The James Hardie Industries plc (ASX: JHX) share price is diving after the company released its Q3 FY23 results this morning.

The James Hardie share price opened at $29.49 and fell quickly to a low of $28.975, down 8.7% on yesterday’s close.

Let’s see what the global building materials giant reported.

James Hardie share price tanks on falling sales

Here are key points for the three-month period ending 31 December 2022:

• Net sales down 4% to US$860.8 million on the prior corresponding period (pcp) of Q3 FY22
• Adjusted earnings before interest and taxes (EBIT) down 19% to US$165.4 million pcp
• Adjusted EBIT margin of 19.2%, down from 22.7% pcp
• Adjusted net income down 16% pcp to US$129.2 million

Given the housing downturns in the US and Asia-Pacific, it was a tough quarter for the company. The James Hardie share price fell by 14.4% over the three months to 31 December 2022.

However, if we look at the full fiscal year 2023, taking in the nine months to 31 December, net sales from ordinary activities are up 8% and the profit after tax attributable to shareholders is up 6%.

Additionally, the net tangible assets per share are up 35% to US$2.76.

What did management say?

James Hardie CEO Aaron Erter commented on the full fiscal year results:

Our team executed in the face of significant challenges to deliver strong financial results in fiscal year 2023.

The team’s performance is reflected in strong Price/Mix growth in all three regions, including North America Price/Mix growth of +10%, Asia Pacific Price/Mix growth of +6% and Europe Price/Mix growth of +14%.

We are managing quickly and decisively to accelerate our competitive advantages through this market downturn and we view this time as an opportunity.

What’s next?

Erter said the company had lowered costs by reducing staff and spending while continuing to “significantly invest in strategic growth initiatives”.

He said:

Most importantly we remain aggressive, and we are laser focused on driving profitable volume share gain in every region and segment we do business in.

We are being agile and adaptive in responding to significant changes in market conditions, but we are also being thoughtful and focused on where we can accelerate our competitive advantages

FY23 guidance lowered

James Hardie has lowered its adjusted net income guidance for the full-year 2023 to a range of US$600 million to US$620 million. This is down from the previous guidance of US$650 million to US$710 million.

For comparison, the company reported an adjusted net income of US$620.7 million in FY22.

The FY23 guidance was lowered due to “lower than expected second half volume results in both North America and APAC and restructuring charges incurred in the second half”, according to the company’s statement.

James Hardie share price snapshot

On 29 December, the James Hardie share price hit a new 52-week low of $25.84. It has since rebounded by 12%. The S&P/ASX 200 Index (ASX: XJO) is up 7.6% in the year to date.

The post James Hardie share price tumbles 8% as housing market downturn impacts sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. 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 Santos Ltd (ASX: STO) share price is in the green in early trading.

The S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $7.07 per share. Shares are currently changing hands for $7.15 apiece, up 1.13%.

That’s right about in line with the 1.31% gains posted by the S&P/ASX 200 Energy Index (ASX: XEJ) at this same time.

Here’s what ASX 200 investors are considering on Tuesday.

Why is the Santos share price lifting?

The Santos share price is lifting today despite the company announcing it anticipates an impairment of US$147 million as a result of the Spar/Halyard reserves reduction in Western Australia.

The 26 million barrels of oil equivalent (mmboe) reduction was largely due to earlier than expected water ingress at the Spar/Halyard field.

Santos also announced other impairment charges of US$181 million related to other late-life producing and exploration assets. That brings the total impairment to US$328 million (AU$470 million).

The impairment charges won’t impact the company’s underlying earnings.

On the positive side, and likely responsible for helping lift the Santos share price today, the company reported its proved plus probable (2P) reserves increased by 171 million barrels of oil equivalent (mmboe) before production to 1,745 mmboe.

The annual 2P reserves replacement ratio (RRR) was 166% and the three-year RRR was 366%.

The biggest increase in reserves came from Alaska, with 165 mmboe added following the sanction of the Pikka Phase 1 project.

Reserves were also added in Papua New Guinea, Queensland, and the Cooper Basin before production.

Commenting on those results, Santos CEO, Kevin Gallagher said, “Today’s statement is the result of Santos’ disciplined annual reserves review and accounting processes, which include external audit of approximately 97% of total 2P reserves.”

Offshore Dorado project greenlighted

In a separate announcement offering tailwinds for the Santos share price today, the company reported the National Offshore Petroleum Safety and Environmental Management Authority had accepted its the Offshore Project Proposal (OPP) for Dorado, a proposed phased liquids and gas development.

