Let’s get this out of the way first. The S&P/ASX 200 Index (ASX: XJO), well, it had a shocker today. At the closing bell, the ASX 200 was down by a very depressing 2.99%. That’s the largest one-day fall we have seen in quite a while. That’s never a good sign for the ASX bank shares.
The big four ASX banks make up four of the six largest companies on the ASX 200 Index by market capitalisation. Between them, they account for almost 20% of the entire ASX 200’s weighting. So the ASX 200 isn’t going to go down by a whopping near-3% without dragging the banks down with it.
The largest of the big four, Commonwealth Bank of Australia(ASX: CBA), ended the day down by 2.05%.
National Australia Bank Ltd(ASX: NAB)? It lost 2.49%. Westpac Banking Corp (ASX: WBC) was down a meaty 2.36%.
But it’s the Australia and New Zealand Banking Group Ltd(ASX: ANZ) share price that has copped it the worst today. ANZ shares fell by a very horrible 3.44% and at the close were going for $26.68 a share.
ANZ share price singled out for punishment today. But why?
ANZ shares have arguably not been on the right side of ASX investors for a while now.
NAB and CBA shares have both given investors returns exceeding 15% over the past 12 months. Yet ANZ is up just 0.1% over the same period. And the bank was even technically kicked out of the ‘big four’, albeit briefly, back in November last year. That was when the market cap of Macquarie Group Ltd(ASX: MQG) exceeded ANZ’s, making it the fifth-largest ASX bank for a time.
Earlier this week, my Fool colleague Tony looked at some of the reasons why ANZ hasn’t seemed to be the pick of the ASX bank share bunch for a few years now. The bank’s falling share of the owner-occupied housing market may be to blame. That’s due perhaps to processing issues it has recently had with writing mortgages.
But investors don’t seem to be in a forgiving mood today.
This ASX 200 big four bank has a market capitalisation of $74.97 billion, with a dividend yield of 5.33%.
Before you consider ANZ, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 Bruce Jackson.
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The EML Payments Ltd (ASX: EML) share price has dropped heavily. Could it be an opportunity?
EML is down 7% today, amid market volatility in relation to Russia invading Ukraine. There have been a lot of declines in recent times for EML. The last month shows an 15% drop of the EML Payments share price and the past six months shows a 42% decline.
The EML share price has fallen so far that it is now below the level that it collapsed to after the news of the Central Bank of Ireland (CBI) investigation.
What’s happening to the EML share price?
You’d need to ask the sellers of today, and the last few months, why they decided to sell for a lower price than before, and what encouraged them to sell.
Investors can decide to react to different pieces of news with varying responses.
Analysts were concerned that EML’s European growth would be significantly limited if the CBI decided to impose major growth limitations based on concerns surrounding anti-money laundering and counter-terrorism financing (AML/CTF).
But there was a CBI update in November 2021. CBI said that it would permit EML’s European subsidiary (PCSIL) to sign new customers and launch new programs whilst staying within the material growth restrictions. PCSIL is confident that it can meet these obligations.
CBI also said that it’s satisfied to continue to continue to engage with PCSIL with a view to agreeing appropriate limits under its risk management and controls framework.
But, the CBI did say it intends to implement material growth limitation on total payment volumes for 12 months, or earlier if a remediation plan has been effectively implemented. PCSCIL has been removing higher volume, lower-yielding programs to enable it to comply with a material growth restriction.
Reaction after its FY22 half-year result
The EML share price, and share prices of many businesses, often react to a business’ result.
Looking at the EML report, gross debit volume (GDV) jumped 209% to $31.6 billion thanks to organic growth in all segments as well as the acquisition of Sentenial. Revenue grew by 20%. The gross profit margin was impacted by lower net interest and lack of European set up fees.
Interest revenue is expected to improve in the second half of FY22 as announced central bank interest rate increases improve yields.
The EML share price had fallen by 15% between reporting day and yesterday (before the Russian invasion).
Analyst ratings on the EML share price
Brokers think there is significant upside for EML shares.
UBS has a buy rating on the business with a price target of $4.55. That’s more than 90% higher than today. The broker thinks the market was being too focused on the cons and not enough of the pros of the business. Higher interest rates will help earnings in the coming financial years. On UBS numbers, the EML share price is valued at 20x FY23’s estimated earnings.
Ord Minnett also rates the EML Payments share price as a buy, with a price target of $4.03. It recognises the ongoing growth of the business, though costs were higher in HY22. It thinks that FY23 looks promising.
Should you invest $1,000 in EML Payments right now?
Before you consider EML Payments, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. 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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My Twitter feed is full of real-time reports of the Russian invasion of Ukraine.
