Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is charging higher. In afternoon trade, the benchmark index is up 0.7% to 7,048.1 points.

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

Bega Cheese Ltd (ASX: BGA)

The Bega Cheese share price is up 12% to $4.19. Investors have been buying this food company’s shares following the release of its full year results. This was despite the company reporting a 69% decline in net profit after tax to $24.2 million. Its guidance for a jump in EBITDA in FY 2023 appears to have impressed investors.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is up 6% to $14.77. This morning the online lottery ticket seller released its full year results and reported a 25% increase in revenue to $104.3 million and a 14% lift in underlying net profit after tax to $32.2 million. This allowed the Jumbo board to increase its dividend by 16%.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 3.5% to $3.53. A number of lithium miners are pushing higher today despite there being no news out of them. However, a bullish broker note out of Macquarie earlier this week still appears to be front of mind. This has even offset a downgrade to neutral by Citi this morning.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 5.5% to $5.13. This morning the team at Credit Suisse responded to the airline operator’s full year results by upgrading its shares to an outperform rating with an improved price target of $5.65. Elsewhere Macquarie retained its outperform rating and lifted its price target to $7.05.

The post Why Bega Cheese, Jumbo, Pilbara Minerals, and Qantas shares are rising 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

• Jumbo share price climbs following ‘strong growth achieved in FY2022’
• Bega Cheese share price soars as net profit slides 69% year on year
• Is the Qantas share price a buy following the airline’s latest results?
• Here are the top 10 ASX 200 shares today
• 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 positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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/dxNaXpK

The Australian Ethical Investment Ltd (ASX: AEF) share price is falling today after the ASX 200 fund manager reported its full-year results for the 2022 financial year this morning.

Australian Ethical shares have fallen 4% to $6.45 at the time of writing. They closed at $6.72 yesterday and opened at $6.79 this morning.

Australian Ethical share price falls on lacklustre full-year results

Here’s a summary of what the ethically-minded fund manager reported this morning:

• Total revenue of $70.78 million, up 20% over FY21’s $59.1 million
• 2% growth in funds under management (FUM) to $6.2 billion
• 7% drop in underlying profits before tax to $10.3 million
• 15% fall in net profit after tax (NPAT) to $9.6 million
• Final dividend of 3 cents per share declared, fully franked.

Overall FUM growth for Australian Ethical over FY22 was 2% and came to $6.2 billion. However, the company reported that it had enjoyed 20% growth in retail and wholesale net flows to $1.14 billion. Australian Ethical also saw a record net flow of $750 million into superannuation, an increase of 20%.

Meanwhile, the fund manager’s overall customer base continued to grow as well. Australian Ethical reported a 16.55% increase in customers from 71,273 in FY21 to 83,066 in FY22.

The fully franked final dividend of 3 cents per share is down 25% from last year’s final payment of 4 cents per share.

What else happened in FY22?

Australian Ethical’s funds had a tough year. The company reported that its MySuper Balanced Accumulation Option delivered a loss of 6.3% for the 12 months to 30 June 2022, underperforming its benchmark, which lost 3.4%.

Outside super, Australian Ethical’s Australian Shares Fund went backwards by 17.8% over FY22. That’s under the S&P/ASX 300 Accumulation Index benchmark, which delivered a loss of 6.8%.

What did management say?

Here’s some of what Australian Ethical CEO John Mcmurdo had to say on these numbers today:

Australian Ethical has delivered another set of positive results despite the volatility in investment markets and widespread macroeconomic uncertainty.

Our operating revenue has increased and profit has remained solid as we invested in line with our high growth strategy. At a time when many in the financial services industry are seeing outflows, we’ve seen strong growth in both retail and wholesale net flows, as well as customer numbers, as people seek to invest in line with their values.

Our long-term investment performance remains competitive with our ethical conviction intact. As a leading pureplay ethical investor, we’re proud to stay the course through market cycles because we’ve demonstrated that our ethical approach delivers over the long term.

What’s next?

