BHP Group Ltd (ASX: BHP) shares are having a subdued session on Tuesday.

In afternoon trade, the mining giant’s shares are down slightly to $45.97.

This follows the release of an underwhelming half-year result this morning.

What did BHP report?

As a reminder, BHP reported a 6% increase in revenue to US$27.2 billion but a sizeable 86% decline in profit after tax to US$927 million.

Though, it is worth noting that the latter was impacted by one-off exceptional items relating to its Western Australia Nickel operation and the Samarco dam failure.

If you take these out of the equation, BHP’s earnings would have been flat at US$6.6 billion for the half.

What about the BHP dividend? Let’s dig deeper into that now.

BHP dividend

The BHP board declared a fully franked interim dividend of 72 US cents per share (A$1.10 per share) for the six months ended 31 December. This represents a total return of US$3.6 billion and equates to a payout ratio of 56%.

And while this dividend is down 20% on the 90 US cents fully franked it paid in the prior corresponding period and is the smallest dividend since 2020, it was still slightly ahead of the market’s expectations.

When is pay day?

If you want to receive this dividend on pay day, then you will need to own BHP shares before they go ex-dividend next month on 7 March.

After which, you can look forward to receiving the payout a few weeks later on 28 March.

Alternatively, eligible shareholders can elect to take advantage of the miner’s dividend reinvestment plan. To do so, they need to let BHP know by 5 March.

The post Here’s everything you need to know about the latest BHP dividend 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

• BHP shares fall after disappointing first-half earnings miss
• BHP share price on watch amid 86% profit decline and dividend cut
• 5 things to watch on the ASX 200 on Tuesday
• What are the pros and cons of buying BHP shares before the company reports?
• I’d need this many BHP shares for passive income of $10,000 a year

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/72W9MgA

Four S&P/ASX 200 Index (ASX: XJO) shares have just gained some sizeable upgrades from leading brokers.

The improved outlook came on the heels of the companies’ earnings results.

The brokers forecast these stocks could leap as much as 13% over the coming year. Atop those potential share price gains, two of the companies also just declared all-time high dividends.

So, which ASX 200 shares could charge higher?

I’m glad you asked!

(Broker upgrade figures, courtesy of The Australian.)

These ASX 200 shares could leap higher in 2024

The first ASX 200 share getting an upgrade is Ampol Ltd (ASX: ALD).

The energy stock reported its full calendar year 2023 results on Monday.

Highlights included a 2% year on year increase in earnings before interest and tax (EBIT) – excluding significant items – which came in at $1.30 billion. The company also reported all-time high total sales volumes of 28.4 billion litres in 2023, up 17% from 2022.

And Ampol declared a record high, fully franked final dividend of $1.80 per share.

Macquarie appears impressed with the company’s full-year performance and outlook. The broker raised its target price by 11% to $42.50 a share. That represents a potential upside of 13% from current levels.

Cochlear Ltd (ASX: COH) also received a significant upgrade.

The cochlear implant device manufacturer reported its half-year results yesterday.

Highlights included a 20% year on year increase in revenue (in constant currency terms) to $1.11 billion. And underlying net profit was up 21% for the six months to $192 million.

This saw the ASX 200 share declare a record interim dividend of $2 per share, franked at 70%. Management also forecast 10% to 15% growth in the company’s cochlear implant units for the full 2024 financial year.

On the back of these result, Wilson raised its price target for Cochlear shares by 15% to $365 a share. This represents an 11% potential upside from current levels.

What other ASX stocks earned broker upgrades?

The third ASX 200 share earning a sizeable broker upgrade is GPT Group (ASX: GPT).

On Monday, the real estate investment trust (REIT) announced its full-year results for 2023.

GPT reported a net loss after tax of $240 million, primarily driven by investment property revaluations of negative $819 million. But funds from operations (FFO) were in line with guidance at $601 million.

And GPT pleased passive income investors with an unfranked 12.5 cent per share final dividend. That brought the full-year payout to 25 cents per share, in line with 2022.

With Aussie interest rates now likely at their peak, GPT forecasts positive leasing growth for its retail and logistic portfolios, while the office segment could continue to struggle.

On the back of these results, JPMorgan raised GPT Group to an overweight rating with a $4.90 price target. That represents a potential 11% upside from current levels.

