It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Corporate Travel Management Ltd (ASX: CTD)

According to a note out of Bell Potter, its analysts have retained their buy rating on this corporate travel specialist’s shares with a reduced price target of $18.30. While the company’s half-year result fell short of expectations, the broker believes that macro issues are to blame rather than anything company specific. And although this has led to earnings estimate revisions, Bell Potter sees plenty of value in its shares at current levels and retains its buy rating. The Corporate Travel Management share price is trading at $16.29 today.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Morgans reveals that its analysts have retained their add rating on this lithium miner’s shares with a lowered price target of $4.50. Although Pilbara Minerals’ half-year profits missed expectations, the broker remains positive on the investment opportunity here. Especially given how it believes the company is well-positioned to benefit greatly when lithium prices rebound. The Pilbara Minerals share price is fetching $3.66 this afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at Goldman Sachs have retained their buy rating on this airline operator’s shares with a trimmed price target of $8.05. The broker believes that Qantas’ half-year results provides a further proof point on its reset earnings capacity. It highlights that the company’s earnings per share is 52% higher than pre-COVID times. But despite this, its market capitalisation is 17% below pre-COVID levels. The Qantas shares price is trading at $5.26 on Friday.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s why Pilbara Minerals shares could crash 21%
• Why Qantas shares could rise over 50%
• 5 things to watch on the ASX 200 on Friday
• Morgans names 3 ASX stocks to buy following results
• Pilbara Minerals shares lower on disappointing half-year earnings miss

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 positions in and has recommended Corporate Travel Management and Goldman Sachs Group. The Motley Fool Australia has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/o54Lsjz

The Australian Ethical Investment Ltd (ASX: AEF) share price is up 6% after reporting strong profit growth in the FY24 first-half result.

It opened 1.4% higher at $4.95 and it’s currently trading at $5.21.

Australian Ethical share price rises on exciting profit growth

• Revenue increased 33% to $47.5 million
• Funds under management (FUM) rose 15% to $9.67 billion at 31 December 2023
• Average FUM rose 37%
• Underlying net profit after tax (NPAT) grew 71% to $8.5 million
• Statutory NPAT grew from $5.2 million to $6.2 million
• Interim dividend per share up 50% to 3 cents per share

The company saw its funded customer number increase 13% to more than 130,000, while superannuation members increased by 16%.

Net inflows amounted to $259 million, an increase of 39% compared to the prior period. This was supported by superannuation net inflows of $269 million.

The company said its continued positive net inflows during challenging market conditions demonstrates the “resilience” of its business.

The investment performance added $0.2 billion to its FUM over the period.

What else happened in the FY24 first half?

Australian Ethical launched three investment products. The Infrastructure Debt Fund was launched, as well as two multi-asset products, being ‘moderate’ and ‘conservative’ funds.

The fund manager pointed out that the business operating leverage is improving. The underlying cost-to-income ratio for the period was 75%, an improvement from the FY23 first half of 81%. Increasing profitability can help give investors more confidence about paying more for the Australian Ethical share price.

What did Australian Ethical management say?

The Australian Ethical CEO John McMurdo said:

Our growth strategy is gathering momentum and we are seeing an uplift in our key financial metrics as well as strong momentum on key strategic initiatives. We are proud of the way we operate our purpose-driven business and were delighted that many aspects of our business – customer experience, growth, governance, investment philosophy as well as investment excellence – were all recognised by awards and accolades during the period.

What’s next for Australian Ethical?

The business is targeting $100 million of annualised revenue by the end of FY24. It generated $47.5 million in revenue in the first half of FY24.

It said its larger scale will allow the business to invest for growth while also delivering profit for shareholders. It’s planning to invest in technology and data analytics, as well as the customer experience.

The company revealed it’s considering a pipeline of ‘inorganic’ opportunities.

Australian Ethical share price snapshot

In the last six months, Australian Ethical shares have risen by 27%, compared to a 7% rise for the S&P/ASX 200 Index (ASX: XJO).

The post Australian Ethical share price jumps 6% on strong FY24 half-year result appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Aussie Broadband, Australian Ethical, Jumbo, and Vulcan are racing higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is pushing higher. At the time of writing, the benchmark index is up 0.6% to 7,657.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 7% to $2.05. This follows the release of the footwear retailer’s half-year results this morning. Accent reported a 1.7% decline in sales to $810.9 million and a 27.6% reduction in net profit after tax to $42.2 million. This led to the company’s board cutting its interim dividend by 29% to 8.5 cents per share.

