The Tyro Payments Ltd (ASX: TYR) share price is lifting in late morning trade on Monday following the release of the company’s FY22 earnings results.

At the time of writing, the Tyro shares are trading 7.5% higher at $1.075.

Tyro grows payments revenue 39% in FY22

Key takeouts from the company’s results include:

• Payments revenue of $318.8 million, up 39% from $229.2 million in FY21
• Payments statutory gross profit of $147.7 million, a year-on-year gain of 34%
• A total of 109,248 terminals reached in FY22, up 4%
• Merchant loan originations reached $99.1 million, a staggering 283% year-on-year gain
• Total merchant deposits of $83.3 million at 30 June 2022, up from $75.5 million in June FY21
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $10.7 million vs $14.2 million the same time last year
• Statutory loss after tax of $29.6 million, slightly down from $29.8 million in FY21
• Finished FY22 with $123 million in total cash and financial investments

What else happened last period for Tyro?

Tyro says that its collaboration with Bendigo Bank generated over $5.2 billion in transaction value in its first full year of operation.

The company was also appointed as an exclusive partner of Telstra Corporation Ltd (ASX: TLS) offering merchant-acquiring solutions to the telco giant’s business customers.

Management has been active on cost management as well, by reducing headcount and increasing its merchant service fee in H2 FY22.

Furthermore, online sales generation accounted for 1.5% of transaction value. This created around $520 million in transactions processed, up from $70 million in FY21.

Management commentary

Speaking on the results sending Tyro shares skywards today, CEO and managing director Robbie Cooke said:

Despite the challenges of 2022 with Covid, tight labour markets, market de-ratings of payment companies and inflationary pressures – we responded strongly with focused cost management, tight margin management, and a continuing focus on serving our customers while delivering new products and services to our merchants.

These actions started to positively contribute in the last quarter of the year and remain a key focus in FY23. They are expected to yield further operating leverage improvements in parallel with our continuing focus on driving strong top line growth and new merchant acquisition.

What’s next for Tyro?

The company says it has made a strong start to FY23 already. While transaction values for July lifted 46% year on year to $3.4 billion, August values are also up 70% from FY22 to $2.9 billion.

Tyro forecasts transaction value between $40m billion and $42 billion, stemming normalised gross profit of between $175 million and $185 million.

It is also aiming to be free cash flow positive “on exiting FY23”.

Tyro share price snapshot

In the last 12 months, Tyro shares are down 71%.

The post Tyro Payments shares surge as gross profit lifts 34% in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Tyro Payments. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Tyro Payments. 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 Adore Beauty Group Ltd (ASX: ABY) share price is sinking after the company posted its earnings results for financial year 2022 (FY22).

The online retailer’s shares opened in the red before tumbling to an intraday low of $1.55 apiece, marking a 15.7% fall.

They have since regained some ground. The Adore Beauty share price is currently $1.71, 7.07% lower than its previous close.

Adore Beauty share price sinks despite posting $200m revenue

Here are the key takeaways from the online beauty retail pureplay’s FY22 results:

• Revenue came to $200 million – an 11% increase on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) slumped 30% to $5.3 million
• EBITDA margin of 2.7%
• After-tax profit lifted 181% to around $2.4 million
• Basic earnings per share (EPS) came to 2.53 cents
• Active customers increased 7% to 872,000.

FY22 saw Adore Beauty push forward with longer-term strategic initiatives, driving its topline growth.

Its mobile app contributed 7.7% of its revenue in the first quarter. That figure had doubled to 15.5% by the final quarter. Additionally, its loyalty members accounted for 60% of revenues in FY22.

The company ended the period with $29.8 million of cash and no debt. Its inventory levels are slightly higher than the pcp in a bid to support growth.

What else happened in FY22?

The Adore Beauty share price tumbled 75% over the course of FY22.

Meanwhile, it launched its own skincare brand Viviology. Sales in the first month of its launch exceeded internal expectations.

What did management say?