Which brings us to the fourth ASX 200 share gaining a broker upgrade, Westpac Banking Corp (ASX: WBC).

The big four bank stock released its quarterly results on Monday. And the bank revealed it’s holding up well despite inflationary pressures and ongoing competition in the mortgage markets.

Westpac’s unaudited net profit (excluding notable items) came in at $1.8 billion, which was in line with the prior corresponding period.

As expected, core net interest margin (NIM) slipped by 0.04% from 2H 2022 to 1.80%.

And with only 31% of the bank’s $1.5 billion on market share buyback completed, the Westpac share price could find further support as more shares are taken off the market.

On the back of these results, Barrenjoey raised Westpac shares to an overweight rating with a $26 price target. That represents a potential upside of 1% from current levels.

Westpac also trades on a 5.5%, fully franked trailing dividend yield.

The post How these 4 ASX 200 shares just gained major broker upgrades 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 ASX 200 financial shares hitting 52-week highs on earnings results
• Are Westpac shares a buy following the bank’s results?
• 5 things to watch on the ASX 200 on Tuesday
• High rates, falling profits: Why are ASX bank shares losing out this reporting season?
• Here are the top 10 ASX 200 shares today

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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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/rH4xdsR

The Ansell Ltd (ASX: ANN) share price dipped 4.73% to an intraday trough of $23.04 after the personal protection safety (PPE) supplier released its 1H FY24 results.

The Ansell share price is currently $23.44, down 2.86%.

Let’s take a look at the details.

Ansell share price down on news of 18% dividend cut

Here are the key financial metrics for the six months to 31 December 2023:

• Sales of US$784.9 million, down 7.6% on the prior corresponding period (pcp) on a constant currency basis and down 6% on a reported basis
• EBIT of US$78.2 million, down 6.4% on constant currency terms and 14.5% on reported terms
• EBIT margin of 10% compared to 11% pcp
• Adjusted earnings per share (EPS) of 41.4 cents, down from 50.6 cents pcp
• Unfranked interim dividend of US16.5 cents per share payable 14 March, down 18% pcp
• Dividend represents a 40% payout ratio in line with Ansell’s dividend policy

What else happened in 1H FY24?

Ansell highlighted sales growth and margin improvement in its industrial segment. It reported a 46.7% increase in EBIT on a constant currency basis and 36% on a reported basis for the division.

Ansell explained that industrial division earnings growth was driven by carryover pricing from H2 FY23, net cost favorability, and improved chemical plant performance.

Conversely, the healthcare division’s performance was dramatically weaker. There was a 46% EBIT decline on a constant currency basis and 51.2% on a reported basis.

Ansell blamed lower sales in the surgical and life sciences category and a deliberate production slowdown, which it said yielded an inventory improvement.

The company said a targeted working capital reduction led to strong operating cash flow for the half. Operating cash flow was US$57.9 million at the end of the half, up from just US$3.5 million pcp.

Ansell said its Accelerated Productivity Investment Program, which commenced in July 2023, was on track with the annualised FY26 pre-tax savings target increasing from $45 million to $50 million. But it also raised its expected cash costs from a range of $70 million to $85 million to $85 million to $90 million.

The multi-year program comprises a series of productivity initiatives designed to help the company adjust to post-pandemic operating conditions.

Ansell was among a number of ASX healthcare shares that skyrocketed during the COVID era. The Ansell share price went from about $31.50 in February 2020 to a peak of about $42.30 in April 2021.

One of the Program’s core objectives is to reduce the manufacturing headcount and improve productivity. To this end, Ansell reduced its manufacturing staff by approximately 1,200 in 1H FY24.

What did Ansell management say?

Managing director and CEO Neil Salmon said:

I was pleased with our cashflow delivery, the strong performance from our Industrial GBU and success in implementing the initial phases of our Accelerated Productivity Investment Program …

The sales and EBIT declines in our Healthcare GBU arose on sales and margin headwinds we had anticipated at the start of the year.

As we begin the second half of the year, we see clear signs that these headwinds are moderating and expect performance in this business to improve.

We expect Industrial performance to remain strong and we are targeting approximately $20m in second half cost savings from Accelerated Productivity Investment Program initiatives …

What’s next for Ansell?

Ansell said it expected industrial and healthcare sales to grow in 2H FY24.

It reported $7 million in savings via the Accelerated Productivity Investment Program and a second-half goal of $20 million.

