Category: Stock Market

The Genworth Mortgage Insurance Australia Ltd (ASX: GMA) share price hit a 52-week high today on the back of the company’s full-year results.

At the time of writing, Genworth shares are swapping hands at a yearly high of $3.01 apiece, a 3.79% gain on yesterday’s closing price. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.38%.

Let’s take a look at what the lenders mortgage insurance company reported today.

Genworth share price climbs as loss turns to profit

Highlights of the company’s results for the year ended 31 December (FY21) include:

• Net profit after tax (NPAT) of $192.8 million compared to a $107.6 million loss in FY20
• Underlying NPAT of $237.8 million compared to a $104.2 million loss in FY20
• Insurance profit of $261.8 million compared to a $174.1 million loss in FY20
• Net earned premium surged 18.8% to $370.5 million
• Fully franked ordinary dividend of 12 cents per share (cps)
• Fully franked special dividend of 12 cps

What else happened in the year?

Genworth achieved underlying growth of 8.6% year on year, excluding the impact of the loss of the National Australia Bank Ltd (ASX: NAB) contract in late 2020. New insurance written (NIW) dropped 4.4% in FY21. Gross written premium (GWP) dropped by 2.2% due to the movement in NIW.

Despite this drop in GWP, net earned premium (NEP) surged 18.8% to $370.5 million. This was due to new business growth and cancellations from the high levels of industry financing activity.

Net claims were negative $8.3 million, while new delinquencies prevailed below historical levels. Cures and ageing were positively impacted by a strong environment for borrower finances and higher dwelling values.

Cash and investments increased 8.1% to $3.7 billion in FY21.

Due to the sound FY21 result, the company has resumed the payout of a dividend, of 12cps. In FY20, no dividend was paid to shareholders. The company also was able to announce a $100 million market buy-back on 23 November and a fully franked special dividend of 12 cps. Both dividends will be paid on 25 March to shareholders registered as of 11 March.

Genworth believes it is well-positioned to fund its organic growth while still returning capital to shareholders.

Management commentary

Commenting on the results that may be impacting the Genworth share price, CEO and managing director Pauline Blight-Johnston said:

Genworth has delivered a strong full-year profit result. Underlying premium volumes grew and underwriting quality was good. This was accompanied with an unusually favourable claims environment driven by high dwelling value price growth, falling delinquencies and low numbers of mortgages in possession.

Genworth’s sound financial management at the commencement of COVID-19 has seen us come through this period well-positioned to benefit from the improving economic outcomes as we focus on delivering our strategic vision and value to shareholders.

Momentum is growing in the business as evidenced by our strong financial results, recent lender customer contract renewals, and our resumption of capital management activities. This positions us well to deliver on our vision to be the leading choice for flexible home ownership solution.

What’s next?

Looking ahead, Genworth expects slowing levels of new housing credit and fewer cancellations from refinancing to be reflected in its FY22 net earned premium. Genworth has offered a net earned premium guidance of $315 to $375 million in FY22.

Genworth will also exclusively provide Lenders Mortgage Insurance to Commonwealth Bank of Australia (ASX: CBA) for three years from January 2023.

In a separate announcement to the market, Genworth also reported David Foster has retired as a non-executive director as of 31 March 2022.

Genworth share price snapshot

The Genworth share price has climbed 12% in the past 12 months, while it is up 29% this year to date.

In the past month, Genworth shares have surged 29%, while they have jumped 6% in the past week alone.

For perspective, the benchmark ASX 200 index has returned around 3% over the past year.

Genworth has a market capitalisation of about $1.2 billion

The post Genworth (ASX:GMA) share price hits new 52-week high as profits surge appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The LiveTiles Ltd (ASX: LVT) share price launched 10.96% yesterday despite the ASX tech sector’s disastrous tumble.

The S&P/ASX All Technology Index (ASX: XTX) plunged 5.3% on Thursday while the S&P/ASX 200 Information Technology Index (ASX: XIJ) fell 6.4%. For context, the S&P/ASX 200 Index (ASX: XJO) fell 2.9% yesterday.

They’re both recovering today, gaining 3.7% and 7.2% respectively, while the ASX 200 is down 0.01%.