Adore Beauty CEO Tennealle O’Shannessy – who will step down from the role in February – commented on the company’s full-year results, saying:

FY22 has been another successful year for Adore Beauty, one in which we delivered record revenue, multiple record trading days, and strong growth across key customer metrics, while continuing to re-invest in the business.

Our changing active customer base now has a higher proportion of returning than new customers, with subscription-like retention rates after just two years on the platform.

Our investments in strategic priorities are contributing to improved customer retention and lifetime value, and will drive sustainable, long-term growth as online adoption in Australia’s beauty and personal care market catches up to the UK, USA, and China. The online leader in each of these markets has taken a disproportionate share of growth as e-commerce penetration increases. As Australia’s incumbent, we are best placed to grow customers, revenue, and margins as our market matures.

What’s next?

Adore Beauty’s FY23 outlook is likely weighing on its share price today.

It warned it’s cycling off a period of significant growth in the first half of FY22, leaving growth comparisons volatile.

That’s reflected in the company’s revenue for the first seven weeks of FY23, which has slipped 28% on that of the pcp. Adore Beauty expects to post double-digit revenue growth for the second half of FY23 as it finishes cycling COVID-19 lockdown growth.

It also warned its facing inflationary pressures and subdued consumer sentiment. It’s working to implement cost control measures as a result.

Given such impacts, the company doesn’t expect to achieve an EBITDA margin of between 2% and 4% in FY23. Though, it expects to remain profitable and return to its targeted EBITDA margin range in FY24.

Adore Beauty share price snapshot

It’s certainly been a rough 12 months for the Adore Beauty share price.

It has fallen 57% since the start of 2022. It’s also currently 64% lower than it was this time last year.

For context, the All Ordinaries Index (ASX: XAO) has dumped 9% year to date and 7% over the last 12 months.

The post Adore Beauty share price plunges 7% despite profit boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. 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 All Ordinaries Index (ASX: XAO) is having a rough start to the week.

Following a negative lead from US markets, the All Ords index is down 1.7% at the time of writing.

But some ASX All Ords shares are falling more than most.

Here are three All Ords shares going ex-dividend today. 

Shares in these companies are no longer trading with an entitlement to the latest dividend payment. 

So, on top of the broader market decline, this is putting even more downwards pressure on their share prices today.

Worley Ltd (ASX: WOR)

Worley shares are trading today without an unfranked final dividend of 25 cents.

At the time of writing, Worley shares have tumbled by 5.5% or 85 cents.

The industrial engineering solutions company recently reported its FY22 results, keeping dividends steady as revenue climbed 2% to $9.7 billion.

Investors holding Worley shares at the closing bell on Friday should see the payment come through on 28 September.

Worley declared total FY22 dividends of 50 cents, in line with the prior period. This spun up a trailing dividend yield of 3.2% when the market closed on Friday. 

Ingenia Communities Group (ASX: INA)

Ingenia is another ASX All Ords share going ex-dividend today, with shares down 4.9% or 22 cents at the time of writing.

The ASX property group released its FY22 results last week, declaring an unfranked final dividend of 5.8 cents.

This takes the company’s full-year payout to 11 cents, up 5% compared to the dividends seen in FY21.

If you held Ingenia shares when the market closed on Friday, keep your eyes peeled for the payment to land in your account on 22 September.

Ingenia shares closed on Friday with a trailing dividend yield of 2.4%.

Hansen Technologies Limited (ASX: HSN)

Finally, ASX All Ords share Hansen is also trading without its partially franked final dividend today.

At the time of writing, Hansen shares have dropped 3.6% or 18 cents.

Hansen handed in its FY22 results last week, maintaining a final dividend of 5 cents, 30% franked.

The company has pencilled in the payment date for 21 September.

Across the financial year, Hansen declared record total dividends of 12 cents. This put Hansen shares on a trailing dividend yield of 2.4% at Friday’s close.

The post 3 ASX All Ords shares going ex-dividend today appeared first on The Motley Fool Australia.

