The Wesfarmers Ltd (ASX: WES) share price is lifting after a rocky start to Friday’s session following the release of the S&P/ASX 200 Index (ASX: XJO) giant’s full-year earnings.

That’s despite brokers’ seemingly positive response to its financial year 2022 (FY22) performance.

The Wesfarmers share price opened 1.2% higher at $48.20 this morning before plunging to a low of $46.70, marking a 2% tumble.

It’s since recovered to trade 1.66% higher at $48.43 at the time of writing.

Let’s take a look at how brokers are responding to the retail company’s FY22 earnings.

Wesfarmers share price overcomes rocky start on Friday

The Wesfarmers share price is lifting after a rough start to the session. Its wobbly performance comes on the back of news the company’s revenue surged in FY22 while its profits sunk.

As The Motley Fool Australia reported earlier, the conglomerate behind Bunnings, Kmart, and Officeworks posted a $1 fully franked final dividend.

E&P analyst Phil Kimber dubbed the results “positive”, The Australian reports, saying the company’s $3.6 billion of earnings before interest and tax (EBIT) surpassed the $3.4 billion consensus estimate.

The expert was quoted as predicting expert consensus upgrades of between 3% and 5% following the result’s release.

Meanwhile, Barrenjoey’s Tom Keirath reportedly labelled the company’s earnings “strong” and its FY23 outlook “bullish“.

Wesfarmers said the first seven weeks of FY23 had brought robust retail trading conditions. It has also seen strong sales growth in some of its key retail business over the period.

On top of its results, it revealed its found indications of historical payroll errors in its recently acquired API business. The company said:

API has commenced work to confirm any payment errors and identify affected team members in order to implement a remediation program as soon as possible.

The cost of remediation is not expected to impact reported earnings for the health division.

The post Wesfarmers share price lifts as earnings beat brokers’ consensus 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 positions in and has recommended Wesfarmers 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 Oz Minerals Limited (ASX: OZL) share price is remaining steady after the release of a half-year result lacking growth.

At the time of writing, shares in the copper and gold miner are trading 0.3% higher to $26.28.

What is the Oz Minerals share price reacting to?

• Net revenue down 8% from prior corresponding period to $908.6 million
• Copper and gold sales down 6% and 25% respectively
• Earnings before interest, taxation, depreciation and amortisation (EBITDA) down 36% to $358.3 million
• Net profit after tax (NPAT) down 59% to $109.2 million
• Closing cash at $107 million, down from $215.4 million at December 2021
• All-in sustaining cost (AISC) of US$1.91 per pound, up from US$1.36

What happened during the half?

Despite the relative strength of commodities in recent times, Oz Minerals made no secret that the latest half was a challenging period. Yet, investors seem to not be too worried as the Oz Minerals share price inches ahead.

According to the report, a confluence of factors combined during the six-month window. The effects led to a weaker result than was hoped in the first half. These headwinds included inflationary costs, adverse weather, and COVID-19 absenteeism.

In terms of operational developments, the Pedra Branca copper-gold mine at Carajás East in Northern Brazil reached full production in June. The mining hub produced 4,887 tonnes of copper and 3,657 ounces of gold throughout the half.

Additionally, progress was made in the Carrapateenna Province. While the focus was on cave expansion, management is expecting to soon flip the switch to focus on maximising ore production in the second half.

Notably, the team achieved a milestone of 100,000 tonnes of copper produced in April alone at Carrapateena. This could be feeding into the relative optimism around the Oz Minerals share price today.

What did management say?

In the face of a disappointing result, Oz Minerals chief executive Andrew Cole provided some uplifting commentary. Regarding the positive takeaways, Cole said:

The quality and high margin nature of our assets provided a healthy operating margin of 40% and robust operating cash flow during the half. We continue to invest in and advance our unique organic growth pipeline to take full advantage of the growing long-term demand for copper and nickel, driven by global electrification and accelerated decarbonisation.

Furthermore, shareholders might find solace in the fact that Oz Minerals will still pay a dividend. However, the interim payment of 8 cents per share fully franked is half of what was dished out a year ago.

What’s next?

A major component of mining profits comes down to the costs associated with receiving the ore. This might explain why shareholders are more forgiving of the Oz Minerals share price today. Importantly, management expects AISC to moderate, reaching a range of US$1.60 to US$1.80 per pound.

Additionally, copper production is expected to be between 120,000 to 135,000 tonnes. While gold production is slated to come in at between 208,000 to 230,000 ounces.

