The Humm Group Ltd (ASX: HUM) share price has fallen straight into the red on Thursday. It appears the market is not taking a liking to Humm’s full-year FY22 results today.

At the time of writing, shares in the financial services company are down 2.7% to 54 cents. For context, the S&P/ASX 200 Index (ASX: XJO) has some spring in its step this morning, moving 0.6% higher.

Humm share price slips on underwhelming result

• Consumer finance volume up 13% on prior corresponding period to $2.4 billion
• Commercial and leasing volume up 103% to $1.1 billion
• Gross income down 1% to $440.4 million
• Cash net profit after tax (NPAT) down 25% to $51.1 million
• Statutory NPAT swinging to $170.3 million loss from $60.1 million profit
• Final fully franked dividend of 1.4 cents per share

The considerable statutory loss stemmed from a $181.2 million impairment expense. Specifically, management determined the fair value of its goodwill and software should be reduced.

What else happened in FY22?

While Humm garnered a greater amount of receivables in FY22, the company’s profitability suffered at the hands of its buy now, pay later (BNPL) segment. All of Humm’s various BNPL operations — aside from ‘Big Things AU’ — delivered a loss in the reporting period.

Unfortunately for shareholders, Humm was unable to unload the business to Latitude Group Holdings Ltd (ASX: LFS) earlier this year. Originally, the company was eyeing a consideration of $335 million for the consumer-focused division. However, on 17 June, both parties announced the termination of the sale agreement, weighing on the Humm share price.

On a brighter note, the commercial side of Humm is humming along. Unlike the consumer business, cash profits for commercial actually increased in FY22. The segment was responsible for a tidy $28.7 million in cash earnings, up 28.7% year on year.

What did management say?

Humm CEO Rebecca James discussed the company’s core focus during FY22, stating:

At the group level we are focused on our core business as a bigger ticket instalment financier across both our businesses. We have taken a disciplined approach and prioritised our strategic initiatives resulting in the closure of certain products and a focus on margin to ensure that we are in the strongest position to continue to grow our business in a profitable and competitive manner.

Furthermore, James listed some of the actions Humm has taken in light of the challenging operating environment, noting:

Humm Group is focused on margin management, already repricing portfolios to offset rising funding
costs. Enhancing operational leverage, during the second half Humm Group reduced marketing spend
and lowered the number of people employed in the business by 10%.

What’s next?

Looking ahead, management refrained from giving any revenue or earnings guidance. However, shareholders were informed that a further $15 million to $20 million of cost savings are being targeted in FY23.

Additionally, capital expenditure is expected to be tapered from $30 million to $18 million. Overall, management plans on taking a prudent approach to remain cash profitable moving forward.

Humm share price snapshot

As with most companies in the BNPL sector, the Humm share price has been dealt a blow over the past 12 months. Anyone holding Humm shares is now down 44% compared to where they would have been a year ago.

Based on the current Humm share price, the company holds a market capitalisation of $270 million.

The post Humm share price dips after profits tumble 25% appeared first on The Motley Fool Australia.

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

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

More reading

• Why is the Sezzle share price surging 8% on Wednesday?

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

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

Reporting season can be a great time for investors to get some insights into how businesses have been performing, management’s plans and what could happen next. And at the moment, I think that there are a handful of ASX tech shares that look very interesting at their current levels.

Not every technology business is automatically worth owning just because it operates in a certain sector.

However, I do think there are some attractive opportunities in that sector because of how quickly tech businesses can grow thanks to the intangible nature of what they offer customers or clients. ASX tech shares also have the potential to achieve good profit margins because of how cheaply software can be provided.

With that in mind, after seeing their reports, I really like the look of these two names:

ELMO Software Ltd (ASX: ELO)

This business provides cloud-based solutions for small businesses and mid-market organisations that help them manage people, processes, pay and expenses. It operates in Australia, New Zealand and the UK.

