The ARB Corporation Limited (ASX: ARB) share price has dropped in early trade Tuesday after the company declined to provide outlook guidance.

The automotive accessories company released its full year FY22 results this morning.

At the time of writing, the stock was down 2.64% to $30.97 a share.

What did the company report?

• Revenue up 11.4% to $697.3 million
• Profit after tax up 8.1% to $122 million
• Earnings per share (EPS) up 6.7% to 149.4 cents
• Dividend per share up 4.4% to 71 cents total for the year 
• Final dividend is 32 cents fully franked 

What else happened in FY22?

The biggest event for ARB was Andrew Brown stepping down as the company’s chief executive and transitioning into a managing director role.

A few days after the financial year ended, Lachlan McCann was promoted internally to fill the chief executive position.

What did management say?

Brown, as chair, said:

ARB’s cash reserves of $52.7 million and no debt as at 30 June 2022 ensure the company is well placed to continue investing in people, new products, property, distribution networks, machinery and businesses to facilitate ongoing growth.

What’s next?

Citing “a very challenging and uncertain global environment”, no guidance was provided for the current financial year. 

However, Brown said:

The board remains positive and expects that the company should benefit by the end of calendar 2022 from recent new vehicle models, a strong customer order book sitting well above historical levels, a number of all-new products due for imminent release, healthy demand for the company’s products around the world and the prospect of increasing supply of new vehicles to the market.

The board remains focussed on the long-term growth of the Company as it develops and pursues a number of exciting opportunities, some of which have already been announced to the market. These include further growth in export markets and overseas opportunities, new products, improved distribution and increased manufacturing capacity.

ARB share price snapshot

The ARB share price has lost more than 42% so far this year. However, it has rallied 23.3% since 17 June. 

The dividend yield stands at 2.23% after the final dividend was announced this morning.

The post ARB share price plunges amid ‘uncertain’ outlook 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 ARB Corporation 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 Kogan.com Ltd (ASX: KGN) share price is under pressure as the retailer’s focus shifts to cost-cutting after it unveiled a drop in full-year profit and revenue.

Shares in the online retailer opened at $3.52 and quickly fell to a low of $3.445 in early trading — a 9.35% drop. Meantime, the S&P/ASX All Ordinaries Index (ASX: XAO) has shed 0.5%.

This is the first loss reported by Kogan since it was listed on the ASX, according to The Australian.

Kogan.com is struggling to overcome the volatile trading environment as we emerge from COVID-19. But there are signs of hope.

Summary of Kogan’s FY22 results

• Revenue declined 8% to $718.5 million, reflecting a compound annual growth rate (CAGR) of 20.1% since FY20
• Gross profit declined 9.3% to $184.4 million, reflecting a CAGR of 20.7% since FY20
• Gross sales grew 0.1% to $1.18 billion (includes gross transaction values for Kogan Marketplace, Kogan mobile, and other new verticals)
• A return to adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) profitability in 4Q FY22 with an adjusted net loss of $2.9 million for the full year
• Group active customers of 3,972,000 at 30 June 2022, reflecting a CAGR of 20.9% over two years.

Other highlights

The group’s Kogan Marketplace business saw gross sales increase 20.3% year over year (yoy) in FY22. This is partly driven by the 49.1% increase in the number of sellers on the platform, with a strong pipeline of local and overseas sellers ready to be onboarded.

Meanwhile, the Kogan First membership business grew by 372,000 subscribers to the end of FY22. This helped push up revenue by 73.4% yoy. The company aims to have one million subscribers.

However, its exclusive and third-party brands sales fell 17.6% and 35%, respectively. This division struggled with excess inventory and associated holding costs, although the situation has improved.

Given the uncertain trading environment, the company decided not to pay a final dividend. The last time Kogan paid a dividend was in May last year.

What Kogan.com said about its FY22 results

Kogan’s founder and CEO said:

As the true volatility of the situation settled in — caused by stay at home orders and lockdown ambiguity — eCommerce did not continue to grow as anticipated. This led to us holding excess inventory, and an associated increase in variable costs and marketing costs to sell through the inventory.

As we’ve discussed at length through regular updates this past year, profitability in FY22 was impacted. When I started Kogan.com 16 years ago, I made a bet that online shopping would define the future of retail. My certainty of that is even stronger today than it’s ever been.

