Category: Stock Market

Motley Fool Australia Chief Investment Officer Scott Phillips joined Weekend Sunrise on Sunday to discuss Qantas Airways Limited‘s (ASX: QAN) plans to get back in the air, and the weak start to the new financial year for our retailers.

The post Planes flying by Christmas? And worrying signs from retailers. Scott Phillips on Weekend Sunrise appeared first on The Motley Fool Australia.

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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 Temple & Webster Group Ltd (ASX: TPW) share price is jumping higher this morning after releasing its full-year results and a trading update.

At the time of writing, shares in the online furniture and homewares retailer are trading at $14.62, up 12.72%.

Temple and Webster share price on watch after more than doubling profit

• Record revenue of $326.3 million, up 85% year-over-year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $20.5 million, an increase of 141%
• Active customers increased 62% year-over-year to 778,000
• Record net profit after tax of $14 million, up 165% on the prior year
• Cash flow positive year, finishing with $97.5 million cash in the bank (an increase of 156% from FY20)
• Outlook positive with the company citing strong tailwings

What happened in FY21 for Temple and Webster

The Temple and Webster share price is in focus on Monday after reporting its full-year results for the 12 months ended 30 June. It turned out to be a record year for the online retailer in terms of revenue, profit, and customers.

According to the release, Temple and Webster racked in total revenue of $326.3 million in FY21 — reflecting an increase of 85% on the prior year. This substantial increase in sales revenue was assisted by a surge in online shopping following imposed government lockdowns.

The company made no secrets that COVID-19 has brought forward adoption for its offering. However, it was noted that these growth trends remained in place while there were little to no restrictions on trading.

Furthermore, Temple and Webster ended the financial year in a strong cash position after performing a $40 million capital raise and delivering a record profit. As such, the company holds a cash balance of $97.5 million. This opens up optionality for inorganic growth opportunities if/when they present themselves. Although, an EBITDA margin of 2% to 4% in the short term was highlighted as its re-investment strategy continues.

What did management say?

Commenting on the result, Temple and Webster Chief Executive Officer Mark Coulter said:

FY21 was another great year for Company, with full-year revenue up 85% to $326.3m and EBITDA up 141% to $20.5m. While we don’t take for granted how fortunate we are to be able to trade through lockdowns, we believe COVID has accelerated the shift from offline to online that was already in progress. We remain focused on giving our customers a great experience, and hopefully having them enjoy their homes, even just a little bit more, during these tough times.

Additionally, with respect to the company’s performance so far in FY22, Mr Coulter said:

While the start of FY22 has been difficult for many Australians, we remain focused on strengthening our customer proposition, built around having the biggest and best range of furniture and homewares, combined with inspirational content and a great customer service experience.

What’s next for Temple and Webster?

The new financial year has been a strong one so far. Specifically, year-over-year revenue growth for between 1st July and 27th August 2021 compared to the year prior is 49%. At the same time, management highlighted the company continues to experience strong tailwinds.

The board expects the business to benefit from ongoing online shopping adoption, an acceleration in trends from COVID-19, an increase in discretionary income, and strong housing market growth. Unfortunately, no further details pertaining to forward guidance were supplied.

Meanwhile, Temple and Webster intend to continue its reinvestment strategy to grow market leadership. This is in line with the company’s goal of becoming the largest retailer of furniture and homewares in its market.

Temple and Webster share price snapshot

The Temple and Webster share price has performed solidly over the course of the past year. Shareholders have enjoyed a 58% gain in the past 12 months. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has delivered roughly half that, with a 24% return.

Finally, the company trades at approximately a price-to-earnings (P/E) ratio of 111 times.

The post Temple and Webster (ASX:TPW) share price jumps 13% as revenue soars appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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 Crown Resorts Ltd (ASX: CWN) share price is lifting slightly on Monday after the Aussie casino operator’s latest full-year results release.

