S&P/ASX 200 Index (ASX: XJO) bank shares are in focus amid an outlook of increased inflation and rising interest rates.

Higher rates can negatively impact the ASX 200 banks’ lucrative mortgage lending, as home buyers may shy away from the higher finance costs.

But most analysts forecast that impact will be more than offset by the broader loan margins they can garner in a higher rate environment.

It’s not rocket science, really.

To exaggerate the point, if interest rates were at – gasp – 10%, you can see how the banks can take a larger slice of the loan repayments than if rates are at 2% without raising undue objections.

Are ASX 200 bank shares a good opportunity?

According to the head of research Australia at Morgan Stanley, Richard Wiles, higher rates have set ASX 200 banks up for outperformance in 2022.

As The Australian reports, Wiles said despite some company-specific issues, the “good reporting season eased some key concerns”.

The “better than feared” results saw the banks’ earnings and pre-provision profits exceed “his forecasts by an average of 13 per cent and 8 per cent respectively, reducing concerns about the magnitude of downside risk”.

Indeed, Commonwealth Bank of Australia (ASX: CBA), the biggest bank on the ASX 200, with a market cap of $167.4 billion, smashed consensus expectations for 1H FY22 with a statutory net profit after tax (NPAT) leaping 26% to $4.74 billion.

CommBank’s fully franked interim dividend also increased by 17% year-on-year. And it announced an on-market share buyback of up to $2 billion.

Wiles labelled the margin pressure faced by the ASX 200 banks during the half-year gone by as “disappointing”. But he believes that “the outlook for margins has improved”.

According to Wiles (quoted by The Australian), “We believe that recent trends in the mortgage market and the growing prospect of earlier and larger RBA rate rises will see margins trough in 2H22 and then start to recover.”

Morgan Stanley notes that business and institutional loan growth has picked up. And the broker forecasts that home loan growth will remain strong.

How have the big banks been performing this year?

All of the ASX 200 bank shares have outperformed the benchmark in 2022, save CBA.

The CBA share price is down 6.7% year-to-date.

Over that same period the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has slipped 1.0%; the National Australia Bank Ltd (ASX: NAB) share price is up 2.4%; and Westpac Banking Corp (ASX: WBC) shares have gained 8.2%.

The ASX 200 itself is down 5.9% in 2022 so far.

The post Should you be buying ASX 200 bank shares in February? appeared first on The Motley Fool Australia.

More reading

• Why ANZ (ASX:ANZ) shares have been punished, but experts are now bullish
• Why NAB (ASX:NAB) has been losing market share, but its shares are set to soar
• The Westpac (ASX:WBC) share price has gained less than $4 in 10 years. Have the dividends been worth it?
• Rate rise coming? 2 finance ASX shares to buy right now
• 2 big-cap ASX shares that even this small-cap expert recommends

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 Westpac Banking Corporation. 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 Superloop Ltd (ASX: SLC) share price finished deep in the red today after the company reported its half-year results.

Shares in the telecommunications infrastructure company ended the day swapping hands at 96 cents apiece, a 10.7% fall.

Let’s take a look at what may have impacted the Superloop share price today.

Superloop share price in the red on half-year results

Highlights from the H1 FY22 results include:

• Net loss after tax of $21.267 million, 12.7% more than the $18,871 million loss in the previous corresponding period (pcp) of H1 FY21
• Statutory reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.236 million, a 44.2% drop on the pcp
• Underlying EBITDA of $9.1 million, up 12.2% on pcp
• Total revenue of $119.8 million, a 125% boost on pcp
• Gross margin of $39.6 million up 60.8% on pcp
• No dividends were declared

What else happened in the half?

Superloop also completed the takeover of Australia’s largest independent internet service provider, Exetel, in the first half of the financial year. This added 110,000 new consumer and business customers to the result.

This acquisition boosted Superloop consumer revenue by 303% and business revenue by 180%.

Wholesale revenue also surged 12.8% on the back of Superloop launching a new connect platform. This platform is now servicing more than 11,600 customers.

In October, the telecommunications company revealed it had agreed to sell its Hong Kong arm and some Singapore assets for $130 million. The Superloop share price soared on the back of this news.

