The Life360 Inc (ASX: 360) share price is bouncing around this morning following the release of the company’s first-half results today.

Shares in the family-focused safety platform provider slumped to $5 soon after the open — a fall of 9% from Monday’s closing price. However, at the time of writing, they have rebounded and are now up 3.27% at $5.68.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.52%.

Life360 share price drops amid higher costs

• Total revenue up 108% to $99.8 million year on year (YoY)
• Annualised monthly revenue up 65% YoY to $174.4 million
• Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $32.3 million, worsening from a $4.8 million loss YoY
• Adjusted net loss of $30.2 million, worsening from a $5 million loss YoY
• Monthly active users up 29% YoY to 42 million
• Paying Circles up 41% to 1.42 million

The above results are the first half-year results to include the company’s Tile acquisition.

What else happened in the half?

It was a period of heavy investment for Life360. While observing softness in consumer electronics, the company achieved a standout result for subscriptions.

According to the report, the second quarter represented the second highest ever quarterly growth for net subscribers. Positively, the company managed to add 111,000 net subscribers in the latest quarter. Consequently, subscription revenue in the first half improved drastically, rising 90% from the prior corresponding period to $36 million.

However, the bottom line did not improve year on year, as expenses enlarged by 132%. This was due in part to costs associated with integrating the Tile and Jiobit acquisitions made last year.

Although, the company believes future increases in average revenue per Paying Circle will eventuate thanks to bundling with these physical products.

What did management say?

Providing further insights into the result, Life360 CEO Chris Hulls said:

We are seeing resilience from our subscribers and users in the face of more challenging global macroeconomic circumstances, with our usual ‘back-to-school’ seasonal uplift underway. While we continue to monitor global macroeconomic conditions, in fact we continue to see strong growth in our user and subscriber performance, and maintain confidence in a very promising outlook.

Hulls added:

With the increasing value of our membership offering, we are currently market testing higher price points. Although early, the results demonstrate the value of our services and significant pricing power. We are exploring price increases as part of our overall strategy of expanding membership with hardware devices.

What’s next?

Fortunately for shareholders, management expects solid results for the half ahead. Importantly, the company is expected to have a considerably reduced cash burn, flowing through to a smaller adjusted EBITDA loss.

Furthermore, Life360 subscription revenue is slated to deliver above 55% growth for the calendar year. As a result, management is guiding for consolidated revenue between US$245 million and US$260 million.

Life360 share price snapshot

The Life360 share price has experienced a treacherous 2022. Since the beginning of the year, shares in the company have fallen 40% in value. This is inclusive of the phenomenal 140% rebound since 23 June.

It’s no secret that ASX tech shares have been battered and bruised amid a shift away from loss-making companies. Though, the Life360 share price has even substantially underperformed the S&P/ASX All Technology Index (ASX: XTX) this year, which is down 23% year-to-date.

The post Life360 share price rises as revenue more than doubles 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 Life360, Inc. 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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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

The sentiment shift we’ve seen play out among major cryptocurrencies appears to be continuing this week. Today, Bitcoin (CRYPTO: BTC), Cardano (CRYPTO: ADA), and Polkadot (CRYPTO: DOT) each surged higher to start the week, building on gains these tokens have seen since bottoming in mid-June. As of 2 p.m. ET, Bitcoin, Cardano, and Polkadot appreciated 3.5%, 4.9%, and 6.8%, respectively, over the past 24 hours.

Bitcoin actually rallied more aggressively this morning, breaching the $25,000 mark for the first time since June. Broader market sentiment, which has shifted in a bullish direction as investors focus on catalysts such as Ethereum‘s upcoming The Merge over headwinds related to insolvencies and structural issues in this space, appears to be the key factor Bitcoin investors care about right now.

Cardano has seen continued interest, as this network approaches its own key update: its Vasil hard fork. Founder Charles Hoskinson has reiterated that this upgrade is unlikely to be delayed any further, noting no key issues with testing thus far. 