Ansell has narrowed its guidance range for FY24 adjusted EPS to between US 94 cents and US 110 cents.

FY24 statutory EPS is now expected to be in the range of US 54 cents to US 70 cents.

Salmon said:

Overall, our goal in the second half is to show we are moving past this recent period of post-pandemic market disruption, that we are realising the benefits of the substantial work done to strengthen our business and that we are successfully executing on our growth and productivity strategy.

Ansell share price snapshot

The Ansell share price is down 13.11% over the past 12 months.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 4.18%.

The post Ansell share price dips on lower first-half sales and dividend cut 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

• Liontown shares crash 8% on broker downgrade
• 2 ASX 200 financial shares hitting 52-week highs on earnings results
• 3 ASX All Ords shares crashing as much as 24% on results
• ASX All Ords stocks surging 10% to 46% on earnings results
• IAG shares go ex-dividend tomorrow: Should you buy now?

Motley Fool contributor Bronwyn Allen has positions in Ansell. 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 Ansell. 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/I0gi8Ek

Liontown Resources Ltd (ASX: LTR) shares are having a difficult session on Tuesday.

In afternoon trade, the lithium developer’s shares are down a disappointing 8% to $1.16.

What’s going on with Liontown shares today?

There are a couple of reasons why the company’s shares are falling more than most today.

The first reason is weakness in the lithium industry on Tuesday. This has seen a number of ASX lithium stock tumble deep into the red.

Let’s take a look at the state of play in the industry today:

• Core Lithium Ltd (ASX: CXO) shares are down 6.5%
• Lake Resources N.L. (ASX: LKE) shares are 7.5% lower
• Pilbara Minerals Ltd (ASX: PLS) shares have dropped 2.5%
• Sayona Mining Ltd (ASX: SYA) shares are down 5%

What else is weighing on its shares?

Also putting pressure on the lithium developer’s shares today is news that it has been hit with a downgrade from a leading broker.

According to a note out of Citi, its analysts have downgraded Liontown’s shares to a sell rating (from neutral) with a price target of $1.00.

Based on its current share price, this implies potential downside of almost 14% for investors over the next 12 months.

The broker made the move on valuation grounds after a strong rally in recent weeks took its shares beyond the broker’s idea of fair value. It believes the market is currently pricing in a lithium spodumene price almost double current spot levels.

Today’s decline is just another in a long run of declines that shareholders have had to endure. For example, following this latest weakness, the Liontown share price has now lost 55% of its value over the last six months.

The post Liontown shares crash 8% on broker downgrade 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
• Here are the top 10 ASX 200 shares today
• 2 buy-rated ASX dividend stocks with big 6%+ yields
• Rinehart’s next move: Why Liontown shares could be on the menu
• Own CSL shares? What to expect from its half-year results

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

ASX 200 financial shares are outperforming the market on Wednesday as earnings season rolls on.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.51%, while the ASX 200 is down 0.55%.

These two ASX 200 financial shares hit new 52-week highs after the companies released their results.

Hub24 Ltd (ASX: HUB)

The Hub24 share price lifted 7.94% to a new 52-week high of $40.51 on Wednesday morning after the financial services provider reported its 1H FY24 results. Hub24 reported group underlying EBITDA of $55 million, up 10% on 1H FY23, and group underlying net profit after tax (NPAT) of $30.4 million, up 14%. The company declared an interim fully franked dividend of 18.5 cents per share to be paid on 16 April.

The ASX 200 financial share is currently trading for $39.51 per share, up 5.28%.

Netwealth Group Ltd (ASX: NWL)

Netwealth’s 1H FY24 results have also got ASX investors hitting the buy button today. The Netwealth share price also hit a new 52-week peak at $18.27, up 3.74%. This follows the financial services and technology company reporting a 27.2% bump to EBITDA at $58.8 million, with an EBITDA margin of 47.6%. Netwealth also reported NPAT of $39.3 million, an increase of 28.3% with a margin of 31.9%. The company will pay a 100% franked interim dividend of 14 cents per share on 28 March.

The ASX 200 financial share is currently trading for $18.15 per share, up 3.07%.

