Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) put out a wobbly performance on Wednesday, opening and closing in the red despite gaining for much of the session. The index closed 0.16% lower at 6,986.80 points.

Sadly, today marks the unofficial end of earnings season. While the month of August always brings a rollercoaster of emotions for ASX investors, we’ll be sad to see it go.

As always, readers can catch up on all this season’s major earnings here.

The S&P/ASX 200 Energy Index (ASX: XEJ) weighed on the market today, closing 2.9% lower, likely on the back of falling energy commodities.

The Brent crude oil price fell 5.5% to US$99.31 a barrel overnight while the US Nymex crude oil price tumbled 5.5% to US$91.64 a barrel. To top it off, the price of thermal coal slipped 1.9% to US$414.55.

On the other end of the market, the S&P/ASX 200 Information Technology Index (ASX: XIJ) posted a 1.7% gain today. Despite lifting for a second consecutive day, it still hasn’t recovered its Monday losses.

Five of the ASX 200’s 11 sectors were in the green at the end of Wednesday’s trade. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s biggest gain was posted by the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price. It lifted 16%, potentially driven by the company’s earnings that were released on Tuesday afternoon.

Find out more about the healthcare stock and what it’s been up to here.

Today’s biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Clinuvel Pharmaceuticals Limited (ASX: CUV)	$20.17	16.19%
Zip Co Ltd (ASX: Z1P)	$0.955	11.7%
Imugene Limited (ASX: IMU)	$0.26	8.33%
Webjet Limited (ASX: WEB)	$5.52	8.02%
De Grey Mining Limited (ASX: DEG)	$0.98	7.1%
Chalice Mining Ltd (ASX: CHN)	$4.58	5.29%
Megaport Ltd (ASX: MP1)	$7.26	5.22%
Idp Education Ltd (ASX: IEL)	$29.01	4.84%
Lake Resources N.L. (ASX: LKE)	$1.17	4.46%
Credit Corp Group Limited (ASX: CCP)	$20.44	4.39%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX 200 healthcare share rocket 16% today?
• Why Deep Yellow, Nitro, Tyro, and Webjet shares are storming higher
• Why is the Qantas share price beating the ASX 200 on Wednesday?
• Net loss doubles in FY22, so what’s with the Imugene share price today?
• Webjet share price ascends 11% amid profitable start to FY23

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 positions in and has recommended Idp Education Pty Ltd, MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia has recommended MEGAPORT FPO and Webjet Ltd. 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 Clinuvel Pharmaceuticals Limited (ASX: CUV) share price gained 16% today after the company released a strong set of results for FY22.

Shares in the ASX-biotech company went into overdrive today, finishing 16.19% higher at $20.17 a share after hitting an intraday high of $20.43 each.

Let’s see what all the fuss was about.

What did Clinuvel report for FY22?

Here is a brief snapshot of the key highlights from the company’s FY22 results.

• Revenue jumped 37% to $65.7 million
• Profit before income tax rose 33% to $34.3 million
• Net profit after tax (NPAT) went backwards by 16% to $20.9 million
• A fully franked final dividend of 4 cents per share was declared

Clinuvel develops drugs for the treatment of genetic and vascular disorders and makes most of its revenue in Europe and the USA. Its core product is SCENESSE, a drug for erythropoietic protoporphyria, an inherited condition that causes acute and painful sensitivity to light.

SCENESSE was the primary revenue driver with its sales increasing 40.8% to $60 million, in particular in the US.

The significant increase in income tax from $0.98 million in FY21 to $13.4 million in FY22 was the main reason for the decline in net profit after tax, the company said.

Personnel-related costs, share-based payments, and materials expenses also contributed to the fall in the bottom line. Share-based payments rose from $2.6 million in FY21 to $6.1 million in FY22.

Operating cash flows jumped from $19.2 million in FY21 to $39.9 million in FY22. After deducting payments for property and plant and equipment, free cash flow improved from $18.4 million in FY21 to $39.4 million in FY22.

The record date for determining entitlements for the final dividend is 7 September. It is due to be paid on 21 September.

What else happened in FY22?

In March, the Clinuvel share price shot up on the back of a positive update on a stroke treatment pilot study, as covered by my colleague James Mickleboro.

The study revealed that Clinuvel’s drug had no adverse side effects in stroke patients by day eight over a 42-day study period.