Austal Ltd (ASX: ASB)

The Austal share price is down 14% to $1.92. Investors have been selling the shipbuilder’s shares after it released its half-year results. Austal reported a 7.5% decline in revenue to $717.7 million. And while the company posted a net profit after tax of $12 million (compared to a loss of $7.3 million in FY 2023), this is well short of FY 2022’s half-year profit of $45.1 million.

Newmont Corporation (ASX: NEM)

The Newmont share price is down 7% to $47.26. This morning, this gold miner released its FY 2023 results and reported a huge loss. Newmont posted a 7% decline in adjusted EBITDA to US$4,217 million and a net loss of US$2.5 billion. The latter includes US$1.9 billion in impairment charges, US$1.5 billion in reclamation charges, and US$464 million in Newcrest transaction and integration costs.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price is down 6% to $7.16. This follows the release of the copper miner’s half-year results this morning. Sandfire reported a 3% decline in revenue to US$417.9 million and a loss after tax of US$53.1 million. Management blamed the loss on the MATSA mining complex in Spain, which was acquired for US$1.9 billion in FY 2022. MATSA accounted for depreciation and amortisation of US$149.1 million.

The post Why Accent, Austal, Newmont, and Sandfire shares are plunging today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 200 gold stock is crashing on US$2.5b loss
• Accent share price sinks 8% on earnings slump and dividend cut
• Here are the top 10 ASX 200 shares today
• Analysts say these high-yield ASX dividend stocks are buys
• 5 things to watch on the ASX 200 on Thursday

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 positions in and has recommended Austal. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ERj41WS

Woodside Energy Group Ltd (ASX: WDS) shares have recovered from a morning decline and are edging higher on Friday afternoon.

At the time of writing, the energy giant’s shares are up 0.5% to $30.63.

Why are Woodside shares rising?

Investors have been buying the company’s shares this afternoon after the company released an announcement relating to its Scarborough project.

According to the release, Woodside has broadened its strategic relationship with Japan’s JERA through a transaction that involves three core elements:

• Equity in the Scarborough joint venture.
• LNG offtake agreement.
• Collaboration on opportunities in new energy and lower carbon services.

In respect to the equity, Woodside advised that it has executed a binding sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough joint venture for an estimated total consideration of US$1,400 million (A$2,130 million).

This comprises a purchase price of approximately US$740 million, and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective date of 1 January 2022. Completion of the transaction is expected in the second half of 2024.

What else?

The LNG offtake agreement is non-binding but if it goes ahead, it will see JERA purchase six LNG cargoes on a delivered ex-ship basis per year for 10 years commencing in 2026 from Woodside’s global portfolio.

Another non-binding agreement will see the two parties form a new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology and carbon capture and storage. Management notes that this will support common decarbonisation ambitions.

Woodside CEO, Meg O’Neill, commented:

Woodside welcomes Japan’s largest utility, JERA, into the Scarborough Joint Venture. This builds on a long history of collaboration, starting in 1989 with LNG sales from the North West Shelf to JERA’s parent companies Tokyo Electric and Chubu Electric. JERA’s participation in the Scarborough Joint Venture, which will also include LNG Japan, is a further demonstration of the importance of the project to Japanese customers and confidence in long-term demand.

The post Woodside shares rise on $2.1 billion sale and partnership appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 cheap ASX stocks that offer more than 8% dividend yields
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 100 and ASX 200 shares I’d buy now for a $1,820 passive income in 2024!
• 5 things to watch on the ASX 200 on Wednesday
• Is the 11.3% dividend yield on Woodside shares for real?

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 Scott Phillips.

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

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a gain. In afternoon trade, the benchmark index is up 0.35% to 7,636.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are jumping:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is up almost 14% to $4.34. This morning, this broadband provider released its half-year results and reported a 17.7% increase in revenue to $445.9 million and 12.7% lift in EBITDA to $46.3 million. A key driver of this growth was a 20.6% increase in total broadband connections to 765,800.

