Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) has taken a nasty fall so far this Tuesday amid global geopolitical concerns. At the time of writing, the ASX 200 has lost 1.27% at 7,141 points.

But rather than letting that get us down, let’s instead check out the ASX 200 shares that are currently heading the market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far this Tuesday

Alumina Limited (ASX: AWC)

Alumina is our first ASX 200 share to start with today. This aluminium and alumina producer has had a hefty 18.52 million shares trade on the markets so far this Tuesday. This volume comes after the company reported its full-year results for the 2021 calendar year this morning.

As we covered earlier, Alumina saw profits and dividends both rise, as well as a boost to cash inflow. However, that appears to have disappointed investors, with the Amumina share price currently down a depressing 3.29% to $2.06 a share at the time of writing. It’s probably this steep fall, together with the earnings, that has sparked this high trading volume we’re seeing.

Liontown Resources Limited (ASX: LTR)

ASX 200 battery minerals company Liontown is next up this Tuesday. Today’s trading session has seen a hefty 19.04 million Liontown shares trade hands thus far. Unlike Alumina, Liontown has had no major news or announcements come out as it presently stands.

But the company has had a very nasty share price fall during today’s trading session. Liontown shares are currently down by 9.76% at $1.34 each, a new low watermark for 2022 thus far. It’s this steep drop that is probably responsible for this elevated volume.

South32 Ltd (ASX: S32)

South32 is our final and most traded ASX 200 share of the day as it currently stands. So far, a whopping 20.79 million of this diversified miner’s shares have been bought and sold on the markets today. Again, there’s nothing new out of South32 today.

The company did report a well-received earnings last week though, which initially saw South32 shares jump in value. However, that has all been whittled away by the 2.96% share price tumble the company has experienced so far this Tuesday. It’s this drop that is probably behind South32’s pole position on this list, perhaps assisted by the company’s share buyback program.

The post These 3 ASX 200 shares are topping the volume charts on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• Think VAS is the best ASX index fund? These ETFs have beaten it over the past decade…
• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• Alumina (ASX:AWC) share price sinks despite dividend boost
• Banking on the South32 (ASX:S32) dividend? Here’s what you need to know

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.

from The Motley Fool Australia https://ift.tt/JmsW5iy

The Veem Ltd (ASX: VEE) share price is deep in negative territory on Tuesday afternoon following the release of the company’s first-half results.

After disappointing investor expectations, the marine technology company’s shares have fallen by 13.64% to trade at 76 cents each at the time of writing.

Veem reports weakened result for H1 FY22

The Veem share price is heading south today following the company’s performance for the six months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $26.3 million, down 7.4% on the prior corresponding period (H1 FY21 $28.4 million)
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $2.9 million, down 49% (H1 FY21 $5.7 million)
• Net Profit After Tax (NPAT) of $0.3 million, down 90% (H1 FY21 $3 million)
• Earnings Per Share (EPS) of 0.2 cents per share, down 91% (H1 FY21 2.3 cents per share)
• Unfranked interim dividend of 0.0007 cents per share.

How did Veem perform in H1 FY22?

As foreshadowed at the company’s annual general meeting (AGM), there were a number of factors that impacted the above results.

The first was the company vigorously competing for staff in a very tight labour market caused by border closures. This means that Veem has been unable to recruit many skilled tradespeople when needed. This, in turn, constrained capacity (production hours) and increased costs through payment of overtime and higher wages.

In addition, raw materials price increases have eroded margins, particularly the bronze (copper and nickel) used for propellers.

The company has also been impacted by a surge in freight costs and shipping times which have affected its margins.

At year’s end, Veem had a cash balance of $4.6 million and an undrawn overdraft facility of $3.4 million.

What’s the outlook for Veem?

Looking ahead, Veem is confident that it can continue driving growth of its gyrostabiliser product in the global marine market.

