Category: Stock Market

The S&P/ASX 300 Index (ASX: XKO) is edging higher today as we continue to the back end of the latest earnings season.

At the time of writing, the ASX 300 is pushing near its record levels, up 0.24% to 7,519 points.

Here are some of the top movers on the ASX 300 today.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is up an astonishing 26.96% higher to $45.96 following the company’s release of its full-year results.

The logistics solutions platform provider highlighting significant growth across key metrics. Particularly, its net profit after tax doubled to $105.8 million on the back of a “goods-led” recovery in global trade.

Unsurprisingly, ASIC issued the company a speeding ticket after WiseTech shares surged as high as $57.31 during the day.

Lovisa Holdings Ltd (ASX: LOV)

Another significant mover today is the Lovisa share price, up 18.71% to $19.48. The jewellery retailer also released its full-year results, recording increased earnings and rewarding shareholders with a final dividend.

It’s worth noting that the company’s shares reached their record high today of $20.68, having soared 160% over the year.

Hub24 Ltd (ASX: HUB)

Following suit, the Hub24 share price is up 10.22% to an all-time high of $30.75.

While the company provided the market with its full-year results yesterday, it appears several brokers are weighing in.

Morgans raised its price target for the investment platform provider’s shares, adding 13% to $31.65. In addition, Macquarie and Goldman Sachs improved their outlook on Hub24 by 2.9% to $26.50, and by 3.8% to $29.81, respectively.

And the biggest losers?

Recce Ltd (ASX: REH)

Heading south is the Recce share price, down a sizeable 11.92% to $22.02.

The plumbing parts company released its full-year results for the FY21 period, registering solid earnings despite COVID-19. Most notably, Reece decided to reward shareholders, doubling its fully-franked final dividend to 12 cents per share.

A possible catalyst for the steep decline however could be a broker note that came out today. According to Morgan Stanley, it cut its rating on Recce shares by 2.4% to $16.00. Based on the current share price, this implies a downside of around 28%.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

Also in decline is the Nine Entertainment share price, down 9.73% to $2.69.

The entertainment and media company published its full-year results, citing growth in its key financial metrics. Revenue lifted 8% to $2,332 million, while net profit after tax accelerated by 76% to $278 million compared against FY20.

Nonetheless, it appears investors were expecting the company to produce a better scorecard.

The Nine Entertainment share price has gained more than 140% since the beginning of April 2021.

The post Which ASX 300 shares are the biggest winners and losers today? appeared first on The Motley Fool Australia.

More reading

• Why Bigtincan, Lovisa, SILK, & WiseTech shares are charging higher
• Which ASX shares are leading the ASX 200 today?
• Why the HUB24 (ASX:HUB) share price is rocketing to a record high
• WiseTech Global (ASX:WTC) just raised its dividend by 141%
• ASX 200 midday update: WiseTech rockets, Afterpay & Zip report

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. owns shares of and has recommended Hub24 Ltd and WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool Australia has recommended Hub24 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/2UM3P2n

The S&P/ASX 200 Index (ASX: XJO) is having a decent day in the green so far this Wednesday. At the time of writing, the ASX 200 is up a modest 0.18% to 7,516 points after initially rising to 7,5342 points earlier today.

With the ASX 200 having a positive day today, let’s check out which ASX 200 shares are contributing to this rise most enthusiastically.

Which ASX shares are leading the ASX 200 on Wednesday?

WiseTech Global Ltd (ASX: WTC)

WiseTech shares are on fire today, leading the ASX 200 with a very pleasing 30.77% gain at the time of writing to $46.90 a share. At one point this morning, the company was even higher, up more than 50% to a new all-time record of $57.31 a share. These gains were so massive that WiseTech actually got issued a ‘speeding ticket’ please explain from the ASX itself earlier today. This resulted in a brief trading halt for WiseTech shares.

All of these gains seem to stem from the company’s FY21 earnings report which was delivered this morning. See our full coverage of WiseTech’s impressive numbers here.

