The Paladin Energy Ltd (ASX: PDN) share price has lifted 10.74% in a month, with the company’s gains surviving a rout in the materials sector and the broader market over the past few days.

Shares in the uranium explorer are currently trading at 82.5 cents apiece.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.45% over the week and has been consistently the worst-performing sector in the recent past. Zooming out, however, and it’s in the green with a 1.65% gain over the month.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has posted a small gain of 0.08% this week, and is up 6.07% over the month.

Some of Paladin’s peer companies in the materials sector have also performed well over the month. Here’s a snapshot of how they’ve performed.

• Stanmore Resources Ltd (ASX: SMR): +36.36%
• Karoon Energy Ltd (ASX: KAR): +20.43%
• Beach Energy Ltd (ASX: BPT): +7.86%

There have been several developments over the month that could be adding optimism to the Paladin share price. Let’s cover the highlights.

What’s going on with the Paladin share price?

Paladin posted its quarterly cash flow and activities reports for the quarter ending in September on 20 October.

The uranium explorer finished with a cash and cash equivalent balance of $163.44 million and has an estimated 68 quarters of funding available.

In its activities report, Paladin CEO, Ian Purdy gave an overview of its recent operational developments.

Purdy said:

It was pleasing to see restart activities commence at the Langer Heinrich Mine during the quarter. The attractiveness of Paladin as a counterparty and the quality of the offtake from the Langer Heinrich Mine continues to be reflected in the ongoing engagement we have with global power utilities, and we were pleased to secure an additional four tender awards for the supply of uranium concentrate.

With the combination of restart activities and a successful uranium marketing program Paladin is exceptionally well-positioned to benefit from the improving uranium market conditions.

Broker names Paladin as a buy

The company also received some positive coverage from a broker, naming it as a hot pick for investors interested in taking advantage of global emerging trends.

Red Leaf Securities chief John Athanasiou believes the European energy crisis makes Paladin a buy as the world weans itself off the dependence on Russian natural gas.

Athanasiou said:

The political momentum towards uranium as a clean and reliable energy source, particularly in Europe, is gathering pace. The uranium company owns a 75% stake in the Langer Heinrich mine in Namibia. The share price is highly correlated to the uranium price.

Athanasiou continued:

We expect increasing uranium prices to be reflected in an improving share price moving forward.

Paladin share price snapshot

The Paladin share price is down 6.25% year to date. The S&P/ASX 200 Index, on the other hand, is performing worse, with an 7.98% loss over the same period.

The company’s market capitalisation is around $2.45 billion.

The post Why has the Paladin Energy share price surged 11% in a month? appeared first on The Motley Fool Australia.

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

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

More reading

• Why is the Novonix share price gaining today?
• 4 ASX 200 shares trading ex-dividend next week
• Planes, rains and automobiles: Fund names 3 ASX shares to back right now
• 5 things to watch on the ASX 200 on Friday
• Why did the South32 share price melt more than the market today?

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

from The Motley Fool Australia https://ift.tt/d8fpKgn

The AGL Energy Limited (ASX: AGL) share price was up and down in October, but finished the month slightly in the red.

The AGL share price descended 0.44% from $6.84 at market close on 30 September to $6.81 on 31 October. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted 6% in this timeframe. Since 31 October, AGL shares have risen nearly 4%.

Let’s take a look at how the ASX energy share fared in October.

What happened?

AGL shares leapt 7% between market close on 30 September and 6 October.

A broker note out of Credit Suisse may have provided a boost to the AGL share price in early October. Analysts upgraded the company’s share price to outperform with an $8.20 price target. Credit Suisse believes AGL’s cash flow will stay strong amid the company’s plan to exit coal in 2035.

Meanwhile, four of AGL’s directors snapped up a total of 71,500 shares in early October at between $6.60 and $6.89 apiece. This may have been seen as a sign of confidence in the company.

