If you’re a fan of growth shares like I am, then you may want to hear what analysts are saying about the shares listed below.

Both have been named as buys and tipped to continue growing strongly for the foreseeable future. Here’s what they’re saying:

Breville Group Ltd (ASX: BRG)

The first ASX share that is growing strongly is leading appliance manufacturer, Breville.

Thanks to the popularity of its brands, its international expansion, and management’s ongoing investment in research and development, Breville has been growing its sales and earnings at a solid rate for a decade.

This continued in FY 2022, with the company reporting a 19.4% increase in revenue to a record of $1.42 billion and a 16.2% jump in net profit after tax to $105.7 million.

Goldman Sachs has become even more positive on the company following this results release. This is due to its exposure to some powerful trends and its strong brands. It said:

BRG reported in-line 2H22/FY22 results, with sales, EBIT and NPAT in-line with GSe and Factset Consensus. [..] Reiterate Buy on strong premium coffee in-home consumption trend and competitive advantage in premium brand and product.

Yesterday, the broker retained its buy rating and lifted its price target to $24.70.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that is growing strongly is TechnologyOne.

It is an enterprise software provider to the government, local government, financial services, health & community services, education, and utilities and managed services markets.

Its software covers financials, HR & Payroll, supply chain, and business intelligence. In addition, the company offers custom software development services for large scale, purpose built applications.

Analysts at Bell Potter are very positive on the company thanks to its shift of focus. Instead of a licence model, the company is now focusing on a software-as-a-service model that generates recurring revenues from its customers.

Pleasingly, this shift is going well and Bell Potter expects this to continue to be the case and underpin further strong growth and margin expansion in the coming years. The broker commented:

The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

Bell Potter has a buy rating and and $14.25 price target on the company’s shares.

The post Analysts name 2 growing ASX shares as buys appeared first on The Motley Fool Australia.

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More reading

• Breville share price lifts on record FY22 revenue and dividend boost
• Why I would invest $10,000 into these ASX shares for 10 years
• Here are 2 exciting ASX growth shares tipped as buys by analysts
• Broker names 2 ASX growth shares to buy this week
• Here are 3 top ASX growth shares that experts are tipping as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended TechnologyOne 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 Woolworths Group Ltd (ASX: WOW) share price will be on watch this morning.

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

At yesterday’s market close, shares in the retail giant finished 1.35% lower to $37.40.

Woolworths share price in focus following resilient financial performance

Woolworths has delivered its FY 2022 results for the 12 months ended 26 June 2022.

Here are some of the key financial highlights:

• Group sales up 9.2% to $60,849 million
• Earnings before interest and tax (EBIT) down 2.7% to $2,690 million
• Net profit after tax (NPAT) up 0.7% to $1,514 million
• Earnings per share (EPS) up 3.6% to 124 cents per share
• Final dividend of 53 cents per share, fully franked, bringing the full-year dividend to 92 cents per share, up 1.1%.

What happened in FY 2022?

Throughout FY 2022, Woolworths faced a number of difficult operating conditions across all facets of its businesses. This was related to COVID-19 supply chain disruptions, product shortages, team absenteeism, and flooding events along Australia’s east coast.

Despite the challenges, the group’s financial performance improved materially in the second half, led by its Australian food business. Total sales in this segment grew 4.5% to $45,461 million over the prior corresponding period (pcp).

Higher food inflation contributed to sales growth on the back of industry‐wide cost price increases. As COVID-19 restrictions eased, customers have been gradually returning to their normal spending habits.

The Australian B2B division recorded a bumper result with sales surging 224% to $3,963 million. This was underpinned by the acquisition of PFD as well as services revenue from Endeavour Group Ltd (ASX: EDV) following its demerger.

New Zealand food sales improved by 5.8% to NZD $7.6 billion as nationwide lockdowns in mid-August led to more in-home consumption.

Lastly, BIG W’s sales declined 3.3% to $4.4 billion due to an extended period of store closures in the first half and the impact of Omicron in the third quarter. Although, sales recovered strongly in the fourth quarter supported by Easter, Mother’s Day, and Toy Mania events.

What did management say?

Woolworths Group CEO Brad Banducci had this to say about the latest results:

The extremely challenging operating environment caused by supply chain disruptions, product shortages, team absenteeism and flooding led to an inconsistent customer experience and a financial performance that was below our aspirations for the year.