True, it’s half a world away, but I can’t help but think “There but for the grace of whatever god there may be, go I”.
The invasion is, of course, unconscionable. Despicable.
Ukrainians are pondering a scary and uncertain future, not sure what happens next. Hoping, I’m sure, for the best, but perhaps expecting the worst.
For a world used to relative peace (with exceptions) in modern times, this is a sobering slice of ugly reality.
I’m a finance guy, of course. The Motley Fool is an investment advisory business.
Markets are down today. By a decent margin.
I’ll get to that, but it’s hard to prioritise a relatively small percentage point loss, against what the people of Ukraine have awoken to this morning, their time.
I just did a finance segment on Radio 2GB in Sydney. Yes, the market is ugly, I said. But it’s hard to make that the first thing we talk about, given the impact on lives in Europe.
And yet, as I said, I’m a finance guy, working for an investment company. So, knowing that people would be worried, and in keeping with my area of expertise, I did what I thought was important: I explained what’s going on, finance-wise, and I put it in the context of the long term journey of wealth creation and preservation.
And, of course, it’s possible to walk and chew gum at the same time: to fully acknowledge the horror of an invasion of Ukraine and at the same time consider the investment response.
So, I’ll do that, here, too, for our members and readers.
Because it’s at times like these that I think our advice can be most useful.
It’s when the world is feeling like it’s spinning out of control that it’s most important to keep a cool head.
And, frankly, it’s times like these that I hope the value of having a little reassurance comes to the fore.
So, here’s what I want you to know:
I want you to know that no-one knows what the short-term will bring. Just as geopolitics is unpredictable, so is the share market.
Why? For the same reasons: the fundamentals are one thing… but in the short term it’s people who influence things most. Sentiment. Mood. Emotion. Panic. Fear. Greed. They’ll all govern how share prices move in the next few days and weeks.
And the problem is that we can’t know how that’ll change. Maybe investors and traders go into a long, drawn-out funk. Or maybe bargain hunters start buying first thing in the morning, and the ASX closes higher tomorrow.
I don’t know, and you don’t know. And we need to make our peace with that short-term uncertainty.
I want you to know that, with a few exceptions, ASX-listed companies won’t be doing anything different tomorrow, next week, next month or next year, no matter what happens in Ukraine.
Which means that any share price falls are completely disconnected from business fundamentals in many, frankly most, cases. Woolworths Group Ltd(ASX: WOW) keeps selling groceries. Cochlear Limited(ASX: COH) keeps restoring hearing. Commonwealth Bank of Australia(ASX: CBA) keeps processing transactions.
I want you to know that we’ve been here before. Dozens of times.
We’ve lived and invested through wars, terror attacks, financial crises and health crises. We’ve lived and invested through currency crises, inflation crises, political crises and geopolitical crises.
None of it was fun. Almost all of it was volatile, and stomach-churning.
But, as you know by now, none of it stopped the market’s relentless, if two-steps-forward-one-step-back inexorable long term rise.
And I want you to know what I’m doing: investing.
Right now, I have $43.84 in my investing account. Everything else is in the market.
Which means… Well, it means today hurts.
But it is entirely keeping with my investing approach.
I’m (almost) always fully invested.
Why? Because, over time, the market has always set new highs.
Not in the absence of tough days like today.
But despite these sorts of days.
And if the market is likely (in my view) to trend higher over time, the longer I wait to invest my savings, the more likely it is to cost me money.
No, not on days like today.
But on all of those other days when the market rises: slowly, often imperceptibly, but meaningfully.
I’ll tell you what else I’m doing: I’m waiting with baited breath for my pay to hit my account in the next couple of days.
I’ll be investing it almost immediately (Motley Fool trading rules notwithstanding).
Again, not because I know the market is poised to go higher immediately… but because I think it will go much higher over the long term, and I want as much exposure to those gains as I can get.
My investment horizon is measured in decades.
I expect the ASX (and the US market, among others) to be much, much, much higher in 20 or 30 years.
I want my share of that value creation.
The price?
There are two prices to be paid:
First, I have to give up current consumption, and put money away for ‘future Scott’.
Second, I have to accept that the journey will be bumpy, even if the destination makes all of those lumps and bumps worthwhile.
That might be cold comfort on days like today.
But that’s exactly when we need to hear it.
If you measure your investment goals in seconds, minutes, hours, days, weeks or months, I can’t help you.
I doubt anyone can.
But if your investment horizon is measured in years, I have good news.
Over decades, the ASX has created massive amounts of wealth. Through the best and the worst that the 20th and 21st centuries have been able to throw at it.