Outlook

While Kogan.com didn’t give guidance, it painted a positive outlook for FY23. It noted the ongoing expansion of Kogan Marketplace, enhancements to Kogan Verticals, further growth of its recently acquired Mighty Ape business, and growing Kogan First membership as reasons for shareholders to feel upbeat.

The company said it will focus on cost-cutting to help drive improved earnings this financial year. Its adjusted EBITDA in the last quarter of FY22 turned positive.

To that end, its July results will give shareholders further hope of a turnaround. Kogan.com noted that adjusted EBITDA for the month was $1.5 million and its operating costs have been cut 19.3% yoy.

Kogan share price snapshot

The Kogan share price has fallen by more than 70% over the past year while the All Ordinaries has lost 7%.

Kogan is also lagging behind other ASX retailers like JB Hi-Fi Limited (ASX: JBH) and Super Retail Group Ltd (ASX: SUL). These ASX retail shares lost 9% and 16%, respectively, over the past 12 months.

The post Kogan share price tumbles 9% on first ASX loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau 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 Kogan.com ltd and Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Kogan.com ltd and Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Boral Limited (ASX: BLD) share price is in the red after the company released its earnings for financial year 2022.

The S&P/ASX 200 Index (ASX: XJO) building products and construction materials company’s stock opened at $2.81 – marking a 2.7% fall.

It has since improved slightly to reach $2.865 – 0.87% lower than its previous close.

Boral share price slips as profit tumbles

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

• Revenue came in at around $2.95 billion – a 1% improvement
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) slumped 19% to $330 million
• Earnings before interest and tax (EBIT) fell 38% to $112 million, or 32% to $107 million excluding property
• Underlying after tax profit came to $35 million – down 26%
• Posted a statutory net loss of $17 million – down from a $19 million profit
• Adjusted earnings per share (EPS) came to 13.6 cents

The company’s earnings were impacted by external conditions, including increases in energy prices and cartage costs – resulting in a $58 million dint. Its sales were hit by the impacts of exceptional rainfall and construction shutdowns.

All such negative happenings ultimately dinted EBIT by $136 million, offsetting the benefits of higher revenue and transformation initiatives.

Looking at the company’s total earnings, it recorded a statutory net profit of $961 million – marking a 50.1% improvement. Boral recognised a pre-tax gain of around $1.03 billion for significant items, mostly relating to profit from the sale of non-core North American businesses.

Meanwhile, its transformation program brought a $42 million benefit – below its targeted $60 million to $75 million. It was impacted by delays from COVID-related supply chain impacts and higher cost inflation.

What else happened in FY22?

Of course, the major news from Boral in financial year 2022 was of Seven Group Holdings Ltd (ASX: SVW)’s battle to take over the company.

Seven ultimately walked away with a near-70% stake in Boral, paying a price of $7.40 per share for the holding.

Boral also divested its non-core Boral North America and Australian Building Products businesses and underwent a $3 billion capital return. The capital return encompassed a $2.65 per share capital reduction and a 7-cent special dividend.

What did management say?

Boral CEO and managing director Zlatko Todorcevski commented on the company’s earnings, saying:

Boral’s revenue benefited from stronger infrastructure and residential activity. However, industry-wide construction lockdowns and exceptional rainfall … curtailed volumes and significantly impacted margins. In addition to reducing operating efficiency, these events resulted in additional operating and repair costs.

With supply chain constraints and labour shortages remaining a key issue across the industry, major projects continued to experience delays. However, we expect momentum to improve in FY2023, and to benefit from several key projects we’ve secured including the Western Sydney Airport terminal, Sydney Metro West – Central Tunnel Package, Sydney Metro West – Western Tunnel Package, and Tonkin Gap in Western Australia.

What’s next?

The company hasn’t provided any new earnings guidance for financial year 2023. Though, it did outline its expectations for the period.

Boral expects its revenue to increase this fiscal year, driven by price growth and increased volumes. It believes infrastructure demand will increase, offsetting a predicted softening of detached housing demand in the second half. It also believes benefits from price increases and performance improvement initiatives will more than offset the impact of total cost inflation, while energy costs remain elevated.

The company’s financial year 2023 capital expenditure is expected to be around $235 million.

Boral share price snapshot

The Boral share price appears to have had a disastrous year on paper – falling 53% over the course of 2022 so far and 58% over the last 12 months.

However, that doesn’t account for the capital reduction and special dividend undergone in February.