Notably, the company is the only major supplier in the large marine gyrostabiliser market. The total addressable opportunity is valued at US$1.1 billion for new builds and US$13.5 billion for retrofits.

Management noted that its significant investment and ongoing development provides a major barrier for entry for potential competitors.

The global demand for propellers is expected to remain robust, with Veem already increasing its manufacturing capacity last month.

The company expects sales of propellers to increase in line with capacity and also be boosted by price rises.

In addition, Veem’s defence revenue is expected to remain strong. Deliveries under the upcoming Collins Class submarine full cycle docking are scheduled to commence in April 2022.

Nonetheless, investors have sold off the Veem share price after the company advised that revenue over the next period will likely be similar to the first half. This is due to the tight labour market, rising raw materials and freight costs, freight and supplier uncertainty, and COVID-related issues.

The company refrained from providing earnings or profit guidance for the FY22 full year.

Veem share price snapshot

The Veem share price is down more than 19% year to date and almost 16% over the past 12 months.

The company has a current market capitalisation of around $103 million.

The post Double-digit losses: Veem (ASX:VEE) share price sinks 14% following first-half results appeared first on The Motley Fool Australia.

More reading

• Why Cochlear, Coles, Costa, and Monadelphous shares are racing higher
• 2 ASX mid-cap shares hitting new 52-week highs today
• Why NAB (ASX:NAB) has been losing market share, but its shares are set to soar
• Why is the Lake Resources (ASX:LKE) share price frozen today?
• What’s the outlook for the Telstra (ASX:TLS) dividend?

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

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline amid rising tensions in Ukraine. At the time of writing, the benchmark index is down 1.4% to 7,130.5 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are racing higher:

Cochlear Limited (ASX: COH)

The Cochlear share price has jumped 9% to $207.62. This follows the release of the hearing solutions company’s half year results. Cochlear delivered a 26% increase in half year underlying net profit to $158 million, which was well ahead of the market consensus estimate.

Coles Group Ltd (ASX: COL)

The Coles share price is up over 3% to $17.30. This follows the release of the supermarket giant’s half year results. Although Coles reported a 4.4% decline in EBIT to $975 million due to COVID impacts, this was ahead of the Visible Alpha analyst consensus estimate of $965 million. It also didn’t stop Coles maintaining its fully franked interim dividend at 33 cents per share.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price has stormed 7% higher to $3.21. Investors have been buying the horticulture company’s shares after a strong performance from its international operations helped drive a 16% increase in full year net profit after tax (before one offs) to $64 million. International sales grew 30% over the 12 months and now account for over a quarter of Costa’s overall sales.

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price is up 10% to $10.92. Investors have been buying the mining services company’s shares following the release of its half year results. Monadelphous reported a 12% increase in revenue to $1,065 million and a 17.7% jump in net profit after tax to $30.1 million. This was driven by record half year maintenance and industrial services revenue.

The post Why Cochlear, Coles, Costa, and Monadelphous shares are racing higher appeared first on The Motley Fool Australia.

More reading

• ‘Strength to strength’: Monadelphous (ASX:MND) share price spikes 8% on strong earnings
• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• Cochlear (ASX:COH) share price 6% higher on juicy 35% dividend spike
• Fruitful earnings: Costa Group (ASX:CGC) share price surges 8% on full-year results
• Coles (ASX:COL) share price on watch after COVID costs hit earnings

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 Cochlear Ltd. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended COSTA GRP FPO and Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

It’s a bad day for most ASX shares today, with the broader market sliding lower this afternoon.

Though, there are some mid-cap shares going against the crowd to hit their highest point in 12 months.

The share price of both G8 Education Ltd (ASX: GEM) and Capricorn Metals Ltd (ASX: CMM) have hit new 52-week highs on Tuesday after gaining 6.6% and 5% respectively.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 1.6% while the All Ordinaries Index (ASX: XAO) has slipped 1.7%.

