The Aeris Resources Ltd (ASX: AIS) share price is in the green today amid a company announcement on recent gold and copper assays obtained from the company’s Tritton tenement.

At the time of writing, the Aeries share price is trading 3.85% higher at 13.5 cents.

Golden results push Aeris Resources share price higher

Aeries provided an update on the latest assay results from the “ongoing resource definition drilling program” at the Constellation deposit. The deposit is located at the company’s Tritton tenement in New South Wales, not far from the Tritton processing plant.

The announcement notes the company has received assay results for a further ten diamond drill holes from the drill program at Constellation.

Results are promising and show extensions below the current mineral resource of both gold and copper deposits.

Specifically, the company intersected 5.21m @ 7.45% Cu, 3.19g/t Au, 59.4g/t Ag (from 354.10m) and 8.27m @ 4.76% Cu, 1.55g/t Au, 16.3g/t Ag (from 148.80m).

Data obtained from these tests has given Aeris further insight into the Constellation deposit at Tritton.

“The orientation of the majority of the Constellation deposit is a continuous gently dipping sulphide body. Toward the northern margin of the deposit, the primary sulphide envelope changes orientation, from a north-south trending gentle dipping envelope to a sub-vertical east-west trending system,” the company said.

On the back of these updates, the company confirmed that resource definition drilling at Constellation is nearly completed.

Consequently, investors can expect updates on the mineral resource “in the June quarter of this year”, according to the company’s announcement.

Management commentary

Speaking on the announcement, Aeris’ executive chair Andre Labuschagne said:

The Constellation drilling program continues to deliver excellent high-grade copper and gold assays. The latest assay results from the drilling within the current Mineral Resource continues to demonstrate that the near surface section of the deposit contain exceptionally high-grade copper and gold mineralisation. This provides the potential for significant early cashflows from open-pit mining. The latest drilling below the current Mineral Resource was focused on the southern margins of the deposit, with assays also showing both good copper and gold grades.

Aeris Resources share price snapshot

In the last 12 months, the Aeris Resouces share price has soared by around 35%. However, it is down more than 18% this year to date.

During the past month of trading alone, the company’s shares have collapsed almost 13%.

At its current share price, the company presides a market capitalisation of approximately $304 million.

The post Whopper copper! Why the Aeris (ASX:AIS) share price is higher today appeared first on The Motley Fool Australia.

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

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The Ramelius Resources Limited (ASX: RMS) share price is crumbling today following the release of the gold miner’s half-year earnings.

In the report, the Western Australian miner revealed a drop in profits across the board.

At the time of writing, the Ramelius share price is down 5.16% at $1.47.

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

What did Ramelius tell ASX investors?

For the half-year ending 31 December 2021, Ramelius revealed the following results:

• EBITDA down 3% to $187.7 million compared to the prior corresponding period (pcp)
• NPAT down 10% to $73.4 million
• Sales revenue down 9% to $310.1 million
• Net cash and bullion down 29% to $164.5 million
• Gold production down 8% to 132,605 ounces.

Ramelius attributed the drop in profit mainly to “lower head grades” at its Mt Magnet gold project in WA. However, it said this was still “in line” with internal expectations.

Further, the miner experienced higher costs and COVID-19 challenges during the half — a trending factor across the wider resources industry.

These issues drove up its all-in sustaining cost (AISC) to $1,473 per ounce — an increase of 17% against the pcp.

What else did the gold miner report?

A number of other factors ultimately impacted the miner’s cash balance during the half.

Ramelius said the drop in net cash and bullion was due to the finalised acquisition of Apollo Consolidated Limited.

Coming with the buy was the Rebecca Gold Project — a site containing “advanced and growing gold discoveries” that will drive future growth, Ramelius said.

Development operations at the miner’s Penny Gold Mine in WA began ramping up with “meaningful high grade ore production” expected in the next financial year.