Meanwhile, the LiveTiles share price is trading at 8.8 cents – 8.64% higher than it was at yesterday’s close.

That brings its gains for the past 2 sessions to an impressive 20.54%.

Let’s take a look at what’s been driving the tech company’s stock higher lately.

What’s been boosting this ASX tech company’s share price?

The LiveTiles share price took off yesterday on the back of the company’s earnings for the first half of financial year 2022.

For those not familiar with LiveTiles, it provides software for workplaces, allowing employee collaborations and communications.

LiveTiles’ stock surges on maiden profit

• Operating revenue of $26.7 million – 32% higher than the first half of financial year 2021
• Maiden positive earnings before interest, tax, depreciation, and amortisation (EBITDA) of $4.3 million – $19.2 million more than the prior period’s $14.9 million loss
• Net profit after tax (NPAT) of $1.3 million – its first positive NPAT, up from a $21.5 million loss
• Annual reoccurring revenue of $65.2 million – 12% higher
• Operating cash flow of around $440,000 – $13.5 million more than that of the prior period.

Over the first half, LiveTiles grew its contracted licence base by 59% to $2.7 million.

That saw it boosting its revenue while maintaining costs at $26.4 million – a 3% increase.

Additionally, its customer receipts improved 18% to $30.1 million. Its subscription revenues also surged 45% through upselling and cross-selling.

Though, LiveTiles’ software related services revenue fell 5% due to fewer complex custom intranet deployments.

At the end of the half, the ASX tech company had $17.6 million of cash and $4 million of undrawn debt facilities.

What else happened in the half?

The first half was a busy period for LiveTiles and its share price.

The company took a 19.9% interest in Australian cognitive artificial intelligence (AI) development company, BrainPac for $900,000.

It also announced an agreement to acquire Portuguese digital workplace software company, BindTurning over a 24-month period. An initial purchase of a 19.99% stake in the company will cost LiveTiles US$540,000.

LiveTiles will fork out another US$9.46 million for the remaining 80.01% of BindTurning if the Portuguese company reaches an annual reoccurring revenue milestone in the 24-month period.

Additionally, a partnership that will see LiveTiles purchasing a 19.97% stake in My Net Zero, was agreed to in December. The stake will cost the company $985,000.

The partnership will see LiveTiles’ customers able to build a scope 4 emissions net-zero pledge, capture data about net zero plans, and communicate and collaborate with others undergoing a net-zero journey.

Finally, the company has recently purchased a 10% stake in Canberra’s Hide & Seek – a digital design and UX consulting business.

The stake cost LiveTiles $250,000 and will see it increasing its footprint in the capital alongside an advisor to many government departments.

Despite a busy period for the ASX tech company, the LiveTiles share price fell 28% between the final close of financial year 2021 and 31 December 2021.

What did management say?

LiveTiles co-founder and CEO Karl Redenbach commented on the company’s half year results, saying:

LiveTiles is pleased to have produced a strong half of revenue growth … The company’s performance and results for this half are a credit to the focus and dedication of the entire LiveTiles team given the uncertain environment we have been operating in.

We have full confidence in our product and believe that the relaunch to our brand in 2021 and a renewed focus in sales and marketing will drive continued growth.

We have maintained a disciplined approach with expenses and will continue to look at strategic ways to enhance and innovate our product offering and access to new customer bases in prudent fashion.

What’s next for the ASX tech share?

Livetiles hasn’t given guidance for financial year 2022.

However, it did reiterate that it’s focusing on cost management strategies and work towards breaking even and looking for more investment opportunities to further its growth.

The company expects the second half to bring strong revenue growth as employers look to improve workplaces post-pandemic.

LiveTiles share price snapshot

The last 2 sessions’ gains haven’t been enough to boost the LiveTiles share price into the year-to-date green.

The ASX tech share is still trading 12% lower than it was at the start of 2022. It has also fallen 64% since this time last year.

The post This ASX tech share withstood Thursday’s selloff to leap 11%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Genworth (ASX:GMA) share price hits new 52-week high as profits surge
• Despite the bad news, things are getting better
• Harvey Norman (ASX:HVN) share price jumps following half-year results
• Polynovo (ASX:PNV) share price stung 4% as H1FY22 net loss wreaks havoc
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus

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. owns and has recommended LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s Friday morning.