Looking to FY23, Australian Ethical’s management noted that there are still many headwinds facing global investment markets. These include the war in Ukraine, high inflation, and rising interest rates.

However, the company still expects “the growth in net flows to continue in FY23, with further diligent investment in the business as we execute on our strategic roadmap, balancing market volatility with the growth opportunity”.

It concluded by stating “our profit outlook will reflect the higher growth in operating expenses versus revenue”.

Australian Ethical share price snapshot

Including the falls we have seen in the Australian Ethical share price this Friday, it has indeed been a tough year for the company. Australian Ethical shares remain down 52% so far in 2022. They are also down 32% over the past 12 months.

At the current Australian Ethical share price, this ASX 200 fund manager has a market capitalisation of $737.3 million, with a dividend yield of 1.07%.

The post Australian Ethical shares fall as profits slide 15% 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

• I rate these top ASX growth shares as buys in August

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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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/YNxplka

The Wesfarmers Ltd (ASX: WES) share price is lifting after a rocky start to Friday’s session following the release of the S&P/ASX 200 Index (ASX: XJO) giant’s full-year earnings.

That’s despite brokers’ seemingly positive response to its financial year 2022 (FY22) performance.

The Wesfarmers share price opened 1.2% higher at $48.20 this morning before plunging to a low of $46.70, marking a 2% tumble.

It’s since recovered to trade 1.66% higher at $48.43 at the time of writing.

Let’s take a look at how brokers are responding to the retail company’s FY22 earnings.

Wesfarmers share price overcomes rocky start on Friday

The Wesfarmers share price is lifting after a rough start to the session. Its wobbly performance comes on the back of news the company’s revenue surged in FY22 while its profits sunk.

As The Motley Fool Australia reported earlier, the conglomerate behind Bunnings, Kmart, and Officeworks posted a $1 fully franked final dividend.

E&P analyst Phil Kimber dubbed the results “positive”, The Australian reports, saying the company’s $3.6 billion of earnings before interest and tax (EBIT) surpassed the $3.4 billion consensus estimate.

The expert was quoted as predicting expert consensus upgrades of between 3% and 5% following the result’s release.

Meanwhile, Barrenjoey’s Tom Keirath reportedly labelled the company’s earnings “strong” and its FY23 outlook “bullish“.

Wesfarmers said the first seven weeks of FY23 had brought robust retail trading conditions. It has also seen strong sales growth in some of its key retail business over the period.

On top of its results, it revealed its found indications of historical payroll errors in its recently acquired API business. The company said:

API has commenced work to confirm any payment errors and identify affected team members in order to implement a remediation program as soon as possible.

The cost of remediation is not expected to impact reported earnings for the health division.

The post Wesfarmers share price lifts as earnings beat brokers’ consensus 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

• 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
• Here’s what happened to the Wesfarmers share price last time the company reported

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 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.

from The Motley Fool Australia https://ift.tt/i184unG

The Oz Minerals Limited (ASX: OZL) share price is remaining steady after the release of a half-year result lacking growth.

At the time of writing, shares in the copper and gold miner are trading 0.3% higher to $26.28.

What is the Oz Minerals share price reacting to?

• Net revenue down 8% from prior corresponding period to $908.6 million
• Copper and gold sales down 6% and 25% respectively
• Earnings before interest, taxation, depreciation and amortisation (EBITDA) down 36% to $358.3 million
• Net profit after tax (NPAT) down 59% to $109.2 million
• Closing cash at $107 million, down from $215.4 million at December 2021
• All-in sustaining cost (AISC) of US$1.91 per pound, up from US$1.36

What happened during the half?

Despite the relative strength of commodities in recent times, Oz Minerals made no secret that the latest half was a challenging period. Yet, investors seem to not be too worried as the Oz Minerals share price inches ahead.

According to the report, a confluence of factors combined during the six-month window. The effects led to a weaker result than was hoped in the first half. These headwinds included inflationary costs, adverse weather, and COVID-19 absenteeism.