The post Boral share price falls as underlying FY22 profit slumps 26% 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 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 Breville Group Ltd (ASX: BRG) share price is moving higher in early trade, up 0.86%, while the S&P/ASX 200 Index (ASX: XJO) is down 0.5%.

Breville shares closed yesterday at $21.47 and opened lower at $21.11, but are currently trading at $21.66 apiece.

This comes after the release of the electrical appliance manufacturer’s full-year results for the 12 months ending 30 June (FY22).

Let’s take a look at what the company announced.

Breville share price climbs amid record FY22 revenue

• Revenue of $1.42 billion, up 19.4% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $186.8 million, up 14.4% from the prior year
• Net profit after tax (NPAT) of $105.7 million, an increase of 16.2% year on year
• Full-year dividend of 30.0 cents per share (cps), fully franked, up 13.2% from FY21

What else happened during the year?

With sales growth of 19.4% over the year, Breville’s $1.4 billion of revenue sets a new record for the company.

The company’s operations were not immune to the impacts of Russia’s invasion of Ukraine, which contributed to a slowing revenue growth rate of 13.2% in the second half of the year.

Gross margins came in at 34.3%, just down from the 34.8% posted in FY21. Breville was able to maintain its margins by adjusting prices as it faced inflation from a strong US dollar alongside increased freight and product costs.

EBIT came in at $156.4, meeting the company’s guidance, and up 14.6% from the prior year.

A final dividend of 15.0 cents per share was declared (fully franked) with a record date of 15 September.

The company’s net cash position went from $129.9 million in FY21 to a debt of $4.1 million as at 30 June this year. The company stated the lower net cash flow “reflects a year of free cash outflow as working capital has been normalised and inventory pulled forward”.

What did management say?

Commenting on the results, Breville Group CEO Jim Clayton said:

A solid year of performance for the Group, delivering guidance once again, against a dynamic backdrop of supply chain challenges, inflationary pressures, and headwinds resulting from the Ukraine invasion.

Having doubled the size of the business in the last 4 years, the strength of our geographic portfolio came through in FY22 as the Americas accelerated in the 2H to pick up the slack in Europe. We managed margins well, demonstrating the pricing power of our brand and our premium products.

The investment in growth drivers continued, while demonstrating the ability to align expenses with revenue, within the envelope of guidance.

What’s next?

The Breville share price could be under some pressure for the company’s lack of specific guidance. Instead, the company noted that FY23 looks to be one of competing macro headwinds and tailwinds for its business.

While Breville couldn’t yet forecast how these forces will play out over the full year, Clayton said, “We enter FY23 in a solid position: we’ve successfully pulled forward our inventory build for 1HFY23, and our NPD pipeline is beginning to release.”

Breville share price snapshot

The Breville share price has struggled in 2022, down 35% year-to-date. That compares to an 8% loss posted by the ASX 200.

The post Breville share price lifts on record FY22 revenue and dividend boost 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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We’re well and truly in the thick of ASX reporting season. The biggest names in the All Ordinaries Index (ASX: XAO) are unveiling their financial results. And many are declaring lucrative dividends.

With that comes an important date: the ex-dividend date.

Taken from Latin, ex-dividend means ‘without dividend’. So, you guessed it, it’s the date that a company’s shares no longer trade with the upcoming dividend payment attached to it.

Beyond determining who’s entitled to dividends, the ex-dividend date has another important implication. 

When a company’s ex-dividend date rolls around, its shares typically drop in value.

This is because the money paid out in dividends no longer belongs to the company. With its cash reserves reduced, the value of the company is diminished.

So, with that in mind, here are three ASX All Ords shares trading ex-dividend today.

While the ASX All Ords index is down 0.55%, these three shares are dropping more than the market.

Australian Clinical Labs Ltd (ASX: ACL)

This ASX COVID beneficiary is trading without its bumper FY22 final dividend today.

Unsurprisingly, this is putting downwards pressure on the Australian Clinical Labs share price. At the time of writing, shares have tumbled 9.07% to $4.31, a drop of 43 cents.

The ASX healthcare share recently released its FY22 results and declared a fully franked final dividend of 41 cents. 

This takes Australian Clinical Labs’ total FY22 dividend payments to 53 cents. Meaning, Australian Clinical Labs shares were sporting a hefty dividend yield of 11.2% as of yesterday’s close.