One of the attractive features of its business model is that it operates as a software as a service (SaaS) company, it receives recurring subscription revenue. This is helpful in several ways, including the visibility of cash flow and keeping clients onto its systems.

The FY22 result included plenty of growth. Revenue rose 32% to $91.4 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up from $6.5 million to $7.1 million. Annualised recurring revenue (ARR) rose 29% to $108.2 million. ELMO is expecting ARR to grow organically between 24% to 29% to a range of $134 million to $140 million.

It has a high gross profit margin of around 90% and the business seems like it’s scalable, meaning that its other profit margins can rise as it gets larger. The ASX tech share is expecting to be cash flow breakeven in FY23.

I think the business has a good opportunity of profitable growth in the coming years, particularly as it grows geographically, adds new modules and improves its margins.

Bailador Technology Investments Ltd (ASX: BTI)

In my opinion, this is one of the most interesting ASX tech shares on the stock exchange.

Bailador describes itself as a growth capital fund focused on the information technology sector. It invests in private tech companies at the ‘expansion stage’.

There are a number of characteristics that the Bailador investment team looks for: run by the founders, two to six years in operation, international revenue generation, “huge” market opportunity and the ability to generate repeat revenue.

It wants to have eight to twelve positions in its portfolio. Bailador currently has eight names in the portfolio, those are: Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), InstantScripts, Rezdy, Access Telehealth, Nosto, Mosh and Brosa.

Three of those positions are worth $10 million in the ASX tech share’s portfolio.

Siteminder, the biggest investment position in the portfolio, is a “world leader in hotel channel management and distribution solutions for online bookings.”

InstantScripts is a “digital platform enabling convenient access to high-quality doctor care and routine prescription medication.”

Rezdy is an online channel manager and booking software platform for tours and activities.

After selling its whole stakes in Instaclustr and SMI for around $140 million, it now has a large cash pile. I’m excited by what Bailador might do with this cash, aside from simply paying dividends.

Paul Wilson, the co-founder and managing partner of Bailador, said:

There remain a significant number of very high-quality expansion stage technology companies in Australia. Capital market movements don’t change that. The difference is that there is currently less capital chasing those companies, and valuations are more reasonable. This environment gives us the opportunity to get access to those quality companies at reasonable valuations, and we are well positioned to do so.

At 31 July 2022, the Bailador net tangible assets (NTA) per share was $1.94. The Bailador share price is at a 20% discount to this, but share prices are changing all the time.

The post 2 ASX tech shares I think are top buys after reporting appeared first on The Motley Fool Australia.

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

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

More reading

• Elmo share price surges after 32% revenue boost
• Bailador Technology share price leaps 5% as FY22 profits soar
• Buy this ASX tech share with 170% upside: expert
• Elmo share price soars on 30% revenue boost and optimistic FY23 guidance

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments Limited and Elmo Software. The Motley Fool Australia has positions in and has recommended Elmo Software. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9pgYi5Q

The Appen Ltd (ASX: APX) share price took off in early trade on Thursday before tumbling into the red after the company posted its earnings for the first half.

As The Motley Fool Australia reported earlier, the provider of data for machine learning and artificial intelligence posted an after-tax loss of US$9.4 million for the six months ended 30 June. That’s down from the prior corresponding period’s US$6.7 million profit.

While the loss didn’t initially deter the market, it has since performed an about-face. The Appen share price opened 0.7% higher at $4.20 before taking off to reach a high of $4.565 – representing a 9.5% gain.

Since then, the stock has slumped to swap hands at $4.14 apiece, 0.7% lower than its previous close.

Let’s take a closer look at the latest news from the former S&P/ASX 200 Index (ASX: XJO) constituent.

Appen share price wobbles on first-half earnings

The Appen share price surged higher before nosediving after the company posted apparently disappointing first-half earnings.

Notably, the tech stock scrapped its interim dividend as its after-tax profit hit the red.

But there were a few silver linings within today’s release.

