Newcrest Mining Ltd (ASX: NCM) shares are in the red during the Thursday lunch hour.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold miner closed yesterday trading for $24.31 and are currently trading for $23.93, down 1.52%.

It’s not just Newcrest shares under pressure.

Most ASX gold stocks are down today, as witnessed by the 1.6% decline in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

This follows similar declines in US-listed gold stocks overnight, likely spurred by another small retrace in the gold price. At US$1,835 per ounce, the gold price is down 6% since 1 February.

What else are ASX 200 investors considering?

ASX 200 investors will be running their slide rules over Newcrest shares following two price-sensitive market releases this morning.

First, as The Motley Fool reported earlier this morning, the gold miner has rejected the takeover proposal lobbed earlier this month by United States-based gold giant Newmont Corporation (NYSE: NEM).

Newmont had offered 0.380 Newmont shares for each Newcrest share held to acquire 100% of the Aussie miner.

At the current Newmont share price of US$46.30 (AU$67.29), that works out to an offer price of $25.57 per share, some 7% above the current Newcrest share price.

In declining the offer, management said it’s open to considering better offers, but that the current offer doesn’t “represent sufficient value” for shareholders.

What else is impacting Newcrest shares today?

The ASX 200 gold miner also released its half-year results today (1H FY23).

(Note, the figures reported are in US dollars.)

Newcrest reported a 24% increase in revenue from the prior corresponding period to $2.12 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased 24% to $919 million.

And income investors should be pleased with Newcrest’s interim dividend of 15 US cents per share and a special dividend of 20 US cents per share, both fully franked. The special dividend reflects the full distribution of funds received from Lundin Gold for the early repayment of the gold prepay credit facility.

Meanwhile, the miner’s All-In Sustaining Cost (AISC) dropped 8% compared to 1H FY22 to $1,089 per ounce.

The AISC margin increased by 17% to $585 per ounce, despite a 2% reduction in the realised gold price to $1,696 per ounce.

The miner also reported it had completed an extensive safety review at its Brucejack mine following a tragic underground fatality in October.

As at 31 December, the company held $2 billion in cash and committed undrawn bank facilities.

“Newcrest is in an excellent position, and with positive momentum for gold and copper prices continuing into 2023, we look forward to a stronger second half of the year,” Newcrest CEO Sherry Duhe said.

How have Newcrest shares been tracking?

As you can see in the chart below, Newcrest shares are off to a great start in 2023, up 16% despite today’s retrace.

The post Why are Newcrest shares slipping on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Newcrest share price on watch amid results and takeover rejection
• How do I cash in my Newcrest shares if US giant Newmont takes over?
• 5 things to watch on the ASX 200 on Friday
• Takeover bid undervalues Newcrest shares: Citi analysts
• 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 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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CSL Limited (ASX: CSL) shares are edging lower for a second day in a row.

Though, longer term shareholders aren’t likely to be overly bothered. Since this time last year, the biotherapeutics company’s shares are up over 15%.

This compares favourably to a 1.5% gain by the ASX 200 index over the same period.

Can CSL shares continue to outperform?

The good news is that one leading broker believes that CSL’s shares can continue their outperformance over the remainder of 2023.

In response to the company’s half years results release earlier this week, the team at Citi has urged investors to pick up shares.

According to the note, the broker has reiterated its buy rating and lifted its price target to $350.

Based on the current CSL share price of $303.61, this implies potential upside of 15% for investors over the next 12 months.

What did the broker say?

Citi was pleased with CSL’s half year results and has upgraded its near term earnings estimates partly to reflect a quicker than expected recovery in plasma collections. It is also now expecting a result ahead of guidance in FY 2023.

And with the broker believing that CSL shares should trade at an FY 2025 price-to-earnings ratio of 28x, it believes fair value is now $350. Citi explained:

We increase our FY23-25e NPATA per share (Core EPS) by +1%/+7%/+10% reflecting the faster than expected recovery in plasma collections and higher sales. Our TP moves to $350 (from $335) Maintain Buy. Our TP implies CSL should trade on an FY25 PE of ~28x, in line with the 10-year average. The key risk to FY24 and FY25 remains the pace of recovery of plasma collections, and Behring gross margins. Our FY23 NPATA of US$2,669m is ~2% above the top-end of guidance.