After a wobbly start, the Crown share price is now up 0.64%, trading at $9.38.

Crown share price lifts as profit slumps 429%

Crown released its results for the year ended 30 June 2021 (FY21), including the below takeaways:

• Revenue down 31.3% on the prior corresponding period (pcp) to $1,536.8 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 77.4% on pcp to $114.1 million
• Net loss after tax attributable to parent down 429.1% on pcp to $261.6 million
• No final dividend

The Crown share price is slumping this morning as investors process the latest results. The company also announced Dr Ziggy Switkowski will join the board of directors as chair following all necessary approvals.

What happened for Crown in FY21?

In today’s release, Crown advised that COVID-19 restrictions continue to weigh on operations and earnings. Tight restrictions across the eastern seaboard have limited foot traffic and turnover at key Crown casinos.

Crown reported closure costs of $120.6 million (net of tax) across Crown Melbourne, Crown Perth and Crown Aspinalls during the year. The Aussie casino operator described FY21 as “challenging” with intense regulatory scrutiny and COVID-19 impacts.

Crown Perth delivered strong performance despite 27 days of closure while Crown Sydney apartment sales reached over $1 billion in gross sales and pre-sales to date.

It’s been a tough 12 months for Crown and its share price. Aside from COVID-19 restrictions, the company is under pressure amid a Royal Commission and multiple inquiries.

What did management say?

Crown’s interim chair Jane Halton said:

2021 has been a challenging year for Crown, with intense regulatory scrutiny and unprecended impacts on business operations from the COVID-19 pandemic.

Looking ahead, COVID-19 continues to create uncertainty, with variable operating restrictions remaining a feature of everyday life and likely to continue to materially influence business performance.

Company CFO Alan McGregor added:

Unfortunately, COVID-19 related restrictions are continuing to impact performance as we enter the 2022 financial year. Crown Melbourne has been closed for the majority of this financial year, whilst stay at home orders were imposed in Sydney on 26 June 2021 and remain in place.

What’s next for Crown and its share price?

Crown has reached an agreement with its relationship banks on restructuring its financing arrangements, including an extension of near-term maturities. The additional flexibility includes a waiver of the 31 December 2021 covenants and an additional $250 million debt facility commitment.

The Crown share price was down 5.9% in 2021 prior to Monday’s open, compared to a 12.0% gain for the S&P/ASX 200 Index (ASX: XJO).

The post Crown (ASX:CWN) share price wobbles as profit slumps 429% appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Betmakers Technology Group Ltd (ASX: BET) share price rallied after the company unveiled a big jump in revenue but a bigger profit loss.

The online bet technology group posted a 126.7% surge in FY21 revenue to $19.5 million. But its net loss blew out by three-fold to $13 million versus FY20’s $4.4 million loss.

Betmakers share price beating the odds

The red ink did not deter investors. The Betmakers share price increased 3.1% to $1.16 in early trade as the S&P/ASX 200 Index (Index:^AXJO) added 0.4%.

In contrast, gaming heavyweight Crown Resorts Ltd (ASX: CWN) share price fell 0.4% to $9.28 when it released its results.

More red ink

The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was a negative $2.9 million.

This is also worse than the previous year’s $847,000. Adjusted EBITDA excludes impairment/recovery of receivables, share-based payments expense, and Sportech related deal costs.

The widening earnings loss is due to extra investments Betmakers needed to make to support its international expansion. For instance, it spent $2.4 million just in operating expenses for its US business alone during the year.

Why Betmakers share price can rally as bottom-line falls

But investors’ focus tends to be more on the top- than the bottom line when it comes to high-growth ASX small caps.

In that regard, Betmakers is kicking goals. Its Global Betting Services division won a 130% revenue payoff with sales jumping to $14.6 million. This division accounts for around 75% of total group revenue.

Global Betting Services is a business-to-business (B2B) global racing solutions provider that offers services like fixed odds pricing and platform development.

