In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is pushing higher again. At the time of writing, the benchmark index is up 0.4% to 7,484.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Block Inc (ASX: SQ2)

The Block share price is up over 6% to $115.46. Investors have been buying Block’s ASX listed shares today in response to a strong gain by its NYSE listed shares overnight. US tech stocks started the week very strongly, driving the NASDAQ index 2% higher on Monday night’s session.

Codan Limited (ASX: CDA)

The Codan share price is up 19% to $5.25. This follows the release of a trading update from the metal detector and communications company. That update reveals that it expects to hit the high end of its first half revenue guidance range of $200 million to $215 million. Even better, though, management expects to deliver a first half net profit approaching $31 million, which is ahead of its guidance range of $25 million to $30 million.

Latin Resources Ltd (ASX: LRS)

The Latin Resources share price is up 6% to 12.7 cents. Investors have been buying this lithium explorer’s shares following an update on its Salinas Lithium Project in Brazil. According to the release, the latest assay results received from diamond drilling at the Colina West prospect confirm that it represents an exceptional resource growth opportunity.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is up 5% to 89.2 cents. This follows the release of a strong trading update from the department store operator this morning. For the five months to December 31, Myer delivered total sales growth of 24.8%. In light of this, the company is expecting to deliver first half profit of $61 million to $66 million. The latter will be double last year’s half year profit.

The post Why Block, Codan, Latin Resources, and Myer shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• Why is this ASX 300 tech share soaring 19% today?
• Why is the Block share price surging 6% on Tuesday?
• Myer share price leaps 6% amid supercharged sales
• Could this ASX 300 share offer a once-in-a-lifetime chance to triple my money?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. 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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These three ASX mining shares are on the move today following the release of their quarterly results.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is in the green today, up about 1%.

Let’s take a look at these three ASX mining shares in more detail.

Legend Mining Ltd (ASX: LEG)

The Legend Mining share price is soaring 7% today to 4.7 cents at the time of writing. The company’s share price surged 9% this morning following the release of its quarterly report before retreating slightly

Legend is exploring the Rockford nickel and copper project in Western Australia.

Legend reported cash of $12.8 million as of 31 December. The company completed octagonal 3D seismic survey data collection in the December quarter at the Rockford Project.

One major highlight from the report is news of a $2.93 million tax refund in December. Legend said this means cash at 31 December is $600K greater than the previous quarter.

The company said this places it in a “well-funded position for the commencement of 2023”.

The Legend Mining share price has descended 40% in the last year.

Perseus Mining Ltd (ASX: PRU)

Perseus Mining also released a quarterly report to the market today. The company explores three gold mines in Africa.

Perseus shares are down nearly 2% today. The gold price is up 0.07% to US$1932.67 a tonne, according to trading economics.

Perseus reported it had produced 130,911 ounces of gold in the December quarter. This was down on the company’s record gold production of 137,460 ounces in the September quarter.

Overall in 2022, Perseus delivered 521,221 ounces of gold at an all in sustaining cost (AISC) of US$941 an ounce. This exceeded the company’s production guidance.

The company achieved a weighted average realised gold price of US$1,748 a tonne, up from US$103 on the September quarter.

The Perseus share price has surged nearly 52% in the last year.

De Grey Mining Ltd (ASX: DEG)

De Grey Mining shares have been bouncing around today and are currently climbing 0.32%.

The De Grey mining share price is leaping 0.64% at the time of writing to $1.585. De Grey shares fell 1.26% in earlier trade before picking up.

De Grey is exploring gold at the Mallina Gold Project in the Pilbara region of Western Australia. In today’s quarterly, De Grey reported 160 million in cash and no debt at the end of the December quarter.

Highlights included completing a $130 million placement and $19 million share purchase plan to fund a definitive feasibility study and a final investment decision in 2023.

The De Grey share price has lifted nearly 16% in the last year.

