The QBE Insurance Group Ltd (ASX: QBE) share price is under pressure on Friday.

In morning trade, the insurance giant’s shares are down almost 5% to $15.61.

This follows the release of QBE’s FY 2023 results before the market open.

QBE share price drops on results

• Gross written premium (GWP) up 10% to US$21,748 million
• Insurance operating result up 30% to US$796 million
• Adjusted cash net profit after tax up 105% to US$1,362 million
• Final dividend up 60% to 48 Australian cents per share

What happened in FY 2023?

For the 12 months ended 31 December, QBE more than doubled its adjusted cash net profit after tax to US$1,362 million.

This was underpinned by strong premium growth, with GWP rising 10% thanks to group-wide renewal rate increases of 9.7% and targeted new business growth.

QBE’s combined operating ratio improved to 95.2% due to supportive market conditions and favourable current year catastrophe experience, partially offset by the impact of short-tail prior year development.

This allowed the insurer to increase its final dividend by 60% to 48 cents per share, which brought its full-year dividend to 62 cents per share. This represents a 59% increase year on year and a dividend payout ratio of 45% of adjusted cash profit. Based on the current QBE share price, this equates to a 4% dividend yield.

How does this compare to expectations?

This result appears to have fallen a touch short of expectations, which may be why the QBE share price is falling today.

For example, Goldman Sachs was forecasting a profit of US$1,424.73 million for FY 2023. This compares to its adjusted cash profit of US$1,362 million.

Management commentary

QBE’s Group CEO, Andrew Horton, was happy with the result. He said:

Over the last two years, QBE has been focused on delivering greater resilience and consistency. I see meaningful progress across the business, and I am confident that we can drive further progress against our strategic priorities in 2024.

Our strategy to improve performance in North America remains a key focus for the Board and management, and we are tasked to build a business which delivers performance that is consistent with our Group targets. We have renewed our focus on building and strengthening relationships with our major trading partners, and are confident we can successfully manage our priorities for the division.

Outlook

QBE has provided guidance for FY 2024.

It is expecting 2024 constant currency GWP growth in the mid‑single digits and a combined operating ratio of ~93.5%.

The post QBE share price tumbles despite 105% FY23 profit jump appeared first on The Motley Fool Australia.

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• Morgans names the best ASX 200 dividend shares to buy in February
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

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The Insurance Australia Group Ltd (ASX: IAG) share price is on the slide on Friday morning.

At the time of writing, the insurance giant’s shares are down 6% to $5.96.

This follows the release of the company’s half-year results.

IAG share price falls on half-year results

• Gross written premium (GWP) up 12.5% to $7,947 million
• Insurance profit up 75.4% to $614 million
• Net profit after tax down 13% to $407 million
• Interim dividend up 67% to 10 cents per share
• $200 million on-market share buyback
• Guidance reaffirmed for FY 2024

What happened during the half?

For the six months ended 31 December, IAG reported a solid 12.5% increase in GWP to $7,947 million. This reflects premium increases across Direct Insurance Australia, Intermediated Insurance Australia, and the New Zealand business in response to inflation pressures, higher perils, and reinsurance costs.

This offset lower volumes driven by the Intermediated Insurance Australia business focusing on improved underwriting and pricing.

IAG’s reported insurance profit came in at $614 million for the half, which is an increase of 75.4% year on year. This equates to a reported insurance margin of 13.7%, up significantly from 8.5% a year earlier.

And while the company’s net profit after tax was down 13% to $407 million, this was due to the prior corresponding period benefitting from a $360 million pre-tax business interruption (BI) claim provision release.

As a result, the IAG board was able to overlook the profit decline and increase its interim dividend by 67% to 10 cents per share.

But the returns won’t stop there. Thanks to its strong capital position, the company has announced an on-market share buyback of up to $200 million.

How does this compare to expectations?

