After yesterday’s nasty fall, the ASX share market seem to be recovering so far this Wednesday. At the time of writing, the All Ordinaries Index (ASX: XAO) is up a decent 0.34%. But the Cettire Ltd (ASX: CTT) share price is once again doing something far more dramatic.

Yesterday, we looked at Cettire shares and the very depressing 14% drop they inflicted upon investors at one point. The company ended up finishing down around 9.5%, a big improvement on the worst of the company’s falls yesterday, but still a considerable drop nonetheless.

Well, unfortunately for anyone who capitulated and sold out of Cettire yesterday, the company has enjoyed a massive rebound today. The Cettire share price is currently up a very pleasing 9.05% at the time of writing at $2.29 a share. That’s after opening at $2.15 a share this morning.

Why is the Cettire share price rebounding 10% today?

Yesterday, we couldn’t identify any real reasons why the Cettire share price plunged by so much. We could only speculate that it may have been a consequence of this luxury fashion retailer’s stellar share price performance over 2021. Perhaps assisted by the company’s mixed-bag half-year earnings results that Cettire reported back on 3 February. After all, this is a company whose share price remains up close to 130% over the past 12 months, even after falling more than 50% since November.

Unfortunately, we are in the same position in explaining Cettire shares’ rise today. There has been no news or announcements out of the company to speak of. So perhaps investors have simply decided that yesterday’s steep sell off took things too far, and we have some bargain hunters flocking in today to pick up shares.

Whatever the reason, it’s certainly a happier day today for Cettire investors.

At the current Cettire share price, this company has a market capitalisation of $880 million.

The post Ups and downs: Why is the Cettire share price leaping 10% today? appeared first on The Motley Fool Australia.

More reading

• The Cettire (ASX:CTT) share price is plunging 14% today. What’s going on?
• Is the beaten-up Cettire (ASX:CTT) share price a compelling idea?
• Hazer (ASX:HZR) share price rockets 14% on low-carbon hydrogen project
• Selling out? Cettire (ASX:CTT) share price slumps amid founder selling rumours
• Why Cettire, GrainCorp, James Hardie, and Nitro shares are pushing higher

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

from The Motley Fool Australia https://ift.tt/cjK2AGF

The APA Group (ASX: APA) share price is sliding after the company released its earnings for the first half of financial year 2021.

At the time of writing, the APA Group share price is $9.92, 2.27% lower than its previous close.

APA Group share price falls despite new acquisition play

• Revenue of around $1.12 billion – a 4.3% increase on that of the first half of financial year 2021
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $859.8 million, up 4.5%
• After-tax profit of $155.6 million, compared to the prior comparable period’s $15.5 million loss
• Organic growth pipeline now exceeds $1.4 billion
• Rights to acquire Basslink
• 25 cent interim dividend – 4.2% higher than its previous interim dividend

Energy infrastructure company – best known for its gas transmissions lines – reported underlying EBITDA of $859.8 million, driven by revenue growth across all segments of its business.

Particularly strong growth was recorded from the Victorian Transmission System and Diamantina Power Station.

The company’s incomes were also boosted by tariff escalation.

Its surging post-tax profit was mostly due to a one-off non-cash impairment of $249.3 million recognised in the prior comparative period from the Orbost Gas Processing Plant.

Free cash flow for the half came to $515.1 million – an increase of 22.6%.

Additionally, APA Group reached a final investment decision on $150 million worth of growth projects in the half. The projects will support the expansion of its revenue expansion in future years.

The projects encompass gas pipelines and renewable energy generation.

The company’s results also included news of its plan to strategically invest in the senior secured debt of Basslink – a major energy link connecting Tasmania to the mainland, announced earlier this week.

Basslink was put into receivership in November 2021, little more than a month after APA Group confirmed it was in discussions to acquire the asset.

It will work alongside Hydro Tasmania, the State of Tasmania, the Australian Energy Regulator, and other stakeholders to convert Basslink into a regulated asset.

What else happened during the half?

During the first half of financial year 2021, the APA Group share price moved higher after it submitted a takeover offer for formerly-listed Ausnet Services.

The company’s bid was ultimately rejected in favour of an all-cash bid from Brookfield Asset Management Inc.

If that name sounds familiar, it’s because it recently offered to acquire AGL Energy Limited (ASX: AGL).