The post 3 ASX mining shares on the move – quarterly reports appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the best ASX mining shares to buy in 2023: experts
• Will 2023 be a golden year for ASX 200 mining shares?
• Mineral mania: 5 ASX 200 mining shares smashing new highs on Monday
• Here are the top 10 ASX 200 shares today

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.

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The S&P/ASX 200 Index (ASX: XJO) is on form again on Tuesday. In afternoon trade, the benchmark index is up 0.2% to 7,474.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down almost 4% to $2.06. This follows the release of the coal miner’s quarterly and full year update. Coronado Global reported a 66.2% increase in full year revenue to a record of US$3,572 million. However, investors appear disappointing by a significant increase in its average mining costs to US$88.40 per tonne. Management blamed inflationary pressures and wet weather.

Mincor Resources NL (ASX: MCR)

The Mincor share price is down 6% to $1.73. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded the nickel developer’s shares to a neutral rating with a $1.80 price target. Macquarie made the move largely on valuation grounds.

OFX Group Ltd (ASX: OFX)

The OFX share price is down almost 4% to $2.30. This follows the release of the international money services provider’s third quarter update. Although OFX delivered solid growth over the prior corresponding period, its numbers were down slightly quarter on quarter. Nevertheless, management has reaffirmed its guidance for FY 2023.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 7% to 77.5 cents. This is despite the buy now pay later provider reporting a record quarterly performance this morning. The company also revealed that its US operations were profitable at an operating level during the latter two months of the period. However, with Zip’s shares rocketing higher yesterday, a lot of this may have already been factored into its valuation.

The post Why Coronado Global, Mincor, OFX, and Zip shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Zip share price on the move amid record quarter and US profitability
• Why Boss Energy, Pilbara Minerals, Sezzle, and Zip shares are charging higher
• Why is the Zip share price rocketing 18% higher today?
• Here are the top 10 ASX 200 shares today
• Should I buy the dip on Zip shares right now?

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The Liontown Resources Ltd (ASX: LTR) share price has been off to a flying start in 2023. Could the remainder of the year house the company’s maiden profit?

Let’s break down the company’s projected path to profitability to find if this could be the year shareholders are rewarded with positive earnings.

Right now, the S&P/ASX 200 Index (ASX: XJO) lithium share is trading at $1.525. That’s 24.5% higher than it was at the start of 2023.

For comparison, the ASX 200 has gained 7% year to date.

What is the ASX 200 lithium share up to?

Liontown Resources is currently working on its cornerstone Kathleen Valley lithium project, located in Western Australia.

The project is said to house one of the largest and highest-grade hard rock lithium deposits in the world. It’s expected to be capable of producing around 500,000 tonnes of 6% lithium oxide concentrate every year.

It’s no surprise, then, that the lithium share is so popular among ASX market watchers.

However, the first production – and potentially its first revenue – is still some way away.

Liontown likely won’t post a profit in 2023

The key ingredient ASX 200 lithium shares need to achieve profitability is, of course, saleable product. Sadly, those expecting Liontown to produce saleable lithium in 2023 will likely be disappointed.

The company is aiming to achieve its first production at Kathleen Valley in mid-2024. And it still has quite a bit to spend before it reaches the milestone.

It’s already sunk around $73 million into the venture and believes it has another $685 million or so to go.

Fortunately, it has around $385 million of cash and a $300 million debt facility provided by offtake partner and automaker Ford Motor Company (NYSE: F). Though, it will probably need additional capital prior to its maiden production.

On top of that, exploration at the company’s Buldania project will likely weigh on its balance sheet over the coming years.

Though, the ASX 200 lithium share recently flagged an early revenue opportunity.

A change in the Kathleen Valley mining plan may have unlocked a direct ship ore (DSO) opportunity like that recently employed by Core Lithium Ltd (ASX: CXO).

The post Will Liontown Resources post a profit in 2023? appeared first on The Motley Fool Australia.