Let’s take a closer look at what’s boosting the ASX mid-cap shares to new 12-month records today.

What’s driving these ASX mid-cap shares to 52-week highs?

Owners of G8 Education or Capricorn Metals shares, pat yourself on the back. The two companies’ stock has roared to new 52-week highs today.

The G8 Education share price’s new 52-week high is $1.29. At the time of writing, the company’s share price has retreated to $1.27, which is still 5.37% higher than its previous close.

It comes after the early education and care provider released its earnings for 2021 this morning.

Its operating revenue increased to $866.3 million in 2021 – up from $777.1 million in 2020.

It has also recovered from 2020’s $189 million after tax loss to post a net profit after tax (NPAT) of $45.7 million last year. Though, that’s still lower than its 2019 post-tax profit of $52 million.

The company’s occupancy also rebounded to just 2.1% less than that of 2019.

There’s no such clear reason as to why the Capricorn Metals share price surged to its new 52-week high today.

However, the gold producer’s stock has been on the up-and-up lately. It has gained 18% since the end of January despite the company’s silence.

Though, the price of the golden metal might be helping to boost the ASX mid-cap’s share price.

As The Motley Fool Australia reported earlier today, concerns of rising tensions between Russia and Ukraine saw the price of gold increasing overnight. According to data from CNBC, gold futures are currently 0.6% higher at US$1,9112.20 an ounce.

Right now, the Capricorn Metals share price is $3.74 – 3.03% higher than its previous close.

The post 2 ASX mid-cap shares hitting new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• 2 All Ordinaries mining shares smashing all-time highs 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2yqQ1AX

Among the big four banks, National Australia Bank Ltd. (ASX: NAB) has always been something of a pariah to ASX investors.

The share price has really gone nowhere for a long time now. In fact, it’s still 27% down on its peak before the global financial crisis just over 14 years ago.

Following an embarrassing Hayne Royal Commission, even recent times have been tough.

“NAB had been losing market share in the past 2 years,” Marcus Today portfolio manager Thomas Wegner told The Bull.

But there is more than a glimmer of hope now that NAB can turn its fortunes around.

Analysts bullish on NAB’s latest results

According to a CMC Markets survey, 11 out of 16 professional investors currently rate NAB shares as a “buy”. Eight think it’s a “strong buy” and 3 deem the stock a “moderate buy”.

The remaining 5 are hardly negative, simply designating the stock as a “hold”.

Bell Potter has slapped a $32.50 target on NAB shares, which is a 6.5% premium on Wednesday afternoon’s price. On top of that, a handy dividend yield of 4.2% is on offer.

Wegner said the recent results were pleasing.

“First quarter 2022 results were ahead of expectations. Cash earnings grew 9.1% on the prior corresponding period.”

He believes that qualitatively NAB shares are well prepared for a comeback.

“Improving customer satisfaction and market share gains were solid achievements given the challenging operating environment,” Wegner said.

“Management is also optimistic about the outlook and is targeting flat expenses in the 2022 financial year.”

NAB even made a foray into the neobank space last year, when it acquired fintech 86 400 for $220 million to absorb it into its digital brand UBank.

Investors are already climbing over each other to get their hands on the stock.

Last week The Motley Fool reported that the NAB share price hit a 4-year high, although it has cooled off a little since then to present a buying opportunity.

So far this year, NAB shares have climbed 2.2%, while the wider S&P/ASX 200 Index (ASX: XJO) has fallen more than 6%.

The post Why NAB (ASX:NAB) has been losing market share, but its shares are set to soar appeared first on The Motley Fool Australia.

More reading

• Rate rise coming? 2 finance ASX shares to buy right now
• 2 ASX 200 dividend shares named as buys
• Why NAB (ASX:NAB) and this ASX dividend share could be buys
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why did the NAB (ASX:NAB) share price smash 4-year highs today?

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/47KWBmG

The Lake Resources NL (ASX: LKE) share price isn’t going anywhere today.