For a few minutes after I woke up, I’d blissfully forgotten Russia had invaded Ukraine, and the world’s financial markets were in turmoil.

Then, I remembered.

First, an overwhelming sadness for the people facing these unprovoked attacks.

Then, hesitation as I wondered what had befallen the US stock market overnight, an impact that would be foisted on us when the ASX opened today.

I was a little surprised – though not much – to see the major US index, the S&P 500, up 0.25%.

Not because I predicted it… economic predictions are for people who failed at meteorology.

I wasn’t much surprised because the market’s wild gyrations are regularly overblown… or just plain wrong.

Markets have always overreacted. And, though I stand to be corrected, I almost literally mean ‘always’.

Think of the bounceback from the COVID crash. The recovery from the GFC. The two dozen other reasons to panic over the last decade or so.

Frankly, a kid full of red cordial is calmer than some days on the Australian and global markets.

And those kids don’t get handsome six-figure salaries to pretend they know what’s going on!

Which isn’t to say the situation in Ukraine isn’t serious.

It is deadly serious for the people there. And it has potentially serious, long-term implications for the rest of the world.

But you might be surprised to know this, from Ben Carlson of US financial advisory firm Ritholtz Wealth Management:

“From the start of WWII in 1939 until it ended in late 1945, the Dow was up a total of 50%, more than 7% per year. So, during two of the worst wars in modern history, the US stock market was up a combined 115%,”

Will history repeat?

I have no idea.

But it’s far from a foregone conclusion that war in Ukraine will be a terrible thing for the world’s stock markets.

(Even as I type that, I feel uncomfortable: the people in Ukraine are suffering and I’m talking about whether shares will go up or down. But, given that’s my job, and the role of the business I work for – and given that the markets are open and trading, it’s appropriate. It’s just also worth keeping a little perspective – it’s a pretty low priority relative to what’s happening there.)

Coles will sell groceries. Xero will help you do your accounts. CSL will provide blood plasma products and vaccines. Westpac will process transactions.

None of those businesses are likely to be anything but tangentially, and only very slightly, impacted.

And if their shares fall anyway? 

Well, if you liked the value proposition at higher prices, and the business is no weaker, you should like lower prices even more if you’re adding to your portfolio.

And if you’re not?

Well, as long as you’ve heeded our advice to have cash on the sidelines for short- and medium-term living expenses in retirement, you shouldn’t be a forced seller… which means short term price volatility is of exactly zero consequence.

The ASX is up in early trade.

Of course, sentiment might shift, news might break, or something else might cause the market to fall.

I don’t know.

Neither do you.

And nor does anyone else.

So why would you or I bother asking ‘the market’ what it’s thinking right now?

Unless you’re selling today, why would you worry if your portfolio was down?

And if you have some cash to invest, and you liked higher prices, shouldn’t you like lower prices more?

I mean, if the scotch fillet is on special at Woolies this arvo, I don’t throw out the steak I have in the fridge because Woolies says it’s suddenly not worth as much.

Why would I do that with shares?

Exactly.

Now, a quick change of tack, if you’ll allow me.

Last Friday, I wrote about being the luckiest bloke in the world.

I made a quiet deal with myself that from there on, I’d make Fridays a day where I’d try to share a message of optimism.

Maybe slightly harder today than last Friday, but we shouldn’t let the (sometimes hard to avoid) exceptions dissuade us from the reality of better and brighter things elsewhere and over time.

I’m not going to let the current darkness blind me to the light.

Indeed, one of my favourite quotes is “All the darkness in the world cannot extinguish the light of a single candle”. The provenance is disputed, but it’s a wonderful sentiment.

Or the example of Fred Rogers — known to generations of Americans as “Mr Rogers” who, as the New York Times describes:

“… famously said he was always comforted by something his mother would tell him during times of disaster: ‘Look for the helpers. You can always find people who are helping’.”

Pollyanna? Froth and bubble?

Maybe, but I don’t think so.