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More reading

• ‘Exploration breakthrough’: What’s going on with this ASX 200 copper share today?
• ASX 200 lithium share Sayona has surged 38% in 2023. Too late to buy?
• 3 ASX shares to buy in the hottest sector for 2023: Firetrail
• Stocked up on $1,000 of Santos shares 10 years ago? If so, here’s how much dividend income you’ve earned
• 5 things to watch on the ASX 200 on Tuesday

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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There is one S&P/ASX 300 Index (ASX: XKO) share that is outperforming the rest by miles on Tuesday.

A positive update from Codan Limited (ASX: CDA) has put the company front and centre on an otherwise lukewarm day for the market.

As we head towards midday, shares in the metal detection and communications company are fetching $5.28, increasing 19.5% from their prior closing price. Codan shares have sprung into action today as investors interpret the company’s trading update for the first half of FY23.

Let’s take a look at what is putting a rocket under this ASX 300 share.

No nasty surprises for this ASX share

The tail-end of 2022 was unkind to Codan shareholders as the company guided for a weaker outlook. In turn, the share price skidded nearly 54% lower on fears of a disastrous year ahead.

As mentioned in my piece yesterday, Codan was ready for a 45% fall in metal detector sales — a division that accounted for 52% of its total sales in FY22. As you’d expect, that would do some meaningful damage to future sales and earnings.

Hence, management guided for revenue between $198 million and $215 million in the first half of FY23. Likewise, Codan initially anticipated first-half net profit after tax (NPAT) to sit between $25 million and $30 million.

In today’s update, shareholders were relieved to be informed that unaudited revenue in the first half was $212 million — hitting the upper end of guidance. Adding to the excitement, NPAT is now expected to be $31 million, eclipsing the original top-end estimate from this ASX share.

A slight disappointment was that Codan’s Minelab (metal detectors) sales marginally missed its forecast of $75 million to $80 million. Instead, the higher margin division secured unaudited sales of $74 million during the period.

Meanwhile, the company’s communications segment slightly beat expectations with $137 million in revenue.

Overall, the financial figures didn’t exactly hit it out of the park. However, expectations were clearly low prior to this update. The fact that Codan has maintained a manageable net debt and hit its prior guidance is mostly reassuring.

What’s next for the Codan share price?

Aside from any surprise updates, the next meaningful event for the Codan share price will likely be the release of its complete first-half results on 16 February. It will be at this point in time that shareholders gain additional insight into what the second half of FY23 could look like.

Despite the monumental move in this ASX 300 share today, Codan remains 37% lower than where it was a year ago.

The post Why is this ASX 300 tech share soaring 19% today? appeared first on The Motley Fool Australia.

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More reading

• Could this ASX 300 share offer a once-in-a-lifetime chance to triple my money?
• My $15 a day plan to build passive income this year
• I think these are the 10 best ASX shares to buy for 2023

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 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 S&P/ASX 200 Index (ASX: XJO) is having a rather shaky Tuesday so far this session. After opening strongly this morning, the ASX 200 has lost most of its steam and is currently up by just 0.1%. But the same can’t be said of the Block Inc (ASX: SQ2) share price today.

Block shares are on fire this Tuesday. The US-based fintech company formerly known as Square is currently up a whopping 6.4% at $115.48 a share at the time of writing, well above the return of the broader market.

So what’s going on here?

Why is the Block share price on fire?

Well, Block isn’t your normal ASX share. Its ASX listing is actually a CHESS Depositary Interest (CDI), which means the ASX shares represent ownership of another, foreign-listed investment. In Block’s case, it is the original shares of Block Inc (NYSE: SQ) that are listed on the US markets.

This arrangement came out of Block’s decision to acquire the old ASX-listed buy now, pay later (BNPL) pioneer Afterpay. Afterpay used to be an ASX share (as many of us would remember). But its ASX listing was replaced by Block when the American giant bought Afterpay back in early 2022.