“Our focus now is to finalise the concept for an integrated liquids and gas development and obtain the remaining approvals required to support a final investment decision,” Gallagher said.

He added:

Dorado will provide a welcome boost to Australia’s energy security, while the potential subsequent gas development provides a future source of supply for Western Australia’s domestic market and LNG projects.

The best emergency reserve you can have for national liquid fuel security is oil in the ground and the infrastructure in place to produce it when you need it most.

Santos has an 80% interest in Dorado. Carnarvon Energy Ltd (ASX: CVN) holds the other 20%.

Santos share price snapshot

As you can see in the chart below, the Santos share price is trading right about where it kicked off 2023. Longer term, shares in the ASX 200 energy giant are up 41% over five years.

The post Why is the Santos share price lifting on Tuesday? appeared first on The Motley Fool Australia.

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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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The JB Hi-Fi Limited (ASX: JBH) share price suffered a fall after releasing its FY23 half-year result yesterday, despite reporting growth.

When a business suffers a fall, it can be useful to look at that ASX share and consider whether the market is being too harsh or is thinking too short-term about the situation.

Let’s remind ourselves about what the business revealed.

Earnings recap

For the six months to 31 December 2022, the company generated total sales of $5.28 billion, which was an increase of 8.6%. JB Hi-Fi said there was continued elevated customer demand for electronics and home appliances.

The company pointed to the sales growth and gross profit margin improvement as the cause of the 14% increase in the earnings before interest and tax (EBIT) to $479.2 million.

Net profit after tax (NPAT) increased by 14.6% to $329.9 million and the interim dividend was bumped up by 20.9% to $1.97 per share.

While the six months to December 2022 demonstrated good growth, the trading update for January 2023 was less promising. Slowing growth could be a warning sign for some investors regarding JB Hi-Fi shares.

Trading update

The business reported how the first month of the second half went compared to January 2022 and January 2020.

JB Hi-Fi Australia’s total sales were up 2.5% year over year, and up 25.5% compared to January 2020.

JB Hi-Fi New Zealand’s total sales were up 20% year over year and up 43.4% compared to January 2020.

The Good Guys sales were flat (0% growth) compared to January 2022 and up 17% compared to January 2020.

The JB Hi-Fi CEO Terry Smart explained:

While we are pleased with the January trading result, with sales continuing to be well above pre Covid January 2020, we have seen sales growth start to moderate from the elevated levels seen in the first half of FY23. As we enter an uncertain period, our business is well placed with a proven ability to adapt to any changes in the retail environment and trusted value-based offerings that will continue to resonate with our customers and grow our market share.

Is the JB Hi-Fi share price a buy?

The broker Morgans certainly thinks so, with the rating improved to buy.

I think that this result once again showed that JB Hi-Fi is one of the leading retailers in Australia. Being able to grow sales in January 2023, despite many economic challenges, is an impressive achievement in my opinion.

The next 12 months could be tricky for the business and retail as a whole. I’d guess there are going to be fewer electronics and appliances bought in the next 12 months compared to the last 12 months.

However, the JB Hi-Fi share price is down around 20% since the peak in March 2022. I think this makes up for the short-term uncertainty.

I think the quality and scale of the business means it can easily ride through whatever happens next. Australia’s growing population should also be a boost for long-term earnings.

In my opinion, the JB Hi-Fi share price is a buy for the long term. Investors can receive large dividends until the retail situation improves.

The post Are JB Hi-Fi shares now at a bargain price? 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended JB Hi-Fi. 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 Temple & Webster Group Ltd (ASX: TPW) share price is under pressure on Tuesday morning.

At the time of writing, the online furniture and homewares retailer’s shares are down 13% to $4.32.

This follows the release of Temple & Webster’s half year results, which appears to have disappointed the market.

Temple & Webster share price on major profit decline

• Revenue down 12% to $207.1 million
• EBITDA margin of 3.5%
• Net profit after tax down 46.7% to $3.9 million
• Cash balance of $102.4 million

What happened during the first half?

For the six months ended 31 December, Temple & Webster reported a 12% decline in revenue to $207.1 million. This reflects a decline in active customers to 840,000, offset partially by an increase in revenue per active customer.

In addition, management highlights that this half was going to be the toughest period for year over year comparisons due to the timings of lockdowns in FY 2022.