However, AGL shares fell 11.61% between market close on 6 October and 21 October. News of a potential showdown at the company’s AGM appeared to impact the AGL share price on 7 October. The AGM board recommended shareholders vote against three of four candidates nominated by Galipea Partnership.

Meanwhile, AGL also updated investors on its decarbonisation plans. AGL said there had been “sustained political and social momentum for faster decarbonisation” around the world in the last 12 months. The company said decarbonisation presents a “meaningful growth opportunity for the company”.

AGL is planning to close the Loy Yang A power station by the end of FY35, a decade earlier than planned. The company also aims to close the Liddell power station in April 2023 and Bayswater power station between 2030 and 2033.

AGL plans to have 5GW of new renewables by 2030.

Morgans has recently placed a buy recommendation on AGL shares with an $8.81 price target. This implies an upside of 24% on the current share price of $7.11

In comments on The Bull in late October, investment advisor Jabin Hallihan said:

The company is exiting coal-fired generation by 2035, accelerating the closure of the Loy Yang A power station by 10 years. It’s also delivering positive near term earnings.

AGL will hold its annual general meeting on 15 November.

AGL share price snapshot

The AGL share price has soared 28% in the past year, while it has risen 15% in the year to date.

For perspective, the ASX 200 has lost about 7% in the past year.

AGL has a market capitalisation of about $4.8 billion based on the current share price.

The post How did the AGL share price perform against the ASX 200 in October? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is there going to be a gunfight at the AGL corral?
• What’s going on with the AGL share price today?
• Why did the AGL share price outperform the ASX 200 on Friday?
• Why AGL, Mirvac, PeopleIn, and SkyCity shares are charging higher
• Why the AGL share price can surge 35%: Morgans

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

from The Motley Fool Australia https://ift.tt/Plm2fFx

All eyes will be on Westpac Banking Corp (ASX: WBC) shares on Monday.

That’s because Australia’s oldest bank is scheduled to release its full year results on that day.

Ahead of the release, let’s take a look at what analysts are expecting the banking giant to report for FY 2022.

What is the market expecting from Westpac’s FY 2022 results?

According to a note out of Goldman Sachs, its analysts expect the bank to report a 10.3% decline in total revenue to $18,866 million. This reflects reductions in net interest income, life insurance income, and wealth management income.

In respect to net interest income, Goldman is expecting a 19-basis points year over year decline in Westpac’s net interest margin (NIM) to 1.85%. This will offset a 7.6% increase in its average interest earnings assets, driving a 2.2% reduction in net interest income to $16,350 million.

This is ultimately expected to lead to a 4% decline in cash earnings (before one-offs) to $5,140 million and a final dividend of 62 cents per share. The latter brings Westpac’s full year dividend to $1.23 per share, up from $1.18 per share in FY 2021.

NIM on watch

One thing that the market will be watching closely on Monday is the bank’s NIM.

Although Goldman expects Westpac’s NIM to fall to 1.85% in FY 2022, recent cash rate rises mean that its margin outlook has improved materially. This bodes well for the bank given its growing interest earning assets.

Goldman is expecting Westpac’s second half NIM to come in at 1.86%, after which it is forecasting an improvement to 1.96% in FY 2023.

As a result, commentary around the bank’s exit NIM may prove to be the most important part of Monday’s result. If the market believes it can hit 1.96% in FY 2023, the Westpac share price could respond very positively. Conversely, any downbeat NIM talk could weigh it down.

Are Westpac shares good value?

Goldman Sachs is very positive on Westpac’s shares and has put them on its conviction list.

It currently has a conviction buy rating and $27.07 price target. Based on the current Westpac share price of $23.79, this implies potential upside of almost 14% for investors.

In addition, Goldman expects a fully franked 5.8% dividend yield in FY 2023, bring the total potential return closer to 20%.

The post Own Westpac shares? What to expect from next week’s FY22 results appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• The Westpac share price soared 17% in October, what’s next?
• Up 14% in a month, why the ANZ share price can keep delivering: Citi
• 5 things to watch on the ASX 200 on Tuesday
• Here’s how the NAB share price has fared in October

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WtJeTK8

It might be a good thing that the BWX Ltd (ASX: BWX) share price remains halted today.