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price is up 6.5% to $5.22. This follows the release of the investment company’s half-year results. Australian Ethical reported a 33% jump in operating revenue to $48.5 million and 71% increase in underlying profit after tax to $8.5 million.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is up 6% to $16.98. This has been driven by the release of the online lottery ticket seller’s half-year results. Jumbo achieved an 18.4% increase in revenue to $73.9 million and a 14.5% lift in underlying net profit after tax (before amortisation) to $20.8 million. This allowed the company’s board to increase its fully franked interim dividend by 17.4% to 27 cents per share.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is up 6% to $2.19. Investors have been buying this lithium developer’s shares after it released a funding update. Management advised that Vulcan’s Phase One project is potentially suitable for European Investment Bank (EIB) financing and the project has advanced to the “Under Appraisal” stage. The proposed financing could amount to up to 500 million euros (~A$825 million).

The post Why Aussie Broadband, Australian Ethical, Jumbo, and Vulcan are racing higher appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• This ASX lithium share is charging 13% higher on $825m financing update
• Aussie Broadband share price rockets 11% after bumper results and upgraded guidance
• A fund manager is betting on this ASX 300 stock. Is it a buy?
• 3 ASX shares predicted to enjoy ‘strong growth’ in 2024 earnings
• Down 70%: An insider just loaded up on this ASX 300 lithium share

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 positions in and has recommended Aussie Broadband, Australian Ethical Investment, and Jumbo Interactive. The Motley Fool Australia has recommended Aussie Broadband, Australian Ethical Investment, and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/nTv9Gw2

It’s been a fairly lucrative day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Friday.

After a shaky week, investors will be glad to see the ASX 200 gain 0.51% (at the time of writing), putting the index at around 7,650 points. But that rise pales in comparison to what we’re seeing with some ASX tech shares today thus far.

Tech stocks, to put it simply, are on fire this Friday. For one, the S&P/ASX 200 Information Technology Index (ASX: XTX) is currently the best-performing sector on the market, currently up 1.64%.

But some ASX tech stocks are doing even better than that. Take the Xero Ltd (ASX: XRO) share price. Xero shares are currently up a rosy 2.92% at $120.06 a share. Megaport Ltd (ASX: MP1) shares are up 1.6% at $13.98, while Life360 Inc (ASX: 360) stock has risen 2.65% to $8.12.

But that’s nothing compared to Weebit Nano Ltd (ASX: WBT) and Block Inc (ASX: SQ2). Weebit shares have rocketed 6.5% up to $4.42, while Block has exploded 15.9% higher to $117.34.

What’s setting ASX tech shares on fire today?

Well, it’s hard to say for sure. In some cases (well, Block’s), fresh earnings results appear to be responsible. But there’s little doubt that what’s happened overnight on the US markets has set the tone for today’s boom in the ASX tech space.

Last night, US tech stock lit up Wall Street. We saw moves like Apple gaining 1.12%, Amazon rising 3.55% and Meta Platforms shooting up 3.87%.

But the biggest mover was, once again, the NVIDIA stock price. Nvidia shares had yet another record-breaking night, smashing through to a new record high of US$785.75 after gaining a whopping 16.4%.

The catalyst for this extraordinary move was Nvidia’s latest earnings report. As my Fool colleague James covered yesterday, Nvidia once again blew expectations out of the water, reporting a 265% surge in year-on-year revenues to US$22.1 billion, alongside a 769% rise in net incomes to US$12.3 billion.

Incredible numbers for what is now close to a US$2 trillion company.

This dazzling report is probably behind the sunny day that ASX tech shares are currently enjoying on the local markets. So ASX tech investors, you now know who to thank for this happy day.

The post Why are ASX tech shares booming on Friday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How is the Block share price rocketing 17% on Friday?
• Here are the top 10 ASX 200 shares today
• Nvidia stock pops 10% after-hours following ‘insane result’
• Could Nvidia become the most valuable stock on earth?
• Here are the top 10 ASX 200 shares today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Block, Life360, Megaport, Meta Platforms, Nvidia, and Xero. The Motley Fool Australia has positions in and has recommended Block and Xero. The Motley Fool Australia has recommended Amazon, Apple, Megaport, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/fEkni0U

Metcash Ltd (ASX: MTS) shares could be a pleasing payer of dividends over the next few years. The S&P/ASX 200 Index (ASX: XJO) stock is projected to pay a big dividend yield for the foreseeable future.

The company is best known for supplying IGA supermarkets around Australia, as well as Cellarbrations, The Bottle-O, IGA Liquor, Duncans, Thirsty Camel and Porters Liquor. It also owns a number of hardware brands including Mitre 10, Total Tools and Home Timber & Hardware.

Big dividends ahead?