Positively, things improved in the second quarter. Revenue was down 18% in the first quarter, 6% in the second quarter, and marginally higher during the month of December.

In respect to earnings, Temple & Webster reported an EBITDA margin of 3.5%. This was towards the low end of its full year target range of 3% to 5%. Excluding its investment in The Build, its EBITDA margin would have been 4.7%. This reflects its focus on accelerating cost base initiatives and margin improvement programs.

How does this compare to expectations?

A note out of Goldman Sachs reveals that Temple & Webster’s revenue was in line and its earnings were notably ahead of its expectations.

The broker also remains confident that the revenue environment has stabilised and the company is well positioned to deliver strong medium term growth through increasing population penetration and growing market share of online.

Management commentary

Temple & Webster’s CEO, Mark Coulter, was pleased with the half. He said:

We’re pleased with the progress made during the half, with a return to year-on-year profit growth in Q2 as we benefited from our focus on margin optimisation and cost management, despite revenue being down year-on-year, which highlights the flexibility of the business model.

While we dialed back spend in the half, we continued investing in our digital capabilities, product range and target verticals, with our Trade and Commercial and Home Improvement businesses growing 17% and 12% respectively.

Pricing remains a key differentiator for the business, growing our gross margin through strategic pricing initiatives and better sourcing. Similarly, with 72% drop ship that carries no inventory risk and 28% private label inventory, through our supply chain model we further improved flexibility and our product range, placing us in a strong position to continue growing market share.

Outlook

Also potentially weighing on the Temple & Webster share price today was its trading update.

Management revealed that for the first five weeks of the second half, its sales were down 7% over the prior corresponding period. Though, this has once again been blamed on strong sales a year earlier due to the omicron outbreak.

The company remains positive on its outlook and revealed that it could look to accelerate its growth by putting its $100 million cash balance to work with acquisitions. Mr Coulter commented:

We remain committed to our profitable growth strategy and will continue our focus on margin optimisation and cost management to ensure we end the year within our 3-5% EBITDA range. We believe our business model, customer metrics, brand and new growth horizons position us well to navigate any trading conditions and return to a high growth business.

Furthermore, we have over $100m of cash to expand our roadmap of sales initiatives and pursue inorganic opportunities to support sustainable growth. Longer-term, ecommerce in the Australian furniture & homewares category remains highly under-penetrated, and we have a much larger addressable market to go after in our new target verticals.

The post Temple & Webster share price sinks 13% on half year results 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 Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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The All Ordinaries (ASX: XAO), or All Ords ASX shares, I’m about to write about are ones that look very interesting to me in the current conditions.

I’m always on the lookout to buy ASX shares when it looks like it’s the right time to invest.

The market declines seen in June and October last year seemed like excellent times to invest in names that had fallen heavily such as retail and technology. There has been a rebound for a number of names involved since.

However, with what’s happening, I think these two All Ords ASX shares are looking like compelling ideas to boost my existing holdings.

Duxton Water Ltd (ASX: D2O)

Duxton Water is a business that owns water entitlements in Australia. It uses this portfolio to provide “flexible water solutions” to Australian farmers, such as long-term entitlement leases, forward allocation contracts and spot allocation supply.

La Nina has led to significant rainfall in recent times, with floods affecting several areas. However, La Nina is expected to end by the end of summer, according to Duxton. The company points to the Bureau of Meteorology forecasting a possible shift to El Nino conditions by June 2023, which usually brings drier than average conditions to the east of Australia.

This prospect of drier conditions is reportedly leading to increased demand for leases and forward contracts for Duxton.

Duxton Water can benefit from both the water lease income, as well as capital gains of the value of its water portfolio over time.

At the end of December 2022, excluding tax provisions for unrealised capital gains, it had a net asset value (NAV) of $2.22. Compare that to the Duxton Water share price, which is currently at a discount of around 25% to that NAV value.

It has also guided its final 2023 dividend and interim 2024 dividend to be a total of 7.3 cents, suggesting a future grossed-up dividend yield of 6.3%.

Rural Funds Group (ASX: RFF)

Rural Funds is also a potential ASX All Ords share investment in the agricultural space. It’s a real estate investment trust (REIT) that owns a variety of farms across Australia. Some of the categories include cattle, vineyards, almonds, macadamias and cropping (sugar and cotton).

The Rural Funds share price has fallen by 25% since the end of 2021 and it’s down 7% since 3 February 2023.