The story of the human race is the story of progress. Imperfect, and not a straight line, but progress, nonetheless.

It’s that progress that has dramatically raised living standards and life expectancy and alleviated incredible amounts of human suffering.

And it’s that progress that has underpinned more than a century of wealth creation, inside and outside the world’s stock markets.

The headlines carry the big, sudden and impactful bad news. It’s real alright, and worth reporting.

But they don’t carry the smaller stuff. Stories of the internet’s decades-long invention before it became a phenomenon. Stories of the legion of scientists working to cure and treat diseases, past, present and future. 

Contrast, if you will, the completely justifiable run of headlines and awful stories in the early years of the AIDS epidemic, with the current situation of eminently treatable management of HIV infection.

How many headlines about the former? And how many about the latter?

Exactly.

And it’s repeated in all spheres of life. The greatest achievements of humanity are not the things of all-caps headlines. They are the slow, steady, incremental stories of progress, achieved over many, many years of hard work, graft, and not just a little luck.

Yes, we should, of course, recognise and deal with the evil in the world. We shouldn’t block our eyes and ears, nor focus only on the good stuff.

But we should never lose sight of the wonderful progress we’ve made, are making, and will continue to make.

Because that is the story of the 20th and 21st centuries. And will be, I think, the story for many centuries to come, too.

I hope the war in Ukraine comes to a swift end. It’s hard not to be weighed down by the tragedy.

But we mustn’t dwell only in the darkness, either. There is far, far more light. And progress depends on us believing in, and working for, a better tomorrow. 

Let’s do that.

Fool on!

The post Despite the bad news, things are getting better appeared first on The Motley Fool Australia.

More reading

• Genworth (ASX:GMA) share price hits new 52-week high as profits surge
• This ASX tech share withstood Thursday’s selloff to leap 11%. Here’s why
• Harvey Norman (ASX:HVN) share price jumps following half-year results
• Polynovo (ASX:PNV) share price stung 4% as H1FY22 net loss wreaks havoc
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus

Motley Fool contributor Scott Phillips 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 Bruce Jackson.

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The Harvey Norman Holdings Limited (ASX: HVN) share price is jumping today.

This morning, the retail giant released its half-year results (for the period ending 31 December 2021). In it, the company reported a drop in profit and an interim dividend of 20 cents per share.

At the time of writing, the Harvey Norman share price is up 2.91% at $5.14. To compare, the broader S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.49%.

So what did the retailer announce?

Harvey Norman share price lifts on results

The retailer revealed the following financials (against its prior corresponding period of 1H21):

• Earnings before interest, taxes, depreciation and amortisation (EBITDA) down 3.3% to $754.41 million
• Revenue (total system sales) down 6.2% to $4.91 billion
• Reported profit (after tax and non-controlling interest) down 6.7% to $430.91 million
• Net assets up 7% to $4.16 billion
• Net debt to equity of 1.46%
• Earnings per share down to 34.58 cents
• Interim dividend announced (fully franked) of 20 cents per share.

While the retailer saw decreases against its 2021 first half (pcp), it fared better than the 2020 first half.

To compare, this half’s EBITDA was up 70.2% against 1H20, revenue was up 17.1%, and profit (after tax and non-controlling interest) was up 101.7%.

Similarly, its earnings per share at 34.58 cents this half is up against the 2020 period of 17.7 cents.

As such, the retailer is set to pay a fully franked interim dividend of 20 cents per share on 2 May. The company has a trailing price-to-earnings ratio (P/E) of 7.6.

Since 31 December 2021, the Harvey Norman share price has increased by 1.88%.

What else did Harvey Norman report?

Looking at its bricks and mortar, the retailer achieved a “strong” property segment during the half.

All in all, assets totalled $3.5 billion for the half — an increase of 81.3% to a profit of $197 million.

Looking at its local operations, Australian franchising was down 23.7% due to COVID-19 government-mandated closures trailing over almost four months.

The retailer saw close to 60% of its stores close due to lockdowns, including Australian Harvey Norman, Domayne and Joyce Mayne stores.

However, it saw a rebound of profitability in October last year “with the pent-up demand resulting in an acceleration in franchisee sales post lockdown”, the company said.