In May, Clinuvel then recorded positive results by the end of the trial where Clinuvel’s drug afamelanotide was deemed safe in treating mild to moderate arterial ischaemic stroke.

Such results demonstrate the potential optionality of Clinuvel’s treatments, the company said.

What did management say?

Clinuvel’s chief financial officer Darren Keamy said:

CLINUVEL’s commercial operations are scaling up to meet treatment demand worldwide, while the Group is pursuing R&D projects which aim to add value over the long-term. Our FY2022 results show a fundamentally strong business to date, allowing us to invest for future growth. Improved cash inflows this year have further bolstered the Company’s cash reserves enabling us to continue the implementation of a growth strategy in the face of difficult economic headwinds. The strong cash position has also allowed the Board to declare an increase in dividend this year, most of all recognising the loyalty and patience of long-term shareholders. We remain focused to translate our technology to the benefit of patients and specialised populations, particularly those at highest risk of light-induced damage and skin cancer.

Given Clinuvel currently has $121.5 million in cash with no long-term debt, I can see why Keamy is optimistic about the company’s future outlook.

What’s next for Clinuvel?

Management is planning to reinvest a large chunk of its capital into new development. In FY22, Clinuvel reinvested more than 49% of its revenue in R&D, new specialised staff, and production.

The biopharmaceutical company has committed to spending $175 million over the five years to 30 June 2025 to execute its growth and expansion plans. Management says is on track based on prior expenditure levels in FY21 and FY22.

Clinuvel share price upgraded by broker

Broker Jefferies upgraded its Clinuvel share price target from $31.40 per share to $36.90 per share, maintaining a ‘buy’ rating. Jefferies sees big market potential for its erythropoietic protoporphyria drug because it believes there are no competitors. However, it also sees increased competition over the medium term.

Clinuvel share price snapshot

The Clinuvel share price has suffered a similar fate as many other ASX growth stocks. The company’s shares fell by 47% across the last year but have recorded a 10% rise in just the past week.

Meantime, the S&P/ASX 200 Index (ASX: XJO) has been more steady with a fall of 7% over the past year and a drop of 0.16% in the last month.

Clinuvel has a current market capitalisation of around $995 million.

Its current price-to-earnings multiple is around 42.78 times.

The post Why did this ASX 200 healthcare share rocket 16% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Raymond Jang 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 DroneShield Ltd (ASX: DRO) share price is down 19.5% today after the drone technology company reported its half-year FY22 results.

DroneShield develops and sells hardware and software for the detection and destruction of drones. Its customers include government and military, airports, and commercial venues in more than 120 countries.

The company released its earnings after market close yesterday, when its shares finished at 20.5 cents.

The DroneShield share price opened this morning at 18.5 cents, down 9.75%. The shares continued on a downward trajectory to reach a low of 16.5 cents at the final bell this afternoon.

Let’s take a look at the company’s report.

DroneShield share price tumbles after 45% revenue decline

The key highlights of the report for the six months to 30 June 2022 are:

• Revenue down 45% on the prior corresponding period (pcp) of 1H FY21 to $3.67 million
• Loss from continuing activities after tax up 990% to $4.93 million
• Cash and cash equivalents down 51% to $6.59 million

What else happened in 1H FY22?

DroneShield says it has a $350 million global sales pipeline, including $100 million in projects from here until the end of 2022. It reckons the total addressable counter-drone market is worth US$10 billion.

A highlight of 1H FY22 was winning a $3.8 million contract with the Australian defence department. It expects a contract extension upon completion of this initial contract in mid-2023.

It is also “successfully progressing” the Defence Innovation Hub.

The company says there has been a “continued rapid increase in the US business, including signing a framework agreement with the State of Texas, receiving a counterdrone contract for protection of IRONMAN Texas, and DroneShield’s initial GSA order“.

DroneShield said it invested in “substantial inventory acquisition to mitigate supply chain delay risks” in 1H FY22. It has approximately $15 million of inventory on hand as at 30 June 2022.

The company also achieved UK MOD SAPIENT compliance in 1H FY22. This means DroneShield systems are now compatible with military standards in the United Kingdom.

What did management say?

In this half-year report, DroneShield said there was a “highly favourable macro environment” today.