The miner also offloaded assets during the half, including the sale of its Kathleen Valley Lithium Royalty for $30.3 million (before tax).

All in all, inventories for the period were up 46% to $147.1 million.

Managing director Mark Zeptner said:

The acquisition of Rebecca, our commitment to exploration and ongoing development opportunities at both production centres, combined with the strength of our balance sheet will allow us to continue both organic growth and the assessment of growth opportunities as they rise.

There was no interim dividend declared for the period, which was “in line with past practice”, the miner said. The board will assess dividends at the end of the financial year.

Since 31 December 2021, the Ramelius share price has dropped by 10%.

What did management say?

Despite the drop in profit and production, Ramelius management was “pleased” by the latest financial results.

Zeptner said:

The inability to deliver planned tonnages of high-grade ore from Tampia and Marda also impacted the bottom line. However, this is a timing issue only as the high-grade ROM stocks at both mines will get processed over the coming year. By way of future cashflows, this will begin to realise some of the A$147 invested in inventories on hand at the end of the period.

Despite the higher costs and slightly lower gold production, our underlying EBITDA margin remains very strong at just over 50%. This compares well with our peers and highlights that our business model remains robust.

Ramelius share price snapshot

Over the past 12 months, the Ramelius share price has increased by 7.3%.

The shares were trading as low as $1.18 at the beginning of 2021 and as high as $2 in May 2021. This was not long after the gold miner achieved its gold guidance for the 2021 March quarter.

The company has a market capitalisation of $1.275 billion and a price-to-earnings ratio (P/E) of 9.42.

The post Ramelius (ASX:RMS) share price crumbles on lower profit and gold production appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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Shares in Nickel Mines Ltd (ASX: NIC) are on the move today after the company released its financial results for the full year ended 31 December 2021.

At the time of writing, the Nickel Mines share price is trading 6.7% higher at $1.43.

Let’s take a look at what has ASX investors excited about Nickel Mines today.

Nickel Mines share price spikes on earnings growth

Key takeouts from the company’s earnings results today include:

• Sales revenue US$$645.9 million, up from US$523.5 million in 2020
• Gross profit came in at US$216.8 million, representing a substantial gain from US$165.1 million in 2020
• Profit after tax US$176.0 million, up 14.5% year on year from US$153.7 million
• 40,410 tonnes (32,328 tonnes attributable) of nickel metal produced in 298,353 tonnes of nickel pig iron
• Acquired an 80% interest in the Angel Nickel RKEF Project
• A record 2,457,694 tonnes of saprolite ore mined at the Hengjaya Mine
• Execution of agreement to acquire 70% of the Oracle Nickel RKEF Project
• A$100.6 million of dividends distributed to shareholders.

What else happened with Nickel Mines in 2021?

The company notes that 2021 saw Nickel Mines “continue on its rapid growth trajectory”, charging towards completion of its Angel Nickel Project in Indonesia.

It also announced an investment into the Oracle Nickel Project in November, which Nickel Mines touts as “a new 4-RKEF line development project within the IMIP”.

In its statement to the ASX, Nickel Mines said:

Oracle represents another highly value accretive investment for the Company and one which alongside ANI will see the Company’s existing production profile more than triple current levels when fully commissioned, not to mention the transformative impact both projects will have on the Company’s finances.

Aside from that, the group’s Hengjaya and Ranger RKEF operations delivered a record EBITDA of US$224.9 million. This was underpinned by an annual output of circa 40,000 tonnes.

At the Hengjaya site, limonite supply commenced in November. From this, 98,313 tonnes of limonite were delivered to the Huaye Nickel Cobalt project. The EBITDA from mine operations was US$22 million.

The company also acquired the Siduarsi Nickel-Cobalt project and the Tablasufa Nickel project with Bolt Metals Corp (CNSX: BOLT). Also pending is the “eventual acquisition of the Pt. Adadi Nikel Nusantara and Pt. Sulawesi Nikel Abad nickel projects”. All of these projects are located in Indonesia.