That’s because the personal care products company has become the latest victim of a cyberattack.

What’s going on with this ASX All Ords share?

This morning, BWX revealed that its Flora & Fauna business has identified that a malicious code unlawfully inserted into its website may have resulted in customer credit card numbers and expiry dates being transmitted to an unauthorised third-party.

The release notes that approximately 2,500 customers, who transacted on the Flora & Fauna website between 13 August 2022 and 29 September 2022, may have been impacted by the cyberattack.

BWX highlights that only credit card numbers and expiry dates appear to have been transmitted to the unauthorised third party. No other personal information, such as customer names, CVV codes, passwords, or other information entered at checkout have been accessed.

What remains unclear, though, is what changed on 29 September to stop the code and how long the company has known about the attack.

‘Considerable concern’

BWX’s CEO, Rory Gration, commented

We apologise to our Flora & Fauna customers who will experience considerable concern due to this cyber incident. We take the privacy and security of customer data very seriously and we want to assure our customers that we acted promptly to identify, isolate and remove the malicious code on the Flora & Fauna website, as well as taking additional steps to upgrade security on the Flora & Fauna website. We have notified potentially affected customers of the breach, explained steps they can take to limit risk to their information and will ensure affected customers are provided with appropriate information and support.

Why is the BWX share price suspended?

The BWX share price has been out of action since August at the company’s request.

This is because it is taking BWX an alarming amount of time to prepare its audited accounts after identifying irregularities in its financial reports.

The company recently extended its suspension, explaining:

BWX advises that this timeline has been extended, with the release of audited accounts – including certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of intangible assets – expected in mid-November 2022. The Board considers it imperative that the audit and any adjustments are completed accurately, which necessitates additional time.

The post Another ASX All Ords company has just been hit with a cyberattack. Here’s the lowdown appeared first on The Motley Fool Australia.

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

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

More reading

• CSR share price rockets higher on profit and dividend boost
• 5 big ASX announcements making news this week
• Magellan share price hits multi-year low following $2.4b horror month for outflows
• Block share price jumps 10% on Q3 beat
• Tesla sees a China slowdown, but this Nasdaq stock is faring much worse

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 BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MacmW3f

The CSR Limited (ASX: CSR) share price is soaring in early trade on Friday, up 4.8% at the time of writing having opened 8% higher.

Shares in the S&P/ASX 200 Index (ASX: XJO) building products producer closed yesterday trading for $4.53 and are currently trading for $4.75 apiece.

This comes following the release of the company’s half-year results for the six months ending 30 September.

Here are the highlights.

CSR share price takes off on 27% profit lift

ASX 200 investors are bidding up the CSR share price after the company reported a 27% year-on-year increase in net profit after tax (NPAT) of $110 million before significant items for the six-month period.

Trading revenue increased 14% from the prior corresponding half-year to $1.3 billion.

And earnings before interest and tax (EBIT) before significant items came in at $171 million, an increase of 29%. EBIT in the company’s building products and property segments were both higher year on year, while EBIT in its aluminium segment was slightly lower, impacted by higher raw material and input costs.

The CSR share price is also likely getting a boost from the company’s declaration of an interim dividend of 16.5 cents per share, fully franked. That’s up 22% from the interim dividend paid in the prior corresponding period.

CSR also reported it’s now purchased $22 million in shares in its $100 million on-market share buyback, announced on 30 June.

What did management say?

Commenting on the half-year results that look to be giving the CSR share price a boost today, CEO Julie Coates lauded the business’s strong performance in an inflationary environment.

Coates added:

Cost, supply chain and labour pressures are supporting adoption of CSR systems like Hebel lightweight aerated autoclaved concrete as faster build times and reduced labour requirements are becoming increasingly valuable to builders. Our upgraded Hebel manufacturing facility has significant capacity to deliver into this growing demand.