That said, Polkadot’s rise today is rather intriguing to consider, as a Polkadot-backed stablecoin, acala dollar (aUSD), was recently hacked, losing 99% of its value. As with many ecosystem-driven crypto projects, it appears investors are paying less attention to these headlines, choosing to focus on Polkadot’s ties to Ethereum in this market rally.

So what

It’s truly incredible to see the degree to which market sentiment has shifted in the crypto sector. Tokens such as Polkadot that encounter a hack, or tokens like Cardano that delay their upgrades, aren’t being put in the penalty box by investors. It’s risk-on again, with speculators, traders, and investors alike all jumping aboard. 

The multiweek nature of this crypto market rally has some investors thinking the bottom may be in. Whether this buying activity can hold up in the face of upcoming rate hikes and the potential for more macro headwinds remains unclear. However, this is the most exuberant the market has appeared since last year, to be sure.

Now what

We’re in an interesting period of time, in which most investors have become self-proclaimed economists. As the Federal Reserve has accelerated its rate hiking schedule, various risky asset classes (such as crypto) have been hit hard during the first half of this year. However, given a lag between the Fed’s last rate decision (July 27) and its next decision (Sept. 21), there’s a time frame in which investors can ignore the rate hike talk and buy the dip.

That said, through the end of the year, more headwinds could materialize if the Fed doesn’t stop hiking rates, like most in the market expect. This could be a Goldilocks period, which provides a significant bear market rally.

Alternatively, this rally could continue if expectations are proven correct. And should the major upgrades in store for Ethereum and Cardano prove fruitful, perhaps this rally is only the beginning. Time will tell.

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

The post Big buying activity boosting Bitcoin, Cardano, and Polkadot today appeared first on The Motley Fool Australia.

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Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. 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 James Hardie Industries plc (ASX: JHX) share price is sliding in early trade on Tuesday after the construction materials provider downgraded its 2023 forecast. At the time of writing, James Hardie is trading down 3.46% at $35.40.

What did the company report?

• Global net sales up 19% to US$1 billion for the quarter ending 30 June
• Adjusted net income up 15% to US$154.3 million for the quarter
• North America fibre cement net sales up 28% to hit US$740.1 million
• Global adjusted earnings before interest and tax up 15% to US$208.4 million

What else happened in FY22?

The big development for James Hardie in the past year is the departure of its chief executive Jack Truong in January.

He was sacked immediately after employees complained about his behaviour towards subordinates. The company revealed it “undertook extensive due diligence” including retaining external counsel and a third-party consultant.

However, the remedial measures apparently did not have the desired effect on Truong’s behaviour.

“The board ultimately concluded that Truong’s conduct, while not discriminatory, extensively and materially breached the James Hardie code of conduct,” reported The Motley Fool at the time.

What did management say?

James Hardie interim chief Harold Wiens said “The James Hardie team has continued to deliver strong execution of our global strategy”: 

The global team’s success in delivering high value products is the result of (1) enabling our customers to make more money by selling more James Hardie products and, (2) marketing directly to the homeowners to create demand of our high value products through our customers.

What’s next?

The revised outlook for financial year 2023 is the major concern in James Hardie’s announcement on Tuesday.

The company previously forecast an adjusted net income range between US$740 million and US$820 million. That was downgraded to US$730 and US$780 million.

James Hardie chief financial officer Jason Miele gave the following reasons:

Our primary reasons for adjusting guidance downward are: continued inflationary pressures globally, our lowered expectations regarding Europe segment EBIT, the impact of a strengthening US dollar on the translation of our APAC and Europe earnings and housing market uncertainty.

James Hardie share price snapshot

The James Hardie share price hit an all-time peak late last year. However, this year so far it has lost 35.4%. 

In early trade on Tuesday, James Hardie had plunged 3.6%.

The stock currently pays out a dividend yield of 2.64%.

The post James Hardie share price slides following guidance downgrade 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 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 BHP Group Ltd (ASX: BHP) share price is on the move on Tuesday morning.

At the time of writing, the mining giant’s shares are up over 5% to $41.05.