Additionally, during the half, APA Group put a plan to test if Victoria’s gas transmission system could be used to blend hydrogen to the Australian Energy Regulator.

What did management say?

APA Group CEO and managing director Rob Wheals commented on the company’s half year results, saying:

We are making good progress on our strategy and laying the foundation for future growth.

With coal generated electricity retiring over the coming decades, we remain highly confident in the critical role for gas as a source of timely, cost effective and secure energy. It is an essential companion for the ongoing growth in renewable energy. Gas is also the critical energy source in high heat and hard to abate sectors, supporting Australia’s industrial businesses.

At the same time, we have continued to invest in renewables, battery storage, microgrids, electricity transmission and the energy solutions of tomorrow.

What’s next?

The company has retained its financial year 2022 guidance of 53 cents per share of distributions. That’s a 3.9% increase on that of financial year 2021.

It also said it’s in a good position in the current environment, as almost all its contract revenues are linked to inflation.

Additionally, it will continue to invest in business development and systems and processes such as cloud or software-as-a-service technology solutions.

APA Group share price snapshot

Today’s fall included, the APA Group share price is 2.5% lower than it was at the start of 2021.

Though, it has gained 9% since this time last year.

The post APA (ASX:APA) share price falls despite laying ‘foundation for future growth’ appeared first on The Motley Fool Australia.

More reading

• Powering up: is the APA (ASX:APA) share price about to be electrified?
• Is the APA (ASX:APA) share price an attractive buy for reliability?
• 2 compelling ASX 200 shares that keep growing their dividends
• Sweet dreams: ASX 200 shares that have provided big returns without the worry
• The APA (ASX:APA) dividend has grown every year for 18 years. What’s next?

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

from The Motley Fool Australia https://ift.tt/aEl4CtD

Ah, inflation… It’s certainly been the talk of the ASX town over 2022 thus far. The current Russia-Ukraine crisis is dominating the minds of most ASX investors right now. But it’s inflation that’s likely to remain the dominant investing theme of the year. That’s why many ASX investors have been wondering how to make sure their ASX share portfolios are ‘inflation proof’. Or at least as resistant as possible to the corrosive effects that rising prices can bring.

So let’s check out what one ASX expert reckons is the best way to protect one’s wealth against inflation. Intermede Investment Partners CEO Barry Dargan recently spoke to Livewire Markets about how to position an investment portfolio in an era of high inflation.

Inflation is coming

Here’s some of what he opened with:

The sort of companies we own are companies that have very strong pricing power and so if we do get into a situation where inflation becomes endemic, as may well be the case, these companies will be able to pass on inflation to either consumers or to their customers…

Many of the companies that we own are actually companies that don’t charge anything for their product, so things like social media companies where essentially the people that pay them the money are B2B [business to business]… It’s companies buying advertising on their space and you know, that sort of cost can definitely be passed on.

Mr Dargan says that the best kinds of these companies are ones with ‘moats’ around their business. A ‘moat’ is a Warren Buffett-coined term that describes a company’s intrinsic qualities that protects it from threats. An example of a moat is a strong brand. Such as those that companies like Apple Inc (NASDAQ: AAPL) or the Coca-Cola Co (NYSE: KO) possess. Moats like a strong brand can help a company increase its prices to reflect inflation without losing customers. Or even, as Dargan suggests, do it without the customers noticing.

How does one invest in a high interest rate environment?

But Dargan also warns that central banks around the world may be “behind the curve” when it comes to inflation and interest rates. He is predicting that “we’re probably in a slightly more inflationary environment than we were going back the last few years. By which I mean, probably something in the light, in the region of maybe two to 3% annual inflation”. This will inevitably see higher interest rates, Dargan warns. Still, he doesn’t reckon rates will be “going up to anything like historically high levels”.

Going forward, Dargan reckons we will indeed see companies that could be described as ‘value shares’ doing well over the next few years. He points to banks, oil companies, and miners as some of the businesses that will benefit from a higher interest rate environment. But he also warns that these gains might be cyclical. As such, he argues that investors might do better by just focusing on the companies that “can pass on price and they continue to compound their earnings and grow reliably, annually each year”.

Easier said than done, one could say! But that’s how one ASX expert is thinking about inflation today.

