Category: Stock Market

The OM Holdings Limited (ASX: OMH) share price is lifting this morning despite news its employees have protested the company’s COVID-19 strategy. The protestors demanded a review of the strategy in place at OM Holdings’ Malaysian smelter plant which means workers who leave the site must quarantine for 2 weeks on return.

The OM Holdings share price is up 3.1% at the time of writing, trading at 99 cents.

Let’s take a closer look at the news released this morning.

Workers’ protest

Today, OM Holdings advised its employees have been frustrated by the company’s management of COVID-19 outbreaks.

Since January, the company has provided all of its workers with on-site accommodation and meals. Employees who leave the site or go home have to quarantine for 14 days upon return.

The strict strategy was recently extended, rousing workers to protest on 22 April.

According to the company, only employees who live locally were involved in the protest. They called for a review of the strategy and the ability to commute to work daily as normal.

Om Holdings said it extended the strategy because of another outbreak of COVID-19 in Malaysia. Currently,  Malaysia has confirmed more than 2000 new cases of coronavirus every day for the last 9 days.

Those involved in the protest were offered 2 alternatives to the current strategy. They could go on a scheduled orderly leave rotation with pay or they were given the option of non-rotation incentives.

According to OM Holdings, more than 80% of workers involved chose to continue staying on site.  

The company said the protest did not impact the plant’s production nor were any violent incidents or accidents. Company representatives, police and other government bodies were at the protest to ensure the safety of all involved.

OM Holdings share price snapshot

The OM Holdings share price has been having a good year on the ASX so far. 

Currently, the OM Holdings share price is up 74.5% year to date. It’s also up by 166% over the last 12 months.

The company has a market capitalisation of around $709 million, with approximately 738 million shares outstanding.

More reading

• Why the Next Science (ASX:NXS) share price opened 40% higher
• Leading brokers name 3 ASX shares to buy today
• 3 things you’ll want to know when Amazon reports Q1 earnings
• Why the McGrath (ASX:MEA) share price is surging 8%
• Sigma (ASX:SIG) share price tumbles after CEO resigns

Motley Fool contributor Brooke Cooper 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.

The post The OM Holdings (ASX:OMH) share price is lifting today appeared first on The Motley Fool Australia.

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

Next Science Ltd (ASX: NXS) shares are shooting for the moon in Monday’s session. When trading commenced, shares in the medical company opened almost 41% higher at $2.00. They then continued on to a new 52-week high of $2.06 before partially retreating.

At the time of writing, the Next Science share price is trading at $1.77, up 24.65%. By comparison, the All Ordinaries Index (ASX: XAO) is currently 0.03% lower.

Today’s positive price movement comes as the company announced it has received clearance from the United States Food and Drug Administration (FDA) to sell one of its products in the US.

Let’s take a closer look at today’s announcement.

What’s boosting the Next Science share price?

In a statement to the ASX, Next Science says it has received 501(k) clearance for its “XPerience™ No Rinse Antimicrobial Solution as a medical device in the United States.” According to the company, XPerience is inserted into a surgical site, which is then closed, to fight infection for up to several hours afterwards.

Next Science says the product can be used in “every open surgery case”. Initially, however, the company will target its product for use in shoulder, hip, knee, podiatry and trauma surgeries.

The company says sales in the US will commence immediately. Investors are reacting well to the news, judging by the Next Science share price.

According to the statement, surgical site infection (SSI) is the second-largest cause of hospital-acquired infection in the US. Next Science says, “The use of XPerience No Rinse Antimicrobial Solution can help prevent costly hospital re-admissions.”

Management commentary

Next Science managing director Judith Mitchell said of today’s update:

With an estimated 234 million surgical procedures undertaken globally per annum, XPerience provides an enormous opportunity to help reduce infection, antimicrobial resistance and save lives while reducing expenses for health systems arising from postsurgical infections.

Surgical site infections

According to John Hopkins University, the chance of developing an SSI after surgery is anywhere from 1% to 3%. SSIs usually occur 30 days after surgery and there are three types:

1. Superficial SSI – infection occurs in the skin, where the initial cut was made.
2. Deep incisional SSI – infection occurs in the muscle and tissue around it, underneath the cut area.
3. Organ or space SSI – infection occurs anywhere in the body that is not the skin or muscle.

Risk factors for developing SSIs include being overweight, smoking, having cancer or diabetes, and undergoing emergency surgery.