Management commentary

Commenting on the results, Superloop CEO and managing director Paul Tyler said:

Throughout the first half of this financial year, the Group has achieved some significant strategic milestones, including the completion of the acquisition of Exetel and the announced sale of the Hong Kong business and select Singapore assets.

Fundamentally, Superloop now has a simpler, more focused business, and a greater strategic focus on growth.

What’s next?

The company expects to complete the sale of the Hong Kong and select Singapore assets in the first quarter of 2022 (subject to regulatory approvals). This will provide the company with a net cash position of about $50 million. Superloop plans to use this capital to pursue growth opportunities and reduce debt levels.

The company said it is seeing evidence of student accommodation demand for its products returning in January and February.

Superloop believes it is well-positioned for future growth and expects to achieve an underlying EBITDA between $23 and $25 million in FY22.

Superloop share price summary

The Superloop share price has lost more than 6% in the past year, while it is descending around 19% year to date.

In the past week, it has dropped around 8%, while it is down 17% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 5.6% over the past year.

Superloop has a market capitalisation of roughly $464 million based on today’s share price.

The post Out of the loop: Superloop (ASX:SLC) share price drops 11% on half-year results appeared first on The Motley Fool Australia.

More reading

• Why Nanosonics, Superloop, Uniti, and Zip shares are tumbling today

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

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As anyone who has glanced at the markets today would know, this Tuesday has been a rather depressing day of trading for the S&P/ASX 200 Index (ASX: XJO). The ASX 200 finished the day down a nasty 1%. A fall of that nature will inevitably have some shares falling harder than others. But some ASX 200 shares have actually hit new 52-week lows as a result of today’s losses.

But as any value investor would tell you, market malaise over a company can sometimes be a compelling buying opportunity for the brave investors out there. Especially if said shares are of a high calibre.

So let’s check out five ASX 200 shares that hit new 52-week lows today.

5 ASX 200 shares hitting new 52-week lows today

GQG Partners Inc (ASX: GQG)

Funds management company GQG is our first share to check out today. This relative ASX newcomer had a shocker during today’s trading session. The company’s shares closed the session down by a nasty 7.28% at $1.40 apiece.

But, earlier, this share hit a new 52-week low of $1.38. GQG only listed on the ASX back in October last year, so this 52-week low is also an all-time low.

Xero Limited (ASX: XRO)

ASX 200 tech share Xero is well-known to investors now, thanks in part to its historic membership of the old WAAAX group of high-flying tech shares. Unfortunately, Xero’s flying patterns are more akin to Icarus’ these days. At market close, Xero’s share price finished at $98.49.

But the online accounting software company hit a low of $96.29 a share earlier this afternoon. As you might have gathered, that’s a new 52-week low for Xero, and more than 37% away from the company’s all-time high of $156.65 that we saw only back in November. But to put things in context, Xero only hit these sorts of levels for the first time in mid-2020.

Wesfarmers Ltd (ASX :WES)

The giant ASX 200 industrial and retailing conglomerate Wesfarmers is next up. This blue chip stalwart of the ASX also had a clanger today. It closed the session down 3.86% at $48.40 a share.

But Wesfarmers went as low as $48.14 soon after market open this morning, the company’s new low watermark. Again, we’ve come a long way from Wesfarmers’ last high of over $67 that we saw in August last year. Today’s fall has pushed the Wesfarmers dividend yield over 3.5%.

Zip Co Ltd (ASX: Z1P)

The ASX’s largest buy now, pay later (BNPL) pureplay, Zip Co was also in the doldrums today. This ASX 200 share saw a horrible 9.7% wiped off its share price today. It closed at $2.14.

But Zip went as low as $2.12 this afternoon, which is the company’s new 52-week low. What a year it’s been for Zip. The company is now down close to 83% from this time last year when Zip was commanding a share price north of $13.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts is our final share that got washed today. The company’s losses were not too steep though, down 0.35% at $25.63 a share.

Saying that, this morning was more brutal, seeing this conglomerate descending as low as $25.21 a share — you guessed it, a new 52-week low. It was only in September last year that Soul Patts was more than $40 a share, so this has been a sharp fall from grace for this company. 

The post Opportunity? 5 ASX 200 shares that traded at 52-week lows today appeared first on The Motley Fool Australia.