The company noted that, while trading hasn’t yet improved in the second half, its revenue order book, including year-to-date revenue and orders in hand, stands at US$360 million with deliveries skewed to the final quarter.

It also saw growth in its China business, with its revenue rising 141%.

However, looking at the company as a whole, revenue was down about 7% to US$182.9 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before foreign exchange impacts slipped 66% to a $9.6 million loss last half.

Today’s share price movement sees Appen trading 5% higher than the multi-year low of $3.94 it reached earlier this month. Though, it’s still down 63% year to date and 70% over the past 12 months.

The post Appen share price rockets then stalls on US$9m half-year loss appeared first on The Motley Fool Australia.

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

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

More reading

• Appen share price on watch as interim dividend scrapped
• Earnings preview: Here are the ASX shares reporting today
• The Appen share price is down 20% in a month. Is it going lower?
• Why A2 Milk, Appen, Boral, and REA shares are dropping today
• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher

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 Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6dx5ueC

Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Wednesday night to discuss the highs and lows of earnings season, the Regional Express Holdings Ltd (ASX: Rex) loss and Santos Ltd (ASX: STO)’s call for government support for carbon capture and storage.

[youtube https://www.youtube.com/watch?v=12VvdgNM2vg?feature=oembed&w=500&h=281]

The post Earnings highs and lows, and energy policy in focus. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Thursday
• The Qantas factor: Rex shares hold steady despite deepening loss
• 5 things to watch on the ASX 200 on Wednesday
• Is the Santos share price a buy following the company’s monster profit?
• 5 things to watch on the ASX 200 on Tuesday

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

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

The IDP Education Ltd (ASX: IEL) share price is surging more than 11% into the green during early trade on Thursday.

The move comes after the company posted its FY22 annual results. At the time of writing, the IDP share price is resting at $29.81.

IDP share price surges on robust FY22 earnings

Key takeouts from the period include:

• Revenue of $793 million, up 50% year over year (yoy)
• Adjusted earnings before interest and tax (EBIT) of $163 million, up 127% from the previous year
• A record number of students placed into a total of 55,400 courses
• IELTS testing volumes also grew 67% yoy to a record 1.92 million tests approximately
• Reported net profit after tax (NPAT) of $106 million
• More than 101 new computer-delivered IELTS centres opened in FY22 along with 29 student placement offices
• Dividend of 13.5 cents per share (cps) declared for H2 FY22, bringing total FY22 dividend to 27 cps.

What else happened last period for IDP Education?

Notably, IELTS testing volumes were a standout, exhibiting a 67% gain over the previous year. The company conducted about 1.9 million tests, over a total of 55,400 courses.

This delivered a substantial jump in revenue to more than $790 million, which the company brought down to a record adjusted EBIT of $163 million.

Part of the upside was driven by IDP’s launch of IELTS Online. The platform gives test-takers greater choice and flexibility and opens the door for more tests to be conducted at one time.

Given the strength of its operations, the IDP Board declared a 13.5 cps dividend that brought the total FY22 dividend to 27 cps.

Analysts at UBS were quickly on to the result, noting the company beat consensus estimates of earnings per share (EPS) by 8%.

The broker values IDP at $26.80 per share with a buy rating following the company’s FY22 results.

Management commentary

Speaking on the results, IDP chief executive officer, Andrew Barkla said:

This year, as global mobility resumed, IDP customers reignited their international dreams. When they did, our teams were by their side with new innovations that helped them fast track their goals.

Importantly, we strengthened our relationships with our customers, evidenced by a fourpoint increase in our global Net Promoter Score across the year.

In addition to expanding our IELTS and student placement office network in key growth markets, we also delivered new data-driven study application services that will move our industry forward.

IDP Education share price snapshot

In the past 12 months, the IDP Education share price has climbed 5% into the green, after rallying off a 52-week low on 17 June. However, it is down 15% this year to date.

The post IDP Education share price leaps 11% as revenue surges in FY22 appeared first on The Motley Fool Australia.