Interestingly, no mention was made of the recent takeover bid lobbed its way from BHP Group Ltd (ASX: BHP).

Oz Minerals share price snapshot

The Oz Minerals share price has been an outperformer of the S&P/ASX 200 Index (ASX: XJO) over the past 12 months. However, that probably wouldn’t be the case if not for the recent BHP bid.

Prior to the $25 per share offer, Oz Minerals shares were down 18% from a year ago

The post Oz Minerals share price holds tight as profits plummet 60% appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 PeopleIn Ltd (ASX: PPE) share price is surging this morning following the release of the company’s FY22 earnings results.

At the time of writing, the PeopleIn share price is up 11.6% at $3.74 after spiking 17.6% off yesterday’s close to a high of $3.94 in earlier trading.

Revenue and profit growth in FY22

Key takeouts from the workforce management company’s year include:

• Revenue of $682.4 million, up 53.6% on FY21’s result
• Organic revenue growth contribution of 15.9% for the year
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $47.2 million, a gain of 23.9% year on year
• Normalised net profit after tax and before amortisation (NPATA) of $31.9 million, a gain of 27.7%
• Normalised NPATA per share of 32.3 cents, up 19.8%
• Dividends per share for the full year FY22 of 13 cents

What else happened?

PeopleIn recognised growth throughout its FY22 income statement, with a particularly strong gain in revenue, up nearly 54% year on year.

The company said that its business growth in FY22 stemmed from higher demand for
staffing services, as business operating levels shifted higher than before COVID-19.

In addition, acquisitions of Vision Surveys QLD Pty Ltd and GMT Group in 2021, alongside Perigon Group and FIP Group in 2022, were also accretive to both revenue and earnings.

PeopleIn also declared a fully-franked final dividend of 6.5 cents per share, representing an 8% increase on the final dividend in FY21.

Management commentary

Speaking on the announcement, CEO Ross Thompson said:

Operating conditions continue to be positive for PeopleIN given the strength of the employment market and unprecedented demand from clients for employees. Based on the operating results for the financial year and current economic conditions continuing, PeopleIN expects strong organic growth performance to continue in FY23.

The number and diversity of our clients, and critical demand for their services, mean that our core business is resilient even in the event of economic uncertainty. Our strategy has always been to focus on growing in sectors that are defensive and have long term demand for talent.

PeopleIn share price snapshot

In the past 12 months, the PeopleIn share price has slipped 11% into the red. Despite this, it has surged more than 17% in the last month of trade and lifted a further 10% this week.

The post PeopleIn shares spike 17% as earnings come in above guidance for 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 Peoplein. The Motley Fool Australia has recommended Peoplein. 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.

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

Amazon (NASDAQ: AMZN) reported better-than-expected second-quarter earnings on July 28, beating multiple forecasts set by Wall Street. The company’s shares soared 24% from July 26 to Aug. 18 as bullish investors put their faith in it.

However, Amazon’s stock still has room for growth, with two of its recent acquisitions looking especially promising.

Genius reason No. 1: 

Amazon went on an acquisition spree between July and August, with its first purchase being subscription-based healthcare company 1Life Healthcare (NASDAQ: ONEM), known as One Medical, for approximately $3.9 billion. The buyout will see Amazon venture into healthcare, an industry the company has been eyeing for some time. The acquisition might be a match made in heaven, considering One Medical’s mission and Amazon’s unique resources, which will undoubtedly boost the company. 

As described in Amazon’s press release on the acquisition, “One Medical combines in-person care in inviting offices across the country with digital health and virtual care services.” Telehealth services soared in popularity throughout the worst of the pandemic, with virtual healthcare company Teladoc Health‘s stock seeing a significant rise. However, the health stock’s nosedive of 65.4% year to date could be Amazon’s gain. 

If the purchase is successful, Amazon will take control of One Medical’s almost 200 locations and roughly 770,000 patients nationwide — a significantly larger reach than Teladoc. Additionally, Amazon has the chance to incorporate its own technologies, such as unmatched delivery infrastructure and an established subscription service with over 200 million members worldwide. Breaking into the healthcare industry might not come easy, but it seems that Amazon is more than capable of succeeding in its health endeavors. 

Genius reason No. 2: 

On Aug. 5, Amazon announced plans to acquire consumer robotics company iRobot (NASDAQ: IRBT), the result of a deal valued at approximately $1.7 billion. Compared to One Medical, the purchase is arguably less risky and fits nicely into the company’s current product lineup. 