However, I am proud of how our team continued to show great care for our customers and each other and ongoing resilience to deliver a strong Christmas, and materially improved trading momentum in H2.

Importantly, we were also able to continue to progress our strategic and sustainability agendas and I am confident that, as we enter F23 with a renewed sense of purpose, we will be able to navigate ongoing uncertainties and challenges to deliver for all of our stakeholders.

What’s the outlook for FY 2023?

Looking ahead, Woolworths noted that FY 2023 remains uncertain as it continues to navigate through COVID-19.

The Australian food business has experienced a slight decline of 0.5% in total sales in the first eight weeks of FY 2023. Despite team absenteeism and supply chain disruptions improving, they continue to be above pre-COVID levels.

Furthermore, the New Zealand food division has also felt supply chain disruptions and team absenteeism. Total sales in the first eight weeks have declined 1% compared to the prior year.

On a positive note, BIG W total sales have been strong in the first eight weeks, increasing by just under 30%. This is being driven by increased customer mobility, strong execution, as well as cycling a sales decline of 15% in the prior year.

Banducci provided some insight for the new financial year, saying:

… We expect the trading environment to remain volatile and challenging due to endemic COVID disruptions, ongoing supply chain challenges, higher costs across our business and cost-of-living pressures for our customers. However, we are increasingly more agile and purposeful in responding to these challenges and are focused on improving our underlying operating performance across all aspects of our value chain after three years of disruption.

Woolworths share price snapshot

The Woolworths share price has dipped 2% in 2022, but is down 8% when looking over the past 12 months.

For context, the S&P/ASX 200 Consumer Staples (ASX: XSJ) sector is down 6% since this time last year.

Woolworths commands a market capitalisation of approximately $45.4 billion.

The post Woolworths share price on watch as sales leap 9% to $61 billion appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Earnings preview: Here are the ASX shares reporting today
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings results
• Earnings preview: Here are 3 ASX 200 shares reporting this week
• Considering Woolworths shares? Here’s why this key exec just jumped ship for Amazon

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 Appen Ltd (ASX: APX) share price is in focus after the machine learning and artificial intelligence data provider released its earnings for the first half.

The Appen share price closed Wednesday’s session at $4.17.

Appen share price on watch as dividend ditched

Here are the key takeaways from the tech company’s earnings for the six months ended 30 June:

• Posted US$182.9 million of revenue – a 6.9% fall on that of the prior corresponding period (pcp)
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before foreign exchange of US$9.6 million – a 66% fall
• Underlying EBITDA after foreign exchange came to US$8.5 million – a 69.3% tumble
• Recorded an after-tax loss of US$9.4 million for the period – representing a 240% fall
• Declined to pay an interim dividend

Appen’s global services division saw revenue fall 7% to US$137.8 million last half. Though, it won 99 new deals compared to the pcp’s 75 deals.

Its new markets division recorded US$45 million of revenue, a 6% drop, mainly due to its global product’s revenue falling 52% to US$10.6 million. Revenue from its non-global customers grew 35% to US$34.4 million.  

It’s worth noting the company was signing new and larger deals last half. Bookings in the period were up 9% and its average deal size increased 37% to US$91,000.

The company ended the half with US$42.2 million of cash and no debt.

What else happened in the first half?

The half year just been, saw Appen booted from the S&P/ASX 200 Index (ASX: XJO) and its share price plummet 50%.

The company also announced a strategic investment in the creator of Chameleon, Mindtech, in March.

What did management say?

Appen CEO Mark Brayan commented on the company’s earnings, saying:

Appen’s first half results have been impacted by external headwinds …. some of our global customers have cut costs and re-prioritised their spend which has impacted some of our large global programs.

We are highly focused on implementing our long-term strategy, including investments in new markets to diversify revenue. We are also reviewing all areas of the business to accelerate productivity improvements and prioritise near-term high impact change and tightly managed costs

While the current operating conditions remain challenging and some of our customers face numerous headwinds, we remain committed to our long-term strategy and confident of our prospects in the high growth AI market.

What’s next?

Appen didn’t provide new earnings guidance today. Though, it did note its revenue order book stands at around US$360 million, in line with that of August 2021, with customer delivery skewed to the December quarter.