It’s worth noting that this is a trailing dividend yield, with Australian Clinical Labs unlikely to replicate these dividends in the current financial year.

After all, the company was a big COVID beneficiary, playing a vital role in facilitating testing across the country. The company experienced 49% revenue growth in FY22, with 42% of total revenue relating to COVID activities. 

In any case, investors who were on the company’s share registry as of yesterday’s close should see this juicy final dividend hit their accounts on 15 September.

Domain Holdings Australia Ltd (ASX: DHG)

Domain is another ASX All Ords share trading ex-dividend today. At the time of writing, the Domain share price has dropped 1.25%.

The property marketplace recently declared a final fully franked dividend of 4 cents per share, taking total FY22 payments to 6 cents, up 50% on the prior year.

As of yesterday’s close, this put Domain shares on a trailing dividend yield of 1.7%. Throwing in franking credits, this bumps up to 2.4%.

If you held shares in Domain when the market closed yesterday, you should see this final dividend land in your account on 13 September.

Shares in Domain’s rival REA Group Limited (ASX: REA) are set to trade ex-dividend on Thursday. The leading online property business recently declared a record final dividend of 89 cents, spinning up a trailing dividend yield of 1.3%.

Qualitas Ltd (ASX: QAL)

Last but not least, shares in this alternative real estate investment manager are also trading ex-dividend today. At the time of writing, the Qualitas share price has edged 1.35% lower to $2.20.

Qualitas is an alternative fund manager focused on private credit and equity across the commercial real estate sector.

Qualitas announced its FY22 results last week, declaring its first dividend since joining the ASX at the end of 2021.

Its fully franked final dividend of 4 cents put Qualitas shares on a trailing dividend yield of 1.8% when the market closed yesterday. The dividend has been pencilled in to be paid on 8 September.

Annualising this payment results in a 3% yield based on the company’s IPO price of $2.50, which is in line with its prospectus forecasts.

The post 3 ASX All Ordinaries shares trading ex-dividend today 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 REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Hub24 Ltd (ASX: HUB) share price is struggling to catch a bid on Tuesday morning.

At the time of writing, shares in the investment platform company are down 1.08% to $24.69 after the company released its full-year report for FY22.

Let’s check the details.

Hub24 share price falls despite record year

• Total group revenue up 76% year on year to $192.5 million
• Platform revenue up 59% to $160.5 million
• Group underlying EBITDA up 92% to $70.4 million
• Statutory net profit after tax (NPAT) up 50% to $14.7 million
• Full-year dividends of 20 cents per share fully franked, up 100%
• Earnings per share (EPS) (diluted) up 37% to 19.5 cents per share

Investors are reacting negatively after Hub24 demonstrated resilience during a difficult period for markets. Furthermore, today’s result continues a streak of record inflows for the financial technology business.

The company’s success will be passed on to shareholders with a fully franked final dividend of 12.5 cents per share. This brings the full-year total to 20 cents, doubling from the prior corresponding period.

What else happened in FY22?

It was an impressive year for the company’s platform division, with funds under administration (FUA) rising 20% to $49.7 billion. However, its Portfolio, Administration and Reporting Services (PARS) segment experienced an 8% fall to $15.9 billion.

Nonetheless, Hub24 witnessed record net inflows to its platform in FY22. Part of this was fuelled by the acquisition of SMSF administration software company Class Limited. In turn, the company now holds a considerable 5.1% market share — increasing from 3.9%.

However, the Hub24 share price has retracted 5% since the Class acquisition became legally effective.

What did management say?

Commenting on the record result, Hub24 managing director Andrew Alcock said:

HUB24 has achieved record levels of organic growth, whilst also completing the acquisition of Class. The HUB24 platform has continued to be recognised by the industry and our customers including most recently being awarded 1st place for Value for Money by Investment Trends and for our Platform and Managed Portfolio market leadership.

The integration of Class has brought an additional 7,000 customers under the Hub24 banner. As a result, the company now touts more than 300,000 total customers.

What’s next?

As you might expect, ongoing market volatility has meant a lack of specific earnings guidance looking forward. However, shareholders can now expect platform FUA to be between $80 billion and $89 billion by 30 June 2024.

Additionally, management stated it was committed to collaborating with the government and regulators. Hub24 management believes the company is well-positioned and will continue to pursue growth.