In terms of operational developments, the Pedra Branca copper-gold mine at Carajás East in Northern Brazil reached full production in June. The mining hub produced 4,887 tonnes of copper and 3,657 ounces of gold throughout the half.

Additionally, progress was made in the Carrapateenna Province. While the focus was on cave expansion, management is expecting to soon flip the switch to focus on maximising ore production in the second half.

Notably, the team achieved a milestone of 100,000 tonnes of copper produced in April alone at Carrapateena. This could be feeding into the relative optimism around the Oz Minerals share price today.

What did management say?

In the face of a disappointing result, Oz Minerals chief executive Andrew Cole provided some uplifting commentary. Regarding the positive takeaways, Cole said:

The quality and high margin nature of our assets provided a healthy operating margin of 40% and robust operating cash flow during the half. We continue to invest in and advance our unique organic growth pipeline to take full advantage of the growing long-term demand for copper and nickel, driven by global electrification and accelerated decarbonisation.

Furthermore, shareholders might find solace in the fact that Oz Minerals will still pay a dividend. However, the interim payment of 8 cents per share fully franked is half of what was dished out a year ago.

What’s next?

A major component of mining profits comes down to the costs associated with receiving the ore. This might explain why shareholders are more forgiving of the Oz Minerals share price today. Importantly, management expects AISC to moderate, reaching a range of US$1.60 to US$1.80 per pound.

Additionally, copper production is expected to be between 120,000 to 135,000 tonnes. While gold production is slated to come in at between 208,000 to 230,000 ounces.

Interestingly, no mention was made of the recent takeover bid lobbed its way from BHP Group Ltd (ASX: BHP).

Oz Minerals share price snapshot

The Oz Minerals share price has been an outperformer of the S&P/ASX 200 Index (ASX: XJO) over the past 12 months. However, that probably wouldn’t be the case if not for the recent BHP bid.

Prior to the $25 per share offer, Oz Minerals shares were down 18% from a year ago

The post Oz Minerals share price holds tight as profits plummet 60% 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

• Could ASX battery minerals shares be in for a boost next month?
• The OZ Minerals share price has barely moved since rocketing on BHP’s takeover bid. So, what now?
• How have ASX nickel stocks been performing in 2022?
• Why has the Panoramic Resources share price surged 40% in a month?
• Why is nickel such a big deal and which ASX shares have exposure?

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 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/gpYthdD

The PeopleIn Ltd (ASX: PPE) share price is surging this morning following the release of the company’s FY22 earnings results.

At the time of writing, the PeopleIn share price is up 11.6% at $3.74 after spiking 17.6% off yesterday’s close to a high of $3.94 in earlier trading.

Revenue and profit growth in FY22

Key takeouts from the workforce management company’s year include:

• Revenue of $682.4 million, up 53.6% on FY21’s result
• Organic revenue growth contribution of 15.9% for the year
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $47.2 million, a gain of 23.9% year on year
• Normalised net profit after tax and before amortisation (NPATA) of $31.9 million, a gain of 27.7%
• Normalised NPATA per share of 32.3 cents, up 19.8%
• Dividends per share for the full year FY22 of 13 cents

What else happened?

PeopleIn recognised growth throughout its FY22 income statement, with a particularly strong gain in revenue, up nearly 54% year on year.

The company said that its business growth in FY22 stemmed from higher demand for
staffing services, as business operating levels shifted higher than before COVID-19.

In addition, acquisitions of Vision Surveys QLD Pty Ltd and GMT Group in 2021, alongside Perigon Group and FIP Group in 2022, were also accretive to both revenue and earnings.

PeopleIn also declared a fully-franked final dividend of 6.5 cents per share, representing an 8% increase on the final dividend in FY21.

Management commentary

Speaking on the announcement, CEO Ross Thompson said:

Operating conditions continue to be positive for PeopleIN given the strength of the employment market and unprecedented demand from clients for employees. Based on the operating results for the financial year and current economic conditions continuing, PeopleIN expects strong organic growth performance to continue in FY23.