Investing in our property assets and our market leading development capability is a core part of our strategy. Future earnings will be supported by the independent valuation of CSR’s Property assets with development potential, which has increased in value on an “as is” basis to $1.5 billion.

What’s next?

For some insight as to where the CSR share price could be heading over the full year, the company said it “has entered the second half with good momentum”.

It pointed to strong demand for building products and underlined its ability to manage the current inflationary period across its product categories.

Without offering a specific guidance range, CSR stated it “expects to deliver a strong group result for YEM23”.

CSR share price snapshot

Despite today’s boost, the CSR share price remains down 21% for the calendar year. That compares to a year-to-date loss of 10% posted by the ASX 200.

The post CSR share price rockets higher on profit and dividend boost appeared first on The Motley Fool Australia.

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

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

More reading

• Up 14% in a month, why the ANZ share price can keep delivering: Citi

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.

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

It’s been another big week of news on the ASX, with many of the market’s inhabitants releasing some major announcements.

Looking beyond the market, there’s also been plenty of news from central banks.

The Reserve Bank of Australia upped the benchmark interest rate by 0.25% on Tuesday, taking it to 2.85%. Then, on Thursday, the US Federal Reserve hiked rates another 0.75% – leaving the nation’s cash rate at 3.75% to 4%. Both hikes were in response to soaring inflation.

Inflation was also the talk of the town on the Aussie bourse this week after an S&P/ASX 200 Index (ASX: XJO) giant posted a quarterly update. Let’s get stuck into it.

5 ASX announcements making news this week

Woolworths’ earnings disappoint

The Woolworths Group Ltd (ASX: WOW) share price slumped yesterday when the supermarket operator posted its September quarter update, detailing a 1.8% increase in group sales.

Its BIG W and Australian business-to-business legs’ growth managed to offset a decline in sales at its Australian and New Zealand food businesses. Much of the drop was due to the cycling of COVID-19 lockdowns in the prior comparable period.

Woolworths CEO Brad Banducci also commented:

Inflation continued to accelerate in Q1 … We continue to see early signs of customer purchasing habits changing, but it remains unclear how much of this relates to cost-of-living pressures compared to COVID normalisation.

Another regulatory blow for EML

The share price of EML Payments Ltd (ASX: EML) also suffered this week, plummeting 35% on Monday. Its fall came after the former ASX 200 fintech announced it had agreed to pause the onboarding of new users to its United Kingdom subsidiary, Prepaid Financial Services, amid regulatory concerns.

The issues raised were said to be similar to the (still unresolved) concerns brought about by the Central Bank of Ireland in 2021. They related to the company’s compliance with anti-money laundering and counter-terrorism financing laws.

Nitro catches a winning takeover curveball

After months of courtship and two takeover bids, the Nitro Software Ltd (ASX: NTO) board has finally recommended a potential buyer’s offer. However, it wasn’t posed by the suitor previously chasing the company.

Canada’s Alludo’s $2 per share takeover offer was 11% higher than the $1.80 bid Potentia Capital offered on Friday. Potentia has been chasing Nitro since August when it posted its initial $1.58 bid.

Lithium drives IGO’s earnings higher

Good news for ASX lithium fans – IGO Ltd (ASX: IGO) announced its lithium business’ sales revenue more than doubled quarter-on-quarter to come in a $1.8 billion over the three months ended 30 September.

That helped the company report a 136% increase in after-tax profits, coming in at $253 million, and a 54% jump in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), reaching a record $398 million.

Tiny lithium mining share surges 81% amid exploration news

Finally, a win for the little guys. The share price of $110 million lithium explorer Winsome Resources Ltd (ASX: WR1) exploded this week. It has gained 80.8% since the close of trade on Friday, and is currently trading at 85 cents apiece.

The surge followed last week’s announcement of positive drilling results at two of the ASX company’s Canadian projects.

This week, it provided additional data on numerous drill holes and an investor presentation. The releases seemingly spurred the market’s interest in the stock once more.