Why is the BHP share price charging higher?

The BHP share price is rising on Tuesday after investors responded positively to the Big Australian’s full year results.

For the 12 months ended 30 June, BHP reported a 16% increase in underlying EBITDA from continuing operations to a record US$40,634 million.

A key driver of this was the company’s coal operations, which delivered stellar earnings growth thanks to sky high prices of the black gold. This helped offset softer iron ore earnings due to a pullback in prices of the steel making ingredient.

This ultimately allowed the BHP board to declare a fully franked final dividend of US$1.75 per share, which took its full year dividend to US$3.25 per share.

What was the reaction from brokers?

Analysts at Goldman Sachs have been looking over the result and given their verdict. They were pleased with its earnings and dividend, which both came in ahead of their expectations.

The broker commented:

Better than expected result with underlying EBITDA/NPAT of US$40.6bn/US$21.3bn, 2%/5% vs. our US$39.9bn/US$20.3bn estimates (and vs. Visible Alpha consensus of US$40.6bn/US$19.4bn). Headline NPAT of US$30.9bn included a US$1.1bn increase in Samarco liability provision and exceptional gain of US$7.1bn on the petroleum demerger. BHP reported an EBITDA margin of 65% and record ROCE of 48.7% for the year.

Capital management: final dividend of US175cps (74% payout on continuing operations, above minimum 50% target), above our US140cps forecast (65% payout ex Petroleum) and VA consensus of US170cps.

Where next for BHP’s shares?

Goldman Sachs currently has a buy rating and $39.70 price target on its shares. This means the BHP share price is now trading ahead of this target following today’s gain.

Though, it is worth remembering that this rating and price target could change once its analysts have updated their financial model. Stay tuned for that later this week.

The post BHP share price charges 5% higher on ‘better than expected result’ 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 Goodman Group (ASX: GMG) share price is falling on Tuesday following the release of the company’s full year results.

In morning trade, the integrated commercial property company’s shares are down over 3% to $19.95.

Goodman share price falls despite guidance beat

• Revenue up 35.6% year over year to $5,156.4 million
• Operating profit up 25.3% to $1,528 million
• Operating earnings per share up 24% to 81.32 cents
• Full year distribution flat at 30 cents per share
• Total assets under management (AUM) up 26% to $73 billion
• Development work in progress (WIP) up 28% to $13.6 billion

What happened in FY 2022?

For the 12 months ended 30 June, Goodman reported a 25.3% jump in operating profit to $1,528 million and a 24% increase in operating earnings per share to 81.32 cents. The latter was ahead of the company’s upgraded guidance of 23% growth.

Management advised that this reflects the strong demand for industrial space in its markets. It notes that its customers’ need for more productivity and sustainability from their supply chains continues to drive demand. This underpinned a portfolio occupancy rate of 98.7% and like-for-like net property income growth of 3.9%.

It also allowed the company to pay a 15 cents per share final distribution, which brought its full year distribution to 30 cents. This was flat year over year.

Management commentary

Goodman’s chief executive officer, Greg Goodman, was pleased with the 12 months. He said:

Goodman Group delivered a strong result for FY22, reflecting the strong demand for industrial space in our markets. Our customers’ need for more productivity and sustainability from their supply chains continues to drive demand. By focusing our portfolio and $13.6 billion development workbook on key infill locations, we have had seen accelerating market rental growth, significant valuation uplift and subsequent outperformance of our Partnerships.

Assets under management have grown 26% to $73 billion, with an average total return of 21.4%6 for our Partnerships. Capital management activity has continued across the Group and Partnerships, where we raised $1.8 billion in third party equity and completed $8.5 billion of debt refinancings over the year. As a result, the Group’s balance sheet remains well positioned with low gearing at 8.5% and $2.8 billion of available liquidity and $18.1 billion available across the Partnerships.

Outlook

The company’s outlook appears to be what is weighing on the Goodman share price today.

Goodman is guiding to operating earnings per share of 90.3 cents in FY 2023, which represents an 11% increase on FY 2022’s earnings.