This is “due to increased macroeconomic uncertainties, [the] war in Ukraine demonstrating extensive use of small drones by both sides, and rapidly increasing defence budgets globally including by the Australian Government”.

What’s next?

Earlier this month, DroneShield announced it had received its biggest government grant to date. The $2 million grant will be used for the research and development of its drone technology.

As my Fool colleague Raymond reported, DroneShield says its artificial intelligence, electronic warfare, and adjacent technology services are “increasingly in demand” amid growing geopolitical tensions.

In its half-year report, DroneShield said it is continuing to move into the software-as-a-service (SaaS) space. It is using subscription pricing models on a range of products. It is also advancing its software-related work, especially in defence signal processing.

The company said: “Over time, the software/SaaS business is expected to account for the majority of the Group’s earnings.”

DroneShield share price snapshot

DroneShield shares are down 5.7% in the year to date. Over the past 12 months, the shares have lost 19.5%. That puts the DroneShield share price in a position no better and no worse than it was one year ago.

The company has a market capitalisation of $88.7 million.

The post Droneshield share price plunges 19% on revenue slump appeared first on The Motley Fool Australia.

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More reading

• DroneShield share price lifts 6% on record government grant

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. 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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Now that reporting season is over, investors can consider the updates from S&P/ASX 200 Index (ASX: XJO) bank shares and think about how the rest of 2022 and FY23 might go.

It’s currently a period of rapid transition as households, investors and businesses get used to higher interest rates.

Banks have seen a fair bit of volatility over the past three months.

Names like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) all experienced a sell-off during June. However, since then, they have recovered quite a bit of that lost ground.

What’s going on with interest rates?

There are competing effects of rising interest rates.

On the one hand, higher central bank interest rates can be instantly passed on to borrowers. This gives banks a quick boost in profitability and the net interest margin (NIM). Particularly if they don’t pass on the same increase to savers.

However, there are questions about what this might do to households over the long term. Will the large increase in interest rates mean that heavily indebted households won’t be able to handle it? This will take time to play out there.

The Reserve Bank of Australia (RBA) has been increasing the interest rate at each of the last few monthly meetings. Another increase is expected in September.

The profitability of their current loan books is an important factor for the ASX 200 bank shares. But another element of their performance is how much lending growth they achieve.

Market share concerns

According gto The Age reporting on research by Macquarie Research and APRA, ANZ, CBA and Westpac all lost market share of the all-important housing lending market over the 12 months to July 2022. Only NAB managed to grow its market share over the year to July. It did this with an increase of less than 20 basis points (0.2%).

Smaller players are wanting to muscle in on the big four. It’s not as though they’re going to overtake the big four ASX 200 bank shares, but they can take market share, reduce the big banks’ growth, and put pressure on the margins due to the competition.

Reporting by The Australian highlighted comments by non-bank lender Liberty Financial Group Ltd (ASX: LFG) CEO James Boyle, who said:

With interest rates going up and cost of living pressures continuing, customers are concerned about borrowing to buy homes in an environment where they’re not sure where the interest rates are going to land.

They’re not sure how much inflation is going to eat into their disposable income and they’re not really sure exactly where house prices are going to land either. So I think there’s a bit of a softening, reflecting those uncertainties in home lending.

The newspaper also noted that S&P Global Ratings thinks higher inflation and interest rates will mean tighter lending standards for banks and that “this will allow Liberty Financial to continue to grow in its niche businesses of catering to borrowers that banks typically do not service”.

Foolish takeaway

ASX 200 bank shares and analysts alike think that higher central bank interest rates will mean an improved margin for banks, and analysts are generally expecting an improvement in profit in FY23.

For now, bank investors will need to factor in the RBA’s next move in September and decide what this will mean for their short-term and longer-term profit outlook.

The post What’s the outlook for ASX 200 bank shares in September? appeared first on The Motley Fool Australia.

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More reading

• Will this build value for NAB shareholders or alienate the bank’s customers?
• AMP share price lifts amid Westpac deal rumours
• Why this analyst ranks ANZ shares at the bottom of the big-four-bank pile
• What’s the outlook for the Westpac share price in September?
• What is the highest CBA shares have ever been?

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

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

Bank of Queensland Ltd (ASX: BOQ)

According to a note out of UBS, its analysts have initiated coverage on this regional bank’s shares with a buy rating and $8.00 price target. The broker made the move on the belief that Bank of Queensland’s shares offer the most value in the sector at present. It highlights that the bank trades on low multiples and at a large discount to the rest of the big banks. The Bank of Queensland share price is trading at $7.03 today.