So this situation probably gives us the best indication of why Block shares are on a tear today. Last night (our time), Block’s US-listed shares rocketed 7.22% to US$81.66. As such, Block’s ASX listing was always going to have a cracking day today.

Most US tech shares had a stellar session across the Pacific last night.

Tesla Inc (NASDAQ: TSLA) shares were up 7.74%, while Shopify Inc (NYSE: SHOP) and Netflix Inc (NASDAQ: NFLX) were up 8.8% and 4.9%, respectively. It seems Block shares have just been caught up in this stampede to tech.

It’s not too different on the ASX today. Some ASX tech shares had very strong mornings, although many have slumped around lunchtime. Xero Limited (ASX: XRO) shares were up around 3% at one point, as was Appen Ltd (ASX: APX). Cettire Ltd (ASX: CTT) is a standout performer this Tuesday, up by almost 10% at the time of writing.

The post Why is the Block share price surging 6% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Alumina, Block, Liontown, and Nanosonics shares are dropping today
• Here are the top 10 ASX 200 shares today
• Why Ampol, Block, JB Hi-Fi, and Telix shares are racing higher
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has positions in Tesla, Netflix and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen, Block, Netflix, Shopify, Tesla, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has positions in and has recommended Block and Xero. The Motley Fool Australia has recommended Cettire and Netflix. 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 is fair to say that Novonix Ltd (ASX: NVX) shares have had a difficult 12 months.

As you can see on the chart below, since this time last year, the battery materials technology company’s shares have lost 77% of their value.

This means that if you had invested $1,000 into the company’s shares a year ago, you would unfortunately only have $230 leftover today.

Clearly, Novonix shares have underperformed the market. But will that be the case again in 2023 or will things be better for investors?

Novonix shares to rise in 2023?

Unfortunately, Novonix shares are not widely covered by brokers, so we don’t have a lot of opinions on the company’s outlook for the year ahead.

In fact, the only major broker covering the company is Morgans. The good news, though, is that the broker is cautiously optimistic on its outlook.

Late last year, its analysts put a speculative buy rating and $3.11 price target on the company’s shares.

So, with Novonix shares currently trading at $1.89, this suggests that they could rise almost 65% over the next 12 months.

If this recommendation proves to be on the money, it would turn a $1,000 investment into $1,650 at the end of the year.

Potential catalysts

Ultimately, whether 2023 is a successful year for Novonix shares may depend on anode prices and the progress it makes on the construction of its US manufacturing facility for high-performance synthetic graphite anode materials.

The latter is scheduled is on track to begin a delivery rate of 3,000 tonnes per annum (tpa) of high-performance synthetic graphite to KORE Power in 2024.

Finally, it is worth highlighting that Morgans has a speculative rating on its shares. This means that an investment carries a lot of risk.

The post If I invest $1,000 in Novonix shares now, what could my return be this year? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• 3 catalysts that could boost Novonix shares in 2023
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Sandfire Resources Ltd (ASX: SFR) share price is wobbling in and out of the green today as the market digests conflicting news from the S&P/ASX 200 Index (ASX: XJO) copper giant.

The company revealed both disappointing quarterly production and a new copper-zinc zone at its MATSA operations in southwestern Spain.

After opening 0.2% higher at $6.26, the Sandfire share price dropped to a low of $6.15 – marking a 1.6% fall. It has since recovered somewhat to trade 0.32% lower at $6.23.

Sandfire share price wobbles despite MATSA ‘breakthrough’

The Sandfire share price is hot and cold despite the company revealing its first exploration success at the MATSA copper operations following its $2.6 billion acquisition.

Drilling at the project has found a new zone of volcanic massive sulphide (VMS) copper-zinc-silver mineralisation, dubbed the San Pedro Zone. It’s likely connected to the operation’s Aguas Teñidas Deposit.