As a comparison, the team at Citi has been forecasting operating earnings per share of 97 cents in FY 2023. And while it is worth remembering that Goodman is traditionally conservative with its initial guidance, some investors appear to believe it could be too much of a stretch to reach Citi’s estimate.

In addition, despite Goodman’s earnings per share growth guidance, the company is expecting its distribution to remain flat again at 30 cents per share. This is to help fund the company’s significant development workbook and is in line.

Greg Goodman commented:

Demand is currently exceeding supply in our markets, supporting our development-led growth strategy and producing well-located assets for the Group and our Partnerships. In addition to strategic site acquisitions, the opportunities for regenerating existing assets support our future development workbook by providing value add opportunities, while reducing our environmental impact. Our production rate, depth of customer demand and strong margins are supporting the outlook for development earnings into FY23.

We have made a strong start to FY23 with a significant development workbook underway, continued underlying structural demand from customers, and a robust capital position across the Group and Partnerships. We believe the Group is positioned to continue to deliver growth notwithstanding risks associated with current market volatility and we expect FY23 operating EPS growth to be 11%.

The Goodman share price is now down 25% in 2022.

The post Goodman share price drops despite beating FY22 earnings guidance 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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As fears of inflation and rising interest rates rattle the ASX, tech shares have been among the hardest hit.

The S&P/ASX All Technology Index (ASX: XTX) has tumbled nearly 25% this year as investors lose their appetite for high-risk businesses and turn their backs on lofty valuations.

The sell-off has been brutal and there could be more pain ahead. But for long-term investors, this pullback could be an opportunity to pick up quality names at a discount.

Two high-quality ASX tech shares that are down more than 30% this year are Xero Limited (ASX: XRO) and Altium Limited (ASX: ALU).

So which of these two ASX tech darlings could be a better buy?

The case to zero in on Xero shares

Gone are the days when accounting software was on discs that you’d have to install locally on your computer. And for small business owners, loading all of your data onto a USB to send to your accountant is a thing of the past.

Enter Xero, a ‘beautiful’ cloud-first accounting software platform you can access anytime, anywhere and from any device. 

After dominating the local Australian and New Zealand markets, Xero set its sights abroad. It now has a strong foothold in the United Kingdom and North America, where cloud adoption still has a lengthy runway. 

Being mission-critical to a small business’ operations, Xero’s software is incredibly sticky. In other words, it’s so embedded in its customers’ lives that it’s hard to give up. 

Not only does this lead to high rates of customer retention but it also gives Xero lucrative pricing power. Together with the addition of new features and add-ons, this has helped Xero increase its average revenue per user (ARPU) over time.

The beauty of Xero’s economics can be seen through the relationship between two metrics: customer acquisition costs (CAC) and lifetime value (LTV). After all, the basic idea for any sustainable business is that it costs less to acquire a new customer than what that customer pays over their expected lifetime.

In FY22, Xero reported an LTV-to-CAC ratio of 6.9. This means Xero estimates it gets $6.90 back for every $1 it spends to get a customer paying for its products. So while many investors are quick to point out Xero’s hefty marketing spend, I think it makes sense to invest in these channels at such attractive rates of return.

The case to add Altium to your portfolio

Altium provides software involved in the design of printed circuit boards (PCBs), which sit inside electronic devices.

As Altium’s investor presentations make sure to highlight, the company is a market leader with a wide range of applications and a who’s who of high-profile customers.

Since PCBs are used as the base in most electronics, Altium is exposed to the growth of a number of different industries, including automotive, aerospace, consumer electronics, and life sciences.

Altium is also a key player in the rise of connected devices, or the ‘internet of things’ thematic.

As I’ve written about previously, Altium ticks many boxes of a high-quality growth share. It’s a capital-light business that scales extremely well; it exhibits high switching costs which leads to sticky revenue; and it boasts a cashed-up, debt-free balance sheet.