The post Looking for ASX shares that perform under higher inflation? Read this appeared first on The Motley Fool Australia.

More reading

• How this tech giant could ‘put booster rockets’ under crypto: expert
• Do this now to be filthy rich later: expert
• 2 reasons the Nasdaq has led the market lower in 2022
• Apple stock before earnings: Sell or Buy?
• 1 green flag and 1 red flag for Meta’s Metaverse dreams

Motley Fool contributor Sebastian Bowen owns Coca-Cola. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/4YevEUD

Shares in Scentre Group (ASX: SCG) 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 Scentre Group share price is trading in the red at $3.015 apiece.

Scentre Group share price tanks amid earnings growth

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

• Operating profit of $845.8 million (16.32 cents per security, up 10.9%)
• Funds From Operations (FFO) for the year was $862.5 million (16.64 cents per security, up 12.7%)
• Statutory result for the full year, inclusive of unrealised non-cash items was $887.9 million, up from ($3,731.8) million
• Net operating cash flows (after interest, overheads and tax) were $913.6 million, an increase of 24.8% per security on 2020
• Distribution of $738.7 million for the year equates to 14.25 cents per security, a growth of 103.6% on 2020.

What else happened this period for Scentre Group?

Scentre Group say’s that its investment in Westfield Mt Druitt is “progressing well”. Today’s release notes that the $55 million rooftop entertainment, leisure and dining precinct is fully leased and on track to open next month. Scentre Group has a $28 million share in the venture.

The group has also commenced a $33 million investment at Westfield Penrith. It says the project will result in “a large-format entertainment offer and upgrades and additions to the centre’s vertical transport systems”.

Operating profits also came in at over $845 million for the year, a gain of 11%, whereas FFO recognised a 13% spike from the previous year to $826 million.

Although with this result, net operating cash flows were nearly 25% per security higher on the year and represented $913.6 million from the 12 months to 31 December 2021.

Impressively, the company distributed a total of $787.7 million or 4.25 cents per security, which represented a growth of 103.6% on the previous year.

Management commentary

Speaking on the announcement, Scentre Group CEO Peter Allen said:

I am very pleased with the Group’s performance. Our team delivered better results in 2021 than 2020, even with more COVID-19 restrictions. This demonstrates our proactive approach to generating long term value for our securityholders. We have positioned the Group for growth for many years to come. We are focused on the customer, leveraging the strengths of our leading platform and pursuing our ambition to grow by becoming essential to people, communities and the businesses that interact with them.

What’s next for Scentre Group?

The company says it is focused on “driving customer visitation, engagement and occupancy in order to deliver earnings growth in 2022 and future years”.

As such, it expects to distribute at least 15 cents per security in 2022, which would signify approximately 5% growth.

“Earnings are expected to grow at a higher rate in 2022” the company says, and it also notes that it remains on track to achieve at least 50% of its net zero target by 2025.

Scentre Group share price snapshot

In the last 12 months, the Scentre Group share price has gained 5% but is down just over 45 this year to date. It has curled back up in the past month of trading and is also in the green during the past 5 days.

The post Dividend up 103%, but Scentre Group (ASX:SCG) share price down. What gives? appeared first on The Motley Fool Australia.

More reading

• How are ASX Real Estate Investment Trusts (REITs) performing in 2022?
• These 3 ASX 200 shares are topping the volume charts on Friday
• 2 ASX dividend shares Goldman Sachs rates as buys
• Leading brokers name 3 ASX shares to sell today

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.

from The Motley Fool Australia https://ift.tt/9bVaiwW

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. The benchmark index is currently up 0.25% to 7,179.9 points.

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

Woolworths higher on half year results

The Woolworths Group Ltd (ASX: WOW) share price is pushing higher today following the release of the retail giant’s half year results. Woolworths reported an 8% increase in group sales to $31,894 million but a 6.5% decline in net profit to $795 million. The latter was ahead of expectations and includes $239 million of COVID costs.

Domino’s tumbles on disappointing result

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is tumbling today after the pizza chain operator’s half year earnings fell short of expectations. Domino’s reported an 11.1% increase in network sales but a 5.3% decline in underlying net profit after tax to $91.3 million. Goldman Sachs responded to the result. It said: “Earnings was a -7.3% miss at the EBITDA line largely driven by the underperformance in Asia. However, the store outlook and topline sales growth remain encouraging.”