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

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

More reading

• Experts name 2 ASX growth shares to buy when the market reopens
• Why IDP, PolyNovo, Sezzle, and St Barbara shares are pushing higher
• Brokers name 2 top ASX shares to buy now

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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JdAE5Bo

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) is the largest e-commerce company in the world with a market value of over $1.3 trillion. Its website generated 2.7 billion hits last month, making it a no-brainer platform for brands that want to elevate their online presence. 

Peloton (NASDAQ: PTON) is set to join that club, announcing this morning that a range of its products and merchandise items are now available on Amazon’s U.S. website. It’s the latest in a string of drastic moves by the maker of at-home exercise equipment, to arrest rapidly slowing sales and expanding financial losses.

The partnership is a win for Peloton, but it’s likely a bigger win for Amazon. Here’s why. 

Peloton is retooling for a world beyond pandemic restrictions

Peloton was one of the best-performing companies during the worst of the pandemic. Gyms were closed, workers were attending their jobs remotely, and society was enduring varying degrees of lockdowns. That left few opportunities for people to get their exercise fix, so a range of interactive at-home equipment that brought the workout – and the classes — into the home was a proverbial home run. 

But as pandemic restrictions eased thanks to widespread vaccinations, Peloton’s business quickly deteriorated. The company will report its financial results for the fiscal 2022 full year this week, and it’s expecting that revenue will come in at around $3.5 billion, which would be a sizable drop from the $4 billion it generated in fiscal 2021. 

The drop in sales is underscored by a steep drop in engagement, measured by the average number of monthly workouts in the most recent fiscal third quarter which fell 28% year over year. Put simply, gyms are open, people are free, and they’re using their Pelotons far less often. 

The company installed a new CEO at the beginning of 2022 and tasked him with righting the ship. So far, sweeping changes have been made which include staff layoffs and broad cost cutting, a trial of a new subscription-based sales model for its equipment, and moving production to external manufacturers. 

Now, for the first time in its history, Peloton will deviate from its direct-to-consumer sales model and offer the Peloton Bike, Peloton Guide, accessories, and apparel outside of its showrooms and its website, on Amazon.com. 

Why this partnership is a big win for Amazon

Earlier this year, Wall Street was abuzz with the news that Amazon was interested in buying Peloton. The move would have been well within Amazon’s wheelhouse because it’s no stranger to acquisitions — and Peloton would’ve been a relatively small one given the company is worth just $4 billion as of this writing, thanks to a 92% drop in its stock price from its all-time high.

It ultimately never happened, but with this new partnership in place, Amazon gets the benefit of selling Peloton’s products on its website and earning revenue without the baggage of absorbing a business that has lost a whopping $1.8 billion over the last four quarters. Additionally, Peloton’s financial situation is rather grim with just $879 million in cash on hand which is mostly a result of taking on $750 million in debt in May. 

Peloton’s Chief Financial Officer has commented that customers initiate 500,000 Peloton product searches every month on Amazon.com, reinforcing the positive impact this deal could have for his company. But it might be just as beneficial for Amazon, because every time a customer can’t find what they’re looking for on Amazon.com, it increases the likelihood that they will navigate to another website which costs the company more than just that one potential sale. 

When a customer can find what they’re looking for, Amazon not only wins the sale, but its artificial intelligence algorithms gain an opportunity to push other products into their view and potentially generate further revenue. It’s estimated that these recommendation engines are responsible for 35% of Amazon’s online sales, so being able to satisfy that monthly search volume for Peloton products will be a win for Amazon overall. 

Amazon stock is a buy now

Amazon is fresh off a strong, but mixed, second quarter of 2022. It suffered a net loss mainly as a result of its stake in electric vehicle maker Rivian Automotive (NASDAQ: RIVN), because shares in that company have fallen sharply recently. 