It expects the second half to bring higher revenue but doesn’t think it will surpass that of prior years. Thus, its 2022 EBITDA and EBITDA margin is expected to be materially lower than those of 2021.

Appen share price snapshot

The Appen share price has tumbled 62.5% since the start of 2022. It has also dumped 70% since this time last year.

For comparison, the S&P/ASX All Technology Index(ASX: XTX) has slumped 28% year to date and 31% over the last 12 months.

The post Appen share price on watch as interim dividend scrapped appeared first on The Motley Fool Australia.

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More reading

• 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
• Why is the Appen share price jumping 10% on Monday?

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.

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The Allkem Ltd (ASX: AKE) share price will be a hot topic today after the company handed down its full-year results for FY22.

Shares in the multi-billion dollar lithium miner rallied 5.5% yesterday to $13.88. By the looks, investors were eager to load up ahead of earnings today.

All eyes on Allkem share price

• Record annual production from Mt Cattlin and Olaroz
• Group revenue up 9 times year on year to US$770 million
• Gross profit up 13 times to US$605 million
• Group net profit after tax (NPAT) up 4 times to US$337 million
• Cash and cash equivalents of US$664 million as at 30 June 2022, up 3 times

It is important to note, the incredible increases across most figures are primarily attributable to a change in the company. On 25 August 2021, Allkem (formerly Orocobre) merged with Galaxy Resources. Hence, this is the maiden full-year result as a combined entity.

What else happened in FY22?

The latest financial year was one of substantial growth and development for Allkem. Most notably, the integration of Galaxy Resources helped the company realise record production volumes and revenue.

According to the report, Mt Cattlin achieved 193,563 dry metric tonnes (dmt) of spodumene production. In addition, Allkem’s Olaroz project pumped out 12,863 tonnes of lithium carbonate.

Record production and sales were also bolstered by attractive lithium prices, boding well for the Allkem share price. For example, the company snagged an average price of US$2,221 per tonne for its spodumene at a gross cash margin of 80%.

Astonishingly, the average realised price for its lithium carbonate flew 370% higher to US423,398 per tonne.

On the development front, Allkem has made substantial progress in FY22. Some worthy mentions include:

• Olaroz stage 2 over 91% completion
• Naraha lithium hydroxide plant construction completed
• Construction at Sal de Vida commenced in January

These developments are expected to aid in Allkem’s endeavour to triple lithium production by 2026.

What did management say?

Commenting on the record results, Allkem managing director CEO Martin Perez de Solay said:

We achieved record revenue for the Group, not only from strengthened pricing but from successfully and safely producing high-quality lithium products from our global operations that have managed costs, improved safety performance and delivered record production during a period of supply chain disruption, labour shortage, high inflation and ongoing COVID-19 impacts.

Touching on the company’s developments Perez de Solay stated:

With two revenue-generating operations being supplemented by new operations in FY23 and a strong balance sheet, we are fully funded to complete construction at Sal de Vida and the development of James Bay.

What’s next?

Allkem provided a production guidance update in a separate release this morning. The company highlights the impacts of ongoing labour shortages as a reason for reviewing its FY23 production guidance.

As a result, consequential delays at Mt Cattlin have led to new guidance of 140,000 to 150,000 tonnes. For context, this compares to the previous 160,000 to 170,000 range. Furthermore, Allkem is in talks with customers to offload 100,000 tonnes of lower-grade spodumene at the moment.

Nevertheless, the company is forecasting a solid lithium market ahead.

Allkem share price snapshot

Allkem shareholders have revelled in the momentous boom in lithium recently.

Unsurprisingly, the Allkem share price has been no different. Since the start of the year, shares in the lithium producer have surged 24%. For reference, the S&P/ASX All Ordinaries Index (ASX: XAO) is 8.6% in the negative.

The post Allkem share price on watch amid a record year appeared first on The Motley Fool Australia.

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• Earnings preview: Here are the ASX shares reporting today
• Why is the Allkem share price charging 6% higher?
• Here are the top 10 ASX 200 shares today
• Why is the Allkem share price acing it on Tuesday?
• Leading brokers name 3 ASX shares to buy today

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 Rio Tinto Limited (ASX: RIO) share price is in focus today after it submitted an improved proposal to the board of Turquoise Hill Resources (NYSE: TRQ) in its pursuit to acquire the company.