HUB24 Ltd (ASX: HUB)

Investment company HUB24 is another ASX 200 share contributing to the index’s gains today. At the time of writing, HUB24 shares are up a healthy 10.3% to $30.78 a share. That’s after hitting a new all-time high of its own – $31.22 a share – earlier this morning.

This move appears to also be the result of an impressive earnings report. HUB24 delivered its FY21 numbers yesterday, which saw its shares rise by more than 8%. Today’s additional rise seems to be assisted by some positive broker coverage, as my Fool colleague James covered earlier today.

Appen Ltd (ASX: APX)

This embattled ASX tech share is also lending a hand to the ASX 200’s gains today. At the time of writing, Appen shares are up a robust 7.47% to $13.66 a share. That would be a welcome move for investors, seeing as Appen is still down around 46.5% year to date in 20201 so far. Appen reports its own FY21 numbers tomorrow morning. But it appears some investors are jumping the gun today and bidding Appen higher in anticipation. Again, some positive broker attention may be greasing the wheels here.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares are, well, flying today, with this travel company currently up 6.83% to $16.25 a share. Like Appen, Flight Centre reports its earnings tomorrow, so we seem to be seeing a similar pattern here. It is worth noting that ASX 200 travel shares as a whole have been having a very pleasant week after a few weeks of malaise. As my Fool colleague Mitchell covered yesterday, this could be in response to Australia’s ballooning vaccination rates.

Two other ASX 200 travel shares in Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) are also enjoying healthy gains today, up 5.2% and 5.7% respectively.

The post Which ASX shares are leading the ASX 200 today? appeared first on The Motley Fool Australia.

More reading

• Why the HUB24 (ASX:HUB) share price is rocketing to a record high
• WiseTech Global (ASX:WTC) just raised its dividend by 141%
• ASX 200 midday update: WiseTech rockets, Afterpay & Zip report
• Wisetech (ASX:WTC) share price soars 23% as profit doubles in FY21
• WiseTech (ASX:WTC) share price on watch after smashing FY 2021 earnings guidance

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. owns shares of and has recommended Appen Ltd, Hub24 Ltd, and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Appen Ltd, Webjet Ltd., and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Hub24 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/3sIP5xA

The Medibank Private Ltd (ASX: MPL) dividend received a boost following the company’s FY21 full-year results today.

However, not all was rosy as management decided to reduce the dividend payout ratio. This comes despite the company achieving a bigger net profit after tax (NPAT) over the period.

Let’s take a look at how Medibank performed for the period and when it will pay its upcoming dividend.

How did Medibank perform in FY21?

The private health insurer delivered outstanding growth for the 12 months ending 30 June 2021.

The group recorded total revenue of $6.9 billion, up 1.99% over the prior corresponding period (pcp). This was underpinned by strong net resident policyholders, up 82,500 including 29,600 for the Medibank brand.

In addition, NPAT surged to $441.2 million, a jump of 39.8% regardless of operating expenses lifting 1.12% compared to FY20. The bottom-line result was aided by net investment income of $120 million, up from $2.4 million this time last year.

In light of the robust performance, the Medibank board decided to bump up its fully-franked full-year dividend to 12.7 cents per share. This makes up a final dividend of 6.9 cents, up 9.5% from FY20.

Medibank also noted that the total ordinary dividend represents a payout ratio of 87.7% of underlying NPAT. While in range of its target payout ratio range of 75% to 85%, this is lower than the 90.1% given to shareholders in FY20.

Based on the current Medibank share price of $3.55 apiece, this gives the company a trailing dividend yield of just over 3.57%.

Medibank dividend key dates

Medibank released the distribution amount and payment dates of its final dividend for the 2021 financial year. Here’s a summary of the important dates Medibank shareholders will need to know for the next month.

Ex-dividend date

The ex-dividend date will be 8 September 2021.