These results enabled the company to declare a final dividend of 2 cents per share, which was paid on 10 February.

Management commentary

Speaking on the results, Nickel Mines chairman Robert Neale said:

As always, I would like to finish by thanking you, our shareholders, for another year of support and belief in the company’s vision to rapidly and responsibly build Nickel Mines into a globally significant nickel business. We are delighted to have been able to pay out 4 cents per share for 2021 and distribute to our shareholders some of the cash flows generated by operations.

What’s next for Nickel Mines?

The company says the Hengjaya mine is on target to deliver a budgeted 3 million tonnes of saprolite ore production in 2022.

Nickel Mines also announced that Angel Nickel had entered its commissioning phase earlier this year. All four lines are anticipated to have commenced operations by the end of April 2022.

Nickel Mines told the ASX:

Responsibly managing our capital and the deployment of cashflows will again be a key objective for the Company in 2022, but with 8 RKEF lines coming online over the next 12 months and a growing contribution from Hengjaya Mine set to continue, we should all be optimistic for a prosperous 2022.

Nickel Mines share price summary

In the past 12 months, the Nickel Mines share price has fallen by 2.7%. Over the same period, the S&P/ASX All Ordinaries Index has gained 4.9%.

The post Nickel Mines (ASX:NIC) share price surges 6% on full-year earnings appeared first on The Motley Fool Australia.

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

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The Transurban Group (ASX: TCL) share price is edging lower today. This comes amid the backdrop of the company’s release of its first-half results for FY22 last Thursday.

The toll road operator’s shares advanced 1.55% to $13.08 on the day of the announcement. However, since then its shares have fallen wayside with three consecutive days of losses, not including today.

At the time of writing, Transurban shares are swapping hands for $12.71, down 0.24%.

Below we look at the company’s latest financial performance and the details regarding the interim dividend for investors.

How did Transurban perform for H1 FY22?

In the half-year results for the 2022 financial year, Transurban reported challenging trading conditions caused by government-mandated restrictions related to COVID-19.

Proportional toll revenue fell 0.4% to $1.2 billion over the prior corresponding period. This was triggered by average daily traffic which decreased 4.8% generally across all regions.

In addition, proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) slid 4.1% to $805 million.

Free cash also fell 1.6% to $459 million, as a result of a decrease in cash flows from owned assets, an increase in distributions and shareholders’ loan note payments, and unfavourable movements in working capital.

Nonetheless, the board declared an unfranked interim dividend of 15 cents per share to eligible shareholders.

Transurban noted that the distributions for the first half were covered by free cash with no capital releases conducted.

Payment details of the Transurban dividend

If you were hoping to get in on the action, unfortunately you are out of luck. The ex-dividend date by which you must have acquired Transurban shares was 30 December 2021.

Furthermore, the company paid the interim dividend to eligible shareholders yesterday.

There was also a distribution reinvestment plan (DRP), where investors receive additional shares in substitution for some or all cash distributions.

The last date for receipt of an election notice for participation in the DRP was 4 January 2022.

While no discount had been applied when determining the price of the stapled securities, just 2.3% of shareholders participated.

The post Just banked the Transurban (ASX:TCL) dividend? Here’s what you need to know appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is in the red today on the back of the company’s half-year results.

At the time of writing, St Barbara shares are swapping hands at $1.39 apiece, a 3.33% fall, after the share price dropped as low as $1.34 earlier in the session. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.33%.

Let’s take a look at what the gold miner reported today.

St Barbara share price share price drops

Highlights of the company’s half-year (H1 FY22) results include:

• Statutory profit of $14 million, down 62% on the previous corresponding period (PCP) of H1 FY21
• Underlying profit of $15.1 million, down 63% on PCP
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $103 million, down 32% on PCP
• Gold production of 132,524 ounces
• All In Sustaining Cost (AISC) of $1,539 per ounce

What else happened in the half?