The post 2 ASX 200 financial shares hitting 52-week highs on earnings results 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

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• This ASX 200 share is predicted to benefit from AI demand for years
• 5 things to watch on the ASX 200 on Monday
• How to build a $1 million superannuation fund

Motley Fool contributor Bronwyn Allen 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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. 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/QXrUe3n

There has been a rough reaction to some All Ordinaries (ASX: XAO), or All Ords, ASX share results. One stock has dropped around 20%!

ASX reporting season is like Christmas. It’s exciting unwrap the company report, but sometimes you really didn’t want what’s inside.

Investor reaction to a result can be just as much about expectations about the numbers than the numbers themselves. For example, if the market is expecting a company to report a 10% profit rise and it only reports a 5% rise then that’s seen as disappointing.

Let’s briefly look at these three stocks.

Humm Group Ltd (ASX: HUM)

The Humm Group share price is currently down 24%.

In the ASX All Ords share’s FY24 first half result, the financial services and instalment plan company reported that its total receivables rose by 23% to $4.65 billion, with commercial receivables up 39% to $2.7 billion. The ‘normalised cash profit after tax‘ fell 27% to $28.1 million. Higher interest rates meant a bigger interest cost to the business. The commercial finance segment saw normalised cash profit increase 12% to $21.6 million.

The company was pleased to report it had executed another $7.5 million of further cost savings during the FY24 first half, bringing the total savings to $26.1 million since the cost-saving program started in HY23.

Humm reported a statutory net loss after tax of $6 million, compared to a net profit after tax of $7.5 million in HY23.

The business declared a fully franked interim dividend of 0.75 cents per share.

Sims Ltd (ASX: SGM)

The Sims share price is currently down by 9%.

In the FY24 first half result, the metal recycling business reported that revenue rose 7.4% to $4.1 billion. Statutory earnings before interest and tax (EBIT) rose 0.2% to $163.8 million, but underlying EBIT sank 85.6% to $13.4 million. Statutory NPAT dropped 34.9% to $65.8 million.

The ASX All Ords share blamed the profit decline on lower metal trading margins and inflationary pressures, which was partly offset by “cost control measures”. It disclosed that challenging market conditions were felt across all of its metal segments, though there was a varying performance between and within geographic regions.

In terms of the outlook, Sims is confident about the medium-term and long-term. Metal-intensive infrastructure spending continues to drive longer-term demand for scrap metal.

In the short-term, the underlying EBIT is expected to improve in the second half of FY24 compared to the first half, including $25 million of cost reduction initiatives.

Sims said initiatives have been started to increase both domestic sales channels and unprocessed material in the USA. Demand for scrap metal in the USA is “expected to remain robust, supporting prices.”

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 13%.

It reported in the FY24 first-half result that total sales dropped 2.5% to $248.5 million. The gross profit margin was flat, while the underlying cost of doing business (CODB) increased to 32.9% (up from 32.4%). New store running costs and higher wage costs led to the CODB worsening.

Statutory net profit after tax was flat at $2.7 million, the underlying net profit dropped 31% to $3.5 million. The interim dividend per share was cut by 33% to 1.8 cents.

Baby Bunting pointed to challenging economic conditions, though it saw an improvement in winning new customers, and it was disciplined with its inventory management. The ASX All Ords share said cost control delivered a “significant” year-over-year improvement with operating cash flow.

In terms of the trading update, between Boxing Day to 16 February 2024, total sales were down 1.4%, and online sales increased 14%. The rate of new customer acquisition was up 3.4%.

It said living pressures are still affecting customers and this is “unlikely to abate in the short-term with economising likely to continue.”

The post 3 ASX All Ords shares crashing as much as 24% on results 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

• Morgans says these high-yield ASX dividend stocks are buys
• 3 ASX shares to buy for Valentine’s Day
• Buy these ASX dividend shares with 5%+ yields
• Morgans names the ASX cyclical shares to buy for earnings season
• Here are the top 10 ASX 200 shares today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm 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/b3o4xlF

The ASX All Ords is slightly in the red in early trading on Wednesday as earnings season continues.

The S&P/ASX All Ordinaries Index (ASX: XAO) is currently down 0.04% to 7,910.1 points.

But let’s take a look at some results from three companies whose share prices are doing much better.

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price rocketed 46% earlier to a new 52-week high of $1.40 on Tuesday. The ASX All Ords financial services management software provider has reported its 1H FY24 results. The company reported a return to profitability with a positive cash EBITDA of $300,000. EBITDA was $7.9 million, up $11.5 million on 1H FY23. Gross revenue came in at $127 million, up 7.4% on 1H FY23.