But that wasn’t the end of the drama. The lithium share was halted following an ASX query on Wednesday.

It returned to trade this morning on an update pertaining to its previously released presentation. Additionally, the company responded to the ASX’s ‘please explain’, saying:

With this series of encouraging exploration results being made public, there appears to be a recognition that WR1’s market capitalisation is low when compared with many of its peers in the lithium exploration market.

The post 5 big ASX announcements making news this week appeared first on The Motley Fool Australia.

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

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

More reading

• Goldman says Woolworths share price pullback provides ‘a value entry point to a quality player’
• 5 things to watch on the ASX 200 on Friday
• Why Bravura, Domino’s, Lendlease, and Woolworths shares are sinking
• Leading fund manager names the 3 ASX stocks that drove its returns higher in October
• 3 ASX 200 directors buying up their company shares this week

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

from The Motley Fool Australia https://ift.tt/VH6tnxJ

The Magellan Financial Group Ltd (ASX: MFG) share price is on course to end the week in the red.

In morning trade, the struggling fund manager’s shares are down 3% to a multi-year low of $9.52.

This latest decline means that the Magellan share price is now down 50% in 2022.

Why is the Magellan share price falling?

Investors have been hitting the sell button on Friday after the fund manager released its latest funds under management (FUM) update.

According to the release, Magellan continued the trend of bleeding funds during the month of October.

After reporting net outflows of $3.6 billion in September, Magellan followed this up with net outflows of $2.4 billion in October. This comprised net retail outflows of $0.4 billion and net institutional outflows of $2 billion.

However, with both the Australian dollar continuing to soften and global markets having a very strong month in October, the company’s FUM actually managed to increase a fraction during the month.

The release reveals that at the end of the period, Magellan’s FUM stood at $51.0 billion. This is up from $50.9 billion at the end of September.

Magellan’s $51.0 billion of FUM comprises retail FUM of $20.5 billion (up from $19.8 billion) and institutional FUM of $30.5 billion (down from $31.1 billion). It is also based on an AUD/USD exchange rate of 0.63945. The latter is down from 0.64295 a month earlier.

As a comparison, a year ago, Magellan’s FUM was $114.8 billion at an AUD/USD exchange rate of 0.7511. That’s a 55% decline in the company’s FUM before taking currency benefits into account. Oh, how the mighty have fallen!

The post Magellan share price hits multi-year low following $2.4b horror month for outflows appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could something big be going down at Magellan?
• How to find wealth compounders inside the ASX 200 right now
• Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022?
• Magellan share price sinks again despite ‘$100 billion’ outlook
• 5 things to watch on the ASX 200 on Thursday

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

from The Motley Fool Australia https://ift.tt/M0sZpEl

The Block Inc (ASX: SQ2) share price is on course to end the week on a very positive note.

In morning trade, the payments company’s shares are up 10% to $96.33.

Why is the Block share price racing higher?

Investors have been bidding the Block share price higher this morning following the release of the company’s third quarter update.

For the three months ended 30 September, Block’s gross payment volume came in at US$54.4 billion, up from US$52.5 billion in the second quarter and from US$45.4 billion in the prior corresponding period.

This led to Block recording total net revenue of US$4.52 billion for the period, which was up 17% over the prior corresponding period and ahead of the consensus estimate of US$4.47 billion.

Excluding bitcoin and buy now pay later (BNPL) revenue, Block’s revenue was up 25% to US$2.54 billion. Bitcoin revenue came in at US$$1.76 billion and BNPL revenue was US$210 million for the quarter.

Growing even quicker was the company’s gross profit. Block reported a 38% increase in gross profit to US$1.57 billion. This was driven by a 51% lift in Cash App gross profit to US$774 million and a 29% increase in Square gross profit to US$783 million.

This ultimately led to Block reporting adjusted EBITDA of US$327 million and a net loss of US$15 million. These are big improvements on the EBITDA of US$187 million and net loss of US$208 million that were recorded in the second quarter.