The company’s underlying profit dropped 63% from $39.9 million in the first half of FY21 to $15.1 million. This was due to a drop in contribution from the company’s Simberi and Atlantic operations. However, this was partly offset by a higher contribution from its Leonora operations.

Gold production fell 18% compared to the first half of 2021, while the AISC also fell 4%. Partially offsetting this decline in production was a boost in the realised gold price. This jumped by 13% to $2,417 per ounce.

The board has decided not to pay an interim dividend due to the operational issues at the Simberi mine in Papua New Guinea.

Gold production at Simberi is not achieving its target rates and there is still uncertainty as to when the mine will return to full workforce participation. This is due to high COVID-19 infection rates.

As the company reported on 18 February, there were 139 active cases among the mine’s 600 strong workforce.

Nonetheless, the company reported cash contributions from its operations of $41.583 million.

In December, St Barbara revealed plans to acquire Bardoc Gold Ltd (ASX: BDC) for $157 million. If approved, this will provide St Barbara with access to advanced Aphrodite and Zoroastrian underground deposits.

Management commentary

Speaking on the results, St Barbara CEO and managing director Craig Jetson said:

I’m pleased to present St Barbara’s strong results, which we’ve achieved in spite of several enduring headwinds, including those brought on by the COVID-19 pandemic.

We now have all three assets in operation, are well progressed in the scheme of arrangement with Bardoc Gold and are laser focused on delivering to our upcoming pre-feasibility and feasibility study milestones.

As we continue to execute the province plans put in place in late 2020 delivery of these plans underpins our new aspiration of annual gold production of 600 thousand ounces (koz) per annum with ten years of life – a real differentiator in the market.

What’s next for St Barbara?

As Jetson outlined, St Barbara has aspirations to produce 600 koz of gold annually from its mining operations.

This includes 270 koz at its St Leonora operations once its proposed 2.1 million tonnes per annum processing facility is installed and 180 koz from its Simberi operations once it has completed its sulphides project.

St Barbara also has a plan to produce 150 koz from its Atlantic operations once production comes online at Beaver Dam, Fifteen Mile Stream, and Cochrane Hill.

The company said it has business continuity plans in place to reduce COVID-19 disruptions at all of these operations.

St Barbara hopes to achieve shareholder approval of the Bardoc Gold acquisition before the end of the financial year. A meeting of Bardoc shareholders is planned for 30 March 2022.

According to the company’s report, the board will reassess whether it pays a final dividend at the end of FY22.

St Barbara share price summary

The St Barbara share price has dived 35% in the past 12 months while it is down around 5% year to date.

For perspective, the benchmark ASX index has returned around 5% over the past year.

St Barbara has a market capitalisation of about $989 million based on today’s share price.

The post Profits down: St Barbara (ASX:SBM) share price slides 5% on half-year results appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The WiseTech Global Ltd (ASX: WTC) share price is having a mildly positive day on Wednesday.

In afternoon trade, the logistics solutions technology company’s shares are up 1% to $43.28.

This modest gain by the WiseTech share price may be quite disappointing for shareholders given the company’s strong half year result and guidance upgrade.

What’s going on with the WiseTech share price?

It’s not often you get such a muted response to an earnings guidance upgrade, but that is what’s happening with the WiseTech share price today.

In case you missed it, this morning the company reported an 18% increase in revenue to $281 million and a 54% jump in EBITDA to $137.7 million. This strong result was driven by increased market penetration, customer usage, and adoption of its technology, as well a price change to CargoWise.

Recurring on-demand revenue grew 25.4% to $225 million and WiseTech’s CargoWise attrition rate was once again below 1%.

This ultimately led to management reaffirming its full year revenue growth guidance and upgrading its EBITDA guidance.

Based on market conditions not materially changing, WiseTech expects revenue growth of 18% to 25%. This will represent revenue of $600 million to $635 million.