Hub24 share price snapshot

The Hub24 share price has had a rather uninspiring past 12 months. Shares in the financial platform provider are down 3.9% compared to a year ago. Although, the S&P/ASX 200 Index (ASX: XJO) is in even worse shape, down 5.9%.

However, the high rate of growth appears to have sustained the company’s high price-to-earnings (P/E) ratio. Based on the current Hub24 share price, the business trades at around 150 times its earnings.

The post Hub24 share price slumps despite dividend doubling on record growth 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 positions in and has recommended Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The current environment of soaring inflation and rising interest rates is having a widespread impact across the S&P/ASX 200 Index (ASX: XJO).

But it’s not just ASX shares that are being hit. 

As the Reserve Bank of Australia hikes rates to curb inflation, the Aussie property market is also coming under pressure. 

House prices across the country are falling as home buyers see their borrowing capacity reduced and future mortgage repayments head north. 

This has ramifications for ASX 200 shares REA Group Limited (ASX: REA) and Domain Holdings Australia Ltd (ASX: DHG), which operate the two leading online property marketplaces in Australia.

Lower house prices could see fewer properties come to market, leading to lower listing volumes on sites like realestate.com.au. 

However, lower volumes could be offset by increased advertising efforts by agents, who could rely on more premium packages from REA and Domain to clear their properties.

While the outlook for ASX 200 property shares is mixed, let’s take a closer look at REA and Domain to see which one could be a better buy.

Getting to know REA Group

REA is best known for its leading online property marketplaces in Australia, led by realestate.com.au. It also owns realcommercial.com.au and flatmates.com.au.

Sitting alongside these online advertising platforms is data insights business PropTrack, formerly ASX-listed broker business Mortgage Choice, and home loans business Smartline.

Rounding out REA’s network are various equity investments across the globe. 

It has a majority stake in the number one property marketplace in India, along with minority stakes in the number one sites in Singapore, Vietnam, Malaysia, and Thailand.

Unpacking Domain

Domain is best known for its eponymous property platform, which goes head to head with REA. 

It also owns listings websites Commercial Real Estate and Allhomes, the latter of which is the top-ranked site in Canberra.

Complementing this core business is a range of agent solutions across property data, point of sale, inspections, and campaign management. 

Like REA, Domain also operates in the home loans space. But unlike REA which has a global network, Domain’s operations are solely on Australian soil.

REA vs Domain – compare the pair

Now that we’ve laid the groundwork, here’s a summary of how the two companies stack up against each other.

It’s worth noting that for both companies, FY22 growth has been muddied by acquisitions.

While REA reported 18% revenue growth excluding acquisitions, Domain didn’t provide investors with a metric for organic growth.

	REA	Domain
Market capitalisation	$17.2 billion	$2.3 billion
FY22 revenue	$1.16 billion	$357 million
FY22 revenue growth	25%	23%
FY22 profit growth	19%	3%
Trailing price-to-sales ratio	15x	6x
Trailing price-to-earnings ratio	45x	61x
Trailing dividend yield	1.3%	1.7%
Majority shareholder	News Corp (ASX: NWS) – 61%	Nine (ASX: NEC) – 60%

The case to end your search with REA shares

The power of REA lies in its dominant market position. Realestate.com.au averages 124.1 million visits each month, a whopping 3.36 times more visits compared to its nearest competitor, Domain.

In fact, according to market research firm Nielson, realestate.com.au is Australia’s seventh largest online brand, ahead of big names like Amazon (NASDAQ: AMZN) and PayPal (NASDAQ: PYPL).

As the largest player, REA experiences strong two-sided network effects. The more agents that join the platform, the more valuable the platform becomes to consumers on the hunt for their next (or first) property.

And the more prospective renters and buyers that join the platform, the more valuable it becomes to agents and vendors looking to get their listings in front of as many people as possible.

Benefitting from a first-mover advantage, REA has cultivated its position as the go-to online property marketplace for consumers. As a result, agents flock to the platform, spending valuable advertising dollars to get access to the biggest and widest audience.

After conquering the local market, the company hopes to replicate this success overseas. Emerging markets, in particular, will be a key growth driver for REA as online penetration only increases.

The case to knock the hammer down on Domain shares

The bull case for Domain shares centres on the company’s evolution to a marketplace model, a strategy that was born during COVID.

This strategy is all about creating an ecosystem of services where Domain can support agents and consumers at more points on their property journeys. And, in turn, expand Domain’s addressable markets.