The ASX lithium share closed yesterday at 91 cents, losing 3.2% in Monday’s trading.

As for today, shares have been put in a trading halt at the company’s request.

Why is the Lake Resources share price frozen?

According to this morning’s ASX release, Lake Resources requested that shares be placed in a trading halt through to market open this Thursday.

Why?

The company is working on rectifying a “technical compliance issue”.

Lake Resources reported that it’s looking into whether “a cleansing prospectus should be issued or whether in the circumstances it should seek order from the Court in relation to its inadvertent failure to lodge a Cleansing Notice in relation to shares issued by the Company on or about 21 October 2021, within 5 business days of the issue of the shares”.

The ASX lithium miner said its failure to lodge the cleansing notice within the required 5-day timeframe was “due to an oversight”.

Lake Resources indicated it will still be releasing a brief explanation of the issue.

What is a cleansing notice?

For a concise definition of what cleansing notices are all about, we defer to the attorneys at HWL Ebsworth.

According to the law firm:

“The effect of a cleansing notice is to ‘cleanse’ the market with information that may not have otherwise been disclosed, or confirm that no such information exists, to create a level playing field and allow the issued securities to be traded by recipients. This means that in some circumstances early disclosure of information that is otherwise not required to be released to the market must be made.”

Lake Resources share price snapshot

The Lake Resources share price has struggled in 2022, down 17%. However, shares in the ASX lithium miner remain up 138% over the past 12 months. That compares to a full-year gain of 4% posed by the All Ordinaries Index (ASX: XAO).

The post Why is the Lake Resources (ASX:LKE) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• Broker names 3 ASX lithium stocks to buy with huge upside potential

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.

from The Motley Fool Australia https://ift.tt/x48FpGD

When it comes to dividends, the Telstra Corporation Ltd (ASX: TLS) dividend is among the most popular on the Australian share market.

Or at least it has been historically. Over the last decade, a series of cuts has led to some income investors falling out of love with Telstra.

But the tide is now turning following the telco giant’s first half results and analysts are becoming increasingly positive on the outlook of the Telstra dividend.

The Telstra dividend

When Telstra released its half year results last week, the company’s board elected to declare an 8 cents per share fully franked dividend. This was in line with last year’s interim dividend and puts it on course to pay a 16 cents per share dividend again for the full year.

Incidentally, if you want to receive the latest Telstra dividend, you’ll have to be a shareholder before its shares go ex-dividend on 2 March. After which, you can look forward to being paid at the very start of the following month on 1 April.

What about the future?

According to a note out of Goldman Sachs, its analysts don’t believe it will be too long until the Telstra dividend starts to increase at long last.

Its analysts are forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023, then 18 cents in FY 2024, and then 19 cents in FY 2025.

Based on the current Telstra share price of $3.90, this will mean yields of 4.1%, 4.6%, and then 4.9%.

Goldman currently has a neutral rating on the company’s shares. Though, with a price target of $4.30, it sees potential upside of 10% for investors, which isn’t bad considering its strong gains over the last 12 months.

The post What’s the outlook for the Telstra (ASX:TLS) dividend? appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) share price rises on surprise TPG deal
• Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?

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 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.

from The Motley Fool Australia https://ift.tt/k5MVKoI

Any investors in QBE Insurance Group Ltd (ASX: QBE) shares may have watched intently as the insurance giant delivered its full-year earnings report last week.

As we covered at the time, QBE reported a statutory net profit after tax of US$750 million, rising strongly from the previous year’s loss of US$1.5 billion. That’s not quite as high as some investors were expecting, seeing as the QBE share price fell 9% after the report was released. Even so, QBE shares remain up 3.7% over the past month, and up 0.5% in 2022 so far, which is more than you can say for the S&P/ASX 200 Index (ASX: XJO). 