Healius Ltd (ASX: HLS)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this healthcare company’s shares to $4.50. This follows the release of a solid result for FY 2022. And while the broker notes that COVID uncertainty continues to limit quantitative guidance, Morgans remains positive on its outlook. It believes well managed costs, ongoing efficiencies and growth initiatives, some level of COVID testing, and a backlog in diagnosis and surgery will lay the groundwork for solid growth. The Healius share price is fetching $3.60 this afternoon.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Macquarie have retained their outperform rating and lifted their price target on this fashion jewellery retailer’s shares to $27.70. This follows the release of a full year result that came in ahead of Macquarie’s expectations. Its analysts remain positive on the future, particularly in the current environment. The broker feels that Lovisa’s low price point jewellery will perform well in an economic downturn. The Lovisa share price is trading at $22.79 on Wednesday.

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

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More reading

• Here’s why analysts have slapped buy ratings on these ASX shares
• Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher
• Is the Bank of Queensland share price undervalued compared to other ASX banks?
• Healius share price climbs as profit doubles in FY22
• 5 things to watch on the ASX 200 on Tuesday

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

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The S&P/ASX 200 Index (ASX: XJO) is once again having a red kind of day so far this Wednesday. Although not nearly as brutal as Monday’s falls, the ASX 200 has lost a mild 0.23% so far today to just under 6,990 points at the time of writing.

But rather than trying to figure all of that out, let’s instead examine the ASX 200 shares presently making the top of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

AMP Ltd (ASX: AMP)

Let’s start with ASX 200 financial services company AMP. So far today, a notable 19.61 million AMP shares have traded hands on the ASX. There’s been no fresh news out of AMP today, save for a routine share buyback notice.

But the AMP share price has put on a healthy 3.13% so far this Wednesday to $1.155 a share. Perhaps yesterday’s rumours that AMP could be circling the wealth management arm of Westpac Banking Corp (ASX: WBC) could be playing into these gains and, by extension, AMP’s trading volume.

Pilbara Minerals Ltd (ASX :PLS)

Next up we have the ASX 200 lithium share Pilbara Minerals, coming in with a sizeable 21.61 million shares traded thus far today. There’s been no new news out of Pilbara today.

But the company is enjoying some pleasing share price gains, in contrast to the overall ASX 200. At present Pilbara is trading at $3.675 a share, up 2.65% so far this Wednesday. This gain is probably the cause of the elevated trading volumes we are seeing.

Paladin Energy Ltd (ASX: PDN)

Finally this Wednesday, we have ASX 200 uranium share Paladin Energy. As it currently stands, a hefty 22.26 million Paladin shares have changed hands on the markets today.

Continuing with the outsized moves upward we saw from this company yesterday, Paladin shares have put on another 3.68% to 84.5 cents a share.

This is the likely source of the high trading volumes we are witnessing. As we covered yesterday, these gains could be connected to some positive developments for uranium that we’ve recently seen.

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

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More reading

• Could the Pilbara Minerals share price really offer more than 50% upside in FY23?
• AMP share price lifts amid Westpac deal rumours
• Here are the top 10 ASX 200 shares today
• Could this new piece of legislation be a boost for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 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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Searching for an S&P/ASX 200 Index (ASX: XJO) share posting soaring dividends this earnings season? Look no further than under-the-radar ASX 200 gold share Gold Road Resources Ltd (ASX: GOR).

The stock just declared its latest interim dividend and, to the likely surprise of onlookers, it’s worth double the payout offered by the company this time last year.

The Gold Road share price is lifting 1.39% right now to trade at $1.27. For context, the ASX 200 is down 0.25% at the time of writing, leaving the share outperforming.

So, without further ado, take a closer look at the latest dividend from the $1.3 billion gold producer.

ASX 200 gold share doubles interim dividend

The ASX 200 gold giant dropped its earnings for the six months ended 30 June yesterday, and they included a welcome offering for investors.

The company declared a 1-cent interim dividend – representing a 100% year-on-year increase.

And making it even more tempting, the payout is fully franked. That means it could bring additional benefits to investors at tax time.

News of the dividend was released alongside word of the company’s surging half-year profit.