Next Science share price snapshot

Over the past 12 months, the Next Science share price increased 5.35%. However, over the last three months, the company’s value has appreciated by around 57%. Its 52-week high before today was $1.86 and its yearly low is $1.10.

Next Science has a market capitalisation of $280.5 million.

More reading

• Why Alumina, Delorean, Next Science, & Pushpay shares are tumbling lower
• Here’s why the Next Science (ASX:NXS) share price is sinking 6% lower

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nexus Energy Limited. 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.

The post Why the Next Science (ASX:NXS) share price opened 40% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tUa00t

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and $9.50 price target on this auto parts retailer’s shares. The broker notes that one of the company’s main rivals, Repco, has released a strong quarterly update. It believes this supports the view that Bapcor has continued to perform strongly during the third quarter. Outside this, the broker likes the company due to its long term growth potential. Particularly given its investment in supply chain optimisation. The Bapcor share price is fetching $8.23 this morning.

Kogan.com Ltd (ASX: KGN)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating but cut the price target on this ecommerce company’s shares to $17.93. According to the note, the broker acknowledges that Kogan is having issues with its inventory and is cycling elevated sales from this time last year. However, it believes investors should look beyond these issues as it believes they are only temporary. Credit Suisse remains positive on its medium term growth prospects, particularly given its growing customer base. The Kogan share price is trading at $10.65 on Monday.

SEEK Limited (ASX: SEK)

Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this job listings company’s shares to $34.00. According to the note, the broker expects SEEK to have a strong second half thanks to an increase in listing volumes and a favourable shift in their mix. In addition, the broker feels that SEEK’s shares trade on undemanding multiples after adjusting for its investments. The SEEK share price is fetching $31.69 on Monday morning.

More reading

• 3 ASX shares that keep growing the dividend every year
• 2 ASX shares that could be dividend stars of the future
• These were the worst performers on the ASX 200 last week
• Growing pains, or something worse, for Kogan?
• ASX 200 finishes flat, Kogan drops, Accent jumps

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Kogan.com ltd and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) is coming off a remarkable fourth quarter with $125 billion in sales. That staggering figure will be difficult to repeat. Still, the outlook is optimistic as the e-commerce retailer and technology giant gets ready to report first-quarter earnings on Thursday, April 29.

Folks are shopping more on Amazon because it offers convenience, but more importantly as of late they are doing so because it offers some safety from exposure to the coronavirus. Investors will home in on the second part of that equation when Amazon reports first-quarter earnings.

More than 150 million people in the U.S. have received at least one dose of a coronavirus vaccine. Shareholders are wondering what will happen to customer shopping habits as more of the population gets vaccinated. In that context, here are three things you will want to take note of in the next earnings release.

Three factors to watch in Amazon’s next report

The first thing investors will want to look at is net sales. The company is guiding for growth of 36% year over year at the midpoint, which would be another quarter of over $100 billion in revenue. Folks appear to be maintaining the shopping habits they developed during the pandemic. And even though vaccinations are gaining momentum worldwide, the end of the pandemic regretfully is still nowhere in sight. That could mean a sustained increase in spending at Amazon.

Second, those interested in Amazon stock will want to know how much operating income it earned in the quarter. The e-commerce retailer is spending roughly $2 billion every quarter on COVID-related expenses, weighing on profits even as sales are surging. The hope is that if Amazon continues to serve customers well during the pandemic, then in the aftermath, COVID-related expenses will drop off while many of the newly attracted customers will remain. But even with the billions of extra costs, Amazon’s operating income surged in 2020, rising 57% from the previous year.

And third, look for management to discuss how consumer behavior is changing as people in the U.S. are leaving their homes more often. Amazon proved a reliable and safe supplier of essential items for people during the most acute phases of the pandemic. Now as over 135 million people in the U.S. have received at least one dose of a coronavirus vaccine and are starting to feel more comfortable leaving their homes, it could hurt sales at Amazon.com.

What this could mean for investors 

Analysts on Wall Street expect Amazon to report revenue of $104.36 billion and earnings per share of $9.45, which would be increases of 38.3% and 88.6%, respectively, year over year. The revenue estimate is slightly higher than the midpoint of management’s guidance. 