The post Top broker says CSL shares will hit $350, buy now appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
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• CSL share price lifts on half-year earnings beat
• CSL share price on watch amid US$1.6b profit

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Matsa Resources Ltd (ASX: MAT) share price is having a stunning day on Thursday.

In afternoon trade, the ASX gold share is up 50% to 5.6 cents.

Why is this ASX gold share rocketing?

This ASX gold share is rocketing higher on Thursday after the release of a drilling update from the Fortitude North, Lake Carey Gold project in Western Australia.

According to the release, the company has received further excellent results from the remaining seven holes of the of nine completed as part of a 19 hole 3,310m RC drilling program.

Management notes that drilling has provided significant insights into the geometry of high grade shoots in the Fortitude North mineralised system. Importantly, it indicates that the system remains open to the north and the south.

In addition, the results are substantially thicker grading intercepts than any drilling results from past drilling and demonstrate that the Fortitude North mineralised system contains high grade shoots with thicker widths than previously thought.

In fact, management believes the project shares many characteristics with the Fortitude Gold Mine, which is a resource of 489,000 ounces.

Matsa’ executive chairman, Paul Poli, commented:

These results continue to support our view that Fortitude North is a bigger system than the Fortitude Gold Mine where Matsa has an established resource of 489,000oz and a 2021 mining study that indicates a positive cash flow of AUD$95M. The thicker intercepts in the high grade shoots provide substantial volumes of gold not seen in previous drilling and certainly eclipse what we have seen at Fortitude Gold Mine. I am confident that with additional drilling, we can start to replicate some of these results further along strike and back towards the south.

The post This ASX gold share just surged 50% on a new discovery appeared first on The Motley Fool Australia.

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More reading

• Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income?
• 3 ASX 200 stocks marching higher following earnings updates
• 2 ASX 200 shares soaring over 9% on strong results
• AMP share price dives 12% on earnings miss
• Everything you need to know about the monster Whitehaven dividend

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Is the Vanguard Australian Shares High Yield ETF (ASX: VHY) a good buy for passive income from ASX dividend shares?

You’d think so. After all, this exchange-traded fund (ETF) offers investors a ‘high yield’ in its very name. But appearances can sometimes be deceiving. So let’s break down the Vanguard High Yield ETF and see if it puts its money where its name is.

So this ETF from provider Vanguard aims to provide investors with a high level of income by holding ASX shares that pay fat and often fully franked dividend payments.

If an ETF holds a dividend-paying share in its underlying portfolio, it is required to pass on any dividend income it receives straight to its investors. These payments are called distributions.

The Vanguard High Yield ETF currently has 73 ASX dividend shares in its underlying portfolio. These, according to the provider, are selected based on their “higher dividend forecasts relative to other ASX-listed companies”. The fund takes into account future dividend potential, as well as a company’s present dividend prowess.

On the latest data, some of this ETF’s top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Woodside Energy Group Ltd (ASX: WDS), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp (ASX: WBC).

But let’s get down to the meat and potatoes.

What kind of dividends does the Vanguard High Yield ETF offer?

So the Vanguard High yield ETF pays out quarterly dividend distributions. This is a little unusual in itself since most ASX shares pay out a dividend every six months. So no doubt some investors will appreciate the more frequent payment schedule.

This ETF’s last four dividend distributions came to an annual total of $4.15 in distributions per unit. At the current Vanguard High Yield ETF unit price of $68.94 (at the time of writing), this gives the fund a trailing yield of 6.02%.

For an investor seeking passive income from ASX dividend shares, this high yield is a pretty good start. To illustrate, it’s a more lucrative yield than what is being offered by any of the ASX big four banks today.

Distributions from this ETF also tend to come very close to fully franked too, which would lift this yield up to approximately 8.5% grossed-up.

The Vanguard Australian Shares High Yield ETF charges a management fee of 0.25% per annum.

The post Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income? appeared first on The Motley Fool Australia.

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• Growth and income: 2 excellent ETFs for ASX investors to buy this month
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• Which of the Vanguard ASX ETFs has performed best over the past year?
• How I’d generate a $4,000 monthly passive income using only ASX ETFs

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and Westpac Banking. 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 certainly has been a busy day on the ASX 200 index on Thursday. This has seen a number of ASX 200 shares releasing updates to the market today.