“This momentum continued into the Christmas trading period despite the looming threat of Omicron.”

What did management say?

Harvey Norman chair Gerry Harvey said:

This is a solid result given the unprecedented COVID-19 issues encountered by the consolidated entity during this half.

When you compare the period 1 January 2022 to 21 February 2022 to the previous corresponding period, there is sales growth in all countries, except for Ireland where sales are virtually flat against a strong prior comparable period.

We operate an integrated retail, franchise, property and digital business across eight countries — and our points of difference have proven to be our strengths validating the continued investment in our three main pillars: 108 company-operated retail stores overseas; 194 franchised complexes in Australia across all key product categories within the Home, Lifestyle and Tech markets; a resilient $3.54 billion freehold property portfolio and a $1.12 billion leasehold portfolio that anchors a strong balance sheet.

Harvey Norman share price snapshot

Since the beginning of the year, the Harvey Norman share price has increased by 1.8%. To compare, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has dropped by 15.7%.

The retailer has a market capitalisation of $6.21 billion.

The post Harvey Norman (ASX:HVN) share price jumps following half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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 owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Polynovo Ltd (ASX: PNV) are on falling today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Polynovo share price is tanking 4% in the red at $1.01 after releasing its earnings today.

Polynovo share price spikes amid earnings growth

Key takeouts from the company’s earnings results today include:

• Reported revenue of $18.15 million signifying a gain of 41.9% on the same period last year
• US Q2 sales was a record A$8.06 million signifying a gain of 105% Year on Year (YoY)
• US NovoSorb BTM sales for December also came in at a record A$3.4 million and were up 76% YoY
• 1H FY22 sales for the US were A$14.20 million and represented a 58% YoY growth
• Group NovoSorb BTM sales came in to $16.27 million and grew 44.6% over the prior period
• Group underlying profit after income tax was $1.618 million, up from a loss of $3.57 million in December 2020
• Reported net loss after tax of $1.7 million when excluding non-cash items

What else happened this half for Polynovo?

Polynovo had a mixed set of results but strengths were predominantly seen in its US markets during this half. US revenue was up 58% for the period leading to all-time highs for sales in November 2021 and then again in December.

Total product sales were up 45% year on year whereas spending on research and development grew by 86%. As a result of its performance, the company recognised NPAT of $1.6 million.

However, when excluding non-cash items on the company’s income statement, Polynovo actually reported net underlying loss after tax of $1.7 million.

The company is also playing an active role over its supply chain management in order to “counteract any demand planning and supply chain issues”.

“We updated our cash flow forecasts to include the impact of changes in costs” it said, with respect to the supply chain issues currently plaguing global industry.

Positive sales momentum from the US has spilled over into the new year, such that the group has recorded another set of record results in January 2022. Sales of A$3.7 million have jumped 96% on the same time last year and are leading this growth.

It also added another 35 new accounts in 1H22, bringing the total number of accounts to 154 at the time of its half-year report today. Of this amount, 16 were added in Q1 FY22 and another 19 in Q2.

In its UK markets, first half sales of $369,000 were up 255% on the same time last year “but less than target”, the company says.

Management commentary

In his director’s report, Polynovo Chairman, David Williams remarked:

COVID-19 has led to new ways of working to allow remote working, virtual sales contacts, virtual conferencing, and protocols to ensure our profile in the market and demand generation continues to grow. All markets have been impacted to varying degrees by the lack of access to hospitals and medical professionals, and the reduction in procedures taking place with the biggest impact in UK and Ireland (UKI) and Europe, Middle East, and Africa (EMEA). Notwithstanding, the Group achieved 45% BTM sales growth globally and notably US revenue was up by 58% in the period to 31 December 2021 when compared to the comparative period. The Group continues to recruit sales and marketing staff to drive sales. The Company sees significant revenue upside in expanding its salesforce.

What’s next for Polynovo?

The company outlined its “focus points for 2H22 and FY23” in the release today. It wants to increase sales teams to drive sales efforts, optimise both its distributor model and emerging markets model whilst expanding its footprint into other markets.

Not only that, but Polynovo is aiming to “expand Key Opinion Leader program (especially UK & EU)” and “focus on product development and faster commercialisation” in the coming periods.