But a key part of QBE’s earnings report was its dividend announcement. Last week, the company declared a final dividend of 19 cents per share, partially franked at 10%. That was well above the insurance company’s interim dividend of 11 cents per share (also franked at 10%) that was paid out in September last year. It brings QBE’s total dividends for FY2021 to 30 cents per share. QBE shares will trade ex-dividend for this final payout on 7 March. Investors will get the paycheque on 12 April. 

Are QBE shares back to a dividend heavyweight status?

So how does this dividend stack up against QBE’s past payments? Well, it certainly looks good against the company’s FY2020 record. In the previous financial year, QBE only managed to fork out an interim dividend of 4 cents per share. It skipped its final payout probably due to the effects of the pandemic.

Perhaps FY2019 is a better year to compare against then. Back in FY2019, QBE was back to two dividend payments. The interim dividend was a 27 cents per share payout, franked at 30%. The final payment was worth 25 cents per share, franked at 60%. So that’s a total of 52 cents per share, well above the company’s recent payouts.

So QBE’s dividends have certainly recovered from the drought of FY2020. But they still have a long way to go to match the company’s bumper cash payments of FY2019.

At the current QBE Insurance share price, this ASX 200 company has a market capitalisation of $17.65 billion, with a price-to-earnings (P/E) ratio of 18.18. Plugging in the new final dividend, QBE’s dividend yield now stands at 2.5%. 

The post Banking on the QBE (ASX:QBE) dividend? Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
• QBE (ASX:QBE) share price sinks 9% on FY21 earnings miss
• 5 things to watch on the ASX 200 on Friday

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.

from The Motley Fool Australia https://ift.tt/x52m49Z

The DroneShield Ltd (ASX: DRO) share price is zipping upwards today after the company released its financial results for the full year ended 31 December 2021.

In afternoon trade, shares in the drone detection technology company are fetching 18 cents per share. This represents an increase of 9.37% from the company’s previous closing price.

DroneShield share price takes flight on rapid revenue growth

• Revenue up 91% to $10.6 million compared to the prior year
• Cash receipts reach $14.8 million, increasing 174% from FY20
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improves marginally to a $5.9 million loss from a $6 million loss
• Net loss improves 9% to $5.31 million
• Total pipeline for 2022 reaches $290 million
• Repeat customer cash receipts of $9.9 million, increasing 350% from previous year

What happened during the year for DroneShield?

The DroneShield share price is soaring on the back of a momentous year of operations for the drone defence company in 2021. The year saw DroneShield cement yet another consecutive year of revenue growth, as contracts flowed in from new and repeat customers.

Powering forward with its software-as-a-service ambitions, the company broadened its market into AI-powered realms of electronic warfare. This saw DroneShield land a $3.8 million 2-year R&D contract with the Department of Defence. Investors were pleased with this announcement, sending the DroneShield share price higher on the news.

Furthermore, the company expanded upon its talent throughout the year, doubling the size of its team to 60 people. According to the annual report, the new additions included engineers, sales and field support, and production technicians.

DroneShield has continued to build its presence in the United States over the past year. For example, 2021 involved numerous invite-only events in the US where the company’s products were tested and evaluated.

Management commentary

Highlighting the importance of DroneShield’s US operations, independent non-executive chair Peter James stated:

The US Government and military market is expected to be the single largest opportunity for DroneShield, being the largest counterdrone customer in the world. During 2021, DroneShield continued to position itself for that market, with additional hires in its Virginia office, making multiple initial smaller sales, ensuring compatibility to standard US Government software interfaces, and conducting multi-agency product evaluations and deployments.

The US business is led by a seasoned ex-military veteran team, experienced in scaling US Government sales and the associated steps towards larger purchases.

Additionally, James provided insight into the company’s forward movements. He said:

DroneShield has continued to grow its relationships with key defence primes in Australia and globally. This is expected to bring further cash receipts (in the form of outright sales and paid R&D contracts) in 2022.