Management has also shown tremendous execution to date and now has its sights set on an ambitious target of 100,000 Altium Designer subscribers and US$500 million revenue by FY26. For context, Altium reported 56,000 subscribers in the most recent half and booked US$191 million of revenue in FY21.

While acquisitions will likely play a part, the key to achieving these targets will be the success of the company’s new cloud platform, Altium 365. Taking the electronics design process into the cloud and building an ecosystem around it could be a game-changer for Altium. And importantly, it has the first-mover advantage. 

Which ASX tech share comes out on top?

There’s plenty to like about both of these ASX tech shares. 

Both have scalable cost bases, capital-light business models, sticky revenues, stiff industry tailwinds at their backs, strong balance sheets, and proven management teams.

So it’s no surprise that Xero and Altium are among the best performers in the S&P/ASX 200 Index (ASX: XJO) over the last 10 years.

While I own shares in both companies, I’m especially attracted to Xero’s delicious unit economics, the simplicity of the business, and how it’s evolving to take greater share of customer wallets.

Although Altium is a proven performer, COVID threw the business off course and in my eyes, it’s emerged as a riskier business. I’m keen to see how Altium has been faring in a post-pandemic world when it releases its FY22 results next week. 

The post Better ASX tech buy: Xero or Altium? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in Altium and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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

Many Tesla (NASDAQ: TSLA) watchers know the stock has been on a major roll recently. In just the last month, the shares are up nearly 30%. That trend continued Monday with the stock closing 3.1% higher.

So what

CEO Elon Musk noted on Twitter over the weekend that Tesla has now manufactured more than 3 million vehicles after its Shanghai plant passed the 1 million vehicle milestone. That fact has investors seeing through some of the noise related to Musk. 

Several things have contributed to the stock’s recent move higher. There is a little more clarity in the saga between Musk and Twitter. While investors still don’t know if Musk will be forced in court to follow through with his bid for the social media company, his recent sale of nearly $7 billion in Tesla shares related to the deal gave investors some information on how it might affect Tesla and his holdings. 

Additionally, Musk said last week that while the company’s Cybertruck still won’t be available until next year, the Tesla Semi Truck will be coming out this year, earlier than expected. A report from industry observer Torque News on Friday highlighted the economic advantage of the electric heavy truck over diesel-powered models. It showed a 200-mile journey using Tesla’s truck would have less than one-sixth the fuel cost.

Now what

Optimism has also been boosted by the passage of the Inflation Reduction Act. Tesla will once again benefit from tax incentives for buyers of its cheaper models, which haven’t been provided since it passed the 200,000-vehicle mark. And Tesla’s battery and energy segments will also likely benefit from investments from the legislation in the long run. 

The stock’s momentum has led to a month-long surge that has Tesla approaching the $1 trillion market cap it hasn’t seen since April. Investors are clearly excited once again at its prospects as it ramps up its two new plants in Texas and near Berlin, Germany, and prepares to offer its new trucks this year and next. 

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

The post Why Tesla stock was up again today appeared first on The Motley Fool Australia.

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More reading

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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 Seven West Media Ltd (ASX: SWM) share price is in focus following the release of the company’s financial year 2022 earnings and news of an on-market share buyback.

The Seven West share price closed Monday’s session at 52 cents.

Seven West share price on watch as profit lifts 60%

Highlights of Seven West’s full-year results include:

• Underlying net profit after tax (NPAT) of $200.8 million – a 60% increase on that of the prior corresponding period (pcp)
• Revenue of $1.54 billion – a 21% improvement
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $342.2 million – a 35% improvement and ahead of guidance
• Earnings per share (EPS) came to 12.7 cents – up from 8.2 cents

The company’s reach grew alongside key financial metrics over the year ended 25 June.

The company boasted a 39.1% share of the national television advertising market across financial year 2022.

Its metro TV revenue lifted 9%, while its regional TV revenue increased 6%. Additionally, West Australian Newspapers delivered its best result since financial year 2017 on the back of digital growth.

The company’s operating costs also rose 17% to $1.198 billion – within its previously guided range despite rising inflation.