WiseTech delivers strong growth

The WiseTech Global Ltd (ASX: WTC) share price is edging higher today after the logistics solutions technology company delivered strong top and bottom line growth during the first half. WiseTech reported an 18% increase in revenue to $281 million and a 77% jump in underlying net profit after tax to $77.3 million. This strong performance has led to management upgrading its FY 2022 earnings guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Worley Ltd (ASX: WOR) share price with a 7% gain. This follows the release of the engineering company’s half year update. The worst performer has been the Domino’s share price with a 16% decline following the pizza chain’s earnings miss.

The post ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss appeared first on The Motley Fool Australia.

More reading

• Worley (ASX:WOR) share price launches 6% as net profits triple
• Profit drop: Woolworths (ASX:WOW) share price pushes higher despite ‘challenging’ first-half results
• These 5 ASX 200 shares are trading ex-dividend today
• Domino’s Pizza (ASX:DMP) profit nosedives: how will market digest result?
• WiseTech (ASX:WTC) share price on watch after strong half and FY22 earnings guidance upgrade

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 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.

from The Motley Fool Australia https://ift.tt/FOty3Px

The PEXA Group Ltd (ASX: PXA) share price is surging today, up 9.8%.

PEXA shares closed yesterday at $17.01 and are currently trading at $18.68.

The online property exchange network operator is a newcomer to the ASX. Having listed in July last year.

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

PEXA share price lifts off on strong outlook

• Revenue of $145.4 million, up 46% from 1H FY21
• Pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 71% year-on-year to $75.5 million
• Pro forma net profit after tax (NPAT) of $25.9 million, up $29.7 million from the prior corresponding period
• Pro forma net free cash flow before interest and tax of $45 million increased 39%

What else happened during the half year?

The boost in revenue and strong outlook that’s seeing the PEXA share price lift off today was helped by a 37% increase in PEXA Exchange transactions during the half, which reached 2.1 million.

The company also reported that it has now facilitated more than 10 million property transactions since launching. Those transactions are worth more than $2 trillion. PEXA reported it is currently supporting more than 9,600 practitioners, 160 financial institutions and 1.1 million consumers.

During the 1H FY22, PEXA Insights also launched its first two products. These are designed to help improve financial institution efficiency.

On the international expansion front, the company said that “momentum continues to build in PEXA International”, reporting “significant progress” during the half year with its United Kingdom market entry strategy.

What did management say?

Commenting on the results, PEXA’s CEO Glenn King said:

The company’s growth trajectory continued over the first half of FY22. Our PEXA Exchange platform has continued to perform strongly, with the positive property market conditions of FY21 continuing into FY22…

In addition to our current strong operating performance, we have made meaningful progress on our growth initiatives. Following successful Bank of England payments solution testing with seven lenders in January, we have signed up the first lenders onto our platform in the UK, making PEXA the UK’s 7 th net settlement payment system to clear through the Bank of England.

The PEXA share price could also be getting a boost today from King’s bullish outlook for the full year. “We now expect to materially exceed previous Prospectus guidance across FY22 and have increased guidance across all key earnings metrics,” he said.

What’s next?

PEXA said that it’s on-track with its UK entry plans and expects to go live later in 2022. And ASX investors look to be bidding up the PEXA share price in response.

The company said following the strong half year results, it expects to exceed its FY22 Prospectus forecasts. PEXA upgraded guidance across key financial metrics.

That includes:

• Boosting its forecast revenue to $265 – $275 million, up from $246.9 million
• Increasing its forecast pro forma NPATA to $70 – $80 million, up from $59.2 million
• And lifting its pro forma EBITDA projection for FY22 to $120 – $130 million, up from the previous estimate of $107.6 million

PEXA share price snapshot

Despite today’s big boost, the PEXA share price remains down 9% in the new year. That compares to a year-to-date loss of 5% posted by the S&P/ASX 200 Index (ASX: XJO).

The post PEXA (ASX:PXA) share price rockets 10% on guidance boost appeared first on The Motley Fool Australia.