As for its earnings, management has upgraded its EBITDA growth guidance to 33% to 43%, which represents EBITDA of $275 million to $295 million. This is up from its prior guidance of 26% to 38%, which implied EBITDA of $260 million to $285 million.

Why are its shares not rising more?

There are a couple of potential reasons for the subdued performance by the WiseTech share price.

One is the company’s track record of upgrading its guidance. Over the last few years, WiseTech has upgraded its guidance on a number of occasions. This may have led to the market already pricing in a guidance upgrade.

Another factor that could be weighing on the WiseTech share price is management’s outlook commentary. Although it is positive on the second half, its guidance came with a warning.

Management said: “Uncertainty around future economic and industrial production growth and/or global trade may lead to alternative outcomes. Prevailing uncertainties relating to sovereign and geopolitical risk may also reduce assumed growth rates.”

The post Great expectations: Why is the Wisetech (ASX:WTC) share price not gaining more today? 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. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Integral Diagnostics Ltd (ASX: IDX) are in limbo today after the company released its interim report and financial results for the half-year ended 31 December 2021 and, concurrently, put its shares in a trading halt.

The halt is pending a market sensitive announcement in connection with an acquisition and capital raising to be made via an entitlement offer.

Before the halt was in place, the Integral Diagnostics share price closed the day at $3.91.

Integral Diagnostics share price halt amid earnings results

Key takeouts from the company’s earnings results today include:

• Operating EBITDA of $39.5 million (21.9% margin) on operating revenue of $180.5 million
• Operating diluted earnings per share (EPS) of 6.4 cents on operating net profit after tax (NPAT) of $13.0 million
• Statutory NPAT of $10.2 million after customer contract amortisation, transaction and other costs of $2.8 million
• Free cash flow of $24.8 million with net debt of $176.8 million
• Interim dividend (fully-franked) of 4.0 cents per share payable on 4 April 2022
• Announcement of acquisition of Peloton Radiology and an Entitlement Offer

What else happened this half for Integral Diagnostics?

The company recognised revenue growth of $7.4 million in Australia totalling around 5% and an 18% decrease of $3.9 million in New Zealand.

Integral was also busy building out its infrastructure and operating platforms during the half. It notes that $14.6 million was spent on capital expenditures (CapEx). Of that amount, $10.4 million was allocated to “growth initiatives including the development of three new sites”.

Aside from that, operating NPAT was strong at $13 million and this carried through to statutory NPAT of $10 million and free cash flow of approximately $25 million.

These results allowed Integral’s board to declare a fully-franked interim dividend of 4 cents a share, a small drop on last year. This equates to a 70% payout ratio that the company notes is in line with historical levels.

“The decrease in the interim dividend on the prior corresponding period reflects the impact of COVID-19 on the performance of the business during the 6 months to 31 December 2021”, the company said.

In addition to these results, Integral advised it has agreed to acquire Peloton Radiology.

“Peloton Radiology is a scale provider of diagnostic imaging services with a strategic presence from Brisbane to the Sunshine Coast in the high growth corridor of South East Queensland,” Integral said.

According to the announcement, Peleton has pro forma FY22 EBITDA of $8 million and was acquired on an implied acquisition multiple of 8.8x pro forma FY22 EBITDA.

The acquisition is expected to be completed in 2022 and will be financed via an entitlement offer that was announced to the ASX today.

Management commentary

Speaking on the results today, Managing Director and CEO of Integral Diagnostics Dr Ian Kadish said:

We are delighted to incorporate Peloton Radiology into Integral Diagnostics. The group’s radiologists and staff represent a strong strategic and cultural fit with IDX’s doctor led operating model. The Peloton Radiology group adds real value to IDX’s market leading model and it significantly extends our presence in the Queensland market. We extend a warm welcome to the Peloton Radiology doctors and staff and look forward to partnering with them to further grow our combined business.

What’s next for Integral Diagnostics?