It also announced an on-market buyback of up to 10% of its shares on issue. The buyback will be conducted on an opportunistic basis over the coming 12 months and funded from existing debt facilities. It was born from improvements in the company’s balance sheet over the past two years.

Seven West closed the financial year with a net debt level of $256.5 million – a 6.9% year-on-year increase.

What else happened in FY22?

The big news from the company last financial year was its acquisition of formerly ASX-listed Prime Media. The Seven West share price surged 14% when the acquisition was announced in November.

The Prime brand has since been retired and the company has today noted cost synergies will be at the top end of prior guidance.

Of course, the company was front of mind at the beginning of the financial year as Seven aired the 2022 Tokyo Olympic Games. The games were said to provide a launch pad for Seven’s 2022 financial year content line-up, including The Voice, SAS Australia, Dancing With The Stars: All Stars, The Voice Generations, the AFL Finals Series, Bathurst 1000, the Ashes Cricket Test Series, and the Beijing Winter Olympics.

What did management say?

Seven West managing director and CEO James Warburton commented on the company’s earnings, saying:

These results mark the strongest financial performance by our company in over a decade and reflect the successful completion of the group’s three-year strategy.

[They] represent the best Seven television EBITDA results in 11 years, the best EBITDA from West Australian Newspapers in five years, and our best group EBITDA result in six years.

What’s next?

Seven West has updated the market on its performance over the current quarter and its outlook for the rest of this financial year.

It noted trading conditions in the September quarter have been skewed by the impact of the Olympics. The company estimates its quarterly total TV advertising market is down around 2% excluding the Olympics and around 7% including the games. The December quarter, however, is expected to be positive year-on-year.

Seven West is targeting a 39% share in total TV revenue in financial year 2023. Seven Digital is forecast to grow its EBITDA this financial year. Meanwhile, its digital platform news revenue is expected to be consistent with financial year 2022.

The company’s operating costs for the current financial year are expected to come in at between $1.2 billion and $1.22 billion.

Seven West share price snapshot

The Seven West share price has had a rough trot on the ASX lately.

It has slipped 17% since the start of 2022. Though, it’s currently trading 8% higher than it was this time last year.

Meanwhile, the All Ordinaries Index (ASX: XAO) has dumped 8% year to date and 7% over the last 12 months.

The post Seven West Media share price in focus following best financial performance in a decade 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 Beach Energy Ltd (ASX: BPT) share price plummeted 11% on Monday following the release of the company’s financial year 2022 earnings. The stock closed yesterday’s session at $1.645.

Unfortunately, brokers shared in the market’s disappointment over the company’s results.

But do experts tip a post-sell-off upside for the stock? Let’s take a look.

Does the Beach Energy share price still offer upside?

The Beach Energy share price plummeted yesterday after the company revealed its full-year production had slumped 15% in financial year 2022.

The company produced 21.8 million barrels of oil equivalents in the 12 months to 30 June. Though, its underlying net profit after tax (NPAT) jumped 39% to $504 million, while its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 17% to $1.1 billion.

Both UBS and JP Morgan labelled the results “soft”, The Australian reported.

UBS was said to have been disappointed by the company’s second-half earnings, noting its guidance points to slower growth.

The broker dropped its price target for Beach Energy shares by 5 cents to $2 but retained its ‘buy’ rating.

JP Morgan was also reportedly disheartened by the company’s EBITDA. The measure was dinted by higher operating costs which have been tipped to increase in financial year 2023. It was also disappointed by the company’s guidance.

JP Morgan reportedly also has a $2 price target and an ‘accumulate’ rating on Beach Energy shares.

That means the brokers, however saddened by the company’s earnings, are tipping a 21.6% upside on its current levels.

Finally, brokers Morgans and Credit Suisse were reportedly surprised by the company’s lesser-than-expected outlook. Credit Suisse analyst Saul Kavonic was quoted by The Australian, saying:

Another re-setting of Beach outlook to the downside, signalling Beach has continued to provide targets that are optimistic rather than conservative across the portfolio.