Amazon has gradually pushed into the smart-home industry over the years with its line of Alexa-enabled products, such as smart speakers, alarm clocks, thermostats, and security cameras. In addition to iRobot’s incredibly popular robot vacuums, Amazon’s purchase of the company also brings on its team of consumer robotic experts who have the potential to boost the company’s range of smart products as a whole and strengthen its hold on the growing industry.

Moreover, Amazon has turned Alexa into a multibillion-dollar business through its smart devices and app store, called Alexa Skills. Developers have flocked to create various Alexa Skills, from which Amazon keeps 30% of the profits. In 2019, analysts estimated Amazon generates $2 billion a year from Alexa skills, with the company keeping $600 million. The acquisition of iRobot only increases the variety of smart products and Alexa Skills the company could offer, which could pay off in a big way for Amazon. 

An opportunity for investors

Although Amazon’s stock has soared since July, it still remains down at least 24% since the height it reached in November 2021. In addition to its recent acquisitions, the company has several promising opportunities on the horizon that should excite investors. Amazon’s advertising endeavors have proven especially fruitful for the company as the segment has generated $33.9 billion of revenue over the last four quarters, and the company is getting ready to dive deeper into the industry.  

Amazon has some exciting developments coming to its streaming service Prime Video in September, such as exclusively broadcasting NFL’s Thursday Night Football and the premiere of its highly anticipated Lord of the Rings series, The Rings of Power. Both content additions have the potential to pull in millions of viewers, while Thursday Night Football can also further the company’s already successful advertising endeavors. 

Amazon has a bright future ahead, and investors should be bullish about its stock as its promising outlook makes it an excellent long-term buy. 

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

The post 2 genius reasons to buy Amazon stock today appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Teladoc Health, and iRobot. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and iRobot. The Motley Fool Australia has recommended Amazon and iRobot. 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.

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The Austal Ltd (ASX: ASB) share price is sliding during morning trade on Friday following the release of the company’s FY22 earnings results.

At the time of writing, the Austal share price is fetching $2.61 apiece after sliding nearly 2% lower from the open.

Austal revenue, profit declines from FY21

Key takeouts from the company’s earnings result include:

• Revenue of $1.43 billion, down 9.1% year on year from $1.57 billion
• Earnings before interest and tax (EBIT) of $120.7 million, up 5.3% year on year
• Net profit after tax (NPAT) of $79.6 million, down 1.8% from last year’s $81.1 million
• Dividend of 4.0 cents per share declared, unfranked, bringing total year dividend to 8 cents
• EBIT guidance for FY23 of around $100 million

What else happened in FY22 for Austal?

For the 12 months to June 30 2022, Austal generated $1.43 billion in revenue and EBIT of $120.7 million, a decrease and increase of 9% and 5% respectively.

Austal states the decline in revenue is mostly attributed to reduced throughput as the Littoral Combat Ship (LCS) programme continues to mature through to FY25.

The company announced in July that it had secured a contract for the design and construction of up to 11 ‘Offshore Patrol Cutters’, commissioned by the US Coast Guard.

“Even though the Award had no impact on Austal’s FY2022 operational performance, it positively
impacted various cost assumptions, such as Estimates at Completion (EAC) and labour utilisation as
at 30 June 2022,” the company said.

Management commentary

Speaking on the announcement, Austal Chief Executive Officer, Paddy Gregg said:

Austal is successfully delivering on its core strategic initiative to transition beyond these maturing programmes.

Our investment in steel capability is already paying off and combined with our deep track record of
operational excellence in aluminium, we are optimally positioned to achieve diversified, long-term and
sustainable growth.

We have a significant orderbook and our enhanced operational capabilities supported by a strong
balance sheet give us further potential to grow across both the USA and Australasia.

What’s next for Austal?

Austal notes it enters FY2023 with an order book of approximately $7 billion, which is the largest in the company’s history.

This is underscored by the US Coast Guard’s, which is worth up to $4.35 billion. With these points in mind, the company provided EBIT guidance of $100 million for FY23.

Austal share price snapshot

Austal shares are up more than 33% in the past 12 months.

The post Austal share price slides as revenue, profit contract 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 Austal Limited. 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 Lynas Rare Earths Ltd (ASX: LYC) share price is up 2.13% in late morning trade, having earlier posted gains of 5.8%.

Lynas shares closed yesterday trading for $8.92 and are currently trading for $9.11.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) rare earth producer’s full-year results for the 12 months ending 30 June (FY22).

And there’s certainly plenty of ASX investor interest today, with more than $32 million worth of trades having gone through within the first hour of trading.

