores and feels that its medium-term opportunity is undiminished. The Domino’s share price is fetching $66.04 on Friday.

Qantas Airways Limited (ASX: QAN)

Analysts at UBS have retained their buy rating and lifted their price target on this airline operator’s shares to $6.80. According to the note, UBS was impressed with Qantas’ performance in FY 2022, with its results coming in well ahead of its estimates. In addition, with Qantas announcing a $400 million buyback, it feels this is an indication that management is confident in its outlook. The Qantas share price is trading at $5.16 this afternoon.

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

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More reading

• Why Bega Cheese, Jumbo, Pilbara Minerals, and Qantas shares are rising
• Is the Qantas share price a buy following the airline’s latest results?
• Here are the top 10 ASX 200 shares today
• Is the Coles share price a buy following the company’s latest results?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. 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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When it comes to ASX-listed exchange-traded funds (ETFs), the Vanguard MSCI Index International Shares ETF (ASX: VGS) is a popular choice for international shares exposure. Along with the iShares S&P 500 ETF (ASX: IVV), VGS is consistently a top receiver of ETF inflows from ASX investors.

But how does this fund’s performance measure up to other ASX index funds?

The Vanguard International Shares ETF is an extremely broad and diverse fund. It holds almost 1,500 individual shares from more than 20 advanced economies around the world. These include countries like Canada, the United Kingdom, Japan, France, Germany, and Hong Kong.

But in practice, most of the VGS shares by weighting stem from the United States. The US accounts for 71% of VGS’s total portfolio weighting, on the latest numbers.

As such, one might recognise some of its top holdings. They include names like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL).

How has the VGS shares ETF performed?

So let’s check out the Vanguard International Shares ETF’s performance metrics.

As of 31 July, VGS had returned a loss of 4.16% over the preceding 12 months. Over the past three years, the ETF averaged an annual return of 9.51%, which stretched to 12.15% over the past five years.

So how does that compare with other ASX-listed index funds?

Well, VGS looks good against ASX shares, for starters. Let’s take the performance of the popular Vanguard Australian Shares Index ETF (ASX: VAS).

VAS has given its investors a negative return of 2.24% over the year to 31 July 2022. Over the past three years, it has averaged 4.48% per annum, and 8.12% per annum over the past five. So certainly behind VGS.

What about other international ETFs?

Well, VGS’s metrics don’t look quite as rosy when compared to the US-only iShares S&P 500 ETF.

IVV has delivered a positive return of 0.24% over the 12 months to 31 July. It has also averaged 12.58% per annum over the past three years, and 15.61% over the past five.

But neither VGS nor IVV can hold a candle to another US-based index fund, the BetaShares NASDAQ 100 ETF (ASX: NDQ). NDQ is more concentrated than IVV, holding 100 of the largest companies on the tech-heavy NASDAQ exchange.

NDQ has returned a loss of 8.68% over the year to 31 July. But it has still averaged 17.95% over the past three years, and an impressive 20.69% over the past five.

So all in all, VGS has been a solid ASX performer in recent years, beating out the ASX-only VAS ETF. But it has not delivered the kinds of returns that either the iShares S&P 500 ETF or the BetaShares NASDAQ 100 ETF have managed to give their investors. Food for thought.

The post How does VGS stack up against other ASX index funds? appeared first on The Motley Fool Australia.

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More reading

• 3 top ETFs for ASX investors to buy
• 2 wonderful ETFs to buy for portfolio diversification
• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?
• 2 ETFs I think would make good additions to most portfolios
• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 ETF. 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 big week in the August earnings season with scores of ASX businesses reporting their results. Today, these three ASX shares are taking off after their companies posted details of their FY22 profits.

Let’s take a look.

Slater & Gordon Limited (ASX: SGH)

The Slater & Gordon share price is up 9.57% to 63 cents today. This follows the law firm releasing its full-year FY22 results and a business update this morning.