Since 31 December 2021, the group recorded BTM sales of A$4.05 million in January 2022, exceeding the $4 million barrier in monthly sales for the first time in its history.

It’s also added 10 more customers in the US, bringing the total to 164 and anticipated a strong recovery in ANZ markets.

Polynovo share price snapshot

In the last 12 months, the Polynovo share price has collapsed over 58% and is down 31% this year to date. During the past month of trading, shares have collapsed another 22% and are trailing the major indexes in 2022.

The post Polynovo (ASX:PNV) share price stung 4% as H1FY22 net loss wreaks havoc appeared first on The Motley Fool Australia.

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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. owns and has recommended POLYNOVO 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has opened higher this morning after yesterday’s carnage on the markets. At the time of writing, the ASX 200 has gained 0.15%. But unfortunately, that goodwill is not extending to the Magellan Financial Group Ltd (ASX: MFG) share price.

Magellan shares are currently down a nasty 6.17% at $18.56 each. That comes straight after yesterday’s fall of more than 4.8%, putting its five-day losses at around 14%.

So what might be dragging on Magellan shares today?

Well, it just happens that the fund manager has today released its latest funds under management (FUM) update.

As you might have anticipated, it wasn’t exactly good news. Magellan reported its total FUM now stands at $77.2 billion. That’s a reduction of 11.37% since its last update on 11 February when the company announced FUM of $87.1 billion.

Magellan shares sink as FUM outflows continue

Some $3.2 billion of those losses were due to fund outflows, with the rest presumably the results of movements in share and asset market prices. Of that $3.2 billion, $2.6 billion was the result of outflows from institutional investors, with the remaining $0.6 billion coming from retail investors.

Turning to Magellan’s remaining $77.2 billion in FUM, $47.1 billion is housed in Magellan’s Global Equities division. The company’s Infrastructure Equities division is looking after $20.5 billion and Australian Equities has $9.6 billion in FUM.

This news comes just a week after the half-year earnings report that Magellan released to investors on 18 February. This was very well received at the time, with the company reporting a 24% rise in net profits after tax (NPAT), along with a 13% increase in its interim dividend. Even after the falls of the past week, Magellan shares remain up slightly from where they were before the earnings report was released.

Even so, the Magellan share price has had a rough trot over recent months and years. The company remains down around 12% year to date, and down a nasty 59% over the past year.

At the current Magellan share price, this ASX 200 fund manager has a market capitalisation of $3.52 billion, with a dividend yield of 10.9%.

The post Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is off its intraday highs but on course to record a small gain. The benchmark index is currently up 0.2% to 7,002.8 points.

Here’s what is happening on the ASX 200 on Friday:

Block shares rocket

The Block Inc CDI (ASX: SQ2) share price is rocketing higher today following the release of the payment giant’s fourth quarter and full year results. For the 12 months, Block recorded a gross profit of US$4.42 billion. This was up 62% year on year. Things were even better for its adjusted earning before interest, taxes, depreciation and amortisation (EBITDA), which increased 114% year-on-year to US$1.01 billion.

Medibank half year results

The Medibank Private Ltd (ASX: MPL) share price is falling today after the private health insurer’s half year results underwhelmed the market. Medibank reported a net profit after tax of $220.2 million, which is down from $226.4 million a year earlier. The company also revealed that it continues to assess claims activity and any permanent net claims savings due to COVID-19 will be given back to customers.

Tech shares rebound

A number of ASX 200 tech shares are rebounding strongly on Friday. This includes the likes of artificial intelligence data services company Appen Ltd (ASX: APX) and location sharing app company Life360 Inc (ASX: 360). Both these shares were sold off on Thursday following the release of their respective full year results.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Block share price with a 35% gain. This follows the release of its aforementioned results. Going the other way, the worst performer has been the Blackmores Limited (ASX: BKL) share price with a 13% decline. This morning Credit Suisse downgraded the health supplements company’s shares.

The post ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks appeared first on The Motley Fool Australia.