So, why are investors bidding up the Lynas share price today?

What’s piquing ASX investor interest?

As the only substantial producer of rare earths outside China, Lynas has seen strong demand from the United States and other nations looking to secure sources of the critical minerals outside of the Middle Kingdom.

Today, the Lynas share price is marching higher as investors eye FY22 revenue of $920 million, an 88% year-on-year leap.

And profits were way up from FY21 as well, with net profit after tax (NPAT) rocketing 244% to $540.8 million.

While the ASX 200 rare earths producer didn’t offer specific guidance for FY23, Lynas did highlight its ongoing growth plans, stating:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.

With cash on hand as at 30 June of $966 million, Lynas arguably looks to be in a strong position to pursue those growth ambitions.

Lynas share price snapshot

Despite a sharp retrace in 2022, the Lynas share price remains up by around 37% over the past 12 months. That compares to a full-year loss of around 5% posted by the ASX 200.

Longer term, Lynas shares have gained 443% over five years, smashing the 24% return delivered by the benchmark index.

The post Lynas share price lifts off on rocketing FY22 profits appeared first on The Motley Fool Australia.

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

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The Jumbo Interactive Ltd (ASX: JIN) share price is edging higher today following the release of the company’s full-year results.

At the time of writing, the lottery ticket seller’s shares are up 5.88% to $14.77.

Jumbo share price climbs amid double-digit growth

Jumbo delivered its FY2022 results for the 12 months ended 30 June 2022. Here are some of the key financial highlights:

• Total Transaction Value (TTV) up 36 % to $659.9 million
• Revenue up 25% to $104.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 13% to $55.1 million
• Underlying net profit after tax (NPAT) up 14% to $32.2 million
• Final dividend of 20.5 cents per share, fully franked, bringing the full year dividend to 42.5 cents per share, up 16%

What happened in FY2022?

Jumbo reported a robust result with all key metrics increasing by double-digits.

Group revenue surged by 28% on an underlying basis, underpinned by strong growth across all operating segments.

This included the lottery retailing segment, which registered a 26.7% increase in revenue to a record $91 million. Improved jackpots and customer activity drove the outstanding performance.

The software-as-a-service (SaaS) division experienced a 31.9% jump in revenue to $42.7 million. Jumbo stated that all SaaS clients were tracking well.

And lastly, the managed services business which predominantly reflects UK-based Gatherwell, soared 24.3% in revenue to $2.3 million. The company’s expanded international footprint via acquisitions of Stride and StarVale helped support this result.

On the back of achieving ongoing positive cash generation, the board declared a final, fully franked dividend of 20.5 cents per share. This translates to a dividend payout ratio of 85.6% of statutory NPAT.

The payment date for the dividend is on 23 September 2022.

In addition, Jumbo decided to further maximise shareholder value by undertaking an on-market share buyback of up to $25 million. This will be conducted on an opportunistic basis from next month.

What did management say?

Jumbo CEO and founder, Mike Veverka said:

We are pleased with the strong growth achieved in FY22 off the back of an improved jackpot cycle. FY22 was a pivotal year for Jumbo as we build the foundations to successfully execute our global growth strategy. Lottery Retailing is exceptionally well positioned to benefit from the ongoing shift to digital and the new OzLotto game launched in May 2022, while the integration of Stride and StarVale will build scale in our Managed Services and SaaS segments globally.

Veverka went on to talk about the company’s capital management, adding:

The strength of our balance sheet, strong cash generation profile of our business, debt headroom and flexibility from our revised dividend policy enables us to continue to invest in the business, provides capacity for further M&A and organic growth, and delivers shareholder returns through dividends and a share buy-back.

What’s the outlook for FY2023?

Jumbo didn’t provide any earnings or profit guidance for FY2022 but provided some insight on what lies ahead.

Cost of sales will be impacted by the increase in The Lottery Corporation service fee rising from 2.5% to 3.5%.

Marketing costs are expected to be in the range of 1.5% to 2% of Lottery Retailing TTV.

Excluding the impact of the Stride and StarVale acquisitions, group underlying operating cost growth is anticipated to moderate, with Jumbo targeting an increase of 20% to 22%.

This is expected to translate to an underlying EBITDA margin between 48% to 50%.

Jumbo share price snapshot

In the past 12 months, the Jumbo share price has fallen 10%.

The post Jumbo share price climbs following ‘strong growth achieved in FY2022’ appeared first on The Motley Fool Australia.