The company said its results proved it had turned things around in the second half of FY22 after COVID-19 lockdowns caused problems in 1H FY22.

It reported a net profit after tax (NPAT) of $2.2 million for the full year. This was achieved from a net loss position of ($7.5 million) after 1H FY22. But the full-year result is well down on the $14.5 million of NPAT in the prior corresponding period (pcp).

The firm’s net asset position improved to $184 million, up from $180.5 million pcp.

Slater & Gordon CEO John Somerville said:

When we reported our half year results in February, we said we had started to see signs of improvement following the lifting of lockdowns and we are pleased that the second half saw the continuation of that trend with the business returning to deliver an overall profit for the year.

Our firm continues to make good progress on its improvement and growth plans, but we recognise we still have more work to do.

360 Capital Group Ltd (ASX: TGP)

The 360 Capital Group Ltd share price is soaring 10.12% today to 93 cents. This is also on the back of full-year FY22 results released today.

The company reported operating revenue of $53.9 million, up 157% pcp. Its operating profit was $30.9 million, up 240% pcp. Operating earnings per share (EPS) came in at 14.1 cents per share, up 236% pcp.

The group also announced a special dividend of eight cents per share payable on 7 October. Shareholders will receive this on top of the six cents per share in total ordinary dividends paid this year.

The company says its principal investing continues to drive profits. It has also simplified the business to focus on its core strengths of real estate investing and funds management.

Part of that simplification process was selling its 19.9% stake in Irongate Group to Charter Hall Group (ASC: CHC). It also bought certain assets as part of the transaction.

This improved the balance sheet. After settlement on 15 July, the company had more than $160 million in cash, no bank debt, and $49.4 million in liquid assets.

This provides “the opportunity to capitalise on market volatility and dislocation given the Group’s 16-year track record of real estate investing”.

Close The Loop Inc (ASX: CLG)

Close The Loop Inc is a relatively new entrant to the ASX. It began trading in December 2021.

As my colleague Sebastian reported at the time, the Close the Loop share price skyrocketed 55% on its first day of trading to a high of 31 cents. That’s well beyond its initial public offering (IPO) price of 20 cents.

The company describes itself as “an end-to-end solutions provider from design and manufacturing, through to collection and recycling of products”.

It released its full-year FY22 statutory accounts, a trading update, and an investor presentation today.

ASX investors appear to be very happy with what Close the Loop told them today, with the share price up 9.52% to 46 cents this afternoon.

It reported revenue of $89.2 million, which was 20.7% above the prospectus forecast and up 32.3% pcp. Its earnings before interest, tax, depreciation and amortisation (EBITDA) was $14.3 million, 16.3% above prospectus forecast and up 8.3% pcp.

The company said: “Strong organic revenue growth across all divisions contributed to significant earnings uplift.”

Close the Loop also made various acquisitions during the year. It increased its net tangible assets per share from 0.96 cents at 30 June 2021 to 7.31 cents at 30 June 2022.

Group CEO Joe Foster said:

Close the Loop Group’s strong performance in our first full year reporting period as an ASX-listed company has ensured we have achieved or exceeded key prospectus metrics and delivered on our strategic pillars.

We acquired complementary and earnings accretive businesses in Oceanic Agencies and Crasti & Co. and, in July, added Alliance Paper. These three acquisitions add to the cumulative power Close the Loop has in its ability as the only ASX-listed company operating in all parts in the circular economy – from product design, manufacturing, collection and recycling and then eventually recovering it as new packaging or secondary products, or simply packaging to packaging.

The post 3 ASX shares rocketing 10% on positive earnings updates appeared first on The Motley Fool Australia.

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More reading

• 2 small-cap ASX shares this fund manager is ‘confident’ about

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 Wesfarmers Ltd (ASX: WES) share price is in focus after the release of its FY22 results. Shareholders will want to know about the Wesfarmers dividend.