To this end, the company’s business model is evolving from a publisher model that supports a one-off transaction, to a property ecosystem that is responsive to the entire property journey. 

Building on long-term and trusted relationships, there are four key pillars to this strategy: core listings, agent solutions, consumer solutions, and property data solutions.

Underpinning each pillar is different initiatives, powered by a mix of internally-developed solutions, acquisitions, and joint ventures. 

For example, market segmentation and flexible pricing support growth in controllable yield for Domain’s core listings business.

And its recent acquisition of Realbase adds to the company’s end-to-end suite of workflow solutions that help agents grow their business.

Like any ecosystem, there’s also value in how the different pieces of the puzzle come together. Here, Domain is leveraging its data and expertise across verticals to collaborate on new features and produce better outcomes. 

Better ASX 200 property buy

As a long-term investor with a tilt to quality, it’s hard for me to go past REA.

The company is a proven performer with a dominant market position, strong brand power, compelling network effects, and promising global prospects.

The REA share price has tumbled 24% this year, underperforming the broader ASX 200 index which has dropped 7%.

But across a long-term investment horizon, REA shares shine. The REA share price has nearly doubled over the last five years. And it’s grown more than 700% in the last decade.

The post ASX 200 better buy: REA or Domain shares? 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. Motley Fool contributor Cathryn Goh has positions in PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and PayPal Holdings. The Motley Fool Australia has recommended Amazon, PayPal Holdings, and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ansell Limited (ASX: ANN) share price is in focus after the company released its full-year earnings this morning.

Stock in the personal protection and safety solutions provider last traded at $25.14.

Ansell share price on watch as profit drops

Here are the key takeaways from Ansell’s financial year 2022 earnings:

• Sales revenue came to US$1.95 billion ­– 3.7% lower than that of the prior comparable period (pcp) on a constant currency basis
• Earnings before interest and tax (EBIT) fell 32.1% to US$228.1 million
• Statutory earnings per share (EPS) came to 125.2 US cents – 32.1% lower and 0.2 US cents above the low end of its guidance – while adjusted EPS came to 138.6 US cents, a 27.9% fall
• Operating profit fell 35.7% to US$158.7 million
• Operating cash flow lifted 131.7% to US$114 million
• Declared 31.2 US cent final dividend, bringing its full-year payout to 55.45 US cents  

The company’s falling sales were mainly a result of lower demand for COVID-19-related personal protective equipment (PPE).

Its healthcare global business unit saw US$1.19 billion of revenue, while its industrial global business unit brought in US$763 million.

Its EBIT’s slump was most pronounced in the first half and came as the company sold high-cost inventory at lower prices amid adverse plant performance and higher freight costs.

Finally, it recognised US$17 million of one-off expenses from its decision to stop its Russian commercial and manufacturing operations.

What else happened in FY22?

There was plenty happening in Ansell’s corner in financial year 2022.

It welcomed a new CEO and managing director in September. Neil Salmon stepped up to the top job following Magnus Nicolin’s retirement.

Of course, investors will likely remember the 14% crash experienced by the Ansell share price when the company slashed its guidance in January.

The stock also slumped 1% on the release of the company’s half-year earnings.

What did management say?

Salmon commented on Ansell’s full-year results, saying:

I am pleased to report that Ansell delivered second half results in line with revised expectations communicated at the half year … Overall, financial year 2022 was a challenging year for the business.

Although I am not satisfied with our overall financial performance in financial year 2022, we nevertheless achieved significant accomplishments against many of our strategic priorities during the year thanks to our hard-working and dedicated Ansell employees and I believe these will be important contributors to our future success.

What’s next?

The company expects to post EPS of between 115 US cents and 135 US cents in financial year 2023.

It notes the external environment remains supportive for continued demand for its products. That’s expected to drive volume growth in its businesses. Meanwhile, its sales are expected to decline as prices normalise for exam and single-use items.

The company plans to offset expected headwinds from higher raw material, energy, and salary costs with price increases and cost savings.

Ansell share price snapshot

The Ansell share price has had a rough trot as of late.

It has slipped 23% since the start of 2022. It has also fallen 38% since this time last year.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped 7% year to date and 6% over the last 12 months.

The post Ansell share price in focus as FY22 profit tumbles 36% appeared first on The Motley Fool Australia.

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

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The AGL Energy Limited (ASX: AGL) share price has been under pressure in recent sessions.