Traditionally, one day before the record date, the ex-dividend date is when investors must have purchased Medibank shares. If the investor does not buy Medibank shares before this date, the dividend will go to the seller.

Record date

The record date for Medibank’s final dividend is 9 September 2021.

This is the date where the company identifies which investors are on its books. Those who are on Medibank’s register will be eligible to receive its upcoming dividend.

Payment date

The payment date for Medibank’s dividend will be 30 September 2021.

This is when investors can expect to see the final dividend of 6.9 cents per share hit their accounts.

The post Medibank (ASX:MPL) dividend boost as payout ratio reduced appeared first on The Motley Fool Australia.

More reading

• Medibank (ASX:MPL) share price on watch after 40% jump in profit
• How did the Medibank (ASX:MPL) share price respond last earnings season?
• 10 ASX shares we’re overweight in right now: fund
• The Medibank (ASX:MPL) share price is up 18% so far in 2021. Here’s why
• 3 ASX 200 dividend shares lifting to 52-week highs

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.

from The Motley Fool Australia https://ift.tt/3DfKpUV

The Sealink Travel Group Ltd (ASX: SLK) share price is sliding today following the release of the company’s financial year 2021 (FY21) results.

Right now, the Sealink share price is 5.33% lower than its previous close. The company’s shares are swapping hands for $9.49 apiece.

Sealink share price slumps despite 377% increase on profit

Here’s how the tourism and transport company performed in FY21:

• $1.17 billion of revenue – 88% more than the company reported for FY20
• Net profit after tax of $37.8 million, up 377% on that of FY20
• Earnings before tax, interest, depreciation, and amortisation (EBITDA) of $161 million – 58% higher than that of FY20
• 9  cent fully franked final dividend, bringing the total FY21 dividends to 16 cents per share

Sealink received $11.9 million from JobKeeper in FY21. It also got similar support from employee-focused schemes in Singapore and London.

Approximately 90% of Sealink’s FY21 revenue came from contracts with governments or blue-chip corporate counterparts.

The company ended the period with $103.4 million in cash and $19.4 million of borrowings.

What happened in FY21 for Sealink?

FY21 was a big one for Sealink and its share price. The company’s contract portfolio expanded in all 3 operating divisions.

It retained its Singapore Bulim bus contract and was awarded the contract for SembawangYishun.

It also commenced the up to 15-year contract to operate Brisbane’s CityCat, CityHopper, and Cross River ferry network.

Sealink renewed 3 significant bus contracts in Adelaide and added Adelaide’s Outer North bus services contract. It also commenced the operation of the newly-franchised Adelaide tram contract as part of a joint venture.

Additionally, the company renewed key strategic marine contracts in Townsville and Darwin, and also acquired Western Australia’s Go West Tours. Sealink believes Go West Tours may allow it to realise opportunities in the mining and resources sector.

Sealink states its zero emissions and demand-responsive transport through battery electric and hydrogen-powered buses is market-leading. A two-year electric bus pilot in a single New South Wales region was completed in June 2021. The pilot resulted in the NSW Government purchasing another 10 electric busses.

FY21 wasn’t all good though. There’s plenty of bad news that might be affecting the Sealink share price today.

COVID-19 impacts on the domestic and interstate travel markets challenged Sealink’s marine and tourism operations in FY21. However, domestic demand was strong when COVID-19 restrictions weren’t in place.

Government contracted bus services weren’t badly affected by COVID-19. Though, revenue from chartering and advertising fell. The company said extra bus services to accommodate social distancing offset some of the losses.

Sealink’s London segment faced dire challenges over FY21. The company retained 3 Transport for London routes and acquired 1 from a competitor. However, it lost 4 of its London routes.

What did management say?

Sealink’s CEO Clint Feuerherdt commented on the results driving the company’s share price lower today:

SeaLink has demonstrated the resilience of its operations and quality of its contracted earnings base in the face of an unprecedented global disruption. We have delivered on our objectives in a safe and responsible manner whilst positioning the Group to capitalise on opportunities as they present.