It’s understandable that the REIT has fallen. Higher interest rates are theoretically meant to hurt asset values, like farms. The higher interest rates could also mean a larger interest expense cost.

But, the REIT’s growing rental income can offset some of this pain, with some rent being linked to CPI inflation, which is currently elevated.

I like the defensive nature of high-quality REITs, with regular rental income. Rural Funds has some of the biggest agricultural names as tenants such as Australian Agricultural Company Ltd (ASX: AAC), Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Ltd (ASX: SHV) and Olam.

The All Ords ASX share aims to grow its distribution to investors by 4% per annum. Aside from the natural rental growth each year, it aims to boost income by changing land to a ‘higher and better use’ (such as converting to tree nuts) and also improving the productivity of land for tenants, such as increased water access.

Based on the guided total distribution per unit of 12.2 cents in FY23, that amounts to a distribution yield of 5.1%.

The post 2 ASX All Ords shares I’m poised to pounce on appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Duxton Water and Rural Funds 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 Rural Funds Group. The Motley Fool Australia has recommended Treasury Wine Estates. 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 AGL Energy Limited (ASX: AGL) share price has plummeted 13% over the last seven days, with most of that tumble attributed to the company’s $1.1 billion first half loss.  

But there might be a silver lining to the downturn. AGL directors appear to have taken advantage of the dip, bolstering their stakes in the stock. Are they onto something?

Shares in the S&P/ASX 200 Index (ASX: XJO) energy retailer last traded for $6.89.

Let’s take a closer look at the recent insider buying at AGL and what brokers are tipping for the future.

AGL insiders on a share buying spree

AGL insiders went on a buying spree yesterday, snapping up a combined 61,900 securities for a total of around $433,300.

The largest parcel was acquired by CEO and managing director Damien Nicks, who bought 27,000 shares in AGL for $189,000.

Non-executive director Christine Holman also snapped up a sizeable handful of shares, buying 13,000 shares for $91,000.

Chair Patricia McKenzie was in on the action too, forking out $49,000 for 7,000 shares in the company.

Finally, non-executive directors Vanessa Sullivan and Miles George bought 5,000 and 9,900 AGL shares respectively, paying $35,000 and around $69,370 for their individual parcels.

The approximate $7 price tag on each stock purchased by the insiders was notably higher than the $6.83 low inked by the AGL share price in recent sessions.

Though, it’s 17% lower than the stock’s January high of $8.215.

Are the directors onto something? Morgans thinks not

Broker Morgans is sceptical of AGL shares. It reiterated its hold rating and slashed its price target to $6.89 following the release of the company’s earnings, my Fool colleague James reports.

The broker noted the results represented a significant disappointment, and while it expects the future to be brighter, it warns the path ahead could be fraught, saying:

We anticipate increasing dividends as earnings begin to recover in the next 12 months however we think the market will want to see clear evidence of this before it regains confidence in the company and the sector.

The post Company directors are buying the dip on AGL shares. Should you? appeared first on The Motley Fool Australia.

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Brokers have picked out some leading S&P/ASX 200 Index (ASX: XJO) shares that they have rated as buys.

These analysts are looking at the share market every day, so they typically have expertise on the businesses they’re following and hopefully have chosen a good time to call that business a buy.

The Australian has reported on some of the latest calls.

Blackmores Ltd (ASX: BKL)

The broker Citi raised its target on the vitamins business to a buy. Citi’s price target on the business is $84. A price target is where the broker sees the Blackmores share price trading in 12 months time.

With a price target of $84, that suggests that Blackmores doesn’t have any upside from here.

The company is due to hand in its FY23 half-year result on 23 February 2023. The latest update we heard was in October 2022 when the company held its annual general meeting (AGM).

It said that it had seen a solid start to FY23, with supply chain stabilising, and service levels to customers improving to the best in the previous three years.

In Australia and New Zealand, it implemented price increases in the FY23 first quarter of between 5% to 6% to absorb cost inflation pressures. Blackmores’ total market share value growth in ANZ is in line with the category.

In the international market, the ASX 200 share confirmed it’s expecting revenue in the FY23 first half to be lower than the first half of FY22. It implemented price increases of 7% to 8% in the FY23 first quarter.

In the China region, Blackmores said it’s seeing good momentum in premium fish oil and eye care segments, with the performance of new product launches being “encouraging”. Blackmores implemented price increases across e-commerce platforms of between 6% to 8% in the FY23 first quarter.