So much so, the energy company’s shares have now lost over 8% of their value since this time last week.

This share price weakness followed the release of the energy company’s full year results for FY 2022 last week.

Is the AGL share price weakness a buying opportunity?

Although the team at Morgans was disappointed with AGL’s commentary for FY 2023, it has seen enough value on offer to remain positive on the investment opportunity here.

According to a note, the broker has retained its add rating but reduced its price target from $9.67 to $8.63.

Based on the current AGL share price of $7.78, this new price target still implies potential upside of 11% for investors over the next 12 months.

And that’s before dividends. Morgans is forecasting a 30 cents per share fully franked dividend next year, which equates to a 3.9% dividend yield.

What did the broker say?

Morgans has reduced its earnings estimates for FY 2023 materially to reflect another tough 12 months for its wholesale electricity business. It has also reduced its estimates in future periods on the belief that rises could take longer to come through.

We significantly lower our expectations for FY23 underlying profit (-37%) given the likelihood of another year of wholesale electricity performance. We had hoped for a higher degree of optionality in its electricity derivatives and faster roll over of older hedging and customer pricing. Given the language used to couch the outlook we suspect this is not the case.

We also reduce our FY24 earnings forecast to allow for a longer period of time for pricing increases to flow across all areas of the business. We also allow for less of a decline in FY25 given the likelihood that spot prices moderate but this should also take some time to impact customer prices.

However, due to its attractive valuation, the broker remains positive on the AGL share price at the current level. It concludes:

We retain our ADD rating on valuation upside but upside catalysts unlikely this half.

The post Broker tips AGL share price to leap higher appeared first on The Motley Fool Australia.

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More reading

• Is the AGL share price in the buy zone following the company’s latest results?
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• Earnings preview: Here’s which ASX shares are reporting today

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

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Almost every investor, both amateur and professional, falls into the trap of anchoring.

That’s the psychological phenomenon of thinking something will happen in the future because of something unrelated occurring in the past.

So if a stock was once $20 and has now fallen to $2, one might think it’s a bargain. Because in the past it showed it can be much higher.

But this is false logic because ASX shares have no memory. 

Stocks don’t care if they were $20 six months ago. The only thing that matters for the share price is the current and future performance and sentiment.

This trap works the other way too.

If you see an ASX share that’s rocketed up 50% over the past 12 months, you might think you’ve missed the boat.

But that’s also anchoring. Because what happens to that stock from here is completely unrelated to what the price was worth a year ago.

Sequoia senior wealth manager Peter Day this week named a couple of ASX shares that fit that description. They have both soared about 50%, but are still representing great buys.

And now that you are aware of the cognitive trap to avoid, you know that all you need to consider is the future of these businesses.

‘Strong cash flows’ expected from ASX resources share

The market anticipates positive news from metals miner South32 Ltd (ASX: S32) when it reports its financials on Thursday.

“We’re expecting solid full year results to be driven by a strong performance from its coal division,” Day told The Bull.

“On our forecasts, South32 is expected to generate strong cash flows in the near term, supporting additional shareholder returns and growth.”

Not only has the share price risen 46% over the past 12 months, it’s returned 22% since 19 July.

South32 also gives back a nice dividend yield of 4%.

Day’s recommendation is well supported by his peers.

According to CMC Markets, 14 out of 20 analysts are rating South32 shares as a buy, with 13 of them convinced it’s a strong buy.

Margin income rockets 74%

Computershare Limited (ASX: CPU) shares have enjoyed a cruisy 50.7% rise over the past year due to the company’s penchant for better earnings when interest rates head up.

This is because the share registry provider holds cash that it’s yet to pay out to investors, which it temporarily invests. All the returns go straight to its coffers.

Computershare reported its results earlier this month.

“This financial administration company reported management revenue of $2.6 billion in full year 2022, up 12.2% on the corresponding period,” said Day.

“Margin income of $186.5 million was up 74.3%. The company has a strong balance sheet.” 

He acknowledged how strong the stock has been over the last 12 months.

“We retain our outperform recommendation.”

Other professionals also love Computershare, with 10 out of 14 analysts rating the stock as a buy on CMC Markets.

The post I’d still buy 2 ASX shares already up 50% in a year: expert appeared first on The Motley Fool Australia.

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• Experts name 2 top ASX dividend shares to buy with 4%+ yields
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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 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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