But that speaks to Amazon’s operational diversity. It offers investors a cross-section of the digital economy and it continues to drive innovation. Having multiple revenue streams insulates the company from external shocks like high inflation, which is currently putting pressure on consumers and, therefore, Amazon’s e-commerce segment. But its cloud segment, driven by Amazon Web Services, still managed to grow by 33% year over year during the quarter. 

Additionally, its relatively new advertising segment has delivered $33.9 billion in revenue over the last four quarters and remains an exciting opportunity going forward thanks to the company’s valuable media assets, like the rights to the NFL’s Thursday Night Football. 

While the Peloton deal is exciting, Amazon is more than just an e-commerce company now and there’s no shortage of reasons to own the stock. 

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

The post Does this make Amazon stock a buy? appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Why Amazon stock was slipping today
• Never buy the dip if you see these red flags
• Better buy stock: Alphabet vs. Amazon
• Why did the Amazon share price fall today?
• This stock is beating amazon at its own game

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Anthony Di Pizio 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 Amazon and Peloton Interactive. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from The Motley Fool Australia https://ift.tt/3CRhABf

The Qantas Airways Limited (ASX: QAN) share price is taking off today, up 7.9%.

Qantas shares closed yesterday trading for $4.54 each and are currently at $4.90.

Investors are bidding up shares of the flying kangaroo after the airline released its full-year results this morning for the 12 months ending 30 June (FY22).

While those results reflected another difficult year, with a statutory loss after tax of $860 million, that loss was down 49% from the prior year.

Also likely providing some tailwinds for the Qantas share price was its announcement of an on-market share buyback.

What share buyback did the airline announce?

Management stated they have approved an on-market share buyback of up to $400 million “as the benefits of the recovery materialise”.

“This is the first return to shareholders since 2019 and follows $1.4 billion of equity raised at the start of the pandemic,” the airline said

With today’s big leap in the Qantas share price factored in, the airline has a market capitalisation of $9.2 billion. That means the share buyback represents more than 4% of its market cap.

Investors may also have picked up on some bullish words by CEO Alan Joyce.

“We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional,” he said.

“We’re even more confident in the future than we were six months ago, so today we’re announcing more investment in our people and our customers, including a major boost to staff travel benefits, new routes and new lounges.”

There were no dividends again this year. Qantas last paid a dividend on 23 September 2019, when the world had yet to hear of COVID, let alone experience global lockdowns.

But Joyce addressed the $400 million share buyback, saying, “We’re also announcing the first capital return for shareholders since they provided us $1.4 billion at the start of the pandemic to support our Recovery Plan.”

Qantas share price snapshot

With today’s big lift factored in, the Qantas share price has again climbed into positive territory for the past 12 months, up a slender 1.4%.

Still, that handily beats the 6% full-year loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post The Qantas share price just flew 8% higher on $400 million share buyback appeared first on The Motley Fool Australia.

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

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

More reading

• Qantas share price on watch after $1.9b loss, $400m buyback
• 5 things to watch on the ASX 200 on Thursday
• The Qantas factor: Rex shares hold steady despite deepening loss
• Looking to buy Qantas shares? Here’s what to watch when the airline reports tomorrow
• Qantas share price sinks upon call for CEO resignation

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

from The Motley Fool Australia https://ift.tt/UEcx5ba

The S&P/ASX All Ordinaries Index (ASX: XAO) is edging higher this morning amidst a flurry of ASX reporting season activity. 

But while the ASX All Ords index rises, some shares are struggling to keep up.

For some, lacklustre reports are driving this underperformance.

But for others, it’s because their shares are turning ex-dividend. This means they’re no longer trading with the upcoming dividend payment attached to it.

When a company’s shares turn ex-dividend, they typically drop. After all, these dividends are being paid out of the company’s cash reserves.

While the extent of the fall is usually in proportion to the size of the dividend, it varies based on market sentiment.

So, here are three ASX All Ords shares trading ex-dividend today. Unsurprisingly, their share prices are in the red.