Three that investors have responded positively to are summarised below. Here’s what they reported:

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is up 2% to $3.12 after the release of the ASX 200 property listings company’s half year results. While Domain reported a solid 6.5% increase in revenue to $186.6 million, its expenses grew by a massive 20% and weighed heavily on its margins. This led to the company reporting a 38.9% decline in net profit to $15.9 million. Goldman Sachs notes that Domain’s revenue was 2% higher than its estimates but its profits fell 15% short.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 1% to $3.54. This morning, this agricultural chemicals company released an upbeat annual general meeting update. Management revealed that FY 2023 “promises to be another strong year for IPL.” Overall, its business is performing materially in line with the outlook provided in November.

IPH Ltd (ASX: IPH)

The IPH share price is up 3% to $8.64. This ASX 200 intellectual property services company reported a 19% increase in half year revenue to $226.9 million and a 16% lift in net profit after tax to $28.5 million. This allowed IPH to increase its interim dividend by 7% to 15.5 cents per share. Management advised that this result was driven by organic growth in Asia and the acquisition of Smart & Biggar. Favourable currency movements also gave its earnings a boost.

The post 3 ASX 200 stocks marching higher following earnings updates 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH. 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 Whitehaven Coal Ltd (ASX: WHC) share price is sinking on Thursday despite the declaration of a whopping interim dividend.

The company dropped its earnings for the first half this morning, as The Motley Fool Australia reports.

And within them, it revealed a 32 cents per share interim offering – marking a 300% increase on that of last year.

Right now, shares in the S&P/ASX 200 Index (ASX: XJO) coal producer are down 5.98%, trading at $7.70.

Let’s delve into all investors need to know about Whitehaven’s newly declared monster dividend.

Whitehaven share price slumps despite record interim dividend

The Whitehaven share price might not be reacting favourably, but investors are likely jumping for joy after learning of the company’s upcoming 32-cent per share payout.

It revealed the offering alongside a $1.78 billion net profit after tax (NPAT) – marking a 423% year-on-year improvement, and $2.65 billion of earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 319% jump.

That was helped by an average realised coal price of $553 a tonne – up from $202 a tonne in the prior comparable period, and a 4.8% increase in production.

It’s likely no surprise then that the company’s interim dividend comes fully franked.

The 32-cent per share offering is also the largest-ever interim dividend to be declared by Whitehaven.

It represents 16% of the company’s basic earnings per share (EPS), which came in at $1.989.

It’s also the second-largest ordinary dividend the coal producer has ever declared, bested only by the 40-cent per share final dividend it paid in September 2022.

Taking both dividends into account, Whitehaven boasts a 9.2% dividend yield at its current share price.

Key dates to keep in mind

Want-to-be-shareholders still have time to jump on board to receive the ASX 200 company’s interim offering. Whitehaven doesn’t trade ex-dividend until this time next week.

Anyone holding shares in the coal giant next Thursday will see the dividend hitting their accounts from 10 March.

The post Everything you need to know about the monster Whitehaven dividend appeared first on The Motley Fool Australia.

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• Whitehaven Coal share price sinks despite 423% profit jump
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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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BHP Group Ltd (ASX: BHP) shares have come roaring back over the past few months.

Fuelled by rebounding iron ore and copper prices over the past three months, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant are up 28% since 1 November.

Which begs the question, should ASX 200 investors snap up some shares before BHP releases its half-year results on Tuesday, 21 February?

To buy, or not to buy?

Whether BHP shares rise or fall following the release of the company’s half-year results will hinge on a few key factors.

One of those is whether or not the miner meets consensus expectations (quoted by Goldman Sachs) of earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$14.3 billion and net profit after tax (NPAT) of US$7.0 billion.

Those expectations have factored in that iron ore and copper prices were down sharply for much of the six-month reporting period. Both industrial metals rebounded in early November.

Any surprise to the upside of consensus expectations should see BHP shares march higher, while results falling short of expectations will likely see the miner’s shares fall.

Another big influence on the share price will be the kind of forward-looking statements and earnings guidance provided by management. A positive outlook and guidance will help support the share price.

Of course, as long-term investors, we’re more interested in the 12-month plus performance, rather than what happens on the day the results are released.

What’s the longer-term outlook for BHP shares?

The ASX 200 miner derives the majority of its revenue from iron ore, with copper coming in at number two. Coal also still plays an important role.

On the coal front, while thermal prices may not retain the all-time highs hit in 2022, Russia’s war in Ukraine and limited new supplies amid strong global demand should see coal prices remain elevated through the year.