Whilst the Marine & Tourism division is exposed to the turmoil that the COVID-19 pandemic inflicts, SeaLink is well positioned to capture the heightened level of domestic travel demand, providing marine transport, holiday and general tourism product to very unique island destinations around the country.

I am very pleased with the way we anticipated, navigated, and repositioned to finish this year with a strong balance sheet that supports our growth strategy.

What’s next for Sealink?

Here’s what might drive the Sealink share price in FY22:

Sealink has placed Australia’s first order for 2 hydrogen fuel cell buses.

It has also placed an order for 31 battery electric buses, which will bring Sydney’s electric bus fleet to 55 in FY22.

Sealink is continuing to explore the possibility of installing solar systems on 6 Adelaide bus depots, as well as partnering with the South Australian Government to deploy hydrogen fuel cell buses in Adelaide.

The company is currently working at Joondalup Bus Depot to bring electric busses to Perth.

Finally, Sealink is continuing to lobby for competitive tendering for public bus transport in Queensland, Tasmania and the Australian Capital Territory. It is also looking to potentially expand its public transport footprint into the USA.

Sealink share price snapshot

Despite today’s fall, the Sealink share price has gained 42% year to date. It is also 111% higher than it was this time last year.

The post Sealink (ASX:SLK) share price falls 6% despite $37.8 million profit appeared first on The Motley Fool Australia.

More reading

• Medibank (ASX:MPL) dividend boost as payout ratio reduced
• Raiz (ASX:RZI) share price rockets on FY21 results
• How does the Afterpay (ASX:APT) result compare with broker expectations?
• Nanosonics flies, Kogan crashes and iron ore in the doldrums. Scott Phillips on Nine’s Late News
• It hasn’t been a great month so far for the Woodside (ASX:WPL) share price

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/3msgVx6

The Raiz Invest Ltd (ASX: RZI) share price has soared more than 8% in today’s trading session.

Investors are bidding shares in the company higher after it released its full-year results for FY21 earlier today.

Let’s take a look at what Raiz announced.

Strong growth in FY21 spurs Raiz share price higher

Here are some of the key metrics Raiz reported for FY21;

• 37% year on year (YOY) increase in Group Revenue of $13.4 million

• Global Active Customers up 87% YOY to 456,927

• Australian funds under management (FUM) up 76% YOY to $799.6 million

• Superannuation FUM up 53% YOY to $106.6 million

• Micro Investing Platform segment revenue up 40% YOY to $11.4 million

• Revenue Per Customer (run rate) in Australia up 32% YOY

Raiz also highlighted its strong balance sheet, noting cash on hand of $19.4 million as of 30 June 2021.

What happened in FY21 for Raiz?

In its results presentation, Raiz noted that growth in FY21 was fuelled by its Australian operations.

Throughout the financial year, the company noted implementing a number of features to increasing customer engagement.

Raiz introduced Custom Portfolios in Australia due to attract new customers and FUM. The company also introduced the onboarding of self-managed superannuation funds (SMSFs).

In addition, the company also launched its Raiz Home Ownership business in FY21, which focuses on helping first homeowners enter the property market.

Raiz also reported continued growth across Southeast Asia for FY21, despite the ongoing impacts of Covid-19.

During the March quarter, Raiz introduced new payment gateways in Indonesia to help facilitate recurring payments and improve customer experience.

What did management say?

Managing Director and CEO of Raiz George Lucas noted:

In Australia, we remain on track to hit our goal of $1 billion of FUM by the end of 2021. We see the Superestate acquisition, the first in our five-year history, as an important component in our domestic strategy going forward. In addition to giving us more FUM and Active Customers, it will allow us to offer residential property as an asset class and enhance our data analytics.

What’s next for Raiz?

Raiz is an Australian financial technology (fintech) company that provides users with a mobile-focused micro-investing platform.