While this is certainly a strong result on paper, it appears to have fallen a touch short of expectations. This explains why the IAG share price is falling today.

Commenting on the result, Goldman Sachs highlights that IAG slightly missed on a few key metrics. It said:

Overall result summary: 1) Insurance profits: 1H24 result was $614m vs. GSe of $628m. 2) Cash earnings for 1H24 was $415m vs. GSe of $442m. 3) Underlying margin in line: IAG’s definition of 1H24 underlying margin was 13.7% (however 15.1% ex reinsurance reinstatement) vs. GSe of 15.1%. 4) Reported margin: 1H24 reported margin was 13.7% vs. GSe of 13.9%.

Management commentary

IAG’s CEO, Nick Hawkins, was very pleased with the half. He said:

Today’s results show the progress we’ve made against our strategic priorities. We’ve added new direct insurance customers and our IIA business is on track to deliver its FY24 insurance profit target of at least $250m, after a solid first half performance.

Hawkins also revealed that IAG is on course to deliver on its guidance for FY 2024. He adds:

We’re on track to deliver theFY24 guidance we outlined at the beginning of the financial year. Our strategy is clear, and our leadership team is focused on delivering against our goals.

This will mean GWP growth of “low double digits” and a reported insurance margin of 13.5% to 15.5%.

The IAG share price remains up 26% over the last 12 months.

The post IAG share price sinks 6% despite huge dividend boost and buyback appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

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Pilbara Minerals Ltd (ASX: PLS) shares will be in focus next week.

That’s because the lithium miner is scheduled to release its eagerly anticipated half-year results.

Investors will no doubt be keen to see how much the crash in lithium prices has impacted the miner’s profitability.

Let’s now see what the market is expecting from the company when it reports its earnings on Thursday 22 February.

Pilbara Minerals half-year results preview

According to a note out of Goldman Sachs, its analysts are expecting a result well short of consensus estimates.

Its analysts are forecasting revenue of $774 million for the half, which will be down 64% year on year. This compares to the consensus estimate of $926 million.

It is a similar story for earnings, with Goldman pencilling in underlying EBITDA of $469 million. This represents a 74% year on year decline and is meaningfully below the consensus estimate of $597 million.

On the bottom line, the broker expects underlying net profit after tax to fall 74% to $324 million. As a comparison, the consensus estimate is for a half-year profit of $421 million.

Finally, Goldman believes that there will be no interim dividend from Pilbara Minerals next week. Though, the market remains a little more hopeful and is expecting a modest 5.4 cents per share payout to be announced.

Are Pilbara Minerals shares a buy?

As you might have guessed from its estimates, Goldman is feeling quite bearish about the company at present.

Its analysts currently have a sell rating and $2.95 price target on Pilbara Minerals’ shares, which implies potential downside of almost 15% for investors over the next 12 months.

The post Own Pilbara Minerals shares? Here’s your first-half results preview appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

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It has been a volatile week for IDP Education Ltd (ASX: IEL) shares.

Investors were scrambling to buy the ASX 200 stock on Wednesday after it impressed the market with its half-year results.

The student placement and language testing company’s shares were up over 15% following the release.

However, a day later, IDP Education’s shares gave back all these gains and some more and are now trading lower than they were pre-results release.

While this is disappointing, the team at Goldman Sachs is likely to see it as a buying opportunity for investors.

Why this ASX 200 stock could be a buy

Goldman was impressed with the result and remains positive on the company’s outlook despite regulatory tightening measures across its primary destination markets. It explains:

IEL reported a strong 1H24 result, however investor focus has rightly shifted to the outlook for 2H24/FY25 given regulatory tightening measures across IEL’s primary destination markets.

In our view, in an environment of softer market volumes, quality agents that can provide genuine students from a diversity of source markets should be well-placed to gain share, and IEL’s 1H24 result was an initial validation of this thesis (industry volumes -3% vs IEL +33% yoy).