On the very bottom line, Block’s third quarter adjusted earnings per share came in at US$0.42, well ahead of the US$0.23 consensus estimate. This helps explain why the Block share price is having such a strong morning despite another tech selloff on Wall Street last night.

Management commentary

Block’s management spoke briefly about a few highlights from the quarter. It commented:

In the third quarter of 2022, we generated gross profit of $1.57 billion, up 38% year over year. Cash App generated gross profit of $774 million, up 51% year over year, and Square generated gross profit of $783 million, up 29% year over year.

Cash App Card has significant momentum and has scaled to more than 35% of our monthly actives: In September, there were nearly 18 million Cash App Card actives, up more than 40% year over year with weekly and daily actives increasing at an even more rapid rate during the same period.

Our software point-of-sale solutions are purpose-built for specific verticals and have experienced strong growth: In the third quarter, Square for Restaurants, Square for Retail, and Square Appointments cumulatively grew gross profit more than 45% year over year.

The post Block share price jumps 10% on Q3 beat appeared first on The Motley Fool Australia.

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

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

More reading

• How are ASX 200 tech shares faring after the overnight NASDAQ plunge?
• Why did the Block share price just tumble 7%?
• Why is the Zip share price up 5% on Tuesday?
• Here are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

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

from The Motley Fool Australia https://ift.tt/1j4uMY9

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors have watched the Federal Reserve closely for signs of just how aggressive it will be in tightening its monetary policy to fight inflation. After initially seeing at least a glimmer of hope that the Fed might not move at breakneck speed with ongoing interest rate increases, the news conference that Fed Chair Jerome Powell gave put to rest any ideas of a near-term tempering of the central bank’s resolve. The Nasdaq Composite (NASDAQINDEX: ^IXIC) fell sharply after the announcement, falling more than 1% Thursday morning when regular trading opened.

Electric vehicle (EV) pioneer Tesla (NASDAQ: TSLA) has been a big detractor from the market’s performance over the past couple of months, finally succumbing to investor fears about the impact of a global economic downturn on the auto manufacturer. Yet while Tesla’s declines Thursday morning were relatively mild, Roku (NASDAQ: ROKU) delivered a financial report that investors found more troubling, and that sent its stock sharply lower in premarket trading.

Tesla reports on China

Shares of Tesla moved lower between 1% and 2% in premarket trading on Thursday morning, adding to a nearly 6% decline on Wednesday. The EV company reported monthly sales figures in the key Chinese market, and even though the numbers were impressive, they failed to live up to the lofty expectations that many shareholders have for Tesla.

The latest figures from the China Passenger Car Association showed that Tesla delivered just over 71,700 electric vehicles manufactured at its Chinese Gigafactory facility in Shanghai during October. That was a healthy number, but it was down by 14% from the more than 83,100 EVs that Tesla delivered in September, which set a record for the company.

Tesla investors also have to take into account some other trends that could affect its competitive stance in the world’s most populous nation. Despite the encouraging adoption of Tesla vehicles by Chinese consumers, the U.S. automaker still ranks far behind the EV delivery volume of China’s BYD, which came in at more than 217,500 cars. Moreover, with factors like China’s zero-COVID policy and a general economic slowdown taking shape, Tesla has had to resort to cutting its prices for its mass-market Model 3 and Model Y vehicles. That flies in the face of increases in costs that threaten Tesla’s bottom-line growth.

China is an essential market for Tesla to tap, even though it comes with considerable obstacles. Any further pressure in China could make it hard for the stock to recover from its recent declines.

Roku runs into the ad downturn

Shares of Roku fell much more sharply, dropping 15% early Thursday. The streaming TV specialist said its business could take a double hit for the rest of the year, making investors more nervous about its longer-term prospects.

Roku’s third-quarter financial report included numbers that indicated ongoing growth in some areas. Revenue was up 12% year over year to $761 million, with streaming hours climbing 21% to 21.9 billion. Roku reported 65.4 million active accounts at the end of September, up by 9 million accounts in the past 12 months. Average revenue per user posted a 10% jump to $44.25.