Contributing to growth

Meanwhile, the group’s Global Racing Network division expanded FY21 revenue by 44% to $3.2 million compared to the previous year. Management credits the expansion of its content and distribution network for the growth.

This division operates in 36 countries and covered over 300,000 races during the financial year. Some of the services the business provides include rights management, racing vision and reporting and analysis.

Further, the group’s acquisition saw its Globel Tote business contribute $1.7 million to total revenue in the period. And this was just from the first 14 days of the acquisition.

Betting on more growth ahead

Betmakers also indicated it’s hunting for other opportunities to grow inorganically – either through takeovers or partnerships. But management’s focus will be on expanding its operations in the US market.

The Betmakers share price has surged by over 120% over the past year when the S&P/ASX SMALL ORDINARIES (INDEXASX: XSO) gained 25%.

The post Why Betmakers (ASX:BET) share price jumped when losses deepened appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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 Nuix Ltd (ASX: NXL) share price is slipping this morning after the embattled company released its earnings for financial year 2021 (FY21).

On opening, the Nuix share price jumped 6.97% higher than its previous close. However, the rise has been short-lived. Right now, Nuix shares are trading down 2.09% for $2.81.

Nuix share price falters on $176 million of revenue

Here’s how the controversial provider of investigative analytics and intelligence software performed through FY21:

• $176 million of revenue, just 0.1% more than that of FY20
• An after-tax loss of $1.64 million, down 107% on FY20’s $23.5 million profit
• $30.15 million in earnings before interest, tax, depreciation, and amortisation (EBITDA), 51% less than that of FY20
• Gross profit $157.2 million

Nuix reported its annualised contract value increased during FY21. It grew by 4.1% in constant currency. Its subscription annualised contract value grew by 10.3% on that of FY20, while its consumption annualised contract value grew by 22%.

Come the end of FY21, Nuix’s total software-as-a-service (SaaS) customers had grown to 112, up from 71 at the end of the previous financial year.  

Additionally, the company stated that contracts beginning in FY22 suggest those figures will continue to increase.

Nuix’s customer churn was lower in FY21 at just 3.7%.  

Nuix spent $44.3 million on research and development in the past financial year. It expects its research and development spending to increase in FY22.

Nuix ended the period with $70.8 million of cash and no borrowings.

What happened in FY21 for Nuix?

For those who haven’t kept an eye on the company previously touted as a future market darling, here’s what you missed.

The Nuix share price has been hit hard over FY21 by a number of dramatic happenings.

Nuix conducted its Initial Public Offering (IPO) in December 2020. The unicorn’s prospectus’ offer price of $5.31 per share gave the company a market capitalisation of around $1.7 billion on listing.

At the time, we reported the tech company’s debut could have brought its major investor and backer of its float, Macquarie Group Ltd (ASX: MQG) a $1 billion pay day.

Nuix’s first day on the ASX saw its share price finishing at a massive $8.01, representing a 50.8% gain on its offer price.

Within its prospectus, Nuix forecasted it would reap revenue of $193.5 million, $166.7 million of gross profit, and EBITDA of $63.6 million in FY21.

Nuix’s forecasts were downgraded in April and again in May. The first downgrade saw Nuix’s forecasted revenue lowered to between $180 million and $185 million. In May, Nuix’s guidance was dropped to between $173 million and $183 million.

Then came the real trouble. Nuix was the subject of an intense media campaign that began in May. Over the course of the campaign, Nuix was accused of poor governance, questionable financial reporting, and a controversial options package given to the company’s founder.

Since then, Nuix has been the subject of an Australian Federal Police investigation, watched its CEO and CFO walk out, and, now, it’s being investigated by the Australian Securities and Investments Commission (ASIC).

Despite the bad press, Nuix welcomed 100 new customers over FY21. Its average new order value rose to $240,000. Additionally, its customers were generally willing to enter into multi-year contracts, which accounted for 36.3% of Nuix’s revenue for FY21.

