The Mosaic Brands Ltd (ASX: MOZ) share price is soaring today after the company delivered its fourth-quarter trading update.

Within the first hour of market open, the specialty fashion retailer’s shares hit an intraday high of 29 cents — a gain of almost 35% on Thursday’s closing price.

However, some profit taking from investors has led its shares to retreat to 23 cents at the time of writing, up 6.98% on the day.

What did Mosaic report for Q4 FY22?

Here’s a brief recap of how the company performed for the three months that ended 3 July 2022.

• Operating cash inflow of $57 million, up by $4 million on Q4 FY21
• Year-to-date cash inflow of $44.6 million
• Online sales grew to $223 million, up 7% on Q4 FY21 – representing 39% of group sales
• Management continues to focus on cost and stock inventory
• Closing net cash position estimated to be at $9.5 million

What happened during the quarter?

In a boost to the Mosaic share price, the ASX retail share stated that its “recovery from two years of restricted trading conditions continues”.

This comes on the back of the ongoing COVID-19 impact as well as strong inflationary movements.

Nonetheless, the group’s sales performance has improved week-on-week following weakened trading conditions early in the third quarter.

Mosaic is forecasting earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at a $16 million loss for FY22.

In addition, net cash is expected to be a positive $9.5 million – in line with the ordinary cash inflow cycles.

While retail headwinds are expected to continue into FY23, the group is seeing a return of its core customers week by week. In particular, June proved to be the strongest month of the second half.

The positive trend is also continuing into July.

With a clean stock position to maximise the year ahead, Mosaic is projecting a return to profitability in FY23.

It noted that “in an inflationary environment it is strongly positioned to achieve growth and accelerate its recovery”.

Mosaic share price review

Since the start of 2022, the Mosaic share price has declined by more than 60%.

Strong market volatility and a gloomy economic outlook appear to have weighed down this ASX retail share this year.

Mosaic has a price-to-earnings (P/E) ratio of 4.86 and commands a market capitalisation of roughly $20.44 million.

The post ‘Recovery continues’: Why this ASX retail share surged 35% in morning trade appeared first on The Motley Fool Australia.

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More reading

• Inflation is on the rise, so why isn’t the gold price?
• Why is the BrainChip share price sinking 11% on Friday?
• ‘Not immune’: How Rio Tinto shares are feeling the sting of inflation
• Is the ANZ share price an ASX banking buy for the next 12 months?
• ASX 200 midday update: Zip crashes, PointsBet tumbles

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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Many ASX investors might be disappointed with the performance of ASX gold shares in recent months. Take the ASX’s largest gold miner, Newcrest Mining Ltd (ASX: NCM).

Newcrest shares are today going for $18.95 each, up a healthy 1.77%. However, that still leaves the Newrest share price down 11.82% over just the past month alone. As well as by a painful 22.6% year to date in 2022 so far.

As a gold miner, the Newcrest share price largely rises and falls on the back of the gold price itself. After all, any mining company is only as valuable as the commodities it digs out of the ground. And over 2022 thus far, we have seen gold sink from around US$1,832 an ounce at the start of the year to the US$1,758 or so it is asking today.

So that explains the rough road the Newcrest share price has been on this year so far.

But wait, hasn’t inflation spiked this year, not just here in Australia, but around the world? And isn’t gold the traditional ‘inflation hedge‘ that outperforms other assets in times of rising prices?

Well, yes and yes. We found out just this week that Australian inflation is running at an annualised rate of 6.1%. And gold has always been held up as an effective protection against inflation, thanks to its static supply and inability to be ‘printed’.

Why has gold fallen in the face of rising inflation?

So why then has gold had such a shocker of a year? Well, it might be too simplistic to just declare gold as an inflation hedge, destined to rise in lockstep alongside inflation.

A recent article from CNBC explains this well, laying the blame on aggressive interest rate hikes. The article stated that “rising U.S. interest rates reduce the appeal of non-yielding gold, even though it is considered a hedge against inflation”.

This makes sense. Another way to protect one’s wealth against inflation is securing yield on one’s capital. This yield can come in the form of dividends from shares, interest from loans and bonds, or rent from assets. Gold bullion provides none of these income streams.

So even though gold is viewed as an effective inflation hedge, it still gives off no yield, which can make it unattractive to hold, in an environment of sharply rising interest rates, at least in the short term.

So this is what could be holding the gold price back in 2022 so far. And ASX gold shares like Newcrest, by extension. As such, it will be interesting to see what the rest of 2022 holds in store for the gold price and ASX gold shares.