Sims Ltd (ASX: SGM)

The broker UBS has significantly raised its price target on Sims to $16. That suggests a possible rise of close to 9% over the next year.

Sims describes itself as a global leader in metal recycling and providing “circular solutions for technology, and an emerging leader in renewable energy.” The business has operations in a number of places including the UK, Europe, North America, Africa and the Asia Pacific region.

The latest update from Sims was at its annual general meeting (AGM). It said that soft market conditions have persisted through the first quarter of FY23, driven by lower volumes, tighter margins and “resiliently high” inflation.

The ASX 200 share said that lower scrap volumes resulting from significantly reduced economic activity, combined with increased competition for available infeed, has tightened trading margins in both percentage and dollar per tonne terms.

Sims’ underlying earnings before interest and tax (EBIT) for the FY23 first half is forecast to be in the range of between $65 million to $75 million.

Johns Lyng Group Ltd (ASX: JLG)

The newspaper also reported that Citi has rated Johns Lyng as a buy, with a price target of $8.77. That suggests a possible rise of over 50% in the next 12 months.

This ASX 200 share is a building services business that provides building and restoration services across Australia and the US. The key role that it performs is that it rebuilds and restores properties and contents after damage from insured events such as impact, weather and fire events.

The Johns Lyng share price has dropped close to 40% since April 2022, giving it a lot of room to rebound.

While weather events are terrible for the communities it impacts, it gives the business more opportunity to provide its services. For example, at the AGM in November 2022, it said that Hurricane Ian in the US alone was an event that could cost more than US$60 billion.

The ASX 200 share has forecast that FY23 group revenue will be $1.03 billion with business as usual (BaU) work accounting for $930.4 million – a rise of 27.4% compared to FY22.

The earnings before interest, tax, depreciation and amortisation (EBITDA) forecast is $105.3 million, representing a growth of 26% compared to FY22. The BaU EBITDA forecast is $93 million, a 43.3% increase over FY22.

The post 3 ASX 200 shares just upgraded by brokers, one with 50% upside 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 positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Blackmores and Johns Lyng 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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After nine consecutive months of interest rate rises, evidence is showing that consumer spending is only just starting to wane.

So as we stare down the barrel of a major economic slowdown in 2023, which might be the ASX shares best placed to survive — or even thrive?

Some experts this week named two stocks to buy that might just fit the bill:

‘Well managed’ business to recover earnings

Seneca investment advisor Tony Langford likes what Credit Corp Group Limited (ASX: CCP) brings to the table in a faltering economy.

“The company buys debt ledgers and operates in Australia, New Zealand and the United States,” Langford told The Bull.

“It collects outstanding debts from consumers.”

The Credit Corp share price is down 36.3% over the past 12 months.

Langford acknowledged that the last financial results were a mixed bag.

“The company’s consumer loan book grew by 32% to $331 million in the first half of fiscal year 2023,” he said.

“However, first half net profit after tax of $31.8 million was down 30% on the prior corresponding period.”

Credit Corp, however, is a “well managed” business, and Langford has faith in its upwards trajectory.

“The company expects earnings to recover in the second half and full year net profit after tax guidance remains intact.”

Cheers to a ‘strong’ business with ‘defensive qualities’

Sequoia Wealth Management senior investment manager Peter Day favours the idea of a drink as the economy stumbles.

“Endeavour Group Ltd (ASX: EDV) operates liquor outlets, hotels and gaming facilities,” he said.

“Endeavour offers strong businesses with defensive qualities.”

The share price is now more than 15% lower than the last reporting season in August.

The Endeavour business, especially the hospitality side, was suppressed over the 2021/22 financial year, as various states endured anti-pandemic lockdowns.

But that makes it a strong growth contender for the current period.

“We expect a strong recovery in the hotels division in the first half of fiscal year 2023,” said Day.

“Expect investment opportunities to emerge going forward. We retain our positive recommendation.”

Day’s peers are somewhat split on Endeavour shares.

According to CMC Markets, six out of 11 analysts rate it as a buy, while three recommend a strong sell.

The post Credit and drinks: Experts name 2 ASX shares to buy for a 2023 economic slowdown appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 CSL Limited (ASX: CSL) share price will be one to watch on Tuesday.

This follows the release of the biotherapeutics giant’s eagerly anticipated half year results.