The company charges users a flat monthly investment fee which comprises more than 60% of the company’s revenue. As a result, FUM and active customers are key metrics to the company’s ability to generate recurring revenue.

Raiz highlighted that the company remains focused on growing its business across all geographies.

The company plans to follow low-cost customer acquisition to drive new growth and also highlighted various new product developments heading into FY22.

At the time of writing, the Raiz share price is trading more than 7.5% higher for the day.

Shares in Raiz were up more than 8% earlier, after hitting an intraday high of $2.09.

Since the start of the year, shares in Raiz have surged more than 116% in 2021.

The post Raiz (ASX:RZI) share price rockets on FY21 results appeared first on The Motley Fool Australia.

More reading

• One Delta lockdown winner and 2 other rocketing ASX shares
• 5 ASX shares to hold for 5 years
• Here’s why the Raiz (ASX:RZI) share price is storming 8% higher today
• Raiz (ASX:RZI) share price rallies 8% on record quarterly results

Motley Fool contributor Nikhil Gangaram 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/3sMNTct

The Afterpay Ltd (ASX: APT) share price is trading lower on Wednesday following the release of its full year results.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down 1% to $133.78.

What happened in FY 2021?

Afterpay was on form again in FY 2021 and delivered further strong growth in most key metrics.

For the 12 months ended 30 June, Afterpay’s underlying sales grew 90% (or 102% in constant currency) year on year to $21.1 billion.

This was driven by a 146% increase in North American underlying sales to $9.8 billion, a 44% jump in ANZ underlying sales to $9.4 billion, and a 227% jump in Clearpay underlying sales to $1.8 billion.

Underpinning this growth was a 63% increase in active customers to 16.2 million. This reflects an 88% jump in North America to 10.5 million, a 104% increase in Clearpay customers to 2.1 million, and a more modest 8% lift in ANZ customers to 3.6 million.

Afterpay reported a net margin of $434.1 million, which was up 74% year on year. This was the result of its strong underlying sales growth, which was offset slightly by a reduction in its net margin ratio from 2.3% to 2.06%.

Finally, underlying EBITDA came in at $38.7 million, down 13% year on year.

How does this compare to expectations?

According to a note out of Ord Minnett, Afterpay fell short of its earnings expectations in FY 2021.

The broker was expecting underlying EBITDA of $75.4 million, which is almost double what the company actually achieved. This miss was due to higher than expected costs. However, because of the takeover approach from Square, it didn’t expect the Afterpay share price to come under meaningful pressure for this miss.

Also missing expectations was its net margin of 2.06%. According to a note out of UBS, its analysts were expecting a margin of 2.25% for the year, whereas the market consensus stood at 2.12%. UBS notes that this was driven by its net transaction loss increasing from 38bps of underlying sales in FY 2020 to 63bps in FY 2021.

Finally, the team at Wilsons note that Afterpay’s revenue was ahead of its expectations by approximately 2%.

However, although Afterpay beat its revenue expectations in FY 2021, the broker suspects that its forecasts for FY 2022 might be asking too much of the company. This is due to the broker’s concerns that its US customer growth could be peaking after a flat finish to the year.

Overall, a bit of a mixed result in comparison to the market’s expectations. Though, with Square acquiring the company, this hasn’t had a great impact on the Afterpay share price today.

The post How does the Afterpay (ASX:APT) result compare with broker expectations? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: WiseTech rockets, Afterpay & Zip report
• Afterpay (ASX:APT) share price on watch after reporting 90% sales growth
• 5 things to watch on the ASX 200 on Wednesday
• When was the best ever day for the Afterpay (ASX:APT) share price?
• The Afterpay (ASX:APT) share price fell 14% last time the company reported

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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/3zflyy7

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss earnings from Nanosonics Ltd (ASX: NAN), Kogan.com Ltd (ASX: KGN), and a pause — for now — in the fall of the iron ore price.