The number and diversity of our clients, and critical demand for their services, mean that our core business is resilient even in the event of economic uncertainty. Our strategy has always been to focus on growing in sectors that are defensive and have long term demand for talent.

PeopleIn share price snapshot

In the past 12 months, the PeopleIn share price has slipped 11% into the red. Despite this, it has surged more than 17% in the last month of trade and lifted a further 10% this week.

The post PeopleIn shares spike 17% as earnings come in above guidance for FY22 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

• 2 genius reasons to buy Amazon stock today
• Austal share price slides as revenue, profit contract in FY22
• Lynas share price lifts off on rocketing FY22 profits
• Jumbo share price climbs following ‘strong growth achieved in FY2022’
• Costa share price grows on fruitful first-half results

Motley Fool contributor Zach Bristow 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 Peoplein. The Motley Fool Australia has recommended Peoplein. 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/5lJTGkZ

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) reported better-than-expected second-quarter earnings on July 28, beating multiple forecasts set by Wall Street. The company’s shares soared 24% from July 26 to Aug. 18 as bullish investors put their faith in it.

However, Amazon’s stock still has room for growth, with two of its recent acquisitions looking especially promising.

Genius reason No. 1: 

Amazon went on an acquisition spree between July and August, with its first purchase being subscription-based healthcare company 1Life Healthcare (NASDAQ: ONEM), known as One Medical, for approximately $3.9 billion. The buyout will see Amazon venture into healthcare, an industry the company has been eyeing for some time. The acquisition might be a match made in heaven, considering One Medical’s mission and Amazon’s unique resources, which will undoubtedly boost the company. 

As described in Amazon’s press release on the acquisition, “One Medical combines in-person care in inviting offices across the country with digital health and virtual care services.” Telehealth services soared in popularity throughout the worst of the pandemic, with virtual healthcare company Teladoc Health‘s stock seeing a significant rise. However, the health stock’s nosedive of 65.4% year to date could be Amazon’s gain. 

If the purchase is successful, Amazon will take control of One Medical’s almost 200 locations and roughly 770,000 patients nationwide — a significantly larger reach than Teladoc. Additionally, Amazon has the chance to incorporate its own technologies, such as unmatched delivery infrastructure and an established subscription service with over 200 million members worldwide. Breaking into the healthcare industry might not come easy, but it seems that Amazon is more than capable of succeeding in its health endeavors. 

Genius reason No. 2: 

On Aug. 5, Amazon announced plans to acquire consumer robotics company iRobot (NASDAQ: IRBT), the result of a deal valued at approximately $1.7 billion. Compared to One Medical, the purchase is arguably less risky and fits nicely into the company’s current product lineup. 

Amazon has gradually pushed into the smart-home industry over the years with its line of Alexa-enabled products, such as smart speakers, alarm clocks, thermostats, and security cameras. In addition to iRobot’s incredibly popular robot vacuums, Amazon’s purchase of the company also brings on its team of consumer robotic experts who have the potential to boost the company’s range of smart products as a whole and strengthen its hold on the growing industry.

Moreover, Amazon has turned Alexa into a multibillion-dollar business through its smart devices and app store, called Alexa Skills. Developers have flocked to create various Alexa Skills, from which Amazon keeps 30% of the profits. In 2019, analysts estimated Amazon generates $2 billion a year from Alexa skills, with the company keeping $600 million. The acquisition of iRobot only increases the variety of smart products and Alexa Skills the company could offer, which could pay off in a big way for Amazon. 

An opportunity for investors

Although Amazon’s stock has soared since July, it still remains down at least 24% since the height it reached in November 2021. In addition to its recent acquisitions, the company has several promising opportunities on the horizon that should excite investors. Amazon’s advertising endeavors have proven especially fruitful for the company as the segment has generated $33.9 billion of revenue over the last four quarters, and the company is getting ready to dive deeper into the industry.  