The terms of the new proposal value Turquoise Hill at approximately US$3.1 billion, 56% higher than Rio’s original proposal from 11 March 2022.

Rio Tinto share price on watch after updated bid

There’s been an ongoing saga with Turquoise Hill and Rio Tinto. Firstly, Rio is already the 51% majority shareholder in Turquoise.

Should it successfully acquire all the share capital in Turquoise it doesn’t already own, Rio would also be the 66% owner of the Oyu Tolgoi copper-gold project, located in Mongolia.

However last week, the Canadian miner rejected Rio’s all-cash offer for US$2.7 billion that was first made in March.

Rio was notably “disappointed” by the decision, and has therefore sweetened the terms of the deal to compensate.

Not only that, when examining the deal’s particulars in closer inspection, the odds may be stacked in Rio’s favour.

Since Rio’s first proposal, “the average share price performance of Turquoise Hill’s peers has declined 35%” the release noted.

“Furthermore, Turquoise Hill has disclosed in its latest earnings results that it needs to raise equity proceeds of more than US$1 billion to address its current estimate of funding requirements,” it added.

Speaking on the announcement, Rio Tinto CEO, Jakob Stausholm said the offer “provides full and fair value for Turquoise Hill shareholders” whilst offering the certainty of cash at a premium.

[The deal] is in the best interests of all stakeholders as we work to move the Oyu Tolgoi project forward. We will continue to take a disciplined approach to capital allocation and strongly encourage the Board of Turquoise Hill to engage constructively, and to support and recommend in favour of Rio Tinto’s Improved Proposal.

Jakob Stausholm, Rio Tinto Chief Executive

The deal still requires majority support of Turquoise Hill shareholders.

Meanwhile, the Rio Tinto share price is down more than 12% in the past 12 months, or 3% down this year to date.

The post Why is the Rio Tinto share price in the spotlight on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here’s why analysts say these blue chip ASX 200 shares are buys
• How have ASX dividend shares been performing this earnings season?
• Here’s the Rio Tinto dividend forecast through to 2026
• Could this be set to boost ASX 200 iron ore shares?
• Could ASX battery minerals shares be in for a boost next month?

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 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 Qantas Airways Limited (ASX: QAN) share price will be closely monitored Thursday after the airline revealed a mixed set of results for an action-packed 2022 financial year.

What did the company report?

• Revenue up 53.5% to $9.1 billion
• Underlying loss before tax up 4.8% to $1.86 billion
• Statutory loss after tax 49.2% down to $860 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 31.5% to $281 million.

The airline announced that no dividend will be paid. However, it will execute an on-market buyback of shares worth up to $400 million.

What else happened in FY22?

Understandably for an airline, the biggest events for Qantas over the financial year were not necessarily within the business itself.

The year saw both the Delta and Omicron variants of COVID-19, as well as vaccinations, have a massive impact on the travel industry. The period started with heavy restrictions on movement between states and internationally, but ended with all of those measures removed as Australia transitioned to a post-pandemic life.

However, Qantas and the airports were left short-staffed as travel made a huge comeback in 2022. Both the April and July school holidays saw queues snaking out of the terminal at places like Sydney Airport.

The congestion, lack of staffing, and poor weather also meant many delayed and cancelled flights. The Motley Fool reported previously that more than 54% of Qantas flights took off late last month, to go with a cancellation rate of 5.6%.

The damage to the Qantas brand has been so substantial that earlier this week CEO Alan Joyce apologised to frequent flyers and offered remediation such as $50 vouchers, extended status, and lounge access.

The airline also proposed to buy regional carrier and wet lease provider Alliance Aviation Services Ltd (ASX: AQZ) but the ACCC has recently expressed its concerns over the deal.

What did management say?

Joyce said:

This result takes the statutory loss before tax impact of COVID on the Qantas Group to nearly $7 billion and our total revenue losses to $25 billion. These figures are staggering and getting through to the other side has obviously been tough. 

We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional. Our teams have done an amazing job through the restart and our customers have been extremely patient as the whole industry has dealt with sick leave and labour shortages in the past few months.