In respect to its language testing business, the broker has trimmed its earnings estimates to reflect regulatory changes. However, it believes the business will return to growth once the market normalises. Goldman said:

[W]e adopt a more cautious stance and reduce our FY24/25/26E volume estimates -4%/-11%/-8% – now forecasting high single digit volume declines in both FY24/25E. Into the medium term, we remain of the view that IELTS can resume growth once Indian market dynamics normalise, particularly given ex-India volumes are growing at a high-teens pace with expansion opportunities into underserved markets such as Africa.

Big returns ahead

Goldman has reiterated its buy rating on the ASX 200 stock with a new price target of $26.60 (from $27.60).

Based on its current share price of $19.99, this implies potential upside of 33% for investors over the next 12 months.

And with Goldman forecasting a 46 cents per share partially franked dividend in FY 2024, this represents a 2.3% dividend yield, boosting the total potential return beyond 35%.

Goldman concludes:

IEL is likely to emerge through this period of short-term regulatory tightening with a more diversified business and stronger SP market position to capitalise on the long-term structural growth in international education, setting up the company for multi-year mid-teens earnings growth. On that basis, the shares represent attractive value, and we reiterate Buy

The post Want to outperform? This ASX 200 stock could generate a 35% return in 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you have room in your portfolio for some ASX dividend stocks, then it could be worth checking out the two named below.

They have been rated as buys and tipped to provide investors with attractive yields. Here’s what analysts are expecting from them:

Charter Hall Retail REIT (ASX: CQR)

The team at Citi thinks the Charter Hall Retail REIT could be a good option for investors. It is a supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company.

One of the reasons that Citi likes the company is its “defensive net property income growth.” It also expects some big dividend yields in the near term.

The broker is forecasting dividends per share of 25 cents in both FY 2024 and FY 2025, and then 27 cents in FY 2026. Based on the current Charter Hall Retail REIT share price of $3.74, this will mean very generous yields of 6.7% for two years and then 7.2%.

Citi currently has a buy rating and $4.00 price target on its shares.

Deterra Royalties Ltd (ASX: DRR)

Another ASX dividend stock that has been named as a buy for income investors is Deterra Royalties.

It is focused on the management and growth of a portfolio of royalty assets across a range of commodities. This includes royalties held over Mining Area C, its cornerstone asset, in the Pilbara region of Western Australia.

Morgan Stanley is positive on the company and expects it to be in a position to pay some big dividends in the near term. It is expecting fully franked dividends per share of 40.3 cents in FY 2024 and 30.1 cents in FY 2025. Based on the current Deterra Royalties share price of $5.06, this will mean yields of 8% and 5.9%, respectively.

The broker has an overweight rating and $5.65 price target on its shares.

The post 2 buy-rated ASX dividend stocks with big 6%+ yields appeared first on The Motley Fool Australia.

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Telstra Group Ltd (ASX: TLS) shares were under pressure on Thursday following the release of its half-year results.

Investors were disappointed to see management trim its earnings guidance range for FY 2024 in response to weakness from one side of the business.

Telstra’s shares ended the day over 2% lower at $3.90.

Is this a buying opportunity for investors? Let’s see what analysts at Goldman Sachs are saying about the telco giant.

Are Telstra shares good value?

Goldman has been running the rule over Telstra’s result and believes it was better than the market reaction would imply.

The broker highlights that “NAS challenges overshadow a solid core [result] and drive -2% to -3% EBITDA downgrades, but we believe issues are cyclical.”

The broker picked out a few positives from the result that investors might want to focus on. It said:

Key positives: (1) Mobile EBITDA beat on better costs (and a very small one-off hardware margin benefit). Sub growth was also ahead of GSe, with strong 2Q trading that has continued into 3Q – implying a full CPI mobile price rise is likely this year; (2) NBN re-sale margins improved to 10% (vs. 4%/7% in 1H22/1H23), with some further potential benefit into 2H24 – but we expect the focus to shift to revenue growth; and (3) InfraCo Fixed earnings beat and will accelerate further into 2H24 on improved efficiency and ex-NBN strength.