Sandfire acting CEO Jason Grace commented on “the first significant exploration breakthrough” since the project’s acquisition, saying:

The identification of the San Pedro Zone shows what can be achieved through a disciplined, systematic, and technically sound approach to exploration – and highlights the enormous exploration opportunity in front of us.

ASX 200 copper share posts disappointing production

Here are the key takeaways from the company’s December quarter production compared to that of the prior quarter:

• Total copper production fell 29% to 20,031 tonnes
• Zinc production increased 1% to 19.755 tonnes
• Production of lead slipped 22% to 1,921 tonnes
• Gold production dropped 44% to 4,562 ounces
• Silver production fell 14% to 600,000 ounces
• C1 unit cost came to US$1.73 per pound of copper

Over the half year, the company produced 48,088 tonnes of copper, 39,290 tonnes of zinc, 4,398 tonnes of lead, 12,777 ounces of gold, and 1.3 million ounces of silver.

Meanwhile, the construction of its Motheo Copper Mine remains on schedule and it has begun the process to sell its DeGrussa Copper Operations.

Sandfire ended the quarter with US$263.7 million of cash and US$378.3 million of net debt following a $200 million capital raise.

What did management say?

Grace commented on the quarterly update likely driving on the ASX 200 copper share today, saying:

The December quarter marked another positive and productive period for Sandfire, as we took further important steps to strengthen our balance sheet and de-risk our growth pathway against the backdrop of a strong outlook for the copper sector.

What’s next?

While its December quarter may have disappointed the market, Sandfire is confident on its full-year production.

Its financial year 2023 production guidance remains at 83 kilotons to 91 kilotons of copper, 78 kilotons and 83 kilotons of zinc, 6 kilotons to 10 kilotons of lead, 12 thousand ounces to 14 thousand ounces of gold, and 2.2 million ounces to 3.2 million ounces of silver. Its C1 unit cost of copper is tipped to come in at US$1.74 a pound.

However, changes to the mine plan at MATSA’s Magdalena Mine leave the company expecting the operation’s copper production to come in at the lower end of its guided­ 60 kilotons to 65 kilotons. Meanwhile, production at Motheo is tipped to begin in the coming quarter.

Sandfire share price outperforms the ASX 200 in 2023

The Sandfire share price has posted a notable 14% gain in 2023 so far despite today’s volatility. Meanwhile, the ASX 200 has risen 7%.

Looking further back, however, the stock has slumped 7% over the last 12 months. Meanwhile, the ASX 200 has gained 4%.

The post ‘Exploration breakthrough’: What’s going on with this ASX 200 copper share today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium share Sayona has surged 38% in 2023. Too late to buy?
• 3 ASX shares to buy in the hottest sector for 2023: Firetrail
• Stocked up on $1,000 of Santos shares 10 years ago? If so, here’s how much dividend income you’ve earned
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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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Buying bonds, whether they be corporate bonds or government bonds, is not as popular here in Australia as it is in the United States.

The US has a strong culture of investing in bonds and Treasury Bills. But Australia’s debt markets are not nearly as accessible. In fact, the only way for most retail investors to buy bonds here is through exchange-traded funds (ETFs). But perhaps Telstra Group Ltd (ASX: TLS) is trying to change that.

A bond is a wholly different investing vehicle than a share. Where a share represents ownership of a company, a bond is, in effect, a loan. When a company or government issues a bond, it is bought by investors. These investors are then entitled to receive interest as long as they hold the bond.

It is nothing more than a loan, and does not represent ownership of the company (or government) that issues it.

Investors traditionally invest in bonds because they are viewed as ‘safer’ than investing in shares. This is particularly the case for government bonds. Because a government can’t go bankrupt, the debt that it issues is typically classed as ‘risk-free’.

Is Telstra going to issue bonds to everyday investors?

Companies, unlike governments, can go broke. But most ETFs that cover corporate bonds only invest in those issued by the most financially healthy companies in the markets. That arguably covers Telstra Group.