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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 positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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 Costa Group Holdings Ltd (ASX: CGC) share price is ripening this morning after the horticulture company delivered its half-year FY22 results.

Despite creeping lower when the market opened, the Costa share price is climbing 0.3% at the time of writing to $2.75.

Green shoots for the Costa share price as earnings grow

Here’s a high-level summary of Costa’s results for the half year ending 3 July 2022:

• Revenue came in at $708.7 million – up 16% compared to the prior corresponding period (pcp) of 1H21
• EBITDA before movement in biological assets and material items grew 13% on the pcp to $140.1 million
• Statutory net profit after tax (NPAT) edged 1% higher to $37.8 million
• Net debt stands at $328.2 million with leverage of 1.94x
• A fully franked interim dividend of 4 cents was declared

What else happened in FY22?

Costa’s performance in China was a standout, growing revenue by 34% as new plantings drove volume growth of 32%.

The company said this result reflected strong quality, demand, and higher pricing before major city COVID-19 lockdowns toward the end of the season.

Volumes in Morocco trickled 4% higher but revenue retreated by 16% on the back of delayed timing due to weather.

Back home, berry volumes increased by 10%, while revenue lifted by 12%. As you might have guessed from rising prices on the supermarket shelves, pricing was strong across all four berry types. The average sale price for premium berries jumped by 40%.

Turning our attention to tomatoes, the first crop from glasshouse 4 and the new nursery for the half led to a 38% rise in volume. Combined with positive pricing and demand, revenue grew by 28%.

The company’s citrus portfolio recorded a 40% jump in revenue. However, this was helped by the acquisition of 2PH. As the season has progressed, weather events have been impacting quality, volume, and pack-out rates across Costa’s three citrus growing regions in South Australia, Victoria, and Queensland.

The company had previously flagged this in a trading update in July, which sent the Costa share price reeling.

Finally, the company’s avocado category was impacted by a prolonged Western Australian crop and the lack of further export market access. Revenue went backwards by 16%.

Costa noted that the Australian and Japanese governments continue negotiating market access for avocados grown on the eastern seaboard.

What did management say?

CEO Sean Hallahan was pleased with the company’s first-half performance, saying:

Our long term growth strategy has come to the fore in the current uncertain economic environment, including our high quality of asset base, the scope and range of our protected cropping footprint, the successful deployment of new varieties which attract a price premium, a diversified portfolio and our market leading positions in high demand categories.

What’s next?

Looking ahead, here’s the outlook for the company’s core fruits and vegetables:

• Citrus: Positive volumes are expected to continue in the second half, but the extent of the impact of extreme weather conditions won’t be known until later in the season
• Domestic berry: Quality of early season protected berries is strong with season volume forecast in line with expectations
• Mushroom/Tomato: On a positive trajectory to perform favourably over the second half
• Avocado: Current pricing conditions are improving, but industry conditions are expected to remain challenging for the remainder of the year.

Costa share price snapshot

Costa’s share price performance has been a mixed bag so far this year. The Costa share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last month, growing by 11%.

However, the Costa share price has dropped 12% since the start of the year, underperforming the market.

Costa shares are currently trading on a 12-month trailing dividend yield of 3.2%, which bumps up to 4.6% with the benefit of franking credits.

The post Costa share price grows on fruitful first-half results appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended COSTA GRP 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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Ramsay Health Care Limited (ASX: RHC) shares are in a trading halt on Friday morning after the company released its 2022 full-year financials.

While no official indication for the halt was given, Ramsay managing director and chief executive Craig McNally reportedly mentioned in an investor call that a letter had been received from the consortium led by KKR regarding its acquisition proposal.

What did the company report?

• Revenue up 3.1% to $13.74 billion
• Earnings before interest and tax down 21.3% to $891.3 million
• Statutory profit down 39% to $274 million
• Final dividend per share down 52.9% to 48.5 cents
• Full-year dividend per share down 39.7% to 97 cents

What else happened in FY22?

Ramsay Health Care operates private hospitals and healthcare facilities, and saw its business plunge during COVID-19 lockdowns. Australia’s two largest cities, Sydney and Melbourne, both spent many months during the 2022 financial year repressing elective procedures.

The other big piece of news impacting Ramsay during the year came from a private consortium led by KKR & Co, which proposed to acquire the business at $88 per share. That deal, which values Ramsay at $14.8 billion, is a 20% premium to the halted price on Friday morning.

What did management say?

McNally said:

FY22 proved again the resilience of Ramsay’s people and business in the face of further severe disruption from COVID. I would like to thank our people and partners for continuing to work with us to support our patients, navigating the difficult operating environment while transitioning to the next phase of the pandemic.