True, there’s no guarantee that the future will be the same as the past.
But it would be a brave person to throw out 120 years of history.
It’s time to hunker down and commit to staying the course.
Maybe it gets worse before it gets better. Maybe this is as bad as it gets.
Either way, my money – literally, shares are my only investment – says there are many and much brighter days ahead for investors.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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The Perpetual Limited (ASX: PPT) share price was in the green by 2% this morning after the company released its half-year results. The share price hit an intraday high of $36.66 within the first hour of trading.
However, Perpetual couldn’t escape this afternoon’s broader market sell-off as tensions between Russia and Ukraine escalated.
Perpetual shares finished the session at $35.52 apiece, down 1.2%. By comparison, the S&P/ASX 200 Index (ASX: XJO) took a greater hit, finishing 3% down at 6,990 points.
Let’s take a look at what the wealth management company reported today.
Perpetual share price responds to NPAT doubling
Highlights of the company’s half-year (H1 FY22) results include:
Net profit after tax (NPAT) of $59.3 million, a 113% improvement on the prior corresponding period (pcp)
Fully frankeddividend of $1.12 per share, a 33% boost on pcp
Underlying profit after tax up 54% on pcp to $79.1 million
Underlying profit before tax up 56% on pcp to $109.6 million
Operating revenue up 37% on pcp to $384.9 million.
What else happened in the half?
Strong earnings growth across all four of the company’s divisions underpinned its profit boost and revenue gains.
Perpetual Asset Management International achieved a 205% surge in underlying profit before tax (UPBT) on the pcp. Assets under management surged 16% on H1 FY21 to $77.2 billion. The Trillium and Barrow Hanley acquisitions contributed to this growth.
Meanwhile, UPBT in Perpetual’s Australian asset management division surged 42% on H1 FY21, underpinned by “strong relative investment performance, positive net flows, higher average equity markets and lower variable remuneration”. Assets under management in this division jumped from $22.7 billion to $25.6 billion.
Further, the Perpetual Corporate Trust Division achieved a 19% higher UPBT, driven by continued growth across its three business units. Funds under administration surged 6% on the pcp to $990.4 billion. Perpetual acquired Laminar Capital and incorporated it into a new digital division.
Meanwhile, Perpetual Private UPBT surged 56% on the pcp due to positive net flows, strong investment performance, and higher market and non-market revenue. Perpetual also completed its acquisition of Jacaranda Financial Planning during the half.
Perpetual has offices in Australia, the United States, the United Kingdom, the Netherlands, and Singapore, as well as a presence in Hong Kong.
Management commentary
Commenting on the results, CEO and managing director Rob Adams said:
We are delivering solid earnings growth across our business, with all four of our operating divisions demonstrating positive momentum.
Our diversified business model has gone from strength to strength, generating both reliable and growing returns while also providing Perpetual with a clear point of differentiation in the market.
What’s next for Perpetual?
Perpetual confirmed its FY22 operating expense growth guidance of 18% to 22%. The company is seeing positive momentum in all of its divisions going into the second half and is confident of continuing to scale globally.
The company believes it is in a good position to deliver organic growth due to its sound balance sheet and headway on its global distribution strategy.
Speaking on the outlook, Adams added:
Current and expected market conditions appear likely to suit the value style investment approaches of Perpetual’s Australian Equities team and the teams at Barrow Hanley, both having delivered strong results for investors over many decades.
Our positioning in ESG investment is delivering results and investor interest is high, as evidenced by Trillium’s strong growth. PCT goes from strength to strength across all its business lines, and PP’s long run of positive net flows is set to continue.
Perpetual will pay an interim dividend of $1.12 per share on 1 April.
Perpetual share price summary
The Perpetual share price has soared by about 12% in the past 12 months. For perspective, the benchmarkASX 200 has returned about 2% over the past year.
Before you consider Perpetual, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Perpetual wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 Bitcoin (CRYTPO: BTC) price is down more than 6% over the past 24 hours, currently trading at US$35,475 (AU$49,192).
It’s no secret why.
Russian-Ukrainian tensions nearing the boiling point
The geopolitical situation in Eastern Europe has turned sharply towards the negative today.
In the latest move roiling crypto and share markets alike, Russian President Vladimir Putin authorised special operations of Russian forces in Ukraine’s separatist Donbas region.
Many Western analysts are warning of the potential of an all-out war, though Putin told Russian TV that his nation has no intentions to occupy Ukraine.
But that’s done little to placate investors.
Alongside a tanking Bitcoin price, the S&P/ASX 200 Index (ASX: XJO) is down a gut-churning 3.1% in afternoon trading.