What did management say?

Nuix’s CEO Rod Vawdrey commented on the news driving the company’s share price today, saying:

This last year has been challenging for Nuix and our stakeholders. Despite this, the Nuix team has delivered significant customer wins, important technology developments and strategic expansion. We are optimistic and remain confident in Nuix’s future. Our employee base continues to grow, and our technology is best in class, and critical for our customers and partners. Further investment in our technology will enhance and consolidate Nuix’s market position.

Nuix’s chair Jeff Bleich added:

The board and senior management are focussed on strengthening all aspects of the company and addressing the issues that surfaced during our first eight months as a publicly listed company. Progress on our agenda continues apace with expansion of our board through the pending appointment of two additional independent non-executive directors and a strong field of candidates for the CEO position…

We recognise there are areas for improvement and necessary change. We must learn from recent challenges and ensure we address any underlying problems.

What’s next for Nuix?

Here’s what those interested in the Nuix share price might want to keep an eye out for in FY21:

Nuix plans to continue investing in its growth. Particularly, into its journey to the cloud beyond its Discover SaaS offering.

It will also work towards accelerating its product development pipeline, its strong product base, and additional value-added solutions.

It says it will also be building and enhancing its sales and distribution capacity.

As noted by Nuix’s chair, the company will be looking towards board expansion and senior leadership renewal in FY22.

Nuix hasn’t yet provided guidance for FY22.

Nuix share price snapshot

Since its debut on the ASX, the Nuix share price has slipped a whopping 61%. It is also 64% lower than it was at the start of 2021.

The company now has a market capitalisation of around $910 million, with approximately 317 million shares outstanding.

The post Nuix (ASX: NXL) share price down on realised FY21 guidance appeared first on The Motley Fool Australia.

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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 recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie 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 InvoCare Limited (ASX: IVC) share price has been a strong performer on Monday morning following the release of its half year results.

At the time of writing, the funerals company’s shares are up 9.5% to $12.25.

InvoCare share price jumps after profit rebound

• Statutory Revenue up 13% to $260.9 million
• Operating Revenue increased 13% to $257.3 million
• Operating earnings before interest, tax, depreciation and amortisation (EBITDA) up 31% to $63.6 million
• Operating EBIT up 46% to $39.4 million
• Reported Profit After Tax of $44 million, compared to a loss after tax of $18 million
• Operating earnings per share up 57% to 14.4 cents
• Interim fully franked dividend of 9.5 cents per share

What happened in FY 2021 for Invocare?

For the six months ended 30 June, InvoCare returned to form thanks to a continued recovery in the value of its funeral case average, continued growth in memorialisation sales in the Cemeteries & Crematoria business, and a strong contribution from acquisitions in the Pet Cremations business.

This resulted in a 13% increase in operating revenue to $257.3 million during the half and an even better 46% lift in operating EBIT. Management notes that cost control was a particular feature in the half and underpinned a return to positive operating leverage.

Another positive boosting the InvoCare share price could be its strong cash balance. Thanks to actions taken at the height of COVID, the company ended the period with a sizeable cash balance of $131.2 million. It also reported a strong operating cash flow result, translating to a cash conversion ratio of 102%.

What did management say?

InvoCare’s CEO, Olivier Chretien, said: “While the operating conditions have not fully returned to pre-COVID levels, it is pleasing to see how resilient the business and our people continue to be, and the operational performance they can deliver when conditions allow.”

“We shared our strategy with investors in May, and we have hit the ground running, with a number of key achievements during the period. Our initial focus has been on further strengthening our business foundations, and we are pleased with the momentum that our teams have established in the half.”

What’s next for InvoCare in the second half?

Management notes that the emergence of the COVID Delta strain in June and the associated government response in Australia is expected to lead to a softening of the funeral services sector in the second half of 2021,

Given that the extent of restrictions remain uncertain, the company is unable to provide earnings guidance for the full year. Nevertheless, management remains confident about the long-term potential of the business, with future growth supported by population and ageing trends in its markets.