All in all, Goldman has seen enough to remain positive and has reiterated its buy rating with a trimmed price target of $4.55 (from $4.65).

Based on the current Telstra share price of $3.90, this implies potential upside of almost 17%.

Importantly, Goldman’s dividend forecasts remain unchanged. It continues to expect dividends per share of 18 cents in FY 2024, 19 cents in FY 2025, and 20 cents in FY 2026. This would mean dividend yields of 4.6%, 4.9%, and 5.1%, respectively.

The post Down 12% from their highs: Are Telstra shares a post-results bargain buy? appeared first on The Motley Fool Australia.

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• 3 high-quality ASX 200 dividend shares to buy for a second income
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• Everything you need to know about the Telstra dividend
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A number of S&P/ASX 200 Index (ASX: XJO) shares have soared in recent months. Despite that, the investment team at Wilson Asset Management has picked out two stocks that it thinks look cheap.

WAM Leaders Ltd (ASX: WLE) is the listed investment company (LIC) that invests in ASX large-cap shares, which are often called ASX blue-chip shares. The idea is that this zone of the market is full of the strongest and biggest Australian companies.

While they aren’t the biggest businesses on the ASX, the below names are among the leaders across the globe at what they do.  

Orora Ltd (ASX: ORA)

WAM describes Orora as a business that provides glass and can beverage packing in Australia and New Zealand. It also provides packaging solutions including corrugated sheet packaging in North America and Central America. Orora acquired Saverglass last year, a high-end bottle manufacturer based in France.

The investment team suggested that the Orora share price has been impacted since the acquisition because the destocking cycle has been “more aggressive” than first anticipated.

However, results by key international customers of Saverglass – Diageo, LVMH and Remy Cointreau – show that there are “green shoots emerging with customer depletion rates ahead of shipping volumes.”

WAM also pointed out that a surge in South Australian wine exports in late 2023 suggests “strong volumes” for the ASX 200 share’s Australasian business.

The investment team revealed that Orora remains a key holding within the WAM Leaders portfolio and they believe it’s “still trading at a deep discount to its deserved valuation”.

Brambles Ltd (ASX: BXB)

Brambles is another very large ASX 200 share. According to WAM it owns and operates the world’s largest pool of reusable pallets and containers, which are used to transport fast-moving consumer goods, fresh produce, beverage, retail and general manufacturing through its supply chains.

The investment team said that Brambles benefits from the same destocking trends as Orora, with key customers reporting “consistent volume improvements” in the three months to December 2023.

WAM said that the amount of pallets issued is generally an early-cycle indicator, and the rate of decline has slowed, while pallet returns are late cycle, and these are elevated.

In the investment team’s opinion, this suggests excess pallets have “washed through the system”.

Brambles is also a “key holding” in the investment portfolio and WAM expects “another solid result” when it reports later in February.

The post 2 ASX 200 shares trading at a ‘deep discount to their deserved valuation’ appeared first on The Motley Fool Australia.

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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 recommended Diageo Plc. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you an income investor looking for dividend shares to buy? If you are, then you might want to read on.

That’s because listed below are three top ASX 200 dividend shares that analysts are recommending as buys.

Here’s what you need to know about them:

Charter Hall Group (ASX: CHC)

The first ASX 200 dividend share that could be a buy is Charter Hall. It is a property fund manager and developer across the office, retail, industrial and residential sectors.

Citi is a fan of the company and has a buy rating and $13.50 price target on its shares. It highlights the company’s “strong portfolio and management track record.”

As for dividends, the broker is forecasting dividends per share of 45 cents in FY 2024 and 48 cents in FY 2025. Based on the current Charter Hall share price of $12.36, this will mean yields of 3.65% and 3.9%, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 dividend share that analysts rate as a buy is telco giant Telstra.