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• Ingenia share price slips despite record home settlements and 38% profit bump in FY22
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• Worley share price surges as FY22 revenue reaches $9.7b

Motley Fool contributor Cathryn Goh 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 Hansen Technologies. 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 Mineral Resources Limited (ASX: MIN) share price is falling today amid the company’s FY22 results.

The mining company’s share price is currently trading at $63.63, a 2.29% drop. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.77% today. The S&P/ASX 200 Materials Index (ASX: XMJ) is 2.26% in the red.

Mineral Resources is an iron ore and lithium producer. Let’s take a look at what the company reported to the market today.

Mineral Resources share price falls on profit drop

Highlights of Mineral Resources FY22 results include:

• Underlying net profit after tax (NPAT) fell 64% on FY21 to $400 million
• Statutory NPAT fell 72% to $351 million
• Underlying EBITDA dropped 46% to $1.024 billion
• Revenue slid 8% on FY21 to $3.4 billion
• Operating cash flow of $344 million
• Fully franked final dividend of $1, down 42.8% from $1.75 in 2021
• Diluted earnings per share (EPS) of 184.87 cents per share

What else did the company report?

Underpinning the drop in earnings was the sharpest iron ore price in history and a broadening of discounts.

On a positive note, Mineral Resources delivered “a strong second half performance” on the back of record lithium prices. Spodumene concentrate from Mt Marion was converted into lithium hydroxide.

A jump in working capital from the restart of Wodgina and higher receivables amid the higher lithium pricing contributed to a 79% drop in the operating cash flow.

Mineral Resources shipped a record 19.2 million tonnes of iron ore in FY22. The Mining Services division produced a record 274Mt.

Looking at lithium, joint venture partner Ganfeng approved the next stage of the Mt Marion expansion to 900,000 tonnes per annum.

This was the first earnings that Mineral Resources reported lithium hydroxide production.

Management comment

Commenting on the results, managing director Chris Ellison said he is incredibly proud of what the Mineral Resources team delivered. He added:

Against the headwinds of iron ore price and inflationary cost pressures and the pandemic still affecting our everyday operations, we achieved the second-best financial performance in our history while investing in major development projects that will set us up for the next 30 to 50 years.

MinRes began building a world-class, long-life lithium business in Western Australia more than a decade ago. Our foresight and investment are starting to bear fruit – today, we already are the largest ASX-listed spodumene concentrate producer and one of the first to derive earnings from lithium hydroxide.

What’s else

Today, Mineral Resources announced Red Hill Iron Joint Venture parties have made a final investment decision on the Onslow Iron Project in Western Australia. Mineral Resources has a 40% stake in this project, while API Management Pty Ltd (APIM) has a 60% stake.

Stage one will target a yearly capacity of 35 Mtpa. Mineral Resources will continue as manager of the joint venture. In return for a $1.3 billion capital expenditure, Mineral Resources will earn an extra 17% participating interest in the joint venture. Iron ore shipment is targeted for early 2023.

Mineral Resources share price snapshot

The Mineral Resources share price has jumped 16% in the past year, while it has climbed 7% in the year to date.

In the past month, Mineral Resources shares have leapt 13%.

For perspective, the benchmark ASX 200 Materials Index has lost 0.04% in the past year and 1.58% in the year to date.

The post Mineral Resources share price slides as dividend drops 43% appeared first on The Motley Fool Australia.

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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 Silver Lake Resources Limited (ASX: SLR) share price is in the red after the company announced a drop in profits even as sales increased in FY22.

Shares in the Australian and Canadian gold miner are down 3.52% to $1.3025 at the time of writing. By comparison, the All Ordinaries Index (ASX: XAO) is also 1.75% lower in morning trade.

It isn’t only Silver Lake’s FY22 result that’s weighing on its shares. The 0.2% dip in the gold price to US$1,747 an ounce and the broader market sell-off is also weighing on ASX gold shares today.

Let’s take a closer look at the company’s FY22 details below.