Mr Chretien said: “The persistent and sudden impacts of COVID restrictions on consumer confidence and our operating model, as evidenced in the past two months, will continue to restrict our businesses and people in realising the Group’s full potential, but our first half results demonstrate the strength of this organisation when conditions permit.”

“Our focus will be on what we can control, and we remain extremely confident in our team’s capability and the Group’s potential in maintaining the momentum on this phase of our strategy of Raising the bar,” he concluded.

The InvoCare share price is now up 5% in 2021.

The post InvoCare (ASX:IVC) share price jumps 9% after reporting strong first half growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare 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 Sayona Mining Ltd (ASX: SYA) share price has shot up 10.71% at the opening of trade on Monday. At the time of writing, Sayona shares are trading at 15.5 cents apiece.

Shares in the lithium development company are on the move after it updated the market on a key acquisition in North America.

Let’s investigate further.

What did Sayona announce?

In a potential positive for the Sayona share price, the company advised it had completed the acquisition of North American Lithium via its subsidiary Sayona Quebec.

Sayona Quebec is a venture between Sayona and its “strategic partner” Piedmont Lithium Inc (ASX: PLL). In fact, Piedmont has a 75% share. The remaining 25% belongs to Sayona itself.

Sayona previously announced that the Superior Court of Quebec had approved the acquisition on 30 June.

The court approved the transaction via a share purchase agreement. The total bid value at the time was CA$196.2 million, with a cash consideration of CA$94 million.

As a result of the acquisition, Sayona will seek to integrate its Authier and Tansim lithium projects with this site.

This will create the “Abitibi Lithium hub”. The hub has the potential to “become Quebec’s leading lithium producer” as per the release.

This is due to the “abundant mineral resources, sustainable hydroelectric power and proximity to the US and European markets”.

As a result of the acquisition, technical studies are now advancing at the North American site for the “future restart” of its spodumene concentrate operations.

A scoping study for the “profitable production of spodumene concentrate” is also expected at the site in the second half of this year.

What did management say?

Speaking on the release, Sayona managing director Brett Lynch said:

We are extremely pleased to have taken control of NAL with our joint venture partner, Piedmont. Our local team in Québec is fully engaged in executing our turnaround plan at NAL, including the refurbishment of its facilities and its integration with our flagship Authier Lithium Project.

Touching on the sustainability aspect, Lynch added:

We are committed to swiftly developing a profitable and sustainable business at NAL, delivering new jobs and investment and maximising the benefits of its existing facilities to make it the centre of our Abitibi lithium hub.

Sayona Mining share price snapshot

The Sayona Mining share price has gained a whopping 1,500% this year to date. This return has well outpaced the S&P/ASX 200 Index (ASX: XJO) climb of about 14% since 1 January.

In the last month, Sayona shares have climbed a further 77% in the green. At the time of writing, Sayona Mining has a market capitalisation of $850 million.

The post Sayona (ASX:SYA) share price rockets 10% after acquisition update appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Healius Ltd (ASX: HLS) share price is under pressure on Monday following the release of its full year results.

At the time of writing, the healthcare company’s shares are down 8% to $4.53.

Healius share price sinks despite more than doubling its profits in FY 2021

• Revenue increased 21.7% to $1,913.1 million
• Underlying earnings before interest and tax (EBIT) jumped 106% to $266.5 million
• Net profit after tax up 179% to $148.4 million
• Operating cash flow tripled to $912.8 million
• Full year dividend of 13.25 cents, up from 2.6 cents in FY 2020

What happened in FY 2021 for Healius?

For the 12 months ended 30 June, Healius reported a 22% increase in revenue to $1,913.1 million and the doubling of its underlying EBIT to $266.5 million. As strong as this was, it was 3% short of the analyst consensus estimate of $276 million. This goes some way to explaining the weakness in the Healius share price today.