Wesfarmers says that it’s developing platforms to support long-term shareholder returns.

In the 2022 financial year, it said that revenue rose by 8.5% to $36.8 billion. Net profit after tax (NPAT) fell 1.2% to $2.35 billion and earnings per share (EPS) dropped 1.2% to 207.8 cents. Second half net profit after tax rose 13.1%.

Wesfarmers dividend

The Wesfarmers board decided to declare a fully franked final ordinary dividend of $1 per share. This represented an increase of 11.1% which reflected the “strong” net profit after tax in the second half of FY22.

Wesfarmers said that the ex-dividend date for the final dividend is 31 August 2022. The dividend is expected to be paid on 6 October 2022.

That brought the full year dividend to $1.80 per share, which was an increase of 1.1%.

There will be a dividend re-investment plan (DRP), but it won’t be underwritten. The shares are expected to be purchased on market. The last day for application for the DRP is 2 September 2022.

How did Wesfarmers decide on this dividend payment?

The company said that dividend distributions are determined based on franking credit availability, current earnings, cash flows, future cash flow requirements and targeted credit metrics.

Wesfarmers said that it’s maintaining its focus on maximising the value of franking credits for shareholders.

Cash flow and balance sheet

Wesfarmers reported that operating cash flow reduced 32% to $2.3 billion and free cash flow reduced 59.5% to $1.11 billion.

It said that divisional operating cash flow declined 14.2% to $4.1 billion, with divisional cash generation of 78%. This was due to retail net working capital movements due to ‘normalisation’ in inventory after temporarily low balances in FY20 and FY21, and the timing of supplier payments. There was also significantly higher utilisation of leave provisions.

Free cash flow was partly lower because of cash paid for the acquisitions of Australian Pharmaceutical Industries and Beaumont Tiles.

It finished with a net financial debt position of $4.3 billion.

Wesfarmers share price snapshot

Over the past six months, Wesfarmers shares have fallen by around 3%.

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

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More reading

• Wesfarmers share price lifts as earnings beat brokers’ consensus
• Wesfarmers share price in focus as profit slips to $2.35b
• Earnings preview: Here are the ASX shares reporting today
• 5 things to watch on the ASX 200 on Friday
• Wesfarmers share price edges higher ahead of Thursday’s results

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 Wesfarmers Limited. 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 Zip Co Ltd (ASX: ZIP) share price is in the red.

Again.

Zip shares are down 4.1% in afternoon trade to 91 cents per share.

This follows on a 2.1% loss yesterday, when the buy now, pay later (BNPL) stock released its full-year results for the 12 months ending 30 June (FY22).

And those results were, well, less than stellar.

Despite reporting a record year of revenue of $620 million, up 57% from FY21, the company reported a jaw-dropping $1.1 billion loss from ordinary activities after income. That’s 63% more than the sizeable losses it suffered the prior year.

Remarkably, the Zip share price was up for almost all of the day, with gains of 2.3% on the board just 30 minutes before the closing bell.

Then investors appeared to get cold feet. Or perhaps re-examined the number of zeros in the net loss column. Either way, Zip shares lost 4.7% in the final 30 minutes of trade.

Is the company still overvalued?

Which brings us to UBS analyst Tom Beadle.

Beadle believes that even at today’s 91 cents, the Zip share price may be double what it should be.

According to Beadle (courtesy of The Australian):

In FY23, managing cash burn and demonstrating a clear path to profitability will be crucial for Zip. Whilst Zip have announced a range of initiatives designed to reduce cash burn, quantifying their precise impact remains difficult; in our view material uncertainty remains.

Indeed, as The Motley Fool reported yesterday, Zip’s cost of sales grew by an unenviable 76% in FY22. The company aims to reduce costs in part by ceasing its operations in Singapore and the United Kingdom. Zip also said it will focus on reducing mounting credit losses.