The analyst was reportedly referring to the production downgrade announced by the company in April 2021.

The post Is the Beach Energy share price a buy following its post-reporting sell-off? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 BHP Group Ltd (ASX: BHP) share price will be one to watch on Tuesday.

This follows the release of the mining giant’s full year results this morning.

BHP share price on watch following record profits

• Underlying EBITDA from continuing operations up 16% to a record US$40,634 million
• Underlying attributable profit up 26% to US$21,319 million
• Net operating cash flow up 13% to US$29,285 million and record free cash flow of US$24,300 million.
• Earnings per share up 25% to 421.2 US cents
• Final dividend of US$1.75 per share

What happened in FY 2022?

For the 12 eventful months ended 30 June, BHP delivered a 16% increase in underlying EBITDA from continuing operations to US$40,634 million. These results exclude its demerged petroleum assets.

This was driven almost entirely by BHP’s coal operations, which reported underlying EBITDA of US$9,504 million. This was up from just US$288 million a year earlier thanks to sky high prices.

Also performing positively were BHP’s copper operations, which delivered a modest increase in underlying EBITDA to US$8,565 million.

Combined, this offset an almost 18% decline in iron ore EBITDA to US$21,707 million due to softer prices for the steel making ingredient.

This ultimately led to BHP reporting record free cash flow of US$24,300 million, which allowed the mining giant to reward its shareholders handsomely with a big dividend.

The BHP board has decided to pay a fully franked final dividend of US$1.75 per share or US$8.9 billion. This includes an additional amount of US$0.60 per share (equivalent to US$3.0 billion) above the 50% minimum payout policy.

Total dividends for FY 2022 came to US$3.25 per share, the equivalent to a 77% payout ratio.

How does this compare to expectations?

Today’s result was a bit of a mixed bag, which makes it difficult to predict what will happen with the BHP share price today.

For example, analysts at Morgans were forecasting EBITDA of US$40,776 million, whereas Goldman Sachs was forecasting EBITDA of US$44,000 million. This means BHP has fallen a touch short of Morgans’ estimate and well short of Goldman’s estimate.

However, one thing the company did smash was the brokers’ dividend estimates. BHP’s US$3.25 per share dividend was higher than Morgans’ US$2.84 per share estimate and Goldman’s US$2.90 per share estimate.

Management commentary

BHP’s chief executive officer, Mike Henry, was rightfully pleased with the company’s performance. He said:

BHP delivered strong operational performance and disciplined cost control to realise record underlying earnings of US$40.6 billion and record free cash flow of US$24.3 billion. We have reduced debt and announced a final dividend of US$1.75 per share, bringing total cash dividends announced for the full year to a record US$3.25 per share.

BHP’s total economic contribution including payments to employees, suppliers, communities, governments and shareholders totalled US$78.1 billion. This includes US$17.3 billion paid to governments through taxes and royalties and US$19.6 billion paid to shareholders after the merger of our Petroleum business with Woodside.

These strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed us to capture the value of strong commodity prices. BHP remains the lowest cost iron ore producer globally and we delivered record annual sales from Western Australia Iron Ore.

Outlook

Henry appears cautiously optimistic on the future. He explained:

BHP enters the 2023 financial year in great shape strategically, operationally and financially, and well prepared to manage an uncertain near-term environment. During the year, we unified BHP’s corporate structure, merged our Petroleum business with Woodside, completed the sales of our interests in the BMC and Cerrejón energy coal assets, and decided to retain and operate our New South Wales Energy Coal business until mine closure in 2030. We have improved our platform for growth through the Jansen potash project, iron ore and copper.

We expect China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold. At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures. The direct and indirect impacts of Europe’s energy crisis are a particular point of concern. Tight labour markets will remain a challenge for global and local supply chains. Waves of COVID-19 infection continue to occur in the communities where we operate, and we are planning accordingly.

Finally, BHP’s FY 2023 production guidance remains unchanged since its fourth quarter update.

The post BHP share price on watch amid record FY22 profits appeared first on The Motley Fool Australia.

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