Healius’ result was driven by growth across all divisions and the success of its Sustainable Improvement Program. However, the standout performer during the year was its key Pathology business, which reported revenue growth of 25% to $1,452.1 million and EBIT growth of 103% to $252.8 million. This reflects strong demand for community and commercial COVID-19 testing, undertaking 5.75 million tests to-date.

Non-COVID revenues also grew, which management believes demonstrates the resilience of its core healthcare services. For example, Imaging revenue grew in all channels and Day hospitals revenue grew thanks to on-going growth in its multi-specialist Westside Private Hospital in Brisbane. At its peak, the latter undertook ~1,000 procedures per month and successfully trialled short-stay surgery for hip and knee replacements.

What did management say?

Healius’ Managing Director and Chief Executive Officer, Dr Malcolm Parmenter, said: “Our overriding aim throughout the COVID-19 pandemic has been ensuring we play an instrumental role in Australia’s public health response. This has extended the team well beyond our normal capacities and capabilities, including reconfiguring our laboratories to accommodate new equipment, protecting the health and safety of our own people, rolling-out drive-through testing clinics in numerous locations for safe and easy public access, and operating our pathology facilities for significantly extended hours, often 24 hours a day / 7 days a week.”

“What’s more, we have delivered our non-COVID healthcare services efficiently and effectively within the restrictions of various state lockdown requirements, helping maintain the health of the nation through frontline diagnosis and day surgery.”

“While it would have been acceptable to defer our portfolio, capital and other strategic initiatives due to the immediate demands of COVID-19 testing, our people have also delivered on these initiatives resulting in a significant year of growth in shareholder returns,” he added.

What’s next for Healius?

While no guidance was given for the year ahead, management notes that demand has been strong for its services so far in FY 2022. This is particularly the case for COVID-19 testing following the emergence of the Delta strain.

Dr Parmenter commented: “There has been a further surge in COVID-19 testing in July and August with the emergence of the delta strain in this country and our testing has grown to over 40,000 test per working day in July and August on average. At times these levels have stretched our systems to their limit and we are currently investing in more machines to increase our capacity and technology to speed the process.”

“What’s more with the revenue we are receiving from COVID testing, we have a real opportunity to invest in the future health of the nation, implementing systems, digital interfaces and a raft of leading-edge applications which should permanently change for the better how consumers access diagnostic healthcare in Australia,” he concluded.

The Healius share price was up 33% year to date prior to today.

The post Healius (ASX:HLS) share price sinks 10% despite 179% profit surge in FY21 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Fortescue Metals Group Ltd (ASX: FMG) share price will be in the spotlight on Monday morning. This comes as the iron ore miner released its full-year results for the FY21 financial year.

After the end of last week’s market close, Fortescue shares finished Friday at $20.00 apiece.

Fortescue share price on watch on record result

The Fortescue share price could be on the move after the company delivered another robust result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Total revenue of US$22.3 billion, up 74% (FY20 US$12.8 billion);
• Underlying earnings Before Interest and Tax (EBIT) of US$16.4 billion, up 96% (FY20 US$8.4 billion);
• Net profit after tax (NPAT) of US$10.3 billion, up 117% (FY20 US$4.7 billion);
• Earnings Per Share (EPS) of US$3.35, up 117% (FY20 US$1.54 per share); and
• Final fully-franked dividend lifted to $2.11 per share, bringing the total dividend for FY21 to $3.58 per share, up 103% (FY20 $1.76 per share).

What happened in FY21 for Fortescue?

Fortescue recorded its highest-ever annual shipments of 182.2 million tonnes of iron ore, exceeding the prior guidance and underpinning the overall result. Earnings and operating cash flow also surpassed previous targets, reflecting an outstanding performance across the supply chain and strong customer demand.