CSL share price on watch following results release

• Total revenue up 19% to US$7,183.5 million
• Net profit after tax down 8% to US$1,623.2 million
• Net profit after tax before amortisation (NPATA) in constant currency up 10% to US$1,957 million
• Interim dividend up 2.9% to US$1.07 per share

What happened during the half?

For the six months ended 31 December, CSL reported a 19% increase in total revenue to US$7,183.5 million.

This was driven by the acquisition of Vifor Pharma, strong growth in immunoglobulin and albumin sales, record levels of plasma collections, strong growth in market leading haemophilia B product Idelvion and key specialty product Kcentra, and a strong performance by influenza vaccines business, CSL Seqirus.

And while CSL’s profits were down 8% to US$1,623.2 million, this was in line with consensus estimates and due to currency headwinds and acquisition costs. This was largely.

NPATA on a constant currency basis provides a better reflection of the company’s performance. That was up 10% year over year to US$1,957 million.

Management commentary

CSL’s outgoing CEO, Paul Perreault, commented:

CSL delivered a solid performance in the first half of the financial year demonstrating the strong fundamentals of the company and the disciplined execution of our patient focused strategy. Our focused investment across our business units underpinned our resilience throughout the pandemic, and as we emerge from it we are starting to deliver positive momentum behind our sustainable growth agenda.

Outlook

Management is expecting more of the same in the second half. As a result, it has reaffirmed its guidance for FY 2023 NPATA in the range of approximately US$2.7 billion to US$2.8 billion at constant currency. Perreault added:

The strong growth we have seen in plasma collections and our immunoglobulins franchise is expected to continue. We are looking forward to launching Hemgenix in the US, an exciting, ground breaking, new therapy that will change people’s lives. The rest of our R&D pipeline is in great shape and we look forward to bringing more innovative therapies to patients in the future.

Seqirus continues to perform strongly and will deliver another profitable year. Consistent with the seasonal nature of the business we anticipate, however, a loss in the second half of the year. The integration of CSL Vifor is well advanced and we will focus on driving organic growth and efficiencies across the product portfolio and deliver on our synergy objectives

The post CSL share price on watch amid US$1.6b profit appeared first on The Motley Fool Australia.

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Lithium has been a hot theme among ASX investors for at least a couple of years now, and there are few signs of waning demand.

The simple fact is that the element is a major ingredient for high-powered batteries, like the ones used in electric cars. And such batteries are crucial for the world to transition to a zero-emissions era.

However, with so many investors piling onto mature lithium producers, they are already pretty expensive.

For a better risk-reward balance, one may need to look at miners that haven’t yet reached their full extraction potential.

Fortunately, this week some professionals named two such ASX shares as buys:

Check out these ‘big lithium deposits’

BW Equities equities salesperson Tom Bleakley is a fan of Canadian company Patriot Battery Metals Inc CDI (ASX: PMT), which has its shares trading in Australia.

“The explorer is focusing on acquiring and developing mineral properties containing battery, base and precious metals.,” Bleakley told The Bull.

The Patriot share price has risen a handsome 35% over the past 12 months.

Bleakley noted that the company already has “big lithium deposits” in North America. 

“Lithium is a critical mineral to produce batteries for electric vehicles. A key advantage [for Patriot] is its close proximity to North American battery manufacturers.”

It seems Bleakley’s peers overwhelmingly agree with his recommendation.

According to CMC Markets, all six analysts that cover Patriot are calling it a strong buy at the moment.

Open pit mining just started in WA

Meanwhile, Sequoia Wealth Management senior investment manager Peter Day’s buy recommendation is Liontown Resources Ltd (ASX: LTR).

“Liontown is an emerging tier-1 battery minerals producer,” he said.

“Open pit mining has started at the Kathleen Valley Lithium Project in Western Australia.”

While the Liontown share price is flat from where it was 12 months ago, it has rocketed an eye-popping 3,400% over the last five years.

This makes it a 35-bagger for those who followed the journey from the start.

According to Day, its current prospects are also exciting.

“The company plans to supply about 500,000 tonnes of 6% lithium oxide concentrate a year. First production is expected in 2024,” he said.

“We believe sustaining the development timeline is a key catalyst for Liontown.”

Five of the eight analysts covering Liontown shares on CMC Markets are currently rating it as a strong buy. The remaining three consider it a hold.

The post 2 ASX lithium shares to pounce on before they explode: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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