DroneShield share price snapshot

DroneShield shareholders have been on a wild ride over the past year. For instance, the DroneShield share price has been as low as 14 cents and as high as 22 cents.

Despite the volatility, investors have little to show for the voyage so far, with shares up 2.9% in the 12-month timeframe. However, many ASX-listed companies have fared far worse than DroneShield during this time.

For context, Electro Optic Systems Holdings Ltd (ASX: EOS) is down 62% in the last year. Additionally, Austal Limited (ASX: ASB) has tumbled more than 20%.

The post DroneShield (ASX:DRO) share price surges as revenues soar 91% appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Telstra (ASX:TLS) dividend?
• Banking on the QBE (ASX:QBE) dividend? Here’s what you need to know
• Negative result: Atomo Diagnostics (ASX: AT1) shares plunge 18% on half-year earnings
• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• Have Bitcoin price falls cemented gold as the best safe-haven asset?

Motley Fool contributor Mitchell Lawler owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Austal Limited, DroneShield Ltd, and Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. 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 Bruce Jackson.

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

The Atomo Diagnostics Ltd (ASX: AT1) share price is falling today after the company reported its half-year results.

The company’s shares are currently swapping hands at 14.7 cents each, a loss of 18.33% on the day so far.

Let’s take a look at what the diagnostic testing company reported to the market after close yesterday.

Atomo share price slips amid half-year results

Highlights of the company’s half-year (H1 FY22) results include:

• Gross profit fell 30% to $1.76 million, down from $2.52 million in the previous corresponding period (PCP)
• Gross margin of 33%, down from 55% in the PCP
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of -$1.48 million
• Revenue up 17% on PCP (H1FY21) to $5.34 million
• Cash balance of $13.68 million at 31 December 2021

What else happened in the half?

The company said its overall gross revenue from customers grew 53% to $7 million versus the PCP. This was driven by the huge demand for COVID-19 tests. There was also growth in sales of HIV self-tests.

Atomo sold 420,000 rapid COVID tests in the first half of the 2022 financial year although the company said its January sales have outstripped total sales for the entire first half. Since then, however, market demand has fallen as “Omicron infection rates drop and free government tests impact the market”.

Nonetheless, the company has more than 120 enterprise and government customers and is still seeing demand for its products.

Management commentary

In its investor presentation, Atomo said Therapeutic Goods Administration (TGA) has “significantly relaxed” conditions of supply related to home-use, self-test products in Australia.

Given greater acceptance of home testing in the community Atomo sees an opportunity to commercialise a range of rapid tests in the local market and has first mover advantage in HIV as well as established consumer product support established in country.

What’s next

In the near term, Atomo sees “immediate” revenue growth potential for COVID rapid testing. In the medium term, it foresees consumers globally accepting rapid testing in the home and the increased importance of home-based healthcare solutions.

Long term, it predicts fewer regulatory barriers to home testing, particularly in the United States. It expects well-capitalised market entrants building home-delivered healthcare will emerge. And there will be more demand for convenient healthcare services.

The company said the diagnostic market has “permanently changed”.

Atomo believes it can continue to meet demand for COVID tests in the Australian and New Zealand markets. HIV testing is also an opportunity and Atomo plans to target commercial agreements in the USA and China. The company also believes it has “first mover” advantage on Australia’s HIV self-test market.

The company’s cash balance has increased by more than $2 million since 31 December to $15.8 million at 31 January 2022.

Atomo Diagnostics share price summary

The Atomo Diagnostics share price has sunk 46% in the past year and is down 50% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

Atomo has a market capitalisation of roughly $61 million based on today’s share price.

The post Negative result: Atomo Diagnostics (ASX: AT1) shares plunge 18% on half-year earnings appeared first on The Motley Fool Australia.

More reading

• Why are ASX COVID test shares climbing today?
• Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today

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.

from The Motley Fool Australia https://ift.tt/PazNk6t