Amazon has some exciting developments coming to its streaming service Prime Video in September, such as exclusively broadcasting NFL’s Thursday Night Football and the premiere of its highly anticipated Lord of the Rings series, The Rings of Power. Both content additions have the potential to pull in millions of viewers, while Thursday Night Football can also further the company’s already successful advertising endeavors. 

Amazon has a bright future ahead, and investors should be bullish about its stock as its promising outlook makes it an excellent long-term buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 genius reasons to buy Amazon stock today 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

• Does this make Amazon stock a buy?
• Why Amazon stock was slipping today
• Better buy stock: Alphabet vs. Amazon
• Why did the Amazon share price fall today?
• This stock is beating amazon at its own game

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Teladoc Health, and iRobot. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and iRobot. The Motley Fool Australia has recommended Amazon and iRobot. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

The Austal Ltd (ASX: ASB) share price is sliding during morning trade on Friday following the release of the company’s FY22 earnings results.

At the time of writing, the Austal share price is fetching $2.61 apiece after sliding nearly 2% lower from the open.

Austal revenue, profit declines from FY21

Key takeouts from the company’s earnings result include:

• Revenue of $1.43 billion, down 9.1% year on year from $1.57 billion
• Earnings before interest and tax (EBIT) of $120.7 million, up 5.3% year on year
• Net profit after tax (NPAT) of $79.6 million, down 1.8% from last year’s $81.1 million
• Dividend of 4.0 cents per share declared, unfranked, bringing total year dividend to 8 cents
• EBIT guidance for FY23 of around $100 million

What else happened in FY22 for Austal?

For the 12 months to June 30 2022, Austal generated $1.43 billion in revenue and EBIT of $120.7 million, a decrease and increase of 9% and 5% respectively.

Austal states the decline in revenue is mostly attributed to reduced throughput as the Littoral Combat Ship (LCS) programme continues to mature through to FY25.

The company announced in July that it had secured a contract for the design and construction of up to 11 ‘Offshore Patrol Cutters’, commissioned by the US Coast Guard.

“Even though the Award had no impact on Austal’s FY2022 operational performance, it positively
impacted various cost assumptions, such as Estimates at Completion (EAC) and labour utilisation as
at 30 June 2022,” the company said.

Management commentary

Speaking on the announcement, Austal Chief Executive Officer, Paddy Gregg said:

Austal is successfully delivering on its core strategic initiative to transition beyond these maturing programmes.

Our investment in steel capability is already paying off and combined with our deep track record of
operational excellence in aluminium, we are optimally positioned to achieve diversified, long-term and
sustainable growth.

We have a significant orderbook and our enhanced operational capabilities supported by a strong
balance sheet give us further potential to grow across both the USA and Australasia.

What’s next for Austal?

Austal notes it enters FY2023 with an order book of approximately $7 billion, which is the largest in the company’s history.

This is underscored by the US Coast Guard’s, which is worth up to $4.35 billion. With these points in mind, the company provided EBIT guidance of $100 million for FY23.

Austal share price snapshot

Austal shares are up more than 33% in the past 12 months.

The post Austal share price slides as revenue, profit contract in FY22 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

• Guess which ASX 300 share Fortescue’s Twiggy just loaded up on
• These 3 ASX All Ordinaries shares hit new 52-week highs on Monday
• These were the best performing ASX 200 shares in July

Motley Fool contributor Zach Bristow 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 Austal Limited. 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/oAQeDCz

The Lynas Rare Earths Ltd (ASX: LYC) share price is up 2.13% in late morning trade, having earlier posted gains of 5.8%.

Lynas shares closed yesterday trading for $8.92 and are currently trading for $9.11.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) rare earth producer’s full-year results for the 12 months ending 30 June (FY22).

And there’s certainly plenty of ASX investor interest today, with more than $32 million worth of trades having gone through within the first hour of trading.

So, why are investors bidding up the Lynas share price today?

What’s piquing ASX investor interest?

As the only substantial producer of rare earths outside China, Lynas has seen strong demand from the United States and other nations looking to secure sources of the critical minerals outside of the Middle Kingdom.