Gold Road posted a $39.9 million net profit after tax (NPAT) for the first half – 108.9% higher than that of the prior corresponding period.

Its revenue also lifted 51.6% to $196.5 million. While its earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 67.8% to $100 million.

Shares in the ASX 200 company will trade ex-dividend on Monday. The payment will begin to hit investors’ accounts from 4 October.

On top of its first-half earnings, the company also revealed its optimistic outlook. It expects to reach its full-year guidance.

That would see its 50%-owned Gruyere mine producing between 300,000 ounces and 340,000 ounces of gold at an all-in sustaining cost of between $1,270 an ounce and $1,470 an ounce over the course of 2022.  

The post Guess which ASX 200 share just doubled its latest dividend appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 company bought over $65 million of De Grey shares in August
• Gold Road share price lifts as half-year profit doubles

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

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The Wesfarmers Ltd (ASX: WES) share price is backtracking on Wednesday afternoon.

At the time of writing, the conglomerate’s shares are down 1.7% to $46.89.

Why are Wesfarmers shares in reverse today? 

On the back of the company’s full-year results, investors are selling Wesfarmers shares as they go ex-dividend today.

The ex-dividend date is particularly important as it determines which shareholders will receive the company’s latest dividend.

If you held Wesfarmers shares at yesterday’s market close, you will be eligible for the final dividend.

However, if you didn’t own them and bought them today, the dividend will go to the seller.

What does this mean for Wesfarmers shareholders?

If you’ve locked in the Wesfarmers dividend, you’ll receive a payment of $1.00 per share on 6 October. The dividend is fully franked, which means you’ll also get some bonus tax credit to put towards your next tax bill.

Notwithstanding the special dividend paid in December 2021, this is the biggest dividend that will be paid out to shareholders since 2019. In case you were wondering, the final dividend declared that year was $1.20 per share.

Are Wesfarmers shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the Wesfarmers share price.

As reported by ANZ Share Investing, the analyst team at Goldman Sachs raised its price target by 8.4% to $38.90 per Wesfarmers share. Based on the current price, this implies a downside of 17%.

On the other hand, Morgans slashed its price target by 4.8% to $55.60 per share. This represents an upside of 18.5% from where Wesfarmers trades today.

Wesfarmers share price snapshot

Looking at the past 12 months, the Wesfarmers share price has fallen 22% on the back of difficult trading conditions.

In contrast, the S&P/ASX 200 Consumer Staples (ASX: XSJ) sector has dipped by around 2% over the same timeframe.

Wesfarmers shares reached a 52-week low of $40.03 on 17 June as volatility hit global markets. Since then, it has climbed slightly of late, up 17%.

Wesfarmers commands a market capitalisation of approximately $54.08 billion and has a dividend yield of 3.59%.

The post Why is the Wesfarmers share price sliding lower on Wednesday? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs. 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 Novonix Ltd (ASX: NVX) share price is taking off after the company released its financial year 2022 report this afternoon.

The S&P/ASX 200 Index (ASX: XJO) battery materials and technology stock opened 1.7% lower at $2.29 on Wednesday before settling to trade relatively flat for much of the morning.

But all that changed after the release of the company’s results. The Novonix share price is currently swapping hands for $2.39, 2.58% higher than its previous close.

Novonix share price lifts on annual report

Here are the key takeaways from the ASX 200 favourite’s full-year results:

• Revenue came in at $8.4 million – a 61% increase on that of the prior corresponding period (pcp)
• Total loss for the year nearly quadrupled to reach $71.4 million – down from the pcp’s $18 million loss
• Earnings per share (EPS) slumped to a 15.4 cent loss
• Cash flows from operating activities came to a $40.3 million outflow – down from an $8.2 million outflow
• Cash and equivalents increased 51.5% to $207 million at the end of FY22

Looking at the company’s major segments, its battery technology business outperformed. It brought in $10 million of income in FY22 and posted an $8.7 million loss. Its revenue grew over every quarter of the financial year just been.

Meanwhile, the company’s battery materials segment saw $531,850 of income and posted a $28.5 million loss.

Novonix noted its earnings for FY22 were in line with management’s expectations.

What else happened in FY22?

The company increased its investment in the development of cathode synthesis technology and continued working on battery pack systems to support microgrids in FY22.