Summary of Silver Lake’s FY22 results

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $267.6 million (-8% vs FY21) at an EBITDA margin of 42% (-13% vs FY21)
• Net profit after tax (NPAT) of $77.7 million (-21% vs FY21)
• Gold produced 256,538 ounces (+3% vs FY21)
• Averaged realised gold price A$2,482 an ounce (+7% vs FY21)
• All in sustaining cost (AISC) A$1,756 (+18% vs FY21)

Silver Lake’s FY22 results highlights

Management blamed the drop in earnings and profits on increased depreciation and amortisation. It also mentioned non-cash mining costs associated with the treatment of stockpiles at Mount Monger and the inclusion of the Sugar Zone operation post 18 February 2022 to explain the year-over-year (yoy) movement in its financials.

Inflationary pressure also weighed on margins, but management pointed to the resilience of its Western Australian operations where free cash flow increased 20% yoy to $89.2 million.

A new processing circuit and a second high grade ore source was introduced at its Deflector gold-copper mine in WA. This led to a 24% increase in production and a 19% lift in sales.

The miner took advantage of Silver Lake’s share price volatility during FY22 as it bought back shares on market. Silver Lake can purchase up to 10% of its ordinary shares through to 23 February 2023.

What management is saying

Silver Lake said in its ASX announcement:

Silver Lake executed several operational and strategic objectives through FY22. Our business demonstrated a high level of resilience to manage the prevailing operating climate and allowed Silver Lake to strengthen its operations and the growth outlook, in parallel with the commencement of capital returns to shareholders.

Outlook

The miner gave a positive outlook for FY23 but noted that cost pressures will rise. It is forecasting sales of 260,000 to 290,000 ounces at an AISC of A$1,850 to A$2,050 per ounce.

Silver Lake’s total gold sales in FY21 was 255,994 ounces. The midpoint of its FY23 sales guidance represents a 9% yoy sales growth on an absolute basis and 6% growth on a sales per share basis.

The contribution from the newly acquired Harte Gold Corp and its Sugar Zone mine in Canada will undoubtedly help.

Silver Lake share price snapshot

The Silver Lake share price has held its value relatively well over the past year as it only dipped 4% before today’s trade.

In contrast, its larger peers have fared worse. The Newcrest Mining Ltd (ASX: NCM) share price has tanked 27% and Northern Star Resources Ltd (ASX: NST) share price lost 22% over the period.

This compared to a 6% decline in the All Ordinaries over the past year to last Friday.

The post Silver Lake share price tumbles on weaker FY22 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has positions in Newcrest Mining Limited. 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted share after its short interest rose to 15.2%. With living costs rising and squeezing budgets, short sellers appear to believe the travel market recovery could falter.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.8%. Last week this betting technology company posted a 371% increase in revenue to $91.7 million but a whopping $89.2 million loss.
• De Grey Mining Limited (ASX: DEG) has leapt into the top ten out of nowhere after its short interest surged to 11%. Short sellers seem to believe the market is too optimistic on the development of the Mallina Gold Project.
• Block Inc (ASX: SQ2) has short interest of 10.8%, which is down slightly week on week once again. However, the remaining short sellers will be pleased to learn that the payments company’s shares are expected to crash lower on Monday following a selloff on Wall Street.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.6%, which is down slightly week on week. This infection prevention company’s shares sank deep into the red last week after the release of a disappointing result. Rising costs and delays to a new product launch weighed on sentiment.
• Lake Resources N.L. (ASX: LKE) has short interest of 10%, which is flat week on week. Short sellers aren’t giving up on this lithium developer despite a significant rally recently. There are doubts over the validity of its DLE technology.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.6%. Short sellers will have been pleased to see this buy now pay later provider’s shares tumble last week after it reported another large loss.
• Inghams Group Ltd (ASX: ING) has short interest of 8.4%, which is up week on week. Short sellers have been loading up on this poultry company’s shares after the release of a disappointing result driven by higher input costs.
• Regis Resources Limited (ASX: RRL) has short interest of 8.3%, which is down week on week again. Production issues have been weighing on this gold miners shares this year.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 7.7%. Concerns over this network as a service provider’s valuation could be behind this high level of short interest. Based on Macquarie’s estimates, Megaport’s shares trade at ~88x FY 2024 earnings.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• BetMakers share price pops then drops as full-year revenue leaps 370%

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 Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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 Fortescue Metals Group Limited (ASX: FMG) share price is losing ground on Monday morning.