Risk assets, like many tech shares, are taking the brunt of the beating, witnessed by the 5.4% intraday crash of the S&P/ASX All Technology Index (ASX: XTX).
Bitcoin price tumbles as investors de-risk
Addressing the headwinds hammering the Bitcoin price of late, Josh Gilbert, crypto analyst at multi-asset investment platform eToro, told the Motley Fool:
Investors will generally rotate out of perceived risky assets when uncertainty arises. That’s why we’ve seen assets such as bitcoin and some tech stocks come under pressure over the last week.
Indeed, the Bitcoin price is now down 19% since this time last week.
And Gilbert believes there could be more short-term pain ahead:
In my opinion, it seems that investors are positioning themselves for further downside in cryptoassets. Investors are now leaning towards safe havens such as gold to overcome this short-term uncertainty.
Investors certainly appear to be on the hunt for havens, like gold.
“For those investors worried about the potential impacts that the political tension between Russia and Ukraine may cause, it’s important they reflect on their own risk tolerance and investment strategy,” Gilbert continued.
However, he told us he doesn’t believe this will have a long-term impact on the Bitcoin price and wider crypto markets:
If they’re investing in crypto as a long-term investment, this short-term blip doesn’t affect its long-term goal of changing the financial industry and essentially being the future of payments.
Historically, most geopolitical crises have had minimal long-term global market repercussions, and the threat is usually more significant than the event itself.
And Gilbert touted the vital role cryptos can play during heightened global volatility.
“Even if banks are closed and local currencies fall in value during times of instability, citizens will still have access to capital through crypto,” he said.
Though with the Bitcoin price down 25% so far in 2022, they may find less capital then they were hoping for.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this infection prevention company’s shares to $3.40. Goldman Sachs has concerns over the company’s transition away from GE Healthcare to a new direct sales model. It suspects the GE de-stocking cycle could extend into FY 2023, has concerns that not all GE customers will transition in a timely manner, and sees potential for cost lumpiness. The Nanosonics share price is trading at $3.99 today.
A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on the retail giant’s shares to $34.00. This follows the release of half year results that were largely in line with expectations. However, the broker feels that the market may be expecting too much from Woolies in the future and thus doesn’t see value in its shares at the current level. The Woolworths share price is fetching $35.69 on Thursday.
Analysts at Credit Suisse have downgraded this engineering company’s shares to an underperform rating with an improved price target of $10.60. According to the note, the broker felt that Worley’s half year results were a bit of a mixed bag. In light of this, it doesn’t believe the company is well-placed to achieve full year expectations and justify its current valuation. The Worley share price is trading at $11.81 today.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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. owns and has recommended Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics 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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It’s a disastrous day for plenty of ASX shares, with both major indexes tumbling more than 2%. But not all stocks are suffering – the Perseus Mining Limited (ASX: PRU) share price has surged a whopping 13.21% to trade at $1.80.
That’s despite no news having been released by the gold producer, developer, and explorer.
On top of that, the company announced it has hit its targeted production rate of 500,000 ounces of gold per annum for the first time in financial year 2022.
While the market wasn’t initially impressed yesterday, today’s gains might be a delayed reaction to its earnings for the half.
Or, it could be due to seemingly strong sentiment surrounding gold producers.
As The Motley Fool Australia’s Bernd Struben reported earlier, other ASX 200 gold miners such as Newcrest Mining Ltd(ASX: NCM), Northern Star Resources Ltd(ASX: NST), and Evolution Mining Ltd(ASX: EVN) are booming today.
Their share prices have gained 3.2%, 4.9%, and 3.9% respectively, placing them among the index’s top performers.
Meanwhile, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has surged 3.6%. That could assume it’s not just the big golden players winning on Thursday.
Perhaps unsurprisingly, the price of the golden metal is also in the green today. April gold futures have gained 1.05% to trade at US$1930.60 per ounce, according to data from CNBC.
Should you invest $1,000 in Perseus Mining right now?
Before you consider Perseus Mining, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Perseus Mining wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 Bruce Jackson.
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The S&P/ASX 200 Index (ASX: XJO) has given investors a thumping today, no point beating around the bush. At the time of writing, the ASX 200 has plunged a very nasty 3.1% and is back below the 7,000 point threshold.
But let’s try not to let that get us down, and let’s instead check out the ASX 200 shares that are currently topping the market’s share volume charts, according to investing.com.
Logistics company Qube is our first company up this Thursday. This ASX 200 share has had a sizeable 20.14 million of its shares bought and sold so far today. This follows the company’s half-year earnings release this morning.