More reading

• ‘Clear leader in a defensive industry’: Cochlear (ASX:COH) share price jumps on broker upgrade
• 3 investing moves that could make you a millionaire
• South32 (ASX:S32) share price up following completion of ‘major milestone’ copper acquisition
• Worley (ASX:WOR) share price launches 6% as net profits triple
• Accent (ASX:AX1) share price lifts 6% despite ‘severely impacted’ first half results

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.

from The Motley Fool Australia https://ift.tt/lwEMX2R

The Cochlear Limited (ASX: COH) share price has been charging higher again on Wednesday.

In morning trade, the hearing solutions company’s shares are up 7% to $222.02.

This means the Cochlear share price is now up over 16% in the space of two days.

Why is the Cochlear share price storming higher?

Investors have been bidding the Cochlear share price higher since the release of a stronger than expected half year result.

For the six months ended 31 December, Cochlear delivered a 26% increase in half year underlying net profit to $158 million. This was well ahead of the market consensus estimate and has led to many brokers upgrading their estimates and recommendations.

One of those is the team at Goldman Sachs.

What did Goldman say?

According to a note this morning, the broker has upgraded the company’s shares to a buy rating with a $237.00 price target.

It was very pleased with its performance and notes that Cochlear is a “clear leader in a defensive industry with improving fundamentals.”

Goldman commented: “There is little doubt around the long-term, defensive nature of the cochlear implant (CI) market, or COH’s competitive position within it. Rather, the largest recent debates have revolved around the extent to which surgery restrictions, staffing limitations and changes to patient/physician behaviour will preclude a strong volume profile from returning.”

“Whilst volatility clearly remains, on all fronts we are now more comfortable than any time since the start of the pandemic. Even after today’s +5% upgrade, we believe guidance appears more realistic/beatable than for several years (COH has shown a mixed track record in this regard for some time). Covid-driven disruption is falling in most key markets, and we see scope for a clear sequential improvement in both earnings and sentiment towards this stock,” it added.

Goldman Sachs also highlights the company’s huge cash balance of $506 million. It notes that “COH has little need to maintain such a material cash balance and, as conditions continue to improve, we expect management to more strongly prioritise any number of accretive deployment opportunities.”

The post ‘Clear leader in a defensive industry’: Cochlear (ASX:COH) share price jumps on broker upgrade appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• ASX 200 tech shares take a hammering as Ukraine fears escalate
• Why Cochlear, Coles, Costa, and Monadelphous shares are racing higher
• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• Cochlear (ASX:COH) share price 6% higher on juicy 35% dividend spike

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

from The Motley Fool Australia https://ift.tt/xoaEHdR

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.

Becoming a millionaire can seem like a goal that’s only attainable for a select few. However, it’s possible to become a millionaire by investing in the stock market — even if you’re not already wealthy.

The right strategy is key, though, to reaching millionaire status. While not everyone will be able to accumulate $1 million or more in the stock market, there are a few investing moves that will give you a better chance of achieving that target.

1. Start investing as early as possible

Time is your most valuable resource when it comes to generating wealth in the stock market. The more time your money has to grow, the more you will accumulate over time — and the less you’ll need to invest each month to get there.

Regardless of your age or how much you can afford to invest, it’s wise to get started now. It’s never too early to begin investing and waiting just a few years could make it more challenging for your money to grow. Even if you can’t afford to invest much, investing a little now is better than putting it off.

2. Invest consistently

Whether you’re investing $200 per month or $2,000 per month, consistency can help your money go further.

When you invest a set amount on a consistent basis, you’re taking advantage of a strategy called dollar-cost averaging. The stock market is constantly fluctuating. When you invest a certain amount on a set schedule throughout the year, sometimes you’ll be buying when prices are high, and other times when prices are lower.

Over time, those highs and lows should average out. If you were to invest a large amount of money once or twice a year, you could risk only buying when prices are high. Similarly, if you stop investing when the market is in a slump, you’ll miss out on the opportunity to buy when prices are lower.

3. Stick to long-term investments

The investments you choose can make a significant impact on how much your money will grow. Invest too aggressively and you could risk losing more than you gain. Invest too conservatively, though, and you could have a tough time reaching $1 million.

While everyone’s portfolios will be slightly different depending on personal preferences, it’s wise to keep a long-term outlook when choosing investments.