According to reporting in the Australian Financial Review (AFR) this month, Telstra, along with fellow ASX 200 blue chip Wesfarmers Ltd (ASX: WES), is reportedly considering selling bonds directly to retail investors for the first time.

The companies are keen to boost their capital by appealing directly to retail investors, who might be excited to cash in on rising interest rates. The interest returns from bonds are directly tied to interest rates.

Many investors began ignoring this asset class altogether when central banks reduced global interest rates to near-zero levels during the pandemic. But now rates have started rising, the situation has changed.

Bond coupon rates from top corporate issuers have reportedly risen from less than 2% to more than 5% over the past 12 months. If Telstra issues a five-year bond, it could pay an interest rate of around 5%. That is more than the dividend yield on offer from the company at present.

If Telstra and Wesfarmers do go down this path, it could unlock a new source of income for retail investors. However, this is just speculative at this point. Telstra’s investor website still tells us that “we do not offer bonds to retail investors or the general public”.

So for now, investors might have to stick with ETFs like the Vanguard Australian Corporate Fixed Interest Index ETF (ASX: VACF).

But this space is definitely one worth watching.

The post Does Telstra sell bonds to ASX retail investors? appeared first on The Motley Fool Australia.

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• Telstra shares: ‘Some healthy options that are underappreciated’
• ‘Fierce competitor’: Expert names 2 big brand ASX shares ready to take off in 2023
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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 and Wesfarmers. 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 Webjet Limited (ASX: WEB) share price has performed brilliantly over the past six months, rising by 30%.

The ASX travel share sector has seen robust performance overall as demand returns for destination travel.

But will Webjet be able to keep impressing investors?

Strong recovery

A couple of months ago, the business announced its FY23 first-half result.

It said that total transaction value (TTV) had jumped 223% year over year to $2.14 billion. This helped revenue rise by 217% to $175.7 million and underlying earnings before interest, tax, deprecation, and amortisation (EBITDA) jump 557% to $72.5 million.

Webjet said that this result was underpinned by its efforts as soon as the pandemic hit to ensure that each business was “optimally positioned to recapture demand once travel returned. Recovery is substantially accelerating and WebBeds is leading the charge”, according to the company.

WebBeds saw all regions achieve “significant” organic growth, particularly in Europe. In North America, the business is now three times bigger than before COVID-19 began.

Webjet also boasted that it was one of the most profitable online travel agents in the world before the pandemic, implying this could be the case with the recovery as well.

Can the Webjet share price keep performing?

Webjet suggested that WebBeds is picking up market share in all regions, with the capability to scale rapidly. It said that FY23 third-quarter bookings and TTV were tracking at more than 30% ahead of pre-pandemic levels. FY23 EBITDA is also “expected to be higher than it was pre-pandemic”.

Webjet’s online travel agency business has “increased its market share by 57% since the pandemic began”. It thinks that new technology has “enormous potential” to increase its share of the international flights market.

With demand for travel reportedly strong, the restoration of airline capacity will drive profitability for the Webjet OTA [online travel agent] business.

Using Commsec estimates, the Webjet share price is valued at 22 times FY24’s estimated earnings, showing that the business could generate a solid profit in the next financial year.

According to the consensus of analyst opinions that Commsec covers, it’s rated as a buy by nine, rated as a hold by five, and only two currently rate it as a sell.

I believe that Webjet has a promising future, but I’d only start off with a small position at the current price level and consider buying more on any dips. It could start paying a dividend in FY24, which could be useful for boosting returns.

The post Up 30% in six months: Can the Webjet share price fly even higher? appeared first on The Motley Fool Australia.

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More reading

• Waiting for ASX shares to bottom? Why you could miss out on a stock market rally
• 4 ASX 200 shares celebrating Friday with new, 52-week highs
• 5 ASX 200 shares smashing new, 52-week highs on Thursday
• Could ASX 200 travel shares be set for a major boost in 2023?
• The Webjet share price recovered 20% in 2022. Is this just the beginning?

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 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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