The Metcash share price has fallen 11% over the past year and 24% from April 2022. This lower valuation means it’s cheaper, but it also has a boosted dividend yield. If a business with a 6% dividend yield sees a 10% share price fall, the yield becomes 6.6%.

It has committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT).

This is the sort of business that can see fairly consistent profitability, particularly the food and liquor divisions. While the profit may not go down that much, those two segments are not exactly fast-growth areas either.

However, I think the hardware division is capable of seeing pleasing profit growth, particularly once demand increases/recovers for construction and renovation.

With that in mind, the current projection on Commsec for Metcash’s FY25 annual dividend is 20.5 cents per share, which translates into a grossed-up dividend yield of 8.1% after generating 29.2 cents of earnings per share (EPS).

It’s projected to pay an annual dividend per share of 20.2 cents in FY24, which would be a grossed-up dividend yield of 8%.

The ASX 200 stock might pay an annual dividend per share of 21.3 cents, which would be a grossed-up dividend yield of 8.4%, according to the Commsec projection.

Earnings growth from the ASX 200 stock

I wouldn’t buy an ASX dividend share just because of a large dividend yield, as appealing as that might be.

There’s not much point in getting a 10% dividend yield return if the share price drops 20%.

A low price/earnings (P/E) ratio and potential earnings growth make me believe Metcash is a good, relatively low-risk investment. Australian population growth and expansion of its business can help the company grow earnings in FY25 and FY26 (after working through the likely hardware profit decline in FY24). The current projections on Commsec suggest a bit of earnings growth in FY25 and FY26.

The Metcash share price is valued at 12 times FY25’s estimated earnings.

The post Guess which ASX 200 stock is predicted to pay an 8% dividend yield in 2025 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• A once-in-a-decade chance to get rich from ASX 200 shares?
• 3 Australian value stocks to buy right now
• 2 ASX shares under $50 new investors can buy confidently
• Are Metcash shares worth buying for that fat 6% dividend yield?
• 3 ASX shares that could soar thanks to the RBA

Motley Fool contributor Tristan Harrison has positions in Metcash. 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 Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/A5TYI3J

The Block Inc (ASX: SQ2) share price is off to the races today.

Shares in the global S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock – which acquired Afterpay in January 2022 – closed yesterday trading for $101.23. At the time of writing in late morning trade on Friday, shares are swapping hands for $118.10 apiece, up 16.7%.

For some context, the ASX 200 is up 0.6% at this same time.

Investors are bidding up the ASX BNPL share following the release of its fourth-quarter results (Q4 2023).

Here’s why. (Note, all figures are in US dollars.)

Block share price soars on profit surge

• Net revenue of $5.77 billion, up 24% year on year
• Gross profit of $2.03 billion, up 22% from in Q4 2022
• Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $562 million, up 100% year on year
• $7.7 billion in available liquidity as at 31 December

What else happened with Block over the quarter?

Of the $2.03 billion in gross profit, Square generated a gross profit of $828 million, up 18% year on year. Meanwhile, the company’s Cash App generated gross profit of $1.18 billion, up 25% year on year.

Also helping the Block share price is the rising Bitcoin (CRYPTO: BTC) price. The company reported a Bitcoin gross profit of $66 million in Q4 2023, up 90% from Q4 2022. The total sale amount of Bitcoin sold to customers (Bitcoin revenue) was $2.52 billion.

Block reported a quarterly operating loss of $131 million, a slight improvement from the $135 million operating loss in Q4 2022. Adjusted quarterly operating income of $185 million was up year on year from a loss of $32 million.

And Block has been tapping into generative AI to boost productivity. Q4 saw the company launch a GenAI conversational tool for its customer-facing teams to improve efficiency.

Over the full 2023 calendar year, Block reported gross profit of $7.50 billion, up 25% from 2022.

What did management say?

Commenting on the results sending the Block share price rocketing today, CEO Jack Dorsey said:

We’ve done a lot recently to reduce our costs. Now we’re going to focus on growth.

We’re under our 12,000 people cap. This constraint forces us to prioritize more impactful work, which we believe will lead to growth. We’re going to operate under this cap until we feel it’s holding us back, which is likely years out, and continue to look critically at our organization and priorities.

On the topic of people, we’re reorganising the people in Square back to a simple Engineering/Product/Design/Sales structure.

What’s next?

Looking at what might impact the Block share price in the year ahead, the company offered some strong guidance for 2024.

Over the full year, Block forecasts gross profit of “at least” $8.65 billion. That’s up 15%, or more, from 2023.