The company reported a 26.7% rise in revenues, and a slight 0.7% bump in earnings. Investors seem pleased with what the company out up, with the Qube share price actually in the green so far today. It’s currently up 0.89% at $2.84. This is probably why we are seeing some elevated trading volume here.
ASX 200 telco Telstra is next up. So far today a notable 21.4 million Telstra shares have found a new home. There hasn’t been much in the way of any news or announcements out of Telstra today thus far. That’s apart from a share buyback notice that may be helping those volume figures.
However, Telstra shares have not been immune to the sell-off today. The company is currently down 1.62% at $3.96 a share. It’s those two factors that are probably behind this trading volume we see.
ASX 200 lithium producer Pilbara is our final and most traded share of the day today. This Thursday has seen a whopping 26.83 million Pilbara shares swap hands as it currently stands. Again, there hasn’t been any news of note out of Pilbara today.
However, the company has suffered a steep share price sell-off. The Pilbara share price is presently down by a depressing 6.67% at $2.65 a share. The magnitude of this sell-off is the likely cause of the high trading volumes we are seeing with this lithium company.
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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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 Appen share price is down 28% to $6.18. Investors have been selling down this artificial intelligence data services company’s shares following the release of its full year results. Appen reported an 8% increase in revenue to a record of US$447.3 million and a 3% increase in underlying EBITDA to US$77.7 million. The latter fell short of its revised guidance.
The City Chic share price is down 33% to $3.40. Investors have been selling this plus sized fashion retailer’s shares after its half year results disappointed. City Chic reported a 49% lift in revenue to $178.3 million but a 6% reduction in net profit to $12.3 million. The company decided against paying an interim dividend.
The Flight Centre share price is down 9% to $18.31. This morning the travel agent giant reported a $188 million first half loss. And while management has reaffirmed its profitability targets, it hasn’t been enough to stop its shares from tumbling. Flight Centre expects its corporate business to return to profit in March-April, whereas the global leisure business is expected to return to profit later in the second half.
The Life360 share price has crashed 30% lower to $4.58. Investors have been selling down this app maker’s shares following the release of its full year results. Although Life360 delivered strong top line growth, its losses grew strongly. Also weighing on its shares was management acknowledging that privacy concerns are impacting the tracking tech category.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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 company reported a large decrease in profit and declared an interim dividend to be paid in April.
At the time of writing, the Southern Cross Media share price is down 10.99% at $1.81. For context, the All Ordinaries Index (ASX: XAO) is also having a shocking day, currently down 2.8%.
Let’s read on…
Southern Cross Media share price tanks on results
For the six months ending 31 December 2021 (H1 FY22), the Australian media company highlighted the following:
Revenue up 0.2% to $259.8 million against the prior corresponding period (pcp)
Group operating expenses down 2.7% to $213.3 million
Net debt down 1.9% to $67.7 million.
Despite the drop in earnings, Southern Cross Media said its balance sheet “remains strong”. As such, its EBITDA amount (excluding JobKeeper payments and its Public Interest News Gathering grant [PING]) was up 16.3% to $46.5 million.
The company will also pay a fully franked dividend of 4.5 cents per share on 7 April. This is the first time it has paid an interim dividend since 2019.
What else happened in the half?
Looking more closely at its operations, Southern Cross Media’s LiSTNR app saw 500,000 new users in the last 12 months. It also had more advertisers taking advantage of its “addressable audiences”.
Against its pcp of H1 FY22, audio revenue increased by 11.5% to $193.8 million, and broadcast revenue was up 10.3% to $183.3 million.
Television revenue was down by 22.3% to $65.8m. However, television EBITDA (excluding JobKeeper payments and PING) increased by 27.3% to $17.5 million. This was a double whammy effort, due to the media company’s “sales performance” and the changeover of its “television affiliation to Network 10” from 1 July last year.
On the move, CEO Grant Blackley said:
Our open and effective operating relationship with Network 10 delivered above-market returns for both parties.
From 1 April, SCA will take over national sales representation for Network 10 programming in northern NSW and Tasmania which will simplify buying off Network 10 for national advertisers in regional Australia.
Expenses were reduced by $6 million, a portion due to “lower television affiliation fees payable to Network 10”.
What did management say?
Commenting further on the results impacting the Southern Cross Media share price today, Blackley said:
The recovery in advertising markets continues to strengthen but is uneven, with Omicron related disruptions tempering the strong momentum from November to December.
Advertising markets in Q4 are expected to benefit from a normalising market, improving consumer and business demand and the upcoming Federal Election.
Southern Cross Media share price snapshot
Over the last 12 months, the Southern Cross Media share price has dropped by 25%. It is also down by more than 5% this year to date.
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