The post Nanosonics flies, Kogan crashes and iron ore in the doldrums. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Ansell, Kogan, Nanosonics
• ASX 200 rises, Kogan sinks, Ansell slumps
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• Nanosonics (ASX:NAN) share price up 28% after earnings beat and new product announcement
• Which ASX 300 shares are the biggest winners and losers on Tuesday?

Motley Fool contributor Scott Phillips owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics 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/3gxlYIN

It has been a tough month for the Woodside Petroleum Ltd (ASX: WPL) share price. A collection of developments appears to have rubbed the market the wrong way so far in August.

Specifically, Woodside shares have slid 8.7% since the first trading day of this month. In price terms, the company’s value has fallen from $22.14 per share to $20.24. Unfortunately, the downwards trend is continuing today, with the Woodside share price down 0.34% at the time of writing.

Let’s take a closer look at what has dampened market sentiment towards the oil and gas company in August.

The month so far for Woodside

The disappointing performance of the Woodside share price in July has only accelerated in August.

At the beginning of the month, it appeared as though shareholders might have more luck in August. Between 2 August and 13 August, shares in the oil and gas company gained 0.23%.

However, the wheels fell off the optimism bus after it appeared more likely that Woodside would be acquiring BHP Group Ltd‘s (ASX: BHP) petroleum business. At the same time, Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH) were working on their own mega-merger.

Some substantial shareholders of Woodside even voiced concerns and discontent for the rumoured proposition. A ~$20 billion proposition that produced concerns regarding a mature asset base, declining production, and heightened exposure to ESG risks. Likely these concerns were shared more broadly, weighing on the Woodside share price.

Then came the barrage of news, all landing on 18 August. This included the confirmation of the BHP oil and gas merger, FY21 half-year results, and new permanent leadership.

Although the company’s results looked reasonable — especially its return to profitability — the Woodside share price fell 3.4% during the session.

All in all, shareholders have been left with a lot to consider moving forward. Often unpredictability weighs on equity prices and, for the time being, there is a mound of unknowns for the company as it takes on its new form.

Woodside share price snapshot

Despite a negative thus far, the Woodside share price is still holding onto positive returns over the past year.

At the time of writing, shareholders are 1.2% ahead for the past 12 months. In comparison, the S&P/ASX 200 Index (ASX: XJO) has delivered a 22% return to more passive investors.

The post It hasn’t been a great month so far for the Woodside (ASX:WPL) share price appeared first on The Motley Fool Australia.

More reading

• Energy sector leading the ASX 200 shares on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 5 things to watch on the ASX 200 on Monday

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. 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/3mw1lAE

The HUB24 Ltd (ASX: HUB) share price is rocketing higher on Wednesday.

At the time of writing, the investment platform provider’s shares are up 12% to a record high of $31.22.

This means the HUB24 share price is now up 44% since the start of the year.

Why is the HUB24 share price rocketing higher?

Today’s gain by the HUB24 share price appears to have been driven by a positive response to its full year results by brokers.

In case you missed it, on Tuesday HUB24 reported a 34.4% increase in revenue to $110 million, a 47% lift in EBITDA to $58.6 million, and a net profit after tax of $9.8 million.

This was driven partly by a 141% increase in platform FUA to $41.4 billion.

What was the response?

The team at Goldman Sachs responded positively to the result. This is despite HUB24 falling short of its earnings expectations.

Goldman said: “While FY21 underlying NPAT of A$15.0m was 18% below our estimate (A$18.2m), we saw the c.3% miss at the underlying EBITDA line as more representative of the core operational trend (with the bulk of the delta to our headline estimate explained by higher tax, share based payments and D&A). Nonetheless as a result of the headline miss the final DPS of A5.5c (fully franked) was below our A7.2c estimate representing an FY21 payout ratio of 46%.”

In response, Goldman retained its buy rating and lifted its price target on the company’s shares to $29.81.

What else did the broker say?