Nonetheless, UBS’ Beadle retains a sell rating on the company, with a 45-cent target for the Zip share price.

Zip share price snapshot

It’s been a rocky year for shareholders of the BNPL company, with the Zip share price down a painful 79% since the opening bell on 4 January. For some context, the All Ordinaries Index (ASX: XAO) is down 7% year-to-date.

The post Here’s why UBS tips the Zip share price to halve appeared first on The Motley Fool Australia.

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More reading

• Zip’s FY22 loss is 165% of its market cap. So why did its shares go up?
• Zip share price lifts despite $1 billion loss for FY22
• Earnings preview: Here are the ASX shares reporting today
• How did the Zip share price respond last time the company reported?
• Looking to buy Zip shares? Here’s what to look for in tomorrow’s results

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 ZIPCOLTD FPO. 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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By any metric, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has had an awful year over 2022 thus far. As it stands today, the ANZ share price has lost a nasty 16.92% year to date.

That doesn’t look great against the broader S&P/ASX 200 Index (ASX: XJO), which is also in the red for the year, but by a far tamer 6.2%. So ANZ’s 2022 losses have almost tripled those of the ASX 200. Ouch.

But in one positive for newer investors, in particular, this fall in value has pushed up the ANZ dividend yield to the 6.19% it stands at today. That comes from ANZ’s last two dividend payments.

These were the interim dividend of 72 cents per share, fully franked, that investors were paid on 1 July, and the final dividend of 72 cents per share, also fully franked, that shareholders received last December.

So is this rather large dividend yield really the top offering of the big four ASX banks at present?

Does ANZ really top the ASX bank shares for dividends today?

Well, let’s go through them. ANZ’s dividend certainly looks good against the current offering from the ‘big dog’ of the ASX banks, Commonwealth Bank of Australia (ASX: CBA).

CBA shares are currently offering a trailing yield of 3.91% at the current share price. That’s including the bank’s final dividend hike that was delivered earlier this month to $2.10 per share. Nothing to turn a nose up against, but certainly not in ANZ’s ballpark.

Turning to Westpac Banking Corp (ASX: WBC), we can see that Westpac has a yield of 5.56% on the table today. That’s getting close to ANZ, but not quite a cigar.

Finally, National Australia Bank Ltd (ASX: NAB) has a dividend yield of 4.55% on offer today. Again, that’s solid, but no candle to ANZ.

So it is true that ANZ currently has the highest dividend yield of the big four ASX bank shares today.

As we discussed earlier, this is something of a byproduct of the poor performance of ANZ shares over recent months. But perhaps dividend income-minded investors won’t care too much about that.

The post Are ANZ shares really offering the highest dividend yield of the big four? appeared first on The Motley Fool Australia.

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More reading

• Here are 2 ASX dividend shares that analysts are tipping as buys
• NAB is the ASX 200 bank share I’d buy today
• The CBA share price is down 4% in August. What’s going on?
• Goldman Sachs names 4 reasons the Westpac share price is cheap
• Could this pose a risk to the ANZ share price in the future?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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 Corporation. 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 Big River Industries Ltd (ASX: BRI) share price is rocketing today following the release of the company’s full-year results.

At the time of writing, the timber and building manufacturer’s shares are up 31.89% to $2.44.

Big River share price storms higher following record revenue

Big River delivered its FY2022 results for the 12 months ended 30 June 2022. Here are some of the key takeaways:

• Revenue up 45.4% to a record $409.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 113.3% to $48 million
• Underlying net profit after tax (NPAT) up 191% to $22.7 million
• Earnings per share (EPS) up 989.1% to 26.03 cents
• Final dividend of 10 cents per share, fully franked, bringing the full year dividend to 15.5 cents per share, up 176.8%

What happened in FY2022?

Big River reported a superb financial performance with robust growth recorded across the entire board.