Meanwhile, it made progress toward expanding its production capacity for battery-grade synthetic graphite material.  

US energy giant Phillips 66 (NYSE: PSX) made a strategic investment in the company in August 2021, forking out around $203 million for a 16% stake. The Novonix share price rocketed 15.5% on the back of the news.

Finally, the company was admitted to the ASX 200 in December and began trading on the Nasdaq Stock Market in February.

What’s next?

The company didn’t provide any new earnings guidance today. Though, it did outline its growth strategy.

Novonix is focusing on scaling its production capacity of synthetic graphite. It’s on track to reach a capacity of 10,000 tonnes a year in 2023 and plans to expand that to 150,000 tonnes by 2030.

It will also continue working to develop sustainable technologies, pursue strategic partnerships with international battery companies, and grow its intellectual property pipeline.

It believes doing so will maintain its technology leadership throughout the electric vehicle battery and energy storage supply chain.

Novonix share price snapshot

This afternoon’s turnaround hasn’t been enough to boost the Novonix share price into the longer-term green.

The stock is currently trading for 77% less than it was at the start of 2022. It has also dumped 47% since this time last year.

For comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Novonix share price lifts despite full-year loss deepening to $71 million appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price tumbling 6% on Monday?
• Why is the Novonix share price getting hammered on Wednesday?
• How close is ASX tech share Novonix to becoming profitable?
• Why did the Novonix share price nosedive 6% today?

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

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The Splitit Ltd (ASX: SPT) share price is suffering today amid the release of the company’s half-year results for FY22.

Splitit shares are trading for 17.8 cents at the time of writing. Shortly after open on Wednesday, however, shares in the buy now, pay later provider fell 8% from the previous closing price of 18 cents.

Let’s go over the report highlights.

What did Splitit report?

• Merchant sales volume $US194.8 million (AU$283.40 million), up 12.92% year over year (yoy)
• Net transaction margin up 1.3% from 0.3% in FY21
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 34.99% yoy to a loss of US$8.79 million (AU$12.79 million)
• Net loss after tax down 35% yoy to US$12.25 million (AU$17.82 million)

Some of the year’s highlights included a new growth strategy for the company’s instalments-as-a-service tech, with a greater emphasis on sourcing new partners.

Its partnership program reportedly built strong momentum in 2HFY22, with an enhanced partnership with BlueSnap and forming a new partnership with Everyware.

Nandan Sheth joined the company as the new Splitit CEO and managing director. While Dan Charron joined as a non-executive director.

What else happened in FY22?

The company also announced a placement of 64.4 million new shares at $0.175 per share, for a total of around AU$10.5 million. Splitit directors and c-level managers have agreed to subscribe a further AU$775,000.

The placement also allows investors to purchase stock options, with one free-attaching option offered for every two new shares purchased. Around 32.2 million options will be offered with an exercise price of AU 20 cents each and an expiry date of 30 months from the date of issue.

Funds will be used to drive the company’s growth, expand its white-label instalments-as-a-service solution, and develop its buy now, pay later credit facility for merchants.

What did management say?

Splitit CEO and managing director Nandan Sheth said:

Splitit’s rejuvenated growth strategy positions it to power the next generation of BNPL infrastructure for the existing payments ecosystem. Under this strategy, Splitit has already made good progress accelerating its pathway to profitability in the half year, including net transaction margin growth to 1.25% and a 22% reduction YoY in operating expenditure.

What’s next?

The company said it is eyeing transaction margin and cost efficiencies to help it reach profitability. This will be helped by revising its $150 million receivables contract with Goldman Sachs, which is expected to save the company an additional US$5.3 million (AU$7.71 million) over two years.

Splitit will continue onboarding major global merchants and work with additional major payment providers.

The end goal of this strategy is to expand its white-label instalments-as-a-service offering across a broad and growing merchant base.

Splitit share price snapshot

The Splitit Payments share price is down 29% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 7.8% over the same period.

The company’s market capitalisation is approximately $83.68 million.

The post Splitit share price down amid $17 million loss appeared first on The Motley Fool Australia.

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More reading

• Why is the Splitit share price frozen on Friday?
• 3 ASX tech shares surging more than 10% today
• Why is the Sezzle share price surging 8% on Wednesday?

Motley Fool contributor Matthew Farley 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 Goldman Sachs. 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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