Safety remains number one, but our service isn’t at the level expected of the national carrier. There is a lot of work happening to bring us back to our best, including hiring more people, rolling out new technology and reducing domestic flying so we have more sick leave cover. 

What’s next?

Qantas stated that going into the current financial year its balance sheet repair process is “effectively complete”.

While it made no group-wide revenue or profit/loss forecasts for 2023, it predicted:

• Lower international flights revenue, averaging 75% of pre-pandemic levels
• Recovery plan to complete to meet $1 billion cost reduction target
• Underlying depreciation and amortisation expected to be $1.8 billion.

Qantas share price snapshot

The share price for Qantas has fallen 11.8% year to date. Most of that was attributable to mid-June when it fell 19.7% over just 10 days on the back of recession fears out of the United States.

The post Qantas share price on watch after $1.9b loss, $400m buyback appeared first on The Motley Fool Australia.

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More reading

• 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
• Qantas share price dips as ACCC raises acquisition concerns

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 Alliance Aviation Services 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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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.

What happened

Shares of Tesla (NASDAQ: TSLA) jumped Wednesday on the final day of trading before the company’s latest stock split takes effect. The stock rose as much as 2.5% today, and still traded up 0.22% as of market close.

Investors might be looking back on the stock’s returns since its last stock split in August 2020. Since that 5-for-1 split, Tesla shares have returned more than 80%, compared to under 20% for the S&P 500 index.

So what

Although there is no fundamental change in a business or its valuation from stock splits, investors usually view them as a positive sign from the company. Tesla’s upcoming split is no exception, with the resulting lower price per share potentially attracting new retail investors. Although shares are down about 15% year to date, those investors still see plenty to like in the company’s future.

Now what

Tesla and its investors expect to see the company increase vehicle production at an annual rate of about 50% for the next several years. Its two new factories in Austin, Texas, and near Berlin will help that in the near term. CEO Elon Musk said earlier this month at the company’s annual shareholder meeting that he believes a total of 10 to 12 plants will eventually help it produce 20 million EVs annually.

The recently passed Inflation Reduction Act should also help by giving consumers tax credits to purchase EVs, with some limitations. While not all of Tesla vehicles will qualify, any new incentives will be an additional tailwind for the company.

Investors might be focused on the upcoming stock split today, but the business itself still looks to have a long runway for growth. You just need to realize that with the stock up more than 2,000% in the last three years, some of that growth is already built into the share price.

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

The post Why Tesla shares rose today ahead of the stock split appeared first on The Motley Fool Australia.

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More reading

• Tesla stock is rising ahead of its stock split
• 3 things you should know about the Tesla stock split
• Why Tesla shares are falling ahead of its stock split
• Why Tesla stock dropped Monday
• Why Tesla stock was up again today

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

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

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is on watch after the company released its full-year earnings this morning.

Shares in the travel agency group closed Wednesday’s session at $17.34.

Flight Centre share price on watch as TTV lifts 160%

Here are the key takeaways from the travel giant’s financial year 2022 (FY22) results:

• Revenue reached $1 billion ­– a 154% improvement on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $200 million loss ­– 53.7% higher than pcp
• Statutory loss before tax of $377.8 million – a 37% improvement
• Underlying loss after tax, meanwhile, was $272.6 million – a 25% improvement
• Total transaction value (TTV) reached $10.3 billion – a 162% lift
• The company hasn’t returned to paying dividends yet.

Flight Centre’s corporate and leisure travel businesses both returned to profit in the second half after a strong fourth quarter, driven by higher TTV.

On an underlying basis, the company posted an EBITDA loss of $183.1 million – a 45.8% improvement and within guidance.

It also recorded a $35 million underlying profit for the three months ended 30 June. However, its Asia geographical segment lagged, recording a loss for the quarter.

Its corporate segment outperformed in FY22, recording a $13.5 million profit for the year, with gross TTV exceeding pre-COVID levels six months earlier than anticipated. The company’s leisure business also pulled through late in the year, bringing in a $10 million profit for the June quarter.

Flight Centre’s costs averaged $120 million in FY22, compared to pre-pandemic levels of around $230 million.

Finally, it boasts $700 million of liquidity.

What else happened in FY22?

The market kept a close eye on Flight Centre last financial year as Australia’s borders reopened and the Omicron variant swept the nation.