Codan Limited (ASX: CDA)

This ASX tech share is trading without its final dividend today. At the time of writing, the Codan share price is sliding 4.1% to $6.97.

Last week, Codan declared a fully franked final dividend of 15 cents. 

Investors who held Codan shares when the market closed yesterday should see the payment land in their accounts on 7 September.

Codan’s total FY22 dividends come in at 28 cents, up slightly from 27 cents in FY21.

This puts Codan shares on a trailing dividend yield of 4.0%, which amps up to 5.7%, including franking credits.

Baby Bunting Group Ltd (ASX: BBN)

ASX retailer Baby Bunting is another ASX All Ords share going ex-dividend today.

Baby Bunting shares are now trading without the company’s fully franked final dividend of 9 cents. 

This is likely contributing to the 3% fall in the Baby Bunting share price at the time of writing.

Investors who were on the company’s share register by the time the market closed yesterday should pencil in a payment date of 9 September.

Baby Bunting achieved another year of dividend growth, with total FY22 dividends coming in at 22.3 cents. 

This means Baby Bunting shares are currently flaunting a trailing dividend of 4.9%. Throwing franking credits into the mix bumps up this yield to 7%.

HT&E Ltd (ASX: HT1)

Rounding out this trio of ASX All Ords shares going ex-dividend today is media and entertainment business HT&E.

The company recently announced its first-half FY22 results, declaring a fully franked interim dividend of 5 cents per share. 

This is up 43% compared to HT&E’s interim dividend in FY21. 

At the time of writing, the HT&E share price is down 4.58%, trading at $1.355.

If you owned HT&E shares when the market closed on Wednesday, you should be entitled to this dividend. Keep your eyes peeled for the funds to land in your account on 15 September.

HT&E shares are currently trading on a trailing 12-month dividend yield of 6.5%, or 9.3% grossed up.

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

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

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

More reading

• Why I’m watching these ASX All Ordinaries shares like a hawk
• Guess which ASX share is soaring 11% after dividends doubled?
• 3 ASX All Ordinaries shares trading ex-dividend today
• Experts name 2 top ASX dividend shares to buy with 4%+ yields
• Here are 2 All Ords ASX dividend shares with yields above 6%

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

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

The Nine Entertainment Co Holdings Ltd (ASX: NEC) shares have surged higher in early trade Thursday after the company announced a “record” result and dividend payout, as well as a $341 million buyback.

At the time of writing the stock is up 5.5% to go for $2.11.

What did the company report?

• Revenue up 15% to $2.7 billion
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 24% to $700.7 million
• Statutory net profit including specific items up 71% to $315.3 million
• Dividend per share up from 10.5 cents to 14 cents
• On-market buyback of up to 10% of shares, which is about $341 million. 

What else happened in FY22?

With Australia’s two largest cities in lockdown for much of the first half of the financial year, Nine Entertainment’s television business thrived with a captured audience.

That arm was also boosted in December with a new broadcast deal with the NRL worth $650 million for the 2023 to 2027 seasons.

What did management say?

Nine chair Peter Costello said: 

2022 has been a record year for Nine, on many levels. From a profit perspective, we have reported the highest ever group EBITDA as well as total TV and publishing EBITDA and margin. At the same time, our ambition to accelerate profitable growth from our digital businesses is being realised, with more than 50% of EBITDA now attributed to our digital expansion, tracking ahead of the long-term targets we have previously communicated.

For our shareholders, from our FY22 profit, we have also paid or announced a record, fully franked dividend of 14 cents per share.

Chief executive Mike Sneesby said:

Whilst broader economic factors are beginning to impact some areas of the market, Nine’s strong competitive position and balance sheet stands us in good stead. We have successfully diversified our earnings base, with more than 30% of our revenue now from subscription and licensing.

What’s next?

Nine Entertainment forecasts EBITDA between $380 million and $400 million for the first half of financial year 2023.