This comes as the company just released its full-year results for the 2022 financial year.

At the time of writing, the mining giant’s shares are down 0.96% to $19.68.

Fortescue share price retraces amid dividend cut

• Record shipments of 189 million tonnes, exceeding the top end of guidance
• Total revenue down 22% to US$17,390 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 36% to US$10,561 million
• Net profit after tax (NPAT) down 40% to US$6,197 million
• Earnings per share (EPS) down 40% to US 201 cents
• Final dividend down 43% to A$1.21 per share, fully franked
• Strong balance sheet with cash on hand of US$5.2 billion at 30 June 2022

What happened in FY 2022?

For the 12 months ended 30 June, Fortescue achieved record annual shipments of 189 million tonnes, exceeding the top end of guidance. This was driven through the integration of the Eliwana mine and rail project, combined with a consistent performance from existing operations.

The outstanding performance contributed to the second highest earnings and operating cash flow in Fortescue’s history.

However, revenue fell 22% to US$17,390 million due to a 26% reduction in price realisation to US$100 per dry metric tonne (dmt). In FY 2021, the average realised price for iron ore stood at US$135/dmt.

Fortescue linked this to steel demand and steel production curtailments, particularly in the first half of FY 2022. COVID-19 restrictions disrupting China’s steel demand as well as a weakening global economic outlook impacted the second half.

C1 costs averaged US$15.91 per wet metric tonne (wmt) for the year, which was 14% higher compared to the prior period. The increase in C1 costs reflected market inflationary pressures such as a disrupted labour market and an increase in energy and fuel costs.

Cash generated from operations came to US$10,515 million which represented a 37% decline over FY 2021. This was largely a result of lower underlying EBITDA.

At 30 June, Fortescue had US$5,224 million of cash on hand and US$1,025 million available under the revolving credit facility. Total debt was US$6,103 million, inclusive of US$755 million of lease liabilities.

The board declared a final dividend of A$1.21 per share for FY 2022, which is 43% lower than the $2.11 paid out in the prior comparable year.

What’s the outlook?

Looking ahead, Fortescue provided a guidance for FY 2023, stating the following:

• Iron ore shipments in the range of 187 million tonnes to 192 million tonnes
• C1 costs for hematite between US$18.00 to US$18.75 (based on assumed average exchange rate of AUD: USD 0.70)
• Capital expenditure (excluding Fortescue Future Industries) of US$2.7 billion to US$3.1 billion
• Fortescue Future Industries expenditure is anticipated to be around US$600 million to US$700 million

Fortescue CEO Elizabeth Gaines briefly touched on Fortescue’s outlook, saying:

We have experienced a strong start to FY23 and through operational excellence, a sustained focus on productivity and a disciplined approach to capital allocation, we will continue to deliver benefits to all our stakeholders

Fortescue share price snapshot

The Fortescue share price has risen by 3% in 2022 but is flat when looking over the last 12 months.

The post Fortescue share price backtracks as final dividend is slashed by 43% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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• Here are the top 10 ASX 200 shares today
• Fortescue share price rises ahead of Monday’s earnings result

Motley Fool contributor Aaron Teboneras 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 Lovisa Holdings Ltd (ASX: LOV) share price is in the green after the jewellery retailer released its earnings for financial year 2022 (FY22).

After opening 6% higher at $19.80, the Lovisa share price is currently $19.92, 6.7% higher than its previous close.