Iron ore and copper prices have retraced some over the past few weeks, but both industrial metals remain well above their November lows. China’s continuing reopening from its pandemic restrictions should help support prices in the months ahead.

BHP shares could also get a boost if its planned takeover of ASX 200 copper giant Oz Minerals Limited (ASX: OZL) goes through. That remains subject to shareholder and court approval.

As for tailwinds, BHP will continue to face elevated costs for skilled labour alongside higher energy and materials prices.

Though those higher costs aren’t overly concerning to Don Hamson, managing director at Plato Investment Management.

“Despite the naysayers, Australian miners have continued to deliver strong dividends,” Hamson recently told The Motley Fool. “Broadly speaking, we think this will continue into 2023. Income from the sector will remain strong, but we may not see the record dividends and special dividends seen in recent years.”

Hamson noted that BHP shares have benefited from “a great demonstration of diversified revenues”, including coal:

In FY22, it posted net profits of US$22.4 billion. That was up 64% on 2021 when many thought it was the peak for the ‘Big Australian’ because it was the top of the iron ore cycle. But last year, it was coal that provided a windfall, generating about US$9.5 billion for the company.

Whether it’s before or after the ASX 200 miner reports its results on Tuesday, I agree with Hamson on this one.

BHP shares are worth considering adding to your long-term portfolio.

The post Should you dig into BHP shares before the ASX 200 miner reports next week? appeared first on The Motley Fool Australia.

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• Will ASX 200 shares crash in 2023?
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• ASX 200 shares: How to invest $10,000 to get $910 per year in passive income

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 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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One of the ASX 200 shares reporting its earnings today was blue chip Telstra Group Ltd (ASX: TLS). Telstra shares have reacted positively to the company’s latest earnings, with the Telstra share price presently up a healthy 1.81% to $4.215 a share.

As we went through this morning, the telco reported green numbers across the board. Over the six months to 31 December 2022, Telstra’s total income rose 6.4% to $11.6 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) rang in $3.9 billion, an 11.4% lift, while net profit after tax (NPAT) was up 25.7% to $0.9 billion.

Tesltra’s earnings per share (EPS) increased by 27.1% to 7.5 cents per share.

And this enabled the centrepiece of Telstra’s results: a 6.3% increase to Telstra’s cherished interim dividend to a fully franked 8.5 cents per share.

Telstra shares rise as divided hiked

During Telstra’s full-year results for FY2022 from last year, investors were immensely excited when the telco raised its final dividend to 8.5 cents per share, the first time in seven years Telstra had given investors a pay rise. So what is now a back-to-back dividend hike is certainly welcome news.

This latest interim dividend will take Telstra’s annual payout to a fully franked 17 cents per share.

On the current Telstra share price, this gives the telco a forward dividend yield of 4.03%.

Here’s what Telstra’s management said about the dividend hike this morning:

On the back of our continued growth, the Board resolved to pay a fully franked interim dividend of 8.5 cents per share representing a 6.3 percent increase on the prior corresponding period, and in line with the second half of last financial year.

The interim dividend is consistent with our policy to maximise the fully franked dividend and seek to grow it over time.

So when can investors look forward to getting the cash in their hands?

Well, this new interim dividend is scheduled to be doled out on 31 March. But if any new investors wish to receive it, they will have to own Telstra shares on or before the ex-dividend date of 1 March, with the record date set for the following day.

Investors then have until 3 March to opt for the optional dividend reinvestment plan (DRP) if they wish to receive additional Telstra shares instead of a cash payment.

The Telstra share price is now up a healthy 6.46% in 2023 to date, but only up 3.3% over the past 12 months:

The post Everything you need to know about the boosted Telstra dividend appeared first on The Motley Fool Australia.

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More reading

• Telstra share price higher on half-year revenue and earnings beat
• Telstra share price on watch amid strong half-year profit growth
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• If I invest $2,000 in Telstra shares now, what could my return be in 2023?

Motley Fool contributor Sebastian Bowen has positions in Telstra 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 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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Earnings season has gone up a gear on Thursday with countless results being released to the market.

Two ASX All Ords shares that have released results are listed below. Here’s what they reported and how investors have responded:

NRW Holdings Limited (ASX: NWH)

The NRW share price is falling 9% today despite the diversified contract services company delivering a result in line with its guidance. The ASX All Ords share reported a 15% increase in revenue to $1.3 billion and a 7.4% lift in EBITA to $80.1 million.