Sneesby said:

Across all of our advertising-based businesses, we are confident that we will continue to grow our share, reflecting our content and distribution capabilities, as well as our focused approach to sales and the associated use of our extensive data pool. We expect any market softness will create opportunities for Nine to further strengthen its position as Australia’s media company.

Nine Entertainment share price snapshot

Nine shares have lost about one-third of their value since April as fears about the economy repelled investors from advertising-driven businesses.

The stock has recovered somewhat in recent weeks, with a 10.5% gain since mid-June.

The dividend yield, after the 14 cent payout was announced, is now at a juicy 7%.

The post Nine Entertainment share price takes off after 71% profit boost and ‘record’ dividend appeared first on The Motley Fool Australia.

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

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

More reading

• ‘Bright outlook’: Expert picks 2 ASX shares that touch Aussies everyday

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

from The Motley Fool Australia https://ift.tt/vz4lEZ3

There are plenty of ASX bank shares in the S&P/ASX 200 Index (ASX: XJO). At the moment, National Australia Bank Ltd (ASX: NAB) shares would be my pick out of that sector.

It can be hard to choose because there are so many different names including Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

But there are a few key reasons for my preference for NAB over the other big four ASX 200 bank shares, so I will outline them below.

Growth

Banks are not known for being growth shares. But, I believe that it’s important that the investments we choose offer a bit of growth, even if it’s only a relatively small amount.

I think that NAB is demonstrating an impressive amount of growth (for a big bank) and it’s doing it profitably.

The bank and its management have been working hard at improving the business and “getting the basics right”. NAB has also been working on improving “customer and colleague outcomes to deliver sustainable growth and improved shareholder returns.”

In the FY22 third quarter, NAB reported cash earnings of $1.8 billion and statutory net profit after tax (NPAT) of $1.85 billion. The cash earnings represented a year-over-year growth of 6%. Before tax and credit impairment charges, cash earnings increased 10%.

Excluding the Citi acquisition, and before credit impairment charges and tax, NAB’s third quarter cash earnings grew by 2% compared to the FY22 first half quarterly average.

While there are plenty of other ASX shares that will have reported much stronger growth this reporting season, I think NAB is looking good, particularly as the benefits of higher interest rates will start to show on its profit margins. However, it will be worthwhile keeping an eye on the level of loans arrears in 2023 and beyond.

Valuation

Based on estimates on Commsec, NAB is projected to generate $2.39 of earnings per share (EPS) in FY23. That puts the current NAB share price at under 13 times FY23’s estimated earnings.

Compare that to CBA, which is valued at over 17 times FY23’s estimated earnings, according to CommSec. The price/earnings (p/e) ratio isn’t the only way to compare banks, but I think it can show how much cheaper NAB is compared to CBA. It’s the better value ASX 200 bank share out of the two.

It’s true that ANZ is valued at under 11 times FY23’s estimated earnings and Westpac is valued at just over 11x FY23’s estimated earnings. But, I like the quality that NAB is demonstrating and how it’s delivering profit growth.

Dividend yield

I am also attracted to the dividend income that NAB is paying and could pay.

In FY23, NAB is predicted to pay an annual dividend per share of $1.63 per share, according to Commsec. That would represent a grossed-up dividend yield of 7.8% at the current NAB share price.

Then, in FY24, the ASX 200 bank share could grow its annual dividend by 4.4% to $1.70 per share. This would be a grossed-up dividend yield of 8.1%.

I think the combination of rising earnings, a strong starting dividend yield and a growing dividend will lead to solid total returns in the coming years.

The post NAB is the ASX 200 bank share I’d buy today appeared first on The Motley Fool Australia.

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

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

More reading

• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• The NAB share price has gained 5% since last week’s update. What’s next?
• These top ASX dividend shares have been tipped as buys by analysts
• Why this leading fund manager’s favourite ASX 200 bank share is NAB
• What does CommBank’s latest update mean for NAB shares?

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

from The Motley Fool Australia https://ift.tt/j4d1eUH