The surges in revenue and new customers are pushing profits at Amazon to record levels at an extraordinary rate. For instance, operating profit in 2020 was $22.9 billion, up more than 10 times from the $2.2 billion in 2015. But Amazon’s stock is only up about 1% year to date. That can partly be due to investor fears about a drop in sales in the aftermath of the pandemic as consumers return to their old habits. However, if you’re in it for the long haul, Amazon’s trajectory remains positive.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Growing pains, or something worse, for Kogan?
• Should grocery companies be worried about Amazon fresh?
• Amazon Prime adoption accelerated in 2020
• Jeff Bezos just revealed Amazon Prime’s latest subscriber number — and it’s a doozy
• Better buy: Microsoft vs. Alphabet

Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 things you’ll want to know when Amazon reports Q1 earnings appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3xnw0Tv

The McGrath Ltd (ASX: MEA) share price has jumped higher in early trade. That comes after the Aussie real estate group provided a trading update and its latest full-year profit guidance.

Why is the McGrath share price surging?

Shares in the real estate company have rocketed higher at the open after it reported a significant earnings uplift. McGrath expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of $16.5 million to $17.5 million.

For context, McGrath’s FY2020 underlying EBITDA totalled just $3.7 million. The McGrath share price is responding positively following this morning’s update. It comes after a bumper half-year result and McGrath’s advice that it expects strong trading conditions to persist in the second half.

McGrath reported half-year underlying EBITDA of $6.6 million, up from $1.6 million in 1H 2020. The positive momentum behind that result has persisted in the third quarter, giving rise to the higher forecasts for McGrath’s full-year earnings.

A strong Aussie housing market has been a key factor in the significant earnings upgrade. McGrath said the residential property market has seen a number of positive indicators in recent times. Those include rising national home values, strong sales volumes and strong new household borrower commitments.

The McGrath share price has shot higher at the open following this morning’s update. McGrath CEO Eddie Law said, “The combination of improving business and consumer sentiment, record low interest rates and lower stock levels in the market, has driven strong price growth in recent months”.

Investors have clearly been buoyed by this morning’s news. Strong business performance and favourable conditions have shareholders buying strongly on Monday morning.

The McGrath share price has been charging higher in the last 6 months. Prior to this morning’s open, the Aussie real estate shares were up 140.7% to 65 cents per share since 27 October 2020. But today’s news has resulted in a further 7.69% gain to see the company’s shares currently trading at 70 cents.

Foolish takeaway

The McGrath share price is on the move after the company significantly boosted its forecast underlying EBITDA figures for FY2021.

More reading

• Why the McGrath (ASX:MEA) share price is climbing today

Motley Fool contributor Ken Hall 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.

The post Why the McGrath (ASX:MEA) share price is surging 8% appeared first on The Motley Fool Australia.

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

The Sigma Healthcare Ltd (ASX: SIG) share price has come under pressure on Monday morning.

At the time of writing, the pharmacy chain operator and distributor’s shares are down 3.5% to 66.5 cents.

Why is the Sigma share price tumbling?

Investors have been heading to the exits on Monday after Sigma announced that its Managing Director and Chief Executive Officer (CEO), Mark Hooper, has tendered his resignation after almost 11 years at the helm.

According to the release, Mr Hooper has provided six months’ notice and expects to leave the company by the end of October 2021.

The outgoing CEO commented: “Our transformation has progressed to plan and has returned Sigma to a position of strength, which creates the ideal opportunity to hand over the leadership to a new CEO. The business is now in great shape, the financial performance is strong, and we have built a platform for sustainable growth over the next few years.”

“Position of strength”

Mr Hooper certainly is leaving Sigma in a position of strength. Last month Sigma released its full year results and revealed a 39.2% increase in underlying EBITDA to $81.1 million.

It also revealed the “building blocks in place” to underpin its target of 10% per annum growth in underlying EBITDA for the next two years and ~$100m by FY 2023.

Sigma’s Chairman, Ray Gunston, said “On behalf of the Sigma Board, I have regrettably accepted Mark’s resignation, however we understand his desire to pursue other opportunities after more than ten years in the role. He has demonstrated strong leadership and personal dedication for the benefit of shareholders, customers and Sigma team members. I sincerely thank Mark for his tremendous contribution throughout his tenure.”

“Mark became CEO at a tough time for Sigma and put it on a pathway for a stronger future. He then undertook the biggest transformation in the company’s history and has set Sigma up for strong earnings growth. I personally, and all of us at Sigma, are very grateful for Mark’s hard work, vision and support over more than 10 years,” Mr Gunston concluded.

Sigma advised that it will shortly commence an executive search for a new CEO both internally and externally.

More reading

• Why the Paradigm (ASX:PAR) share price is sinking 5% today
• Westpac (ASX:WBC) share price higher despite $282 million profit hit
• What’s happening with the Pointerra (ASX:3DP) share price?
• What to expect from the Woolworths (ASX:WOW) Q3 update
• NIB (ASX:NHF) share price on watch following business update

Motley Fool contributor James Mickleboro 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.