Lovisa share price rises as dividend doubled

Here are the key takeaways from the company’s earnings for the 53 weeks ended 3 July:

• Revenue came in at $458.7 million – a 59.3% improvement on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 61.6% to $97.2 million
• Net profit after tax (NPAT) rose 116.3% to $59.9 million
• Earnings per share (EPS) increased to 55.7 cents
• Declared a 37 cent, 30% franked final dividend – more than double that of FY21, bringing full-year dividends to 76 cents

Lovisa’s comparable store sales also lifted 19.9% in FY22 on those of the pcp despite COVID-19-induced store closures in Australia, New Zealand, and Malaysia early in the period. Meanwhile, its e-commerce sales grew 30%.

In response to rising inflation, the company implemented price increases in the third quarter. That delivered sales growth with minimal impact to volumes.

It ended the period with $24.2 million of net cash.

What else happened in FY22?

Sadly, the Lovisa share price slumped 11% over the course of FY22 despite posting a 12% gain on the back of its half-year earnings.

The retailer also bid goodbye to its former CEO of 12 years Shane Fallscheer last financial year. He was succeeded by Victor Herrero.

Finally, the company opened 104 new stores and closed 19 during the period, entering new markets in Poland and Canada, as well as new franchise markets in Cyprus and Lebanon.

What did management say?

Herrero commented on the company’s earnings, saying:

I’m thrilled with the acceleration in the performance of the business over this financial year. I would like to thank the team for helping to deliver a seamless transition for me into the business and remaining laser-focused on the continuing success of Lovisa globally. The financial result the team have been able to achieve this year is very pleasing, with the business continuing to go from strength to strength and well placed to take advantage of future opportunities as they arise.

What’s next?

The company didn’t provide any new earnings guidance today. Though, it did provide a trading update for FY23 so far.

Its comparable store sales lifted 21% over the first seven weeks of this fiscal year on that of the pcp. Total store sales have also grown 66.1%, with the pcp having been impacted by lockdowns.

The company has also entered two new markets – Hong Kong and Namibia – since the end of last financial year.  

Lovisa share price snapshot

The Lovisa share price has outperformed the broader market in 2022.

It has sunk 4.5% since the start of the year and 1.4% since this time last year.

For comparison, the All Ordinaries Index (ASX: XAO) has dumped 7% year to date and 6% over the last 12 months.

The post Lovisa share price lifts as full-year profit surges 116% appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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 Aussie Broadband Ltd (ASX: ABB) share price has plunged in early trade after the company released its 2022 financial year results on Monday morning.

No doubt caught up in the general sell-off of growth shares after United States Federal Reserve chair Jerome Powell’s comments over the weekend, at the time of writing Aussie Broadband shares are down 18.47% to $2.56.

What did the company report?

• Record revenue, up 56% to $546.9 million
• Record earnings before interest, taxation, depreciation and amortisation (EBITDA), up 107% to $39.4 million
• Net profit after tax (NPAT) up 118% to $5.3 million
• Total broadband connections up 46% to 584,793
• NBN broadband market share (excluding satellite) up from 4.74% to 6.46%

What else happened in FY22?

The big event for Aussie Broadband was its acquisition of IT solutions provider Over the Wire Holdings Ltd, which was also formerly listed on the ASX. That $344 million deal wrapped up in March.

Aussie Broadband also continued building out its own dark fibre network, which gives it independence from the larger wholesale telcos. That project is 90% complete, according to Monday’s financial report.

What did management say?

Aussie Broadband co-founder and managing director Phillip Britt said:

I am extremely proud of the work the whole team has put in to deliver these outstanding results. We have achieved strong growth in revenue, earnings and market share, and are well positioned to achieve our goal of becoming Australia’s fourth largest communications company providing a full suite of solutions across enterprise, wholesale, residential, and government sectors.

Aussie has come a long way from our early days as a residential internet service provider. Today we are growing a complete communications and technology solution across multiple market sectors. This enables us to develop closer relationships with a broader range of customers while also driving increased profit margins. 

What’s next?

Aussie Broadband has forecast 2023 financial year revenue to fall between $800 and $840 million. 

After growth in enterprise and government clientele plus full integration of Over The Wire, the EBITDA margin will be around 10% to 10.5%, which is up from 7.2% for the 2022 financial year.