In addition, disciplined cost management led to the company achieving industry-leading C1 costs of US$13.93 per wet metric tonne. Coupled with the average revenue of US$135 per dry metric tonne, up 72% on FY20, Fortescue collected bumper profits.

The delivery of its newest mining operation at Eliwana saw first ore through the processing facility in December 2020. Since then, operations have significantly ramped up to produce an annualised rate of 30 million tonnes of ore.

The company signalled its intention to become a worldwide leader in the battle against global warming, establishing Fortescue Future Industries (FFI). It aims to advance a global green hydrogen and renewable energy portfolio to achieve carbon neutrality by 2030.

What did management say?

Fortescue CEO Elizabeth Gaines commented on the milestone accomplishment, saying:

Guided by our unique culture and values, the Fortescue family has delivered a second consecutive year of record performance, with shipments, earnings and operating cashflow surpassing any year in Fortescue’s history.

Through the Iron Bridge Magnetite project and Fortescue Future Industries, we are investing in the growth of our iron ore operations, as well as pursuing ambitious global opportunities in renewable energy and green industries.

What’s the outlook for Fortescue?

Looking ahead, Fortescue provided guidance for FY22, stating the following:

• Iron ore shipments in the range of 180 million tonnes to 185 million tonnes;
• C1 costs between US$15.00 to US$15.50 per wet metric tonne (based on assumed average exchange rate of AUD: USD 0.75); and
• Capital expenditure (excluding FFI) of US$2.8 billion to US$3.2 billion.

Ms Gaines briefly touched on Fortescue outlook, adding:

We have seen a strong start to FY22 and through operational excellence, sustained focus on productivity and disciplined approach to capital allocation, we will continue to deliver benefits to all our stakeholders.

The post Fortescue (ASX:FMG) share price on watch following 117% NPAT increase appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX
• 5 things to watch on the ASX 200 on Monday
• The Fortescue (ASX:FMG) share price fell 11.5% last time the company reported
• Fortescue (ASX:FMG) share price tumbles in August, analysts see further declines in iron ore
• August hasn’t been a great month for the Fortescue (ASX:FMG) share price

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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A number of ASX shares were on form last week and pushed higher. Some even pushed high enough to reach 52-week highs or better.

Among the companies hitting new highs last week are the two listed below. Here’s what drove their shares higher over the period:

Blackmores Limited (ASX: BKL)

The Blackmores share price climbed to a 52-week high of $98.92 on Friday. Investors were buying the health supplements company’s shares following the release of its full year results last week. For the 12 months ended 30 June, Blackmores reported a 1.3% increase in revenue to $575.9 million and a 51.7% jump in underlying net profit after tax to $25.4 million. And while no guidance was given for the year ahead, management revealed that the outlook for its international and China segments remains positive with strong sales momentum early in FY 2022.

Can the Blackmores share price climb higher from here? One broker that sees modest upside is Credit Suisse. In response to its results, the broker upgraded Blackmores’ shares to a buy rating with a $100.00 price target.

Life360 Inc (ASX 360)

The Life360 share price hit a record high of $9.50 last week. This was driven by the release of a half year result that revealed a 36% increase in annualised monthly revenue (AMR) to US$105.9 million. This was driven by a 28% lift in its global monthly active user (MAU) base to 32.3 million and a 19% jump in global paying circles to 1 million. Management also confirmed that it expects its AMR to hit US$120 million to US$125 million by December 2021.

Can the Life360 share price go even higher? Last week Bell Potter retained its buy rating and put a $10.75 price target on its shares. This price target implies further potential upside of ~15% over the next 12 months.

The post Why these ASX shares just hit 52-week highs or better appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX
• These were the best performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy today
• Blackmores (ASX:BKL) share price surges 7% to new 52-week high
• Why Ardent Leisure, Blackmores, Clinuvel, & Qube shares are surging higher

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 shares of and has recommended Life360, Inc. The Motley Fool Australia owns shares of and 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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