The post Sigma (ASX:SIG) share price tumbles after CEO resigns appeared first on The Motley Fool Australia.

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

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has started the week in the red.

In morning trade, the clinical stage biopharmaceutical company’s shares are down just under 5% to $2.44.

Why is the Paradigm share price sinking lower today?

Investors have been selling Paradigm’s shares this morning after it provided an update on its dealings with the US Food and Drug Administration (FDA).

This is in relation to its investigational new drug (IND) application to the FDA for the proposed pivotal clinical trial treating subjects with pain associated with knee osteoarthritis (OA).

Paradigm previously revealed that it submitted its over 30,000 page IND application to the FDA on Friday 26 March.

This morning the company revealed that it has received a few questions from the FDA during the current 30-day IND review period. Positively, those questions were answered by Paradigm within 48 hours of receipt.

However, on Friday 23 April, Paradigm received a verbal indication from the FDA that the regulator would be putting further questions to Paradigm outside the 30-day IND review period.

The release explains that the FDA was unable to provide all questions within the initial IND review period and has advised it will submit them to Paradigm within the next 30 days.

Many of the questions, based on the brief discussion the company had with the FDA, are related to newly submitted non-clinical data.

Disappointingly, this could delay proceedings and lead to the company falling behind schedule on its plan to enrol clinical trial subjects.

Nevertheless, management advised that Paradigm is ready to review and answer questions when they are received. Once in receipt of Paradigm’s responses, the FDA will review them within 30 days.

Following today’s decline, the Paradigm share price is now trading a disappointing 37% lower than its 52-week high of $3.88.

More reading

• Why the Paradigm (ASX:PAR) share price is charging higher today
• Paradigm (ASX:PAR) share price rises on partnership news

Motley Fool contributor James Mickleboro 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.

The post Why the Paradigm (ASX:PAR) share price is sinking 5% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aDD70G

In morning trade, the Westpac Banking Corp (ASX: WBC) share price is pushing higher despite the release of a mixed announcement.

At the time of writing, the banking giant’s shares are up almost 1% to $25.31.

This leaves the Westpac share price trading just short of its 52-week high of $25.52.

What did Westpac announce?

Investors have been buying the bank’s shares this morning despite revealing that its half year profits would be hit by notable items.

According to the release, there are a number of notable items that will impact its profit for the period by a total of $282 million after tax. The release explains that these items will impact both its cash earnings and statutory net profit equally.

Among its most notable items are additional provisions for customer refunds, payments, associated costs, and litigation provisions of $220 million.

There is also a $115 million write-down of capitalised software and other intangibles, $56 million for ending its relationship with IOOF Holdings Limited (ASX: IFL), an $84 million write-down of goodwill related to Lenders Mortgage Insurance, and an accounting loss on sale in Westpac Pacific along with transaction costs and payments associated with divestments totalling $113 million.

What else?

As you might have noticed, the notable items listed above add up to far more than $282 million.

That’s because these losses were partly offset by net gains in a couple of its tech investments.

The release explains that Westpac will recognise a net gain on the revaluation of its investment in Coinbase of $288 million and a gain on sale of its holding in Zip Co Ltd (ASX: Z1P) of $18 million.

Software capitalisation

In addition to the above, the bank has advised of changes in its software capitalisation policy.

Westpac has increased the threshold before a project is capitalised to $20 million (previously $1 million).

This policy has been applied from 1 October 2020 and will see the bank expense a higher portion of its investment spending from now on. However, the higher expense is not treated as a notable item and will have no impact to the carrying value of capitalised software at 30 September 2020.

Following today’s gain, the Westpac share price is now up 29% since the start of the year.

More reading

• 2 ASX dividend shares with very generous yields
• Is the CBA (ASX:CBA) share price a buy for a recovery of dividends?
• Top brokers name 3 ASX dividend shares to buy today
• Top brokers name 3 ASX shares to buy today
• Westpac, ANZ, CBA share prices dip after class action for ‘junk’ insurance

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Westpac (ASX:WBC) share price higher despite $282 million profit hit appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2S2fnwG

The share price of ASX data visualisation company Pointerra Ltd (ASX: 3DP) has been on a tear over the last week, surging almost 27% higher to $0.735 by the close of trade on Friday.

The gains came after the release of Pointerra’s March quarter activities update, in which the company reported record cash receipts from customers.