The post Inflation is on the rise, so why isn’t the gold price? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for Newcrest Mining shares in FY23?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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

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The BrainChip Holdings Ltd (ASX: BRN) share price is on course to end the week in a disappointing fashion.

In afternoon trade, the semiconductor company’s shares are down 11% to $1.13.

What’s going on with the BrainChip share price today?

Investors have been selling down the BrainChip share price today despite there being no news out of the company.

However, it is worth noting that a number of tech shares that have been rallying inexplicably higher over the last couple of weeks have come under pressure along with BrainChip. For example, the Zip Co Ltd (ASX: ZIP) share price is down 20% at the time of writing.

This appears to have been driven by profit taking from some investors or traders.

The good news for shareholders is that the BrainChip share price is still up materially since this time two weeks ago despite this decline.

Two Friday’s ago, the company’s shares ended the week at 87 cents. This means BrainChip’s shares are trading a sizeable 30% higher than this level currently.

It also means the company still has a market capitalisation of $2 billion. That’s despite its latest quarterly update revealing sales receipts of just US$1.2 million.

The post Why is the BrainChip share price sinking 11% on Friday? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• BrainChip share price powers ahead amid quarterly update
• BrainChip share price leaps again, up 40% this week
• Why is the BrainChip share price storming 9% higher?

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 ZIPCOLTD FPO. 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 the spotlight this week after the ASX mining share revealed its FY22 first half result.

There were plenty of different elements to look at from the announcement.

But there were a few interesting comments made about inflation and what this could mean for the company’s outlook.

As a commodity business, Rio Tinto’s level of revenue is predominately decided by two things: how much stuff it produces and the price it can sell those resources for.

However, net profit after tax (NPAT) and cash flow are obviously impacted by the costs a business faces as well. Profitability can have an important influence on the Rio Tinto share price.

Inflation bites

According to the company, inflation is impacting the business. On a call, the Rio Tinto chief financial officer (CFO), said:

Higher rates of inflation increased closure liabilities, resulting in a $400 million pre-tax, non-cash charge to underlying earnings. We expect a similar impact in the second half under our existing policy if current rates of inflation persist.

As you would expect, we are not immune to inflation… With CPI, rising energy costs largely attributed to diesel and higher market-linked prices for raw materials and aluminium all having an impact. In aggregate, these factors lower earnings before interest, tax, depreciation and amortisation (EBITDA) by $1.5 billion.

Rio Tinto attributed a US$595 million fall in the FY22 first half’s underlying EBITDA to “general inflation”. Average movements in energy prices compared to HY21 reduced underlying EBITDA by $560 million, “mainly due to higher diesel prices” for trucks, trains and ships.

However, Cunningham said that “other impacts were relatively well contained”, which demonstrated the “resilience” of its operations.

In the Rio Tinto half-year result, it said that underlying EBITDA fell by 26% to US$15.6 billion compared to HY21. However, it still represented a 62% rise compared to HY20.

Rio Tinto’s ordinary dividend was reduced by 29% year on year and free cashflow fell 30% to US$7.1 billion.

Is the Rio Tinto share price an opportunity despite the inflation?

UBS has a ‘neutral’ rating on Rio Tinto, with a price target of $90. It thinks that the iron ore price is headed downward, capital expenditure is expected to rise and higher costs are probably going to be around for a while.

However, the broker Macquarie currently rates Rio Tinto as a buy with a price target of $120. That implies a possible rise of around 20%. The movement in commodity prices will be a key influence on what happens next. Macquarie thinks Rio Tinto is going to pay a grossed-up dividend yield of 14.4% in FY23.

The post ‘Not immune’: How Rio Tinto shares are feeling the sting of inflation appeared first on The Motley Fool Australia.

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• Broker tips 26% upside for Rio Tinto share price post-results
• ASX 200 midday update: Rio Tinto drops, tech shares jump, Macquarie impresses
• Did the Rio Tinto interim dividend really just tumble 52%?
• Why is the Rio Tinto share price underperforming today?
• 5 things to watch on the ASX 200 on Thursday

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 Macquarie 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has been a bit of a disappointing performer in recent months and years. ANZ shares are currently going for $22.83 each, up 0.55% for the day so far this Friday.

But that still leaves the ANZ share price down a painful 18% over 2022 thus far. ANZ shares have also lost 17% over the past 12 months, and remain down by 22% over the past five years.

This performance has notably lagged some of ANZ’s big four banking peers. Take the largest ASX bank share, Commonwealth Bank of Australia (ASX: CBA). CBA shares have only lost 1.6% this year to date. This ASX bank is also up almost 25% over the past five years.