Block forecasts adjusted operating income of “at least” $1.15 billion for a 13% margin.

And adjusted EBITDA is expected to come in at “at least” $2.63 billion, for a 30% margin.

Block share price snapshot

With today’s big intraday surge factored in, the Block share price is up 7% in 12 months.

The ASX 200 BNPL stock has gained a whopping 93% since the recent 31 October lows.

The post How is the Block share price rocketing 17% on Friday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• 6 oversold ASX shares to buy in February 2024
• Why Block, Resolute Mining, Sayona Mining, and Syrah shares are sinking today
• Here are the top 10 ASX 200 shares today
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/IYeA2nC

Life360 Inc (ASX: 360) shares will be in focus next week.

That’s because the location technology company is scheduled to release its full-year results on Friday 1 March.

Ahead of the release, let’s take a look at what the market is expecting from the company.

What should you expect next week?

According to a note out of Goldman Sachs, its analysts are expecting Life360 to deliver very strong growth in FY 2023.

For example, it is forecasting subscription revenue of US$221.7 million for the year, which represents annual growth of 51%.

This is expected to ultimately lead to total revenue of US$304.4 million, which is in line with the company’s guidance range of US$300 million to US$310 million.

As for earnings, the broker is forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) of US$15.9 million in FY 2023. This will be the top end of Life360’s guidance range of US$12 million to US$16 million.

What else?

Life360 could potentially provide guidance for FY 2024 with its results.

If it does, it could be worth understanding what Goldman Sachs is expecting for the year ahead.

It has pencilled in total revenue of US$370.6 million and adjusted EBITDA of US$30.8 million. This represents growth of 22% and 94%, respectively, over the broker’s FY 2023 estimates.

Are Life360 shares good value?

Goldman Sachs sees a lot of value in Life360 shares at the current value.

It has a buy rating and $10.50 price target on them, which implies potential upside of almost 30% for investors over the next 12 months. Goldman said:

We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US. The company is currently raising prices for its existing iOS US subscriber base, demonstrating its pricing power and latent monetisation opportunity with >50mn global users.

The post Own Life360 shares? Here’s your FY23 results preview appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Brokers say these explosive ASX growth shares are buys with massive upside
• Will the Life360 share price rise another 55% in 2024?
• 2 ASX shares with millionaire-maker potential
• Analysts tip 10% to 30% returns for these ASX growth shares in 2024

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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 Scott Phillips.

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

Vulcan Energy Resources Ltd (ASX: VUL) shares are catching the eye on Friday.

In early trade, the ASX lithium share was up as much as 13.5% to $2.34.

Its shares have eased back a touch since then but remain up 9% to $2.24 at the time of writing.

Why is this ASX lithium share rocketing?

Investors have been buying the company’s shares today after it released an update on the funding of its Zero Carbon Lithium Project in Germany.

According to the release, after preliminary due diligence, Vulcan’s Phase One project appears potentially suitable for European Investment Bank (EIB) financing and the project has advanced to the “Under Appraisal” stage.

The EIB is the lending arm of the European Union (EU) and one of the largest climate finance providers.

The proposed financing could amount to up to 500 million euros (~A$825 million), pending completion of due diligence, credit approval and legal agreement, and subject to EIB’s governing bodies approval.

Vulcan highlights that this funding is expected to serve as a cornerstone to complement ongoing debt funding discussions with leading export credit agencies and international banks.

What is the the project?

Phase One of Vulcan’s Zero Carbon Lithium project in Germany is targeting the production of 24,000 tonnes per annum (tpa) of lithium hydroxide. This is enough to support the production of 500,000 electric vehicles.

One company that will be using this lithium, if all goes to plan, is Stellantis. The auto giant is the company’s second largest shareholder and has an offtake agreement in place.

The ASX lithium share’s CEO, Cris Moreno, said:

We welcome the support of the EIB. This is a strong and tangible signal of confidence at the European level for the Zero Carbon Lithium Project, and of its capability to enable a secure, domestic lithium supply chain for electric vehicle batteries for Europe. This progression in EIB’s financial appraisal is a positive step forward in the sequence of our debt and project level equity financing for Phase One of the Project, which is anticipated to create millions of tonnes of carbon avoidance in the EV supply chain in the years to come.

The post This ASX lithium share is charging 13% higher on $825m financing update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 70%: An insider just loaded up on this ASX 300 lithium share

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 Scott Phillips.

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