Today, the Lynas share price is marching higher as investors eye FY22 revenue of $920 million, an 88% year-on-year leap.

And profits were way up from FY21 as well, with net profit after tax (NPAT) rocketing 244% to $540.8 million.

While the ASX 200 rare earths producer didn’t offer specific guidance for FY23, Lynas did highlight its ongoing growth plans, stating:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.

With cash on hand as at 30 June of $966 million, Lynas arguably looks to be in a strong position to pursue those growth ambitions.

Lynas share price snapshot

Despite a sharp retrace in 2022, the Lynas share price remains up by around 37% over the past 12 months. That compares to a full-year loss of around 5% posted by the ASX 200.

Longer term, Lynas shares have gained 443% over five years, smashing the 24% return delivered by the benchmark index.

The post Lynas share price lifts off on rocketing FY22 profits 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

• Jumbo share price climbs following ‘strong growth achieved in FY2022’
• Costa share price grows on fruitful first-half results
• Ramsay shares halted after earnings slashed and takeover letter lands
• BetMakers share price pops then drops as full-year revenue leaps 370%
• Paladin share price slips despite 57% revenue boost

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/scMXDNv

The Jumbo Interactive Ltd (ASX: JIN) share price is edging higher today following the release of the company’s full-year results.

At the time of writing, the lottery ticket seller’s shares are up 5.88% to $14.77.

Jumbo share price climbs amid double-digit growth

Jumbo delivered its FY2022 results for the 12 months ended 30 June 2022. Here are some of the key financial highlights:

• Total Transaction Value (TTV) up 36 % to $659.9 million
• Revenue up 25% to $104.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 13% to $55.1 million
• Underlying net profit after tax (NPAT) up 14% to $32.2 million
• Final dividend of 20.5 cents per share, fully franked, bringing the full year dividend to 42.5 cents per share, up 16%

What happened in FY2022?

Jumbo reported a robust result with all key metrics increasing by double-digits.

Group revenue surged by 28% on an underlying basis, underpinned by strong growth across all operating segments.

This included the lottery retailing segment, which registered a 26.7% increase in revenue to a record $91 million. Improved jackpots and customer activity drove the outstanding performance.

The software-as-a-service (SaaS) division experienced a 31.9% jump in revenue to $42.7 million. Jumbo stated that all SaaS clients were tracking well.

And lastly, the managed services business which predominantly reflects UK-based Gatherwell, soared 24.3% in revenue to $2.3 million. The company’s expanded international footprint via acquisitions of Stride and StarVale helped support this result.

On the back of achieving ongoing positive cash generation, the board declared a final, fully franked dividend of 20.5 cents per share. This translates to a dividend payout ratio of 85.6% of statutory NPAT.

The payment date for the dividend is on 23 September 2022.

In addition, Jumbo decided to further maximise shareholder value by undertaking an on-market share buyback of up to $25 million. This will be conducted on an opportunistic basis from next month.

What did management say?

Jumbo CEO and founder, Mike Veverka said:

We are pleased with the strong growth achieved in FY22 off the back of an improved jackpot cycle. FY22 was a pivotal year for Jumbo as we build the foundations to successfully execute our global growth strategy. Lottery Retailing is exceptionally well positioned to benefit from the ongoing shift to digital and the new OzLotto game launched in May 2022, while the integration of Stride and StarVale will build scale in our Managed Services and SaaS segments globally.

Veverka went on to talk about the company’s capital management, adding:

The strength of our balance sheet, strong cash generation profile of our business, debt headroom and flexibility from our revised dividend policy enables us to continue to invest in the business, provides capacity for further M&A and organic growth, and delivers shareholder returns through dividends and a share buy-back.

What’s the outlook for FY2023?

Jumbo didn’t provide any earnings or profit guidance for FY2022 but provided some insight on what lies ahead.

Cost of sales will be impacted by the increase in The Lottery Corporation service fee rising from 2.5% to 3.5%.

Marketing costs are expected to be in the range of 1.5% to 2% of Lottery Retailing TTV.