Goldman Sachs has responded to its half-year results this week by retaining its buy rating with a trimmed price target of $4.55.

In respect to income, the broker continues to forecast fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.90, this equates to fully franked yields of 4.6% and 4.9%, respectively.

Transurban Group (ASX: TCL)

Finally, the team at Citi is also tipping Transurban an ASX 200 dividend share to buy. It manages and develops urban toll road networks in Australia and North America.

The broker responded to Transurban’s half-year results earlier this month by retaining its buy rating with a $15.60 price target.

In addition, Citi is now expecting dividends per share of 64 cents in FY 2024 and 65 cents in FY 2025. Based on the current Transurban share price of $12.94, this will mean yields of 4.9% and 5%, respectively.

The post 3 high-quality ASX 200 dividend shares to buy for a second income appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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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 Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX uranium shares have been all the rage of late due to a skyrocketing uranium commodity price.

The uranium price is up 110% over the past 12 months and trading at about US$106 per pound.

That’s a 17-year high.

There is strong and rising global demand for uranium as countries embrace nuclear energy as part of the green energy transition.

Supply is currently restricted given so many uranium mines have been on care and maintenance while the uranium price was low.

This supply/demand imbalance is the key driver behind the stratospheric rise in the uranium price.

Fund manager Monash Investors is backing two particular ASX uranium shares for growth.

Which 2 ASX uranium shares does this fundie like most?

The fund manager’s favourite stocks are Paladin Energy Ltd (ASX: PDN), which is the biggest uranium player by market capitalisation, and Boss Energy Ltd (ASX: BOE).

In the January update for the Monash Investors Small Companies Fund, the fundie said both were good contributors to an overall 0.3% increase (after fees) in the fund’s value last month.

Monash describes both ASX uranium shares as “low-risk plays”, commenting:

Both of these companies have large reserves in good jurisdictions, strong management expertise and are low-risk plays on the commodity.

The prospects for uranium supply and demand remain highly favourable.

The Paladin Energy share price is up 63% over the past 12 months.

The Boss Energy share price is up 108% over the past 12 months.

Another fundie, Shaw and Partners, is invested in five ASX uranium stocks, including Paladin Energy shares.

Last month the broker upped its 12-month forecast for the uranium price from US$85 per pound to US$150 per pound. It urged investors to buy uranium stocks now before “panic buying” sets in.

The post 2 ‘low risk plays’ amid surging ASX uranium shares appeared first on The Motley Fool Australia.

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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 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.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was able to shake off recent volatility and push higher. The benchmark index rose 0.8% to 7,605.7 points.

Will the market be able to build on this on Friday and end the week on a high note? Here are five things to watch:

ASX 200 expected to jump again

The Australian share market looks set to end the week strongly following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 70 points or 0.9% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.7%, the S&P 500 is up 0.5%, and the NASDAQ is up 0.15%.

Oil prices storm higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a great finish to the week after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$78.00 a barrel and the Brent crude oil price is up 1.5% to US$82.82 a barrel. A weaker US dollar boosted prices.

Insurance giants results

Two of the largest insurance companies on the ASX 200 will be releasing their results today. Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE) are both expected to deliver strong results thanks to favourable trading conditions and rising premiums. This could mean bumper dividends for shareholders.

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.6% to US$2,016.7 an ounce. This was driven by a softer US dollar.

Telstra remains a buy

Telstra Group Ltd (ASX: TLS) shares are still a buy according to analysts at Goldman Sachs. In response to the release of the telco giant’s half year results, the broker has retained its buy rating with a trimmed price target of $4.55. It said: “NAS challenges overshadow a solid core and drive -2% to -3% EBITDA downgrades, but we believe issues are cyclical.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

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• Everything you need to know about the Telstra dividend
• Telstra shares tumble on half-year disappointment

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

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