However, Roku noted that advertising spending on its platform grew at a slower rate than it had expected at the beginning of 2022, citing weakness across the industry. Moreover, with strains on consumer budgets, Roku sees sales of its hardware also coming under pressure. Investors were surprised to see Roku predicting a possible year-over-year sales drop in the fourth quarter.

Investors weren’t prepared for that much bad news, explaining the big share-price drop. Yet such moves have been par for the course this earnings season, as shareholders demand near-term profit potential and resiliency against deteriorating macroeconomic conditions. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla sees a China slowdown, but this Nasdaq stock is faring much worse appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Tesla shares dropped Wednesday
• Could ‘no deal’ with Tesla actually be good news for Core Lithium shares?
• Why Tesla stock was up this morning
• Does the Vanguard International Shares ETF contain ‘good’ quality companies?
• The Core Lithium share price surged 25% in October. Here’s why

Dan Caplinger 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 Roku and Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/XDfhYp7

Some companies are ramping up their cybersecurity spending to make sure they don’t run into the same sorts of problems that Optus and Medibank Private Ltd (ASX: MPL) are currently facing. One of these is Flybuys, which could have an impact on Coles Group Ltd (ASX: COL) shares.

For readers that haven’t heard of it, Flybuys is reportedly Australia’s largest loyalty scheme, with eight million members. Considering how many people’s details it holds, Flybuys is putting a lot of work into cybersecurity.

Flybuys is jointly owned by Coles and Wesfarmers Ltd (ASX: WES).

Boost to the cyber defence budget

According to reporting by The Australian, the Flybuys 2022 financial accounts show that directors noted the company had “significantly increased investment in cyber security to help protect the company’s and members’ data”.

In 2022 the business spent $32.62 million on technology, up from $23.15 million in 2021. Those expenses include cybersecurity.

The newspaper reported that approximately 20% of all retail expenditure in Australia is represented within the Flybuys system, and it represents “a huge pool of personal and financial data that could prove a tasty target for cybercriminals”.

Flybuys CEO Anna Lee confirmed that spending on protecting customer data against hackers was growing. She said:

As one of Australia’s most trusted loyalty programs, protecting our member data remains a top priority at Flybuys. We continually review and improve our data collection and security infrastructure, and this additional investment is reflective of that commitment to our members.

As cyber security threats continue to evolve, so too does out investment in this space. It’s incumbent on us to not only provide the best experience possible for our members, but ensure that experience is backed by the core systems that will help protect our members.

How is Flybuys going?

Flybuys reportedly saw revenue increase by 28.4% to $391.9 million. This included $341.9 million of revenue from points paid to Flybuys from its retail partners.

It was noted by The Australian that the end of lockdowns and travel restrictions saw a rebound in consumer spending and other activities that generated more points than were redeemed.

What this means in the context of Coles shares

Flybuys isn’t designed to make a profit, but the loyalty business seemingly adds value for Coles and Wesfarmers, otherwise they wouldn’t keep running it.

Bunnings and Officeworks recently joined the program.

In Coles’ latest quarterly update, the business announced that its total sales had increased by another 1.3%, with supermarket sales increasing by 1.6%.

The company said it’s on track to deliver cumulative ‘smarter selling’ benefits of $1 billion by the end of FY23 under its four-year program.

Sales growth has continued into the second quarter of FY23, though it’s seeing higher costs relating to inflation.

The post Why Flybuys could cost Coles shares amid greater cyber concerns appeared first on The Motley Fool Australia.

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

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

More reading

• Coles shares underperformed the market last month. What’s next?
• 2 ASX shares to cash in on ‘a very good Christmas’: expert
• Dividends beasts: 3 ASX shares that kept the funds growing even during COVID
• These are the ASX 200 dividend shares to buy: analysts
• Brokers name 2 ASX dividend shares to buy

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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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