The group achieved revenue of $409.3 million, an increase of 45% over the previous financial year. This was reflective of a solid construction sector, particularly the detached housing market, that was still benefiting from the homebuilder package introduced during FY2021.

EBITDA pre-significant items leapt by 113% to $48 million. Big River highlighted that growth was experienced in every division and geographic region in which the business operates.

Notably, a combination of strong organic growth, better operating cost leverage and contribution from its recent acquisitions drove the result.

EBITDA pre-significant items margin grew from 8% to 11.7%.

Net Profit after tax pre significant items stood at $22.7 million, an increase of 191% compared to the prior reporting period.

What did management say?

Big River CEO Jim Bindon touched on the outstanding results, saying:

FY22 was a period of substantial growth and success for our company, but one that also presented major challenges for our staff, customers and suppliers alike. Covid-19 related illness put pressure on all staff, while major product shortages needed close and expert management. Significant weather events affected several of our sites, and inflationary pressure impacted everyone in the supply chain.

Despite all these challenges, record revenue, profitability, earnings per share and free cash flow was achieved, which was a testament to all our employees, customers and suppliers.

What’s the outlook for FY2023?

Looking ahead, Big River advised that addressable market volumes are forecasted to grow modestly in FY2023.

The company has an extended pipeline due to project delays, and material and labour shortages. This continues to underpin the near-term outlook.

Like-for-like revenue growth in the first 8 trading weeks of FY2023 is 23.3% higher than the corresponding period.

In addition, freight and supply chain pressure is expected to continue easing throughout the year.

Big River share price snapshot

With today’s strong gains, the Big River share price is up 14% in 2022.

For context, the S&P/ASX 200 Materials (ASX: XMJ) sector is up 0.8% over the same time frame.

Big River commands a market capitalisation of approximately $200.64 million.

The post Guess which little-known ASX share is rocketing 30% on ‘outstanding growth’ appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Ramsay share price plunges 4% after suitor withdraws takeover offer
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• Polynovo share price plummets 15% despite surging full-year revenue
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) looks like it is on track to end the trading week on a high note so far this Friday. At the time of writing, the ASX 200 is up a pleasing 1.05% at just over 7,120 points. The ASX 200 has now put on a pleasing 2.2% or so since Tuesday.

But let’s dive deeper into these share market gains and take a look at the shares currently topping the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

South32 Ltd (ASX: S32)

First up this Friday is ASX 200 diversified miner South32. So far today, a hefty 11.96 million South32 shares have changed owners. There’s been no news out of South32 today. Saying that, the miner did report its FY22 earnings yesterday, which were well-received by investors at the time.

Today, the company’s shares are down slightly by 0.23% at $4.26 a share. But the company did initially rise this morning. It’s probably a combination of these vents that has led to this elevated trading volume we see.

Tabcorp Holdings Ltd (ASX: TAH)

Next up today, we have ASX 200 gaming company Tabcorp. This Friday has seen a sizable 18.28 million Tabcorp shares change tables at present. Again, nothing out of this company today.

But Tabcorp did report its earnings on Wednesday this week. Like south32, these were welcomed by investors. Tabcorp shares have gained 0.99% so far today to $1.02 a share, putting the company up an impressive 9.9% since Monday. This is the likely cause of the high volumes we are witnessing.

Pilbara Minerals Ltd (ASX: PLS)

Our third, final and most traded ASX 200 share of the day so far goes to ASX lithium share Pilbara minerals. This Friday has seen a whopping 30.66 million Pilbara shares swap hands as it currently stands.

Pilbara shares are up an eye-catching 4.7% so far today to $3.57 a share. As my Fool colleague James touched on earlier, this is despite an absence of news out of the lithium producer.

So these gains, and volumes, might have something to do with a bullish broker note earlier this week.

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

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More reading

• Why Bega Cheese, Jumbo, Pilbara Minerals, and Qantas shares are rising
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• South32 share price gains ground on record FY22 earnings and special dividend
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy 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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