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• Analysts see huge upside potential for these beaten down ASX tech shares
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd and Block, Inc. The Motley Fool Australia has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Strike Energy Ltd (ASX: STX) share price is in negative territory today. This follows the energy company’s update on the South Erregulla drilling operations at the EP503 site.

Strike Energy holds a 100% interest in EP503. The gas project is located about 230 kilometres north-east of Perth in the North Perth Basin in Western Australia.

At the time of writing, Strike Energy shares are bidding for 26 cents apiece, down 1.89%.

What did Strike Energy announce?

Investors are selling off Strike Energy shares after digesting the company’s latest release.

In its statement, Strike Energy advised it has successfully drilled through the lower Carynginia Formation and the Irwin River Coal Measures.

Mud has previously been observed at the South Erregulla-1 (SE1).

So far, a measured depth (MD) of approximately 4,859 meters has been drilled.

Management believes the target to be a short distance away from the top part of the sub-section of the primary target in the Kingia Sandstone.

Currently, Strike Energy is pulling out the bottom hole assembly to reconfigure and acquire core in this section.

Once completed, the team will proceed to core a 45 meter interval. However, the company noted that this could take several attempts to achieve.

Once completed, the company will return with the drilling assembly to drill through the Bit Basher Shale, the High Cliff Sandstones. A final depth call will then follow in the Holmwood Shale area.

Strike Energy noted that South Erregulla has significant resource potential in the Kingia Sandstones with a high chance of success. This is due to the strong data control over the Erregulla region, consistent geological outcomes, and recent identification of updip connectivity in the West Erregulla gas field.

Strike Energy share price review

Over the past 12 months, Strike Energy shares have lost close to 18%, but are up over 25% year to date. The company’s shares reached a 52-week low of 14.5 cents in early December, before rebounding higher.

Based on valuation grounds, Strike Energy commands a market capitalisation of roughly $526.53 million, with 2.03 billion shares on issue.

The post Here’s why the Strike Energy (ASX:STX) share price is edging lower today 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 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 Bruce Jackson.

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The Paladin Energy Ltd (ASX: PDN) share price is surging today after the uranium miner released its financial results for the half-year ending 31 December 2021.

The uranium miner reported a cash increase and a net loss decrease from its operations.

At the time of writing, the Paladin share price is up 13.87% at 78 cents. For comparison, the broader S&P/ASX 200 Index (ASX: XJO) is up 0.3%.

So what did Paladin reveal? Let’s take a look…

Paladin share price surges on results

Highlights of the uranium miner’s H1 FY22 results included:

• Unrestricted cash and equivalents of US$38 million, up 24% from $30.6 million in the prior corresponding period (pcp)
• Net loss of US$11 million, against US$25.4 million in the pcp
• Cash expenditure of US$5.6 million, up 21% on the pcp of US$4.6 million
• No dividend declared

Over the period, the company’s net loss (after tax) from its continuing operations decreased by 57% — a drop the miner attributed to “a result of reduced finance costs” and “foreign exchange gains”.

It also had a cash expenditure of US$5.6 million, while remaining on track for its full-year expenditure target of $12.2 million.

Between 30 June and 31 December 2021, the Paladin share price increased by 69%.

Langer Heinrich mine update

Looking more closely at its operations, Paladin remains committed to its mining portfolio in Australia and Canada.

It spent US$144,000 from its operating cash flow on new “property, plant and equipment” during the period, along with US$662,000 on meeting “minimum tenement requirements” at its sites.

Additionally, it continued to work towards its goal of restarting the Langer Heinrich mine in Namibia, Africa. During H1 FY22, Paladin released its ‘Langer Heinrich Mine Restart Plan Update’. This confirmed an estimated cost of US$81 million to restart the mine and a “17-year mine life supported by ore reserves of 84.8Mt with an average U3O8 grade of 448ppm”.

During the period, the company spent $1.57 million on “ongoing care and maintenance” of the site (from operating cash flow). It also spent US$932,000 on restart planning. However, no official restart date for the mine has been set.

Paladin said:

The restart work technical programs are now complete and have reinforced Paladin’s confidence in the Langer Heinrich Mine as a robust, competitive long-life operation ready to rapidly restart production in the right uranium price movement.

What did management say?