Management has also reaffirmed its full year revenue and EBITA guidance of $2.6 billion to $2.7 billion and $162 million to $172 million. However, investors may believe that NRW’s first half performance means the lower end of its guidance range is more likely now.

Ridley Corporation Ltd (ASX: RIC)

Investors have responded significantly better to this premium quality, high-performance animal nutrition solutions provider’s half year results. The ASX All Ords share is up over 11% at the time of writing. Ridley Corp reported a 25.4% increase in revenue to $637.9 million and a 20.3% lift in net profit (before significant items) to $21 million.

A key driver of this growth was its Packaged Feeds and Ingredients segment, which delivered a 21.9% increase in earnings. This was supported by its Ingredient Recovery business, which reported strong results from accessing premium markets with differentiated products. Another positive was that higher selling prices for protein meals and tallows more than offset increased raw material and manufacturing costs.

Looking ahead, while no guidance has been provided, management advised that it expects its earnings to improve over the prior corresponding period.

The post 2 ASX All Ords shares making massive moves on results announcements 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 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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The Super Retail Group Ltd (ASX: SUL) share price is racing higher amid the release of its half-year results this morning.

Wasting no time, shares in the operator of retail brands SuperCheap Auto, rebel, BCF, and Macpac are drifting 5.3% higher to $12.60 in early trade. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.52% stronger than yesterday.

It appears shareholders are still stoked with today’s release, despite getting a glimpse into these figures back in January.

So, which metrics are making investors’ hearts race?

Booming profits jump-start the Super Retail share price

• Group sales up 15% year-on-year to a first-half record of $1.96 billion
• Statutory net profit after tax (NPAT) up 30% to $144 million
• Normalised earnings per share (EPS) up 36% to 63.9 cents per share
• Fully franked interim dividend of 34 cents per share declared, up 26% from last year
• Finished the half with $212 million in cash and no drawn bank debt

Super Retail Group has delivered a solid result on behalf of its shareholders today with earnings at the top of its prior guidance.

According to the release, the record sales were aided by a strong trading period over Black Friday and the Christmas season. This, in conjunction with cost controls, resulted in the company delivering a significant increase in profits — up 30% compared to the prior corresponding period.

The biggest contribution — in terms of total sales growth — came from the company’s Macpac division. This business segment achieved 55% sales growth year-on-year. Whereas the weakest momentum could be found in the BCF unit, which grew by 7%.

What else happened during the first half?

One aspect of retailing that has been a major headache for many companies is inventory levels. Holding excess inventory can be a costly practice. However, the need to mitigate supply chain issues prompted buying ahead of demand.

Fortunately, inventory levels further normalised during the first half, finishing the period at $876 million. This could be playing into the stronger Super Retail share price today.

As the slide above shows, inventory represented 44.7% of group sales at the end of December 2022 — more in line with pre-pandemic values.

What did management say?

In acknowledging the accomplishments of the first half, Super Retail Group CEO Anthony Heraghty said:

This result is a testimony to the strength of our four core brands, all of which delivered record first-half sales off the back of strong peak period trading. The success of our new store formats (including rebel rCX and the new BCF superstore) and our club member programs, which have added one million members in the past 12 months, have helped to deliver a strong first-half performance.

Shifting gears to the second half, Heraghty noted the positive signs so far, stating:

Pleasingly, the strong sales momentum we saw in the first half has continued into January, with all
brands trading well.

Though, the forward outlook isn’t without its drawbacks.

What’s next?

The second half is already showing signs of positive performance. On a year-to-date basis, sales for each of the company’s four brands are positive on a like-for-like comparison.

Furthermore, management is targeting the opening of 18 new stores during the current half. In particular, Super Retail is expanding its rebel ‘rCX’ store format by an additional two stores, which would bring the total count to 15.

However, the company’s CEO noted a potential headwind from rising interest rates in the second half. A higher rate environment could lead to weaker consumer spending, translating into dampened group sales.

Super Retail share price snapshot

The performance of the Super Retail share price remains negative over the past year. Although, the last six months have been a completely different story.

Those that invested in this ASX share six months ago are already up nearly 22%. And, despite the substantial rally, the company’s price-to-earnings (P/E) ratio is relatively conservative at 11.7 times.

The post Super Retail share price roars on 30% profit boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail 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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