The company worked on its ‘Grow to Win’ strategy over the period, aiming to enhance its capabilities, retain customers, and win new accounts. It boasts a $2.5 billion pipeline of FY22 account wins.

In September, the Flight Centre share price lifted 0.5% when the company revealed plans to launch its travel management business in Japan in September. The stock dumped 10% over two days in October when the company dropped a trading update and issued $400 million of convertible debt.

What did management say?

Flight Centre CEO Graham ‘Skroo’ Turner commented on the company’s earnings, saying:

After two years of unprecedented disruption to normal global travel patterns and other everyday activities, we are pleased to start FY23 with a considerably brighter outlook.

Travel demand has recovered rapidly since most governments globally removed or relaxed border restrictions and we have started the new fiscal year with strong momentum.

It is, of course, early days in the recovery and there is still considerable upside potential. For example, Australian outbound passenger departures tracked at just 35% of pre-COVID levels over the FY22 [second half], peaking at 60% in June.

What’s next?

Flight Centre did not provide earnings guidance despite a strong start to FY23.

It blames its lack of outlook on the industry’s ongoing rebound, continued travel restrictions in parts of the world including China, and unstable airline capacity and pricing.

It expects to be tracking close to its monthly pre-COVID TTV levels by the end of the period.

The company aims to translate between 40% and 50% of incremental revenue to EBITDA during its recovery phase. It will also target bottom-line improvements in FY23. Finally, it expects its full-year earnings to be weighted to the second half once more.

Flight Centre share price snapshot

The Flight Centre share price has delivered a turbulent performance lately.

The stock has slumped 7% since the start of 2022. Though, it has gained 6% since this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 8% year to date. It is down 7% over the past 12 months.

The post Flight Centre share price in focus as full-year revenue surpasses $1 billion appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Is the Flight Centre share price a buy ahead of Thursday’s FY 2022 earnings report?
• Looking to buy Webjet shares? Here’s what we’ve learned about the travel sector in August
• These are the 10 most shorted ASX shares
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?

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 Flight Centre Travel 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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As the effects of soaring inflation and rising interest rates reach far and wide, the S&P/ASX All Ordinaries Index (ASX: XAO) has been left in a tizzy.

The ASX All Ords index has shed nearly 9% this year. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has slid 28%.

Amidst the volatility, I’m on the hunt for high-quality ASX shares to add to my portfolio.

In my eyes, a high-quality company is a proven performer with sustainable competitive advantages, a healthy balance sheet, and the ability to generate large amounts of free cash flow.

Competitive advantages come in different shapes and sizes. But it’s likely that a high-quality company benefits from a combination of the following traits:

• Market leader
• Brand power
• Pricing power
• Network effects
• Scale
• High barriers to entry
• Mission-critical products/services

These advantages allow businesses to form a competitive moat to not only shield themselves from competition but also continue to grow.

With that in mind, here are two ASX All Ords shares I think fit the quality bill. 

PEXA Group Ltd (ASX: PXA)

PEXA is a cloud-based system that digitally facilitates a range of essential functions in the conveyancing process. Think documents, the transfer of funds and dealings with the relevant land titles office.

Through its roots in government, PEXA has a monopoly in the Australian market. More than 80% of all property transfers in Australia are completed on the PEXA platform, with the balance still going through the traditional, paper-based process. 

PEXA’s competitive moat lies in its first-mover advantage along with various integrations, strategic relationships, and licences, which have taken many years to develop. 

Support from governments, regulatory bodies, and unique founding partners has gotten PEXA to where it is today: a supremely dominant position in the Australian market. 

With the local market all but gobbled up, PEXA is turning its attention abroad to the UK, a country with more than double the population of Australia. 

It’s secured key agreements with the Bank of England and Her Majesty’s Land Royalty. And after successfully completing testing with several lenders, the platform is preparing to go live at the end of the year. 

PEXA’s UK efforts will first start with refinancing transactions. The company hopes this will serve as a springboard into the lucrative property transfer segment.

As was the case in Australia, PEXA will be breaking new ground in the nascent UK digital property landscape.

According to our Foolish ASX reporting season calendar, PEXA will reveal its FY22 results tomorrow. 