Commenting on the results fuelling the Paladin share price today, CEO Ian Purdy said:

Our Langer Heinrich Mine remains competitively positioned to take advantage of an improving uranium market. The asset has a proven track record of production having successfully marketed over 43Mlb of U3O8.

Our strong cash position and low expenditure levels coupled with our detailed restart plans and our team of high calibre industry experts will ensure that, when the right uranium pricing market prevails, the Langer Heinrich Mine can be successfully restarted, delivering significant value to all of our stakeholders.

Paladin share price snapshot

Over the last 12 months, the Paladin share price has increased by 96%. For comparison, the broader S&P/ASX 200 Energy Index (ASX: XEJ) has increased by 3.2%. However, Paladin shares are down 12.5% this year to date.

In April last year, Paladin shares were trading as low as 36 cents. In September, shares climbed to a high of $1.12.

Earlier this week, the Paladin share price climbed by 9% despite no official news from the company.

The company has a market capitalisation of $1.83 billion.

The post Paladin (ASX:PDN) share price soars 14% on ‘strong cash position’ appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why did the Paladin Energy (ASX:PDN) share price surge 9% today?
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• Why has the Paladin Energy (ASX:PDN) share price tumbled 15% in a month?
• These 3 ASX 200 shares are topping the volume charts on Friday

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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Shares in Bravura Solutions Ltd (ASX: BVS) are plunging today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Bravura share price is trading deep in the red at $1.56 apiece, down 17.7%, after releasing its earnings.

Bravura share price slumps amid earnings growth

Key takeouts from the wealth management company’s earnings results today include:

• Revenue was up 14% to A$132.3 million, a gain from A$115.7 million in 1H21)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) was 61% higher to A$25.3 million
• net profit after tax (NPAT)also up 69% to A$15.3 million
• EBITDA margin increased to 19% compared to 14% the same time last year
• First half earnings per share (EPS) up 68% to 6.2 cents per share
• Unfranked interim dividend declared of 3.7 cents per share
• Dividend payout ratio totalling 60% of 1H22 NPAT.

What else happened this half for Bravura?

In its release today, Bravura said it had seen developments in key markets, particularly the Superannuation Fund Consolidation. The company highlighted a “vertical integration leading to value chain disruption”, and a greater need to improve the digital experiences of customers.

From its efforts this half, Bravura grew revenue by 14% to $132 million with EBITDA and NPAT expanding substantially by 61% and 69% respectively.

Meanwhile, revenue from wealth management was also happy and grew 10%. As a result, the group’s EBITDA margin decreased by 100 basis points to 24% this half.

In the same breath, funds administration division revenue grew by 23%, and EBITDA margin widened by 9 percentage points to 51%.

“Included in the funds administration revenue was the licence associated with a major contract renewal,” Bravura said.

With the growth at the top, Bravura carried this through to EPS of 6.2 cents – up almost 70% year on year – and declared a 3.7 cents per share on a payout ratio of 60% of NPAT.

Bravura also noted in its release today that it “continues to evaluate a pipeline of additional acquisitive and organic growth opportunities”.

Management commentary

Speaking on the group’s performance, Bravura CEO Nick Parsons said:

Bravura’s 1H22 results are encouraging and the return to both revenue and EBITDA growth is very welcome. We are beginning to see the positive effects of our strategic investments.

We continue to sell and deploy our new solutions, which together with increasing economic activity as our core markets emerge from COVID-19, makes us optimistic for future growth.

What’s next for Bravura?

The company expects revenue growth to continue throughout 2H22, resulting in “full-year revenue growth in excess of 10% against FY21”.

It also noted that “some opportunities are shifting to FY23”, and that operating costs are increasing at a similar rate to revenue.

As such, management guides that FY22 EBITDA will be in the range of $45 million to $50 million and the revised guidance for FY22 NPAT “to be in the range of $25 million to $30 million, below previous guidance provided at the November 2021 AGM”.

Bravura share price snapshot

In the past 12 months, the Bravura share price has plummeted more than 46% and is down almost 36% this year to date.

The post Battered: Bravura (ASX:BVS) share price slides 17% on reduced guidance appeared first on The Motley Fool Australia.

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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. owns and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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