What’s next?

The company did not make any specific group-wide forecasts on revenue, earnings or profit.

McNally said:

We have maintained our focus on the group’s medium to long term strategy continuing to invest to optimise our world class hospital network for future demand while entering into new and adjacent services. To support this we are investing in our digital and data road map, and have continued Ramsay’s long standing commitment to research and clinical trials. These investments place Ramsay in a strong position within the sector to benefit from the growth in demand for healthcare services over the medium to long term.

The company’s presentation stated:

In the near term, the industry continues to be under pressure from a high level of COVID cases in the community combined with the highly restrictive guidelines around the patient pathway together with the resultant impact on the availability of the workforce, impeding a recovery in volumes and productivity. 

Underlying earnings growth in FY23 will benefit from the additional capacity created over the last few years combined with full year contributions from Elysium and recent acquisitions in Europe. The focus will remain on driving the synergies, realising the growth opportunities and improving returns.

Ramsay Health Care share price snapshot

Ramsay shares were treading water before the KKR takeover proposal came along in April, still sitting 23.9% below their pre-COVID high.

The deal for $88 per share understandably put a rocket under the stock, although it has since settled back to $72.92, up 1.46% year to date.

After the latest update, Ramsay now hands out a dividend yield of 1.3%.

The post Ramsay shares halted after earnings slashed and takeover letter lands appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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 BetMakers Technology Group Ltd (ASX: BET) share price is on a rollercoaster this morning after the company released its earnings for the 2022 financial year (FY22).

The business-to-business (B2B) betting technology provider’s stock opened 1.2% higher a 41 cents before leaping to a high of 44 cents – marking an 8.6% gain.

The BetMakers share price has since plummeted 4.9% to trade in the red at 38.5 cents.

BetMakers share price soars despite losses deepening

Here are the key takeaways from the company’s full-year earnings:

• Revenue came to $91.7 million – a 371.1% increase on that of the prior corresponding period (pcp)
• Posted an after-tax loss of $89.2 million – 411.1% deeper than the pcp’s $17.4 million loss.
• Gross profit lifted 550% to $66.3 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $86 million loss – 374% deeper than the pcp’s $18.1 million loss
• Adjusted EBITDA, however, reached $2.2 million – up from a $2.9 million loss

The company’s three divisions each posted higher revenue in FY22.

Its global betting services brought in $40.6 million of revenue, up 179% year-on-year, while its global tote division saw $46.9 million of revenue, a whopping 2,719% improvement.

Finally, its global racing network business boasted $4.1 million of revenue – a 28% increase.

What else happened in FY22?

The biggest boost to the BetMakers share price last financial year came in April when the company announced its set to supply a new venture with wagering technology. The deal could bring in $300 million of revenue over its ten-year life.

Betmakers also revealed an on-market share buy-back in June and secured an agreement to provide tote technology services in Norway.

What did management say?

In a letter to shareholders released alongside BetMakers’ earnings, CEO Todd Buckingham said:

BetMakers achieved key milestones [in FY22] as it focussed on maximising revenue growth and executing on transformative deals in line with Australian and international strategic plans.

The performance across its three divisions … showed strong overall growth and re-enforced the position of BetMakers as a leading B2B wagering technology company within the global landscape.

The further development of proprietary technologies to service the global racing industry … has been supported by a targeted recruitment of key personnel for management and the board.

In establishing this world-class team across a wide international footprint, and together with the deals signed in FY22, I am especially pleased with the position it now places BetMakers to accelerate growth opportunities in each of its revenue divisions in FY23 and beyond.

What’s next?

The company didn’t provide any new earnings guidance today. However, Buckingham said it expected benefits of several recent deals would begin to flow in this financial year and beyond.

Its global betting services business is set to launch several wagering platforms in the coming 12 months. It’s expecting strong FY23 revenues.

BetMakers’ global tote business is expected to consolidate its gains in FY23 while setting the platform for FY24 and beyond.

Finally, the company expects its global racing network’s revenue to more than double in FY23 as it executes on opportunities.

BetMakers share price snapshot

The BetMakers share price has struggled through 2022 so far.

It has tumbled 51% year to date and 64% over the last 12 months.

For comparison, the All Ordinaries Index (ASX: XAO) has dumped 8% since the start of 2022. It’s also fallen 6% since this time last year.

The post BetMakers share price pops then drops as full-year revenue leaps 370% 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 positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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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