Long-term investments may not experience explosive growth, but they are more likely to see positive average returns over decades. This slow-but-steady approach is safer than buying high-risk, high-reward stocks, and it can make you more likely to achieve $1 million in the stock market.

When choosing long-term investments, keep an eye on the stock’s underlying fundamentals. Is the company in a strong place financially? What does its leadership team look like? How has it handled market downturns in the past? Questions like these can help you choose solid investments that are more likely to grow over time.

Reaching millionaire status isn’t always easy, but it is possible. With the right strategy — and the right investments — you’ll be on your way to a million-dollar portfolio.

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

The post 3 investing moves that could make you a millionaire appeared first on The Motley Fool Australia.

More reading

• ‘Clear leader in a defensive industry’: Cochlear (ASX:COH) share price jumps on broker upgrade
• South32 (ASX:S32) share price up following completion of ‘major milestone’ copper acquisition
• Worley (ASX:WOR) share price launches 6% as net profits triple
• Accent (ASX:AX1) share price lifts 6% despite ‘severely impacted’ first half results
• Stockland (ASX:SGP) share price up 5% on solid half, guidance update, and asset sale

The Motley Fool has a disclosure policy.

 

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

from The Motley Fool Australia https://ift.tt/WObFLcr

The South32 Ltd (ASX: S32) share price is rising today.

The miner has a new addition to its explorations portfolio — one it expects to reap financial benefits from very quickly.

At the time of writing, the South32 share price is up 2.27% to $4.51.

Here are the details of its acquisition.

What asset has South32 bought?

Yesterday, the miner officially completed its acquisition of a 45% stake in the Sierra Gorda copper mine located in the Antofagasta region of Chile.

The mine holds more than a billion tonnes of copper-molybdenum-gold sulphide mineral reserve. It has a lifespan of more than 20 years.

The miner announced its plans to acquire Sierra Gorda back in October. The news excited ASX investors, with the South32 share price leaping as high as 11% to $4.07.

South32 paid US$1.4 billion for its stake, with a “contingent price-linked consideration component” of up to US$500 million. The company said the US$500 million is payable at “threshold copper production rates and prices” between now and 2025.

South32 funded the acquisition using US$600 million in cash and US$800 million in debt.

Looking forward, the miner anticipates mine life extension and improvement costs to be US$15 million. Operating unit costs are estimated at US$1.63 per pound of copper equivalent production.

What did management say?

Chief executive officer, Graham Kerr, said:

Our acquisition of an interest in the Sierra Gorda copper mine is a major milestone for South32.

By adding copper to our portfolio, along with our recent commitments to substantially increase our green aluminium production, we are making significant progress reshaping our portfolio for a low carbon future.

Sierra Gorda will immediately contribute to earnings, improve Group operating margins and give South32 long term exposure to a metal that is increasingly hard to discover, develop and produce.

We believe copper will play a key role in the world’s decarbonisation and energy transition.

South32 share price snapshot

Over the past 12 months, the South32 share price has increased by 58%. The share price hit a 52-week low of $2.66 in March 2021 and a high of $4.65 just last week. This followed the release of the company’s latest financial results.

The miner declared an interim dividend of US 8.7 cents per share fully franked. This was a giant 621% increase against its H1 FY21 payment.

The company has a market capitalisation of $20.9 billion and a price-to-earnings ratio (P/E) of 18.99.

The post South32 (ASX:S32) share price up following completion of ‘major milestone’ copper acquisition appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Banking on the South32 (ASX:S32) dividend? Here’s what you need to know
• Why has the South32 (ASX:S32) share price rocketed 60% in 6 months?
• 3 of the best results on the ASX 200 last week
• Morgans names 2 ASX 200 dividend shares to buy now

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.

from The Motley Fool Australia https://ift.tt/G8lIWnc

The Worley Ltd (ASX: WOR) share price is taking off this morning following the release of the company’s earnings for the first half of financial year 2022.

At the time of writing, the Worley share price is $12.50, 5.93% higher than its previous close.

Worley share price gains on boosted profits

• Revenue of around $4.66 billion – down 4% on that of the first half of financial year 2021
• Net profit after tax (NPAT) of $79 million – a 259% increase
• Underlying earnings before interest, tax, and amortisation of $251 million – up 21%
• Underlying earnings per share (EPS) of 28.6 cents – a 28% increase
• Unfranked 25 cent interim dividend

The professional project and asset services provider performed well over the first half on the back of improved market conditions.