The ASX All Ord stock is currently trading for $1.23 per share, up 27.6%.

McMillan Shakespeare Ltd (ASX: MMS)

The 1H FY24 results of McMillan Shakespeare also has the market excited today. The ASX All Ords stock rose 15.2% to $20.10 in early trading after the employee benefits provider reported a 42.9% bump to normalised EBITDA at $86.9 million. The company declared an interim fully franked dividend of 76 cents per share, up 31% on last year’s interim payment.

The ASX All Ord stock is currently trading for $20.06 per share, up 14.93%.

Perenti Ltd (ASX: PRN)

Record first-half results have this ASX All Ords mining services company surging on Tuesday. The Perenti share price hit a high of 94 cents this morning, up 10.6% after the company released its numbers. Perenti announced a record revenue of $1.6 billion and a record underlying EBITDA of $312.4 million. Statutory NPAT(A) in 1H FY24 was $69.8 million, up from $44 million in 1H FY23. Perenti said this was due in part to a gain on the “transformative, value accretive” DDH1 acquisition.

The ASX All Ord stock is currently trading for 93 cents per share, up 8.82%.

The post ASX All Ords stocks surging 10% to 46% on earnings results 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

• Top 10 superannuation funds for growth in 2023 revealed: Chant West

Motley Fool contributor Bronwyn Allen 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 Bravura Solutions. The Motley Fool Australia has recommended McMillan Shakespeare. 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/U97pED1

If you want to receive the next Insurance Australia Group Ltd (ASX: IAG) dividend, then you will have to act fast.

That’s because the insurance giant’s shares are going ex-dividend on Wednesday.

When a share trades ex-dividend, it means the rights to an upcoming payout are settled.

So, this means you have until the close of play today to buy IAG shares if you want to receive its 10 cents per share partially franked interim dividend.

Should you buy IAG shares?

Opinion remains divided on whether the insurance company’s shares are good value at present.

Goldman Sachs currently has a neutral rating and $6.00 price target on its shares. This implies approximately 3.4% downside from current levels. The broker prefers rival Suncorp Group Ltd (ASX: SUN).

It’s a similar story at Morgans, with its analysts putting a hold rating and $6.17 price target on the company’s shares on Monday.

But there are a couple of bulls out there. The team at Macquarie has an outperform rating and $6.40 price target on its shares. This implies modest upside from current levels.

Citi, on the other hand, sees meaningful upside for investors. It has a buy rating and $6.75 price target on IAG shares.

If Citi’s analysts are on the money with their recommendation, it would mean a gain of 8.5% for investors over the next 12 months.

In addition, the broker expects a dividend yield of 4.2% for the year, which stretches the total potential return to almost 13%.

The post IAG shares go ex-dividend tomorrow: Should you 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

• Why Inghams, IAG, Neuren Pharmaceuticals, and Pro Medicus shares are sinking today
• IAG share price sinks 6% despite huge dividend boost and buyback
• 5 things to watch on the ASX 200 on Friday
• Beyond ASX 200 bank shares: 3 insurance plays with nice dividends
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie 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/5oZ8INS

The Megaport Ltd (ASX: MP1) share price is losing ground today.

Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock closed yesterday trading for $13.80. In morning trade on Tuesday, shares are changing hands for $13.31 apiece. That’s down 3.6% following the release of the company’s half-year results (1H FY 2024).

For some context, the ASX 200 is down 0.1% at this same time.

Longer-term shareholders won’t be overly concerned with the retrace though. Shares in the network as a Service (NaaS) solutions provider are still up an impressive 119% over 12 months.

Here’s what ASX 200 investors are considering today.

Megaport share price slides despite profit surge

• Half-year revenue of $95 million, up 35% from 1H FY 2023
• Record annual recurring revenue (ARR) of $192 million up 29% from the prior year
• Gross profit of $67 million up 43% from 1H FY 2023
• Record earnings before interest, taxes, depreciation and amortisation (EBITDA) of $30 million, up 785% from 1H FY 2023

What else happened during the half for Megaport?

With some lofty market expectations, the Megaport share price is in the red today despite strong financial metrics across the board.

The company credited the huge boost in half-year EBITDA to its 35% top-line revenue growth and management’s tight focus on cost control.