Integral is bullish on the industry. It notes, “the underlying fundamentals of the radiology industry remain strong and the company is confident that patient volumes and historical growth patterns will over time return to pre-COVID-19 levels, and that continued investment in our workforce and infrastructure has positioned the Company well.”

However, it also acknowledges that, while 2H FY22 performance to date “continues to be impacted by COVID-19, there are some early signs that patient volumes are returning, especially in our Queensland operations, albeit the impact of COVID-19 on 2HFY22 results remains uncertain.”

Integral Diagnostics share price summary

In the last 12 months, the Integral Diagnostics share price has collapsed more than 20% and is down 21% this year to date.

During the past month of trading, the company’s shares have slipped 8%, leaving Integral’s performance trailing the broad indexes this year.

The post Integral Diagnostics (ASX:IDX) share price on ice after trio of big announcements appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Propel Funeral Partners Ltd (ASX: PFP) share price is up 1.7% in early afternoon trading.

Propel Funeral shares closed yesterday’s trading for $4.53 and are currently at $4.61.

Below we take a look at the ASX funeral services company’s financial results for the half year ending 31 December (1H FY22).

Propel Funeral share price gains on revenue leap

• Revenue increased 15.2% year-on-year to $68 million
• Pro forma operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $18.4 million, an increase of 17.8% from the 1H FY21
• Pro forma1 operating net profit after tax (NPAT) lifted 30.4% to $7.8 million
• Interim dividend of 6 cents per share (cps) declared, fully franked, equal to the prior corresponding half year

What else happened during the half year?

Despite reporting that its operations were impacted by pandemic lock downs and funeral attendee limits in parts of Australia and New Zealand during the half year, Propel’s total funeral volumes increased 14.9% compared to 1H FY21. Comparable funeral volumes were up 7.8%.

Propel Funerals also improved its balance sheet with a $50.2 million share placement to new and existing institutional investors, atop raising $13.7 million from eligible shareholders via a share purchase plan.

As at 31 December 2021, Propel had $423.2 million of total assets, a gearing ratio of 13.3%, and $149.3 million of available funding capacity.

The interim dividend will be paid on 7 April with a record date of 7 March.

What did management say?

Authoring the report, Propel’s chairman, Brian Scullin and managing director Albin Kurti noted:

During 1H FY22, Propel reviewed a number of potential acquisition opportunities and committed $21.0 million on … six acquisitions announced in Australia and New Zealand…

Propel remains focused on its core strategy of acquiring assets and social infrastructure which operate in the death care industry in Australia and New Zealand. Since its IPO in November 2017, Propel has committed approximately $147.7 million on acquisitions and continues to explore other potential acquisitions, however, the timing associated with any future acquisitions is uncertain.

What’s next?

Looking ahead, the Propel Funeral share price could be getting an extra bit of lift from the company’s expectations that it will benefit from “favourable demographics” in Australia and New Zealand.

Propel also highlighted its strong funding position, and expects additional benefits from the acquisitions that have already been announced and completed along with potential new future acquisitions.

While noting that COVID-19’s ongoing impacts remain uncertain, Propel reported it has started 2H FY22 with positive trading momentum.

Propel Funeral share price snapshot

The Propel Funeral share price is up 55% over the past 12 months, well outpacing the 5% gains posted by the All Ordinaries Index (ASX: XAO).

So far in 2022, Propel Funeral shares are up 5%.

The post Propel Funeral (ASX:PFP) share price marching higher on revenue leap appeared first on The Motley Fool Australia.

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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 Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price cracked a new 52-week low on Wednesday.

At the time of writing, shares in the pizza franchisor are down 16.22% to $83.93. However, Domino’s shares hit a new low of $83.25 earlier in trade today.

So, what has caused this significant degradation in investor sentiment towards the Domino’s share price?