That’s obviously a fairly disappointing comparison for ANZ, which has gone backwards by almost as much as CBA has risen.

So could this mean ANZ shares are primed for a comeback? Could today be a chance to jump into ANZ shares before a dramatic recovery over the coming 12 months?

Well, that is indeed the view of one ASX broker. As my Fool colleague James reported last week, broker Citi has come out with a fresh analysis of ANZ following its recently announced merger with the banking division of Suncorp Group Ltd (ASX: SUN).

Is the ANZ share price an ASX 200 banking buy today?

Citi currently rates the ANZ share price as a buy, with a 12-month share price target of $29. If that came to pass, it would represent a potential upside of more than 27% from where the shares stand today.

This ASX broker reckons the Suncorp deal will give ANZ shares a boost if the merger goes ahead without a hitch. It noted that the deal represents “fair value” for ANZ, with the potential of “substantial cost synergies… funding cost benefits… and lower capital intensity… over time”.

Another broker who has recently weighed in on ANZ shares is Goldman Sachs. Earlier this month, we covered how Goldman maintained a neutral rating on the ANZ share price. Even so, it still came out with a share price target of $27.44. That implies a potential upside of more than 20%.

Goldman is a little more sanguine than Citi on ANZ’s Suncorp acquisition. It noted that:

Strategically, the proposed acquisition somewhat improves ANZ’s relative lack of scale in domestic retail/commercial banking. Based on APRA’s monthly ADI statistics, ANZ’s market share should increase c.2% in home lending and c.3% in retail deposits…

We see operational risk as elevated, given i) management’s expected A$260 mn of pre-tax synergies largely rely on getting SUN’s 1.2 mn customers on to its still yet to be completed ANZ Plus platform, and ii) potential competition concerns.

This synergy assumption looks high versus previous in-market financial transactions, which tend to see 25-30% of the target’s cost base as synergies.

But it seems both brokers agree that ANZ shares are heading north over the coming year. We’ll just have to see what happens here. But this will no doubt come as music to ANZ shareholders’ ears.

In the meantime, the current ANZ share price gives this ASX 200 bank share a market capitalisation of $68.16 billion, with a dividend yield of 6.31%.

The post Is the ANZ share price an ASX banking buy for the next 12 months? appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Zip crashes, PointsBet tumbles
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• Pilbara Minerals share price lifts amid 50% quarterly production boost
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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 Goldman Sachs. 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on track to end the week on a high. The benchmark index is currently up 0.9% to 6,951 points.

Here’s what is happening on the ASX 200 today:

Zip shares sold off

The Zip Co Ltd (ASX: ZIP) share price rally has well and truly run out of steam on Friday. The buy now pay later provider’s shares have crashed lower despite there being no news out of it. Nevertheless, even with a 20% decline today, the Zip share price is still up over 150% since this time last month.

PointsBet tumbles

The PointsBet Holdings Ltd (ASX: PBH) share price has taken a tumble on Friday. This follows the release of the sports betting company’s fourth quarter update. PointsBet revealed that its total net win increased 41% year-on-year to $85.8 million for the quarter. This was driven by solid growth in both the Australian and US markets. It appears as though the market was expecting even stronger growth.

AVZ shares remain suspended

AVZ Minerals Ltd (ASX: AVZ) shares didn’t return to trade as planned this morning. Instead, the embattled lithium developer’s suspension has been extended for a further two and a bit weeks. This will mean that they have been suspended for over three months if they emerge from their lengthy hiatus next month on 15 August. AVZ is battling legal action from a Chinese company that claims it owns a stake in the Manono Lithium project.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the EML Payments Ltd (ASX: EML) share price with a gain of 7%. This payments company’s shares are rebounding after being smashed this week. The worst performer has been the Zip share price with a 20% decline on no news. This appears to be due to profit taking after some very strong gains.

The post ASX 200 midday update: Zip crashes, PointsBet tumbles appeared first on The Motley Fool Australia.

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• The big dipper: Zip share price dives 24% in wild end-of-week ride
• Pointsbet share price tumbles 12% despite reported net-win improvements
• Is the AVZ share price still suspended?
• 5 things to watch on the ASX 200 on Friday
• Fundie reveals best ASX 200 sector to ‘generate defensive growth and help future proof portfolios’

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 EML Payments, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Weebit Nano Ltd (ASX: WBT) share price is all over the map today.

The ASX tech share, which develops next generation computer memory technology for the global semiconductor industry, is currently down 1.8% after posting gains of more than 4% in early morning trade.