In early trade this morning, the Pointerra share price is up 2.7% trading at 75.5 cents.

Company background

So, what does Pointerra do, exactly?

The ASX tech company develops cloud-based technology to help clients manage and visualise large 3D datasets. Its digital software allows clients from industries like construction, utilities or mining and resources to easily manipulate massive datasets to plan and design large development and construction projects.

The company’s software, which can be accessed through a web browser from anywhere in the world, also enables massive amounts of 3D data to be easily shared among clients and their stakeholders. However, Pointerra gives clients the ability to control who has access to their data, ensuring it also remains secure.  

What was in the quarterly update?

What really got Pointerra’s share price zooming last week was the release of its activities update for the March quarter. The company reported record quarterly cash receipts from customers of $1.37 million (up from just $0.64 million for the March quarter FY20). It was also a cashflow positive quarter for the young company, with net cashflows from operating activities coming in at $0.21 million.

Pointerra is also well-positioned to benefit from post-COVID government initiatives.

The company stated that it had seen an uptick in demand for its platform from clients in the architecture, engineering and construction industries – particularly in Australia, the US and the UK – as local, state and federal governments invest in infrastructure activities to try and spur economic recoveries following the pandemic.

What happened to the Pointerra share price after the update?

After sliding lower over the first half of the week, the Pointerra share price surged almost 30% higher after the report’s release on Thursday. Pointerra shares jumped a further 10% on Friday, meaning they were up almost 27% for the full week and edging back towards their 52-week high of $0.925. Year-to-date, Pointerra shares have now gained more than 40%.

Pointerra shares have so far easily outperformed those of the company’s closest competitor on the market, Nearmap Ltd (ASX: NEA).

Despite surging as high as $2.77 in mid-February, overall Nearmap shares have slumped this year, falling almost 10% lower to $2.07.

It will be interesting to watch Nearmap over the next few months to see if it also benefits from the same post-COVID business tailwinds as Pointerra.

More reading

• 3 growing small cap ASX shares to watch
• Why Megaport, Pointerra, Regis Resources, & Zip are charging higher
• Here’s why the Pointerra (ASX:3DP) share price is rocketing 26% higher
• 3 exciting small cap ASX shares to watch
• 2 exciting mid cap ASX shares with long runways for growth

Rhys Brock owns shares of Pointerra Limited and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s happening with the Pointerra (ASX:3DP) share price? appeared first on The Motley Fool Australia.

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

The Woolworths Group Ltd (ASX: WOW) share price could be on the move this week when it releases its third quarter update.

Ahead of the release, I thought I would take a look to see what the market was expecting from the retail conglomerate.

What is expected from Woolworths in the third quarter?

As I mentioned here earlier today, analysts at Goldman Sachs note that the supermarket industry is entering an “interesting phase”.

This is because it is now cycling through the COVID-19 pantry stocking boom from the height of the pandemic.

Furthermore, the broker notes that National Australia Bank Ltd (ASX: NAB) retail sales data points to a sharp decline in supermarket sales during the month of March.

The banking giant “reported cashless retail sales in the Supermarket and grocery segment to have been down c. -14% in March,” Goldman explained.

What does this mean for Woolworths?

While the broker expects Woolworths to have outperformed rival Coles Group Ltd (ASX: COL), it is still forecasting a decline in sales.

Goldman expects Woolworths to report revenues of $16.3 billion for the third quarter, down 1% on the prior corresponding period.

This will be driven by a 1% decline in comparable store Australian food sales, a 2.5% decline in comparable New Zealand food sales, a 2% increase in comparable liquor sales, and a 10% jump in BigW comparable store sales.

Is the Woolworths share price in the buy zone?

According to the note, Goldman Sachs remains positive on the retail giant and has retained its buy rating and $43.60 price target on its shares.

It commented: “While sales are expected to be volatile, we continue to believe that industry profitability will be manageable over CY21 and believe the current market concerns over a price war in the sector are overstated.”

More reading

• 2 excellent ASX 200 blue chip shares rated highly
• Is the Woolworths (ASX:WOW) share price in the buy zone?
• ASX 200 down 0.4%: Afterpay delivers stellar Q3 growth, Rio Tinto Q1 update
• Woolworths (ASX:WOW) share price lower despite announcing $223m investment
• Wesfarmers (ASX:WES) share price climbs 10% in a month amid ‘favourable momentum’

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What to expect from the Woolworths (ASX:WOW) Q3 update appeared first on The Motley Fool Australia.

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