High hopes meet headwinds

Investors are reacting negatively to the release of Domino’s half-year results for the six months ended 31 December 2021 today. Despite network sales increasing 11.1% to $2,048.4 million, the market appears to be focusing on the challenges for the company.

Due to a number of cost increases, Domino’s bottom line felt the pinch, leading to the company’s first decline in underlying earnings per share (EPS) in more than 11 years, as shown below.

While there was $2.9 million worth of one-off significant items for the company during the half, increases in operational costs also took a bite out of earnings. Perhaps shareholders are taking this as a sign that the Domino’s share price may not be insulated from inflation.

These cost increases included:

• ~$64 million increase in food, equipment, and packaging expenses
• ~$11 million increase in employee expenses
• ~$16 million increase in marketing expenses

Unfortunately, with the Domino’s Pizza share price trading on a 47 times price-to-earnings (P/E) ratio heading into these results, investors were likely hoping for an improvement in profits.

What else is hitting the Domino’s share price today?

The company also provided some more colour on what the near future is looking like. To shareholders’ disappointment, the short-term outlook holds challenges for the business.

Domino’s Pizza group CEO and managing director Don Meij said:

We are not immune to the challenges facing the global economy, but these are short-term challenges we will navigate through, with a continued focus on the long-term. Importantly, despite this short-term uncertainty, there is no question that our business is materially stronger than prior to COVID-19.

Finally, Domino’s admitted same-store sales growth for FY22 would fall below its target range.

The Domino’s Pizza share price is down 28.89% since the beginning of the year.

The post Slow down: Why the Domino’s (ASX:DMP) share price is sinking 16% appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• Domino’s Pizza (ASX:DMP) profit nosedives: how will market digest result?
• 2 ASX growth shares with huge upside potential
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• 3 ASX growth shares to buy after recent market weakness

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Xero Limited (ASX: XRO) share price is essentially trading at a 52-week low. What could be next for the cloud accounting software business?

Xero has had a very tough start to the 2022 calendar year. Xero shares have fallen 32% in less than two months.

What’s going on with the Xero share price?

There is a lot of geopolitical uncertainty with what’s happening between Russia and Ukraine.

But the large majority of the decline of the Xero share price came as the market fretted about the high levels of inflation that the US is seeing which is expected to lead to higher interest rates to try to get things under control. Goldman Sachs thinks there could be seven interest rate hikes in the US in 2022.

Why do interest rates matter so much? Let Warren Buffett, one of the world’s greatest investors, explain:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

That was from the 1994 annual general meeting (AGM) of Berkshire Hathaway.

What next for the Xero share price?

No-one knows for certain what’s going to happen next. Unless they have a working crystal ball.

But several brokers have price targets for the business. A price target is where the brokers think that the share price will be in 12 months from that date. However, some of these price targets came from last year, before the recent crash.

Price targets

Both Citi and Credit Suisse rate the Xero share price as a buy, with a price target of $160. That implies a 60% upside to today’s price.

However, UBS rates Xero as a sell with a price target of $88. That would be more of a decline if it happened.

The brokers at Macquarie have given a recent update to their thoughts on Xero. It upgraded the rating to ‘neutral’ with a price target of $100 (down from $130). Macquarie doesn’t think that Xero will fall much more and believes that it’s looking attractive for the long-term.

Recent result

Xero continues to grow quickly. FY22 half-year revenue rose 23% to $505.7 million, with subscriber numbers rising 23% to 3 million and the gross profit margin improving by 1.4 percentage points to 87.1%.

The ASX tech share continues to invest for growth for the long-term growth of the business and capture global market share. It recently made a bolt-on Canadian acquisition to accelerate growth in that market.

The post The Xero (ASX:XRO) share price is trading at 52-week lows. What’s next? appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares take a hammering as Ukraine fears escalate
• Opportunity? 5 ASX 200 shares that traded at 52-week lows today
• Analysts name 2 ASX growth shares to buy
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• How did ASX tech shares perform today?

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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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