So, what’s going on with the Weebit Nano share price?

Well, the company released two separate price-sensitive announcements today. Namely, its quarterly results for the three months ending 30 June, as well as a report that its demonstration chips have been released to manufacturing.

Weebit Nano share price fails to lift off on tape-out of demonstration chips

Turning to the demo chips first, Weebit reported it had taped-out (released to manufacturing) demonstration chips integrating its embedded Resistive Random-Access Memory (ReRAM) module to SkyWater Technology’s foundry.

The company labelled this first tape-out of demo chips as “a major milestone toward commercialisation”.

Commenting on the milestone, Coby Hanoch, Weebit Nano CEO said:

This successful tape-out concludes the technology transfer to SkyWater’s US production fab, and once the chips are back from the fab, we will proceed with technology qualification. We’re in discussions with early-adopter customers looking to leverage our faster, more efficient memory technology to increase their competitiveness in the market.

Thomas Sonderman, SkyWater CEO added:

Weebit ReRAM is a rich building block our customers can leverage to create innovative, highly differentiated SoC designs. Given the technology’s ultra-low power consumption and integration flexibility, we are already seeing enthusiastic interest from customers in areas such as IoT, power management and mixed-signal designs.

What results were reported for Q4 FY22?

Turning to the quarterly results that look to be sending the Weebit Nano share price on a bit of a rollercoaster today, atop the taped-out demo chips, the ASX tech share reported:

• Its demonstration chips completed functional testing
• The company publicly demonstrated its ReRAM IP module for the first time
• It commenced technology qualification at Leti with very good initial results
• Weebit continued bolstering its marketing and sales activities

Commenting on the Q4 results, Hanoch said:

Weebit Nano achieved several significant technical milestones during the quarter and is steadily progressing towards volume production at SkyWater and first customer orders…

Our ReRAM will first be available on SkyWater’s 130nm CMOS process and discussions with additional fabs are ongoing. Our technology also has the capability to scale to smaller geometries for more advanced applications, having already demonstrated production level parameters at 28nm. We continue to work on scaling to 22nm as well as other development priorities that include a solution for the discrete memory market.

Fourth quarter research and development expenses came in at $1.8 million.

Looking ahead the company said by the end of December it’s on track to receive the wafers from SkyWater and progress with technology qualification, as well as continuing to scale its embedded ReRAM to 22nm.

Weebit Nano share price snapshot

Over the past 12 months, the Weebit Nano share price has outperformed the benchmark, gaining 5% compared to a 7% loss posted by the All Ordinaries Index (ASX: XAO).

The post ‘Major milestone’: What’s with the Weebit Nano share price on Friday? appeared first on The Motley Fool Australia.

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• Pointerra share price tumbles despite 93% increase in full-year cash receipts
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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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What a rollercoaster it has been for the Zip Co Ltd (ASX: ZIP) share price.

After hitting a four-month high of $1.72 at market open today, shares in the buy-now, pay-later (BNPL) company are now being heavily sold off.

It was only late last month when Zip shares hit a multi-year low of 43.5 cents before rocketing by more than 300%. That included gains of around 20% on each of the previous three trading days this week.

However, in late morning trade, the share is trading at $1.15 – down 24.34% for the day.

Let’s take a look at what could be weighing on the company’s share price.

What’s dragging Zip down?

It appears the Zip share price is cooling off after unusually strong sector moves over the past week.

BNPL peers Splitit Ltd (ASX: SPT) and Openpay Group Ltd (ASX: OPY) are down 5.77% and 23.6%, respectively.

Sezzle Inc (ASX: SZL) has endured a similarly tough day to Zip. Its share price jumped 46% in early trading following the release of the company’s second-quarter update but has since slumped and is now 0.98% in the red.

Overnight data from the Federal Reserve could be sparking the sell off.

The release of the latest GDP readings showed that the US economy had shrunk by 0.9% in the second quarter.

Following the 1.6% contraction in the prior period, this now marks an ‘unofficial recession’ in the world’s largest economy.

While the US government has insisted the US is not in recession, it seems investors aren’t taking this lightly.

Technically, the National Bureau of Economic Research has the last say in declaring whether or not the US is in a recession.

It is worth noting though that if consumer spending does dry up then the BNPL industry would feel the impact. Discretionary purchases such as electronics, furniture, and clothing are likely to be the first to go.

For Zip to prosper in a gloomy economic environment, minimising credit risk is becoming a top priority. Especially, as bad debts continue to rise across the sector.