It ended the period with an underlying operating cash flow of $110 million – down from $280 in the prior comparable period.

Its underlying earnings before interest, tax, and amortisation margin increased 1.1% to 5.7%.

While the company’s revenue slipped slightly, its ongoing cost cutting activities helped its profits surge.

The company surpassed its operational savings target of $350 million of annual savings 6 months ahead of schedule. It announced a new target of $375 million in annualised savings.

The new target will be delivered by mid-2023 and will come from the company’s shared services transformation. The transformation is estimated to cost around $90 million over 3 years. $30 million has been spent year to date.

The company’s sustainability work accounted for $1.4 billion of aggregated revenue at the end of the half. Sustainability as a portion of its sales pipeline and backlog also increased over the period.

As of 31 December 2021, Worley’s backlog was $15.1 billion – a 6% increase on where it stood on 30 June 2021 and 12% more than it was 12 months prior.

The company’s chemicals sector experienced the greatest backlog growth, as demand and customer investment levels recovered. Meanwhile, the company’s long-term operations and maintenance contracts mostly returned to pre-COVID-19 activity levels.

Worley stated that it’s not seeing material COVID-19 impacts on its supply chains or site access. It’s also not experiencing project deferrals and cancellations due to the pandemic.

What else happened in the half?

Worley’s business in the Americas region brought in $1.98 billion of aggregated revenue last half – a $78 million improvement – and recorded a segment result of $112 million – down $5 million.

In Europe, the Middle East, and Africa, the company reported aggregated revenue of around $1.55 billion – down $119 million – and segment result of $132 million – a $55 million improvement.

Meanwhile, in the Australia, Pacific, Asia, and China region, the company saw aggregated revenue of $835 million – down $89 million – and a segment result of $91 million – $2 million higher.  

The company’s work in the energy sector saw a slightly lower aggregated revenue last half, but an improved segment result.

They came to around $2.13 billion and $150 million respectively. In the prior comparable period, they came to around $2.18 billion and $128 million.

Worley’s work in the chemicals sector brought in aggregated revenue of $1.62 billion and a segment result of $133 million. In the first half of financial year 2021, those figures came to $1.65 billion and $107 million respectively.

Finally, the resources sector saw Worley pocketing $617 million of aggregated revenue and reporting a segment result of $52 million. In the prior comparable period, those numbers were $661 million and $48 million.

What did management say?

Worley CEO, Chris Ashton commented on the company’s half year results, saying:

Our H1 FY22 result is indicative of the continued market improvement which is consistent with the outlook we presented at the full year FY21 results

Our capital management position continues to be supportive of our growth plans, with gearing below the target range and leverage well within our covenant definitions. We have good liquidity and continue to enjoy access to flexible debt capital sources, at attractive pricing.

We’re seeing stronger market activity as our customers continue to invest in their traditional business as well as increasing investment in line with the fundamental shift towards net-zero. Our business is positioned for long-term success and our strategy places us at the centre of this investment activity.

What’s next?

Worley didn’t provide clear financial guidance for the remainder of financial year 2022, but it did post a positive outlook for the period.

It’s expecting to spend $35 million on strategic operating expenditure in financial year 2022.

Including the expense, the company thinks it will be posting similar earnings before interest, tax, and amortisation margins in the second half as it did for the first half.

It also stated that it looks like the current half could bring improved revenue and earnings.

That belief is due to the mix and timing of projects from both the company’s backlog and growth in its factored sales pipeline.

Additionally, sustainability is expected to provide a higher rate of the company’s future growth. It aspires to bring 75% of its revenue from sustainability-related business within 5 years.

To speed up its sustainability-focused growth, the company is investing $100 million over 3 years.

The funds will go towards new solutions and strategic hires, digital enablement, technology selection and development, internal training, and strategic partnerships.

$13 million of that $100 million was spent last half.

Worley share price snapshot

Today’s gains included, the Worley share price is 12% higher than it was at the start of 2022.

It has also gained 14% since this time last year.

The post Worley (ASX:WOR) share price launches 6% as net profits triple appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• Why are ASX 200 energy shares tumbling on Tuesday?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/M8YzhNF