Some of the things I’ll be watching are the company’s topline growth, market penetration, gross margins, and cost base.

Going forward, I think it’s also worth keeping an eye on interoperability and competition in Australia, as well as movements from regulators both here and in the UK.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a global leader in radiology imaging software through its Visage technology.

The company’s flagship Visage 7 solution lets radiologists and other doctors send and receive medical images (with very large file sizes) to a variety of devices.

Legacy systems would store these images locally in the hospital and the images would take seemingly forever to send from one place to the next.

Instead, Pro Medicus streams the pixels rather than moving the file. What was formerly a clunky, time-consuming and inefficient process can be done in seconds. Radiologists can then view and manipulate these files with ease, helping them make a diagnosis.

Pro Medicus’ software is great for patients. But it could be even better for doctors. Hospitals have reported spending less on IT overheads, increased radiologist productivity, increased accuracy, and the benefit of being able to scale their services.

Pro Medicus’ impressive results

The ASX 200 healthcare share released its FY22 report last week, and its quality was on full display.

Yet again, net profit after tax (NPAT) grew faster than revenue as the company’s tremendous operating leverage continues to shine.

As a software-only business, Pro Medicus reaps the benefits of ultra-high gross margins. But even better is how this gross profit flows through to the bottom line. 

Pro Medicus boasts extremely wide profit margins, with two-thirds of every sales dollar turning into profit before tax. What’s more, these margins have only been heading higher over time.

The company continues to sign marquee customers on long-term contracts and bring new products to market.

Yet it estimates it has just a 5% market share of exam volume in the US. In other words, there’s still a long runway for growth ahead.

The company also boasts extremely high customer retention rates and a strong base of forward revenue. 

For me, the sticking point with Pro Medicus shares is valuation. The company currently trades on a price-to-earnings (P/E) ratio of 121x, implying very high growth expectations going forward. 

As the great Charlie Munger says, no matter how wonderful a business is, it’s not worth an infinite price. So despite its quality, I’ll continue to watch Pro Medicus shares from the sidelines for now.

The post Why I’m watching these ASX All Ordinaries shares like a hawk appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX share is soaring 11% after dividends doubled?
• 3 ASX All Ordinaries shares trading ex-dividend today
• Here are 2 All Ords ASX dividend shares with yields above 6%
• Pro Medicus share price tipped to rise amid ‘strong long-term growth story’
• Brokers name 3 ASX shares to buy today

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 PEXA Group Limited and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus 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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If you’re a shareholder of biotherapeutics giant CSL Limited (ASX: CSL), you may be wondering where its dividend is heading in the coming years.

Especially now that its outlook has improved greatly following a recovery in plasma collections, strong demand for immunoglobulins, and its acquisition of Vifor Pharma.

Let’s take a look to see what analysts are forecasting for the CSL dividend.

Where is the CSL dividend heading through to 2025?

Firstly, let’s start with the current CSL dividend. Last week the company released its full year results and declared a partially franked US$1.18 (A$1.68) per share final dividend.

This meant the company’s full year dividend was flat year over year at US$2.22 (A$3.11) per share.

Looking ahead, according to a note out of Goldman Sachs, its analysts are expecting the company’s dividend to return to growth again in FY 2023. Its analysts have pencilled in a US$2.52 (A$3.66) per share dividend. This represents a 13.5% increase over FY 2022’s payout. And with the CSL share price currently fetching $288.63, this will mean a modest yield of 1.3%.

In FY 2024, Goldman expects another increase to the CSL dividend. It is forecasting a dividend of US$3.21 (A$4.66) per share for this financial year. This will be a 27% increase and represents a 1.6% yield at today’s prices.

Finally, the following year in FY 2025, the broker is expecting another increase. It is estimating a US$3.47 (A$5.04) per share dividend that year. This is an increase of 8.1% and equates to a yield of 1.75%.

While these are admittedly not the biggest yields you’ll find today, if CSL carries on this trend over the next decade and beyond, they could grow to be very attractive for income investors in the future.

The post Here’s the CSL dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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More reading

• How have ASX dividend shares been performing this earnings season?
• The ASX had its worst day in 6 weeks, but the CSL share price gained. Why?
• Is the CSL share price in the buy zone?
• Why I would invest $10,000 into these ASX shares for 10 years
• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL 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.

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