Excluding the impact of the Stride and StarVale acquisitions, group underlying operating cost growth is anticipated to moderate, with Jumbo targeting an increase of 20% to 22%.

This is expected to translate to an underlying EBITDA margin between 48% to 50%.

Jumbo share price snapshot

In the past 12 months, the Jumbo share price has fallen 10%.

The post Jumbo share price climbs following ‘strong growth achieved in FY2022’ 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

• 2 ‘high quality’ ASX shares now going for a discount: Elvest

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 positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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/GHZu8iQ

The Costa Group Holdings Ltd (ASX: CGC) share price is ripening this morning after the horticulture company delivered its half-year FY22 results.

Despite creeping lower when the market opened, the Costa share price is climbing 0.3% at the time of writing to $2.75.

Green shoots for the Costa share price as earnings grow

Here’s a high-level summary of Costa’s results for the half year ending 3 July 2022:

• Revenue came in at $708.7 million – up 16% compared to the prior corresponding period (pcp) of 1H21
• EBITDA before movement in biological assets and material items grew 13% on the pcp to $140.1 million
• Statutory net profit after tax (NPAT) edged 1% higher to $37.8 million
• Net debt stands at $328.2 million with leverage of 1.94x
• A fully franked interim dividend of 4 cents was declared

What else happened in FY22?

Costa’s performance in China was a standout, growing revenue by 34% as new plantings drove volume growth of 32%.

The company said this result reflected strong quality, demand, and higher pricing before major city COVID-19 lockdowns toward the end of the season.

Volumes in Morocco trickled 4% higher but revenue retreated by 16% on the back of delayed timing due to weather.

Back home, berry volumes increased by 10%, while revenue lifted by 12%. As you might have guessed from rising prices on the supermarket shelves, pricing was strong across all four berry types. The average sale price for premium berries jumped by 40%.

Turning our attention to tomatoes, the first crop from glasshouse 4 and the new nursery for the half led to a 38% rise in volume. Combined with positive pricing and demand, revenue grew by 28%.

The company’s citrus portfolio recorded a 40% jump in revenue. However, this was helped by the acquisition of 2PH. As the season has progressed, weather events have been impacting quality, volume, and pack-out rates across Costa’s three citrus growing regions in South Australia, Victoria, and Queensland.

The company had previously flagged this in a trading update in July, which sent the Costa share price reeling.

Finally, the company’s avocado category was impacted by a prolonged Western Australian crop and the lack of further export market access. Revenue went backwards by 16%.

Costa noted that the Australian and Japanese governments continue negotiating market access for avocados grown on the eastern seaboard.

What did management say?

CEO Sean Hallahan was pleased with the company’s first-half performance, saying:

Our long term growth strategy has come to the fore in the current uncertain economic environment, including our high quality of asset base, the scope and range of our protected cropping footprint, the successful deployment of new varieties which attract a price premium, a diversified portfolio and our market leading positions in high demand categories.

What’s next?

Looking ahead, here’s the outlook for the company’s core fruits and vegetables:

• Citrus: Positive volumes are expected to continue in the second half, but the extent of the impact of extreme weather conditions won’t be known until later in the season
• Domestic berry: Quality of early season protected berries is strong with season volume forecast in line with expectations
• Mushroom/Tomato: On a positive trajectory to perform favourably over the second half
• Avocado: Current pricing conditions are improving, but industry conditions are expected to remain challenging for the remainder of the year.

Costa share price snapshot

Costa’s share price performance has been a mixed bag so far this year. The Costa share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last month, growing by 11%.

However, the Costa share price has dropped 12% since the start of the year, underperforming the market.

Costa shares are currently trading on a 12-month trailing dividend yield of 3.2%, which bumps up to 4.6% with the benefit of franking credits.

The post Costa share price grows on fruitful first-half results 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

• Here are the top 10 ASX 200 shares today
• Broker names 2 ASX 200 shares to buy in August

Motley Fool contributor Cathryn Goh 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 COSTA GRP FPO. 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/6U9MVZC