The boost in operating and financial performance drove EBITDA margins up to 32% over the six-month period, up from 5% in 1H FY 2023.

Net profit came in at just over $4 million, up from a sizeable loss in the prior corresponding half-year.

As at 31 December, Megaport had net cash of $46 million, up from $40 million a year earlier.

What did management say?

Commenting on the half-year operations which have seen the Megaport share price among the top performers on the ASX 200, CEO Michael Reid said the company’s earnings surge was “an amazing result and indicative of the outstanding financial turnaround.”.

Reid added:

$12.5 million in net cash flow represents a massive $40.8 million improvement from the $28.3 million net cash outflow we reported for the half year at this time last year. A phenomenal result that has enabled us to make investments in the go-to-market engine while maintaining our robust financial position.

What’s next for the ASX 200 tech share?

Looking at what could impact the Megaport share price in the months ahead, Reid said, “A strong financial foundation has been laid, and I look forward to doubling down on our efforts in the second half as we continue to deliver profitable, efficient growth.”

ASX 200 investors may be taking some profits today, however, with Megaport’s guidance unchanged despite the company’s very strong first-half results.

According to Reid:

With our finances in great shape and a go-to-market engine poised to fire, we’re happy to report that FY24 revenue and EBITDA guidance is being restated at $190 to $195 million and $51 to $57 million, respectively.

And our net cash flow remains strong after already lowering our capex guidance to $20 to $22 million in January 2024.

Megaport share price snapshot

Even with today’s intraday retrace factored in, 2024 has started out with a bang for the ASX 200 tech share.

Since the opening bell on 2 January, the Megaport share price is up more than 44%.

The post Up 119% in a year, Megaport share price slipping today despite record earnings 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

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• This ASX 200 share is predicted to benefit from AI demand for years
• 2 ASX 200 growth shares to buy with ‘immense opportunity’ ahead
• Brokers say these explosive ASX growth shares are buys with massive upside

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 Megaport. The Motley Fool Australia has recommended Megaport. 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/VCNcJID

ARB Corporation Ltd (ASX: ARB) shares are having a stunning session.

In morning trade, the ASX 200 stock has jumped 13% to a 52-week high of $40.43.

This follows the release of the 4×4 automotive parts company’s half-year results.

ASX 200 stock jumps on results

• Sales revenue up 0.1% to $341.5 million
• Profit after tax up 8.1% to $51.3 million
• Interim dividend up 6.3% to 34 cents per share

What happened during the half?

For the six months ended 31 December, ARB reported a modest 0.2% lift in sales revenue to $342.7 million.

The ASX 200 stock’s sales would have been stronger, but its Aftermarket sales were significantly hindered during the second quarter by industrial disputes across Australian ports. This resulted in extensive inbound and outbound disruptions. Australian Aftermarket were up 3.7% over the prior corresponding period.

Management advised that it continues to implement initiatives to improve its fitting capacity and alleviate constraints.

ARB’s Export sales fell by 13.6% during the period after strong sales growth in the UK was offset by challenging market dynamics in other key international markets.

Finally, sales to original equipment manufacturers (OEM) increased by 53.8% over the period. This is attributable to increased volume from existing contracts, new vehicle model launches, and vehicle availability.

The ASX 200 stock’s profits grew quicker than its sales thanks to margin improvements. ARB reported an 8.1% increase in profit after tax to $51.3 million. This allowed the company’s board to increase its dividend by 6.3% to 34 cents per share.

Outlook

The good news is that the second half has started very positively. Management revealed that sales in the month of January were strong with the resolution of Australian port disruptions and management initiatives contributing positively to accessory fitting capacity.

In addition, it advised that it maintains a positive outlook despite continued uncertain economic conditions, particularly in the global environment. It concludes:

The company has a strong customer order book, strengthening partnerships and opportunities with OEMs and new and innovative products to be released to market during 2024. The Company’s distribution network continues to expand to meet higher customer demand as the supply of new vehicles around the world increases. The Board believes ARB is well positioned to achieve on-going long-term success in Australia and internationally, with strong brands around the world, loyal customers, very capable senior management and staff, a strong balance sheet and growth strategies in place.

The post Guess which ASX 200 stock is surging 13% after solid 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

• Here are the top 10 ASX 200 shares today

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 ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. 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/v6a4pE1