Zip share price snapshot

Over the past 12 months, the Zip share price has plummeted 82% and is currently down 71% year to date.

This is a massive difference from when its shares reached an all-time high of $14.53 in February 2021.

Based on today’s price, Zip presides a market capitalisation of around $853.04 million.

The post The big dipper: Zip share price dives 24% in wild end-of-week ride appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Thursday
• ASX 200 midday update: Rio Tinto drops, tech shares jump, Macquarie impresses
• Zip share price rockets again and is now up 225% in four weeks
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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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If you’re an owner of Qantas Airways Limited (ASX: QAN) shares, you might be wondering when you’ll be paid dividends again.

It has been three years since the airline operator last rewarded its shareholders with a share of its profits.

Back in FY 2019, the company paid shareholders a fully franked 25 cents per share dividend.

When will Qantas shares pay a dividend again?

For a company to pay dividends, it needs to be profitable. This is something that has eluded Qantas for the last couple of years because of COVID-19’s impact on the travel sector.

In FY 2020, Qantas recorded a loss of ~$1.95 billion and then in FY 2021 it reported another loss of ~$1.73 billion.

And while things are certainly looking up for Qantas, it is almost certainly going to be too soon for any talk of dividends in FY 2022.

A recent update reveals that the airline expects to deliver a strong EBITDA profit in the second half of FY 2022, but it won’t be enough to prevent a full year loss.

It explained:

While the Group still forecasts a significant full year Underlying EBIT loss for FY22 that includes the worst of the Delta and Omicron impacts as well as restart costs, the business remains on track for 2H22 Underlying EBITDA of between $450 million to $550 million.

Dividends incoming

The good news is that things are looking a lot more positive for FY 2023. Management believes the airline is “on track to return to Underlying profit in FY23.”

In light of this, the team at Citi see scope for a small dividend to be paid in FY 2023.

According to a recent note, the broker has pencilled in a 5 cents per share dividend. And while that won’t generate much income for investors, if they’re patient they might be rewarded.

Citi is forecasting a 20 cents per share dividend in FY 2024. Based on the current Qantas share price of $4.61, this would mean an attractive 4.3% dividend yield.

The post When will Qantas shares pay a dividend again? appeared first on The Motley Fool Australia.

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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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The Pointerra Ltd (ASX: 3DP) share price is in the red this morning after the developer and provider of 3D geospatial data technology updated the market on its performance in the June quarter.

Since opening 11% lower at 23.5 cents, the tech stock has posted a slight recovery. The Pointerra share price is trading at 25 cents at the time of writing, representing a 5.66% fall.

Pointerra share price plunges despite record receipts

Highlights of Pointerra’s quarterly activities and cash flow report included:

• Quarterly invoicing came to a record $4.2 million
• Cash receipts grew 21% on those of the prior corresponding period (PCP) to $1.7 million, but that’s down from $2.4 million in the March quarter
• Operating cash flow came to a $1.4 million outflow
• Full-year cash receipts reached $7.9 million – a 93% increase
• Pointerra ended the quarter with $3.6 million of cash and equivalents

The tech company also updated the market on its enterprise sales and annual contract value (ACV) this morning, noting the latter now totals U$18.2 million. That’s US$1.9 million higher than it was at the end of April.

It also rose 86% between the end of the June quarter and the PCP, driven by the deployment of contracts in the United States energy sector, as well as growth across other targeted sectors.

What else happened in the June quarter?

The big news from Pointerra last quarter was of two contracts won in the United States.

A new contract signed with Florida Power and Light could have the potential to bring in at least US$250,000 each year, as could another with NextEra Energy.

The Pointerra share price surged 24% on the back of the announcement in June.

The company also continued improving its platform through the quarter just been.

What’s next?

The company didn’t provide any new earnings guidance today. However, it did provide a sunny outlook.

Revenue and cash from the company’s newer contracts are expected to continue growing this financial year. However, a slight lag is expected as the company works to upload new customers’ legacy data.

It also noted many customers have advocated their peers’ adoption of Pointerra technology, driving down the cost of customer acquisition.  

Pointerra share price snapshot

Both the Pointerra share price and the S&P/ASX All Technology Index (ASX: XTX) have struggled to gain traction this year.

They’ve slipped 37% and 28%, respectively, since the start of 2022.

Longer term, however, the company’s stock is underperforming. It has dumped 40% in the last 12 months. Meanwhile, the All Tech Index has fallen 24%.

The post Pointerra share price tumbles despite 93% increase in full-year cash receipts appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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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