Aussie Broadband share price snapshot

Like most technology shares, the journey for the Aussie Broadband share price has been on a stomach-churning ride this year.

The stock has more than halved since mid-April, and is down 46% since the start of 2022.

The post Aussie Broadband share price plummets 18% despite record revenue, earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

A big drop sent the Dow down more than a thousand points

Market participants have been concerned for weeks about what Federal Reserve Chair Jerome Powell might say at the central bank’s annual symposium in Jackson Hole. Apparently, they were quite discouraged by what they heard, as Powell restated the Fed’s determination to push interest rates as high as they needed to go in order to ensure that inflationary pressures don’t become permanently entrenched in the US economy. For those who had hoped for a more dovish response, that was bad news, and the Dow Jones Industrial Average (DJX: .DJI -3.03%) ended the day down more than a thousand points. Percentage drops for the S&P 500 (SP: .INX) and Nasdaq Composite (NASDAQ: .IXIC) were also in the 3% to 4% range.

Index	Daily percentage change	Daily point change
Dow	(3.03%)	(1,008)
S&P 500	(3.37%)	(141)
Nasdaq	(3.94%)	(498)

Data source: Yahoo! Finance

Among large-cap stocks, there were only a handful of gainers as most share prices followed the broader market lower. Some now fear that the rebound that the market saw from mid-June to about a week ago may well prove to have been only a bear market rally, with today’s downward move reestablishing a bearish trend that could take market indexes far lower.

There’s no way to predict short-term price movements in the stock market. However, efforts to fight inflation, if successful, should result in better long-term results for investors than if the Fed simply backed off and allowed higher price trends to become a permanent feature of the US economy.

Stubborn inflation

The big question still facing investors is whether inflation has peaked. Many of those watching economic data were pleased to see the upward moves in the Consumer Price Index (CPI) and the Personal Consumption Expenditures Price Index (PCE) start to moderate recently. However, just because inflation has stopped accelerating doesn’t mean that it’s under control.

The latest numbers from the Bureau of Economic Analysis on the PCE tell the story well. The headline number that most people emphasised was that the price index fell 0.1% in July, with goods prices falling 0.4%.

However, looking more closely at what goes into the PCE price index gives a more complete picture. Much of the downward pressure on the index came from a 7.7% drop in the sub-index for gasoline and other energy goods. That by itself was enough to send nondurable goods prices down half a percent, even as food and beverage prices jumped 1.3% month over month.

Some other key components showed continued rises. Housing and utility costs were up 0.6% for the month, extending their gain over the past 12 months to 7%.

Perhaps most importantly, even larger declines in a single month wouldn’t by themselves reverse adverse trends. Energy costs are still more than 45% higher than they were this time last year. Food and beverages are up nearly 12% year over year, and even when you exclude food and energy, core PCE prices are up 4.6% since July 2021 — more than double the 2% target that the Fed pursues.

Is a recession worth long-term prosperity?

Investors worry that a prolonged set of interest-rate increases from the Fed will push the economy into recession and restrain business activity. If that view from the Fed was unexpectedly hawkish, then it could leave stock market participants facing downward revisions on earnings estimates that could send stock prices lower once again.

In the long run, though, the impact of inflation on stock prices historically has been more difficult to overcome than short-term business cycle fluctuations. When you look back at recent bouts of inflation in the 1970s and early 1980s, for instance, you’ll notice significant volatility in stock markets that led to subpar returns. Only when inflationary pressures were resolved did solid bull markets result, and the long bull markets of the 1990s, mid-2000s, and 2010s all came in economic environments with little or no inflation.

It’s indeed possible that a central bank with tight monetary policy might bring short-term pain to the stock market and an end to what might materialise as a bear market rally. However, I believe investors will be happier with this outcome in the long run than they would be with sustained inflation and the complications that come with it.

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

The post Did the Fed just kill the bear market rally? appeared first on The Motley Fool Australia.

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Dan Caplinger 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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