Goldman was pleased to see the introduction of HUB24’s guidance for FY 2023. And while it notes that the company’s guidance was largely in line with its own expectations, it was notably ahead of the consensus.

The broker said: “Looking ahead, HUB introduced platform FUA guidance to FY23 of A$63-$70bn, noting that at Aug-21, platform FUA of A$44.2bn has already reached prior FY22 guidance for A$43-$49bn. HUB note the guidance does not rely on any large one-offs or a big contribution from the new IFL whitelable agreement. Prior to this morning our FY23 estimate of A$65bn was consistent with the new range, though we note Visible Alpha Consensus Data at just A$55bn suggests scope for meaningful upgrades, and we have since moved our assumption up to A$69bn.”

“On balance, with risks to flows/FUA still clearly to the upside we expect HUB’s near term margin/earnings growth trajectory to remain robust even with the elevated investment over FY22. While the 2H21 result was soft relative to our estimates, on account of higher FUA and platform revenue margin assumptions our earnings are largely unchanged, with our FY22/FY23 adjusted EPS down 2.3%/0.4% respectively (and we introduce FY24 estimates).”

Can the HUB24 share price go higher?

Unfortunately, the HUB24 share price has quickly surpassed Goldman’s price target. This appears to indicate that its shares are fully valued now.

And while Morgans has upgraded its shares to an add rating with a $31.65 price target, this is only a fraction ahead of where the HUB24 share price trades now.

The post Why the HUB24 (ASX:HUB) share price is rocketing to a record high appeared first on The Motley Fool Australia.

More reading

• How does the HUB24 (ASX:HUB) earnings compare to Netwealth?
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• HUB24 (ASX:HUB) share price gains on 43% bump to dividend

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 Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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/2UJRwDA

The Coles Group Ltd (ASX: COL) share price is slipping in afternoon trade, down 1.78% to $17.935 per share.

At the same time the S&P/ASX 200 Index (ASX: XJO) is edging higher, up 0.2%.

Below, we take a look at the ASX 200 retailer’s refinancing announcement.

What refinancing package did Coles report?

In an ASX announcement today, which may not be directly impacting Coles’ share price, the company said it has replaced existing debt facilities with a total of $1.3 billion, 4-year Sustainability Linked Loans (SLL) under its bilateral debt facilities.

Coles has previously stated it is working to become Australia’s most sustainable supermarket. In line with that, it said the new $1.3 billion SLL “draws a direct line” between its sustainability performance and its cost of capital.

The SLL is intended to increase transparency and accountability around environmental, social and governance (ESG) matters.

Coles’ focus is on reducing CO2 emissions, decreasing the amount of waste that goes to landfill, and increasing the representation of women in its leadership positions.

Commenting on the SLL refinancing, Coles’ chief financial officer Leah Weckert said:

Coles believes that sustainable businesses are better businesses, and our Sustainability Linked Loans reflect our commitment to working with all our stakeholders to make positive changes.

The SLL incentive structure is linked to our progress against company-wide sustainability goals with delivery of those goals delivering improved cost of capital, and is therefore an effective tool for driving sustainability throughout our business.

Australia and New Zealand Banking Group Ltd (ASX: ANZ), BNP Paribas and Rabobank acted as sustainability coordinators for the transaction.

Coles share price snapshot

The Coles share price is down 1.38% year-to-date, compared to a gain of 12.5% posted by the ASX 200. Coles shares are still recovering from a 15% fall in the latter weeks of February, following the release of its half-year financial results that appeared to disappoint investors.

Over the past month, Coles’ share price is up 1.6%.

Coles pays a 3.2% annual dividend yield, fully franked.

The post Coles (ASX:COL) share price slides amid $1.3 billion sustainability refinancing appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) and this dividend share have been named as buys
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• How does the Woolworths (ASX:WOW) dividend compare to its sector?
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• Top brokers name 3 ASX shares to sell next week

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 shares of and has recommended COLESGROUP DEF SET. 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/3gsXKPK