More reading

• Why Nanosonics, Superloop, Uniti, and Zip shares are tumbling today
• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• Think VAS is the best ASX index fund? These ETFs have beaten it over the past decade…
• The Wesfarmers (ASX:WES) share price just hit a new 52-week low. Is the smart money buying?

Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Washington H. Soul Pattinson and Company Limited, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited, Wesfarmers Limited, and 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Macquarie, its analysts have retained their underperform rating but lifted their price target on this infant formula company’s shares to $5.60. While Macquarie acknowledges that A2 Milk performed better than it was expecting during the first half of FY 2022, it isn’t enough for a change of rating just yet. Particularly given that the company’s improved revenue outlook is largely being offset by higher marketing costs. The A2 Milk share price was trading at $5.70 on Tuesday.

Altium Limited (ASX: ALU)

Another note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this electronic design software company’s shares to $25.90. This follows the release of Altium’s half year results, which were better than Macquarie was anticipating. However, the broker expects the company’s growth to moderate in the second half. As a result, it isn’t in a rush to change its rating. The Altium share price was fetching $31.43 today.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Analysts at Credit Suisse have retained their underperform rating but increased their price target on this pizza chain operator’s shares to $89.24. The broker has lifted its valuation after upgrading its growth estimates for the coming years. However, even after these upgrades, Credit Suisse believes Domino’s shares are expensive on current multiples. The Domino’s share price was trading at $99.73 on Tuesday afternoon.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Is the Altium (ASX:ALU) share price in the buy zone following its results?
• ‘The sleeper has awakened’: Top broker gives its verdict on the A2 Milk (ASX:A2M) share price
• ASX 200 shares stage comeback amid Russia optimism
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• These 3 ASX 200 shares are topping the volume charts this Monday

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 Altium. The Motley Fool Australia has recommended A2 Milk and 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 Best & Less Group Holdings Ltd (ASX: BST) share price is in the green after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Best & Less share price is $3.68, 8.88% higher than its previous close.

Best & Less share price surges on half year earnings

• $287.5 million of revnenue – down 13.8% on that of the first half of financial year 2021
• Net profit after tax (NPAT) of $20 million – down 21.3%
• Pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) of $30.6 million – down 20.3%
• 11 cent fully franked interim dividend announced

Best & Less delivered what the company described as a “robust” performance over the first half, despite loosing 9,437 trading days – representing 21.3% of total trading days – due to COVID-19 lockdowns and restrictions.

While the company’s revenue fell, its like-for-like sales increased 0.1% and its online sales were boosted 24%.  

Additionally, its gross profit margin recorded a 210-basis points improvement, reaching 50.8%. Meanwhile, its EBITDA margin was strong at 10.6%.

Best & Less’ pro forma operating cash flow came to $16.4 million. Its net cash position at the end of the half was $31.1 million.

Finally, it has announced its maiden 11 cent dividend in line with its policy to pay out 60% to 80% of NPAT.

What else happened during the half?

As COVID-19 outbreaks raged, Best & Less’ stores struggled with lower foot traffic ahead of the peak December holiday trading period.

In response, the company right sized and moved inventory to offset the impact of sales fall out from lost trading days.

It also lowered its cost of doing business by 7% compared to that of the prior comparable period.

On top of that, it onboarded more than 500 new staff, opened 2 new stores, and renewed 41 leases last half.

The company also successfully trialled baby non-apparel lines and launched its Product Lifecycle Management (PLM) system.

What did management say?

Best & Less CEO, Rodney Orrock commented on the company’s first half results, saying:

To have achieved our [calendar year 2021] prospectus profit forecasts is a great outcome in challenging conditions and is the result of a relentless focus on managing gross margin and costs across the business.

Our omni-channel model continues to provide us with flexibility and our ongoing investment in online is paying off, with online sales rising significantly and conversion rates continuing to improve. We have managed our supply chain and inventory well and are in a strong position heading into the second half as trading conditions strengthen.

What’s next?

Best & Less has declined to give guidance for the remainder of financial year 2022, citing ongoing market uncertainty.

However, it did look back at the first 8 weeks of 2022 and forwards at its strategies for the near future.

Over the first 8 weeks of the second half, the company’s total sales were down 7.6% on those of the second half of financial year 2021.

Though, January and February are normally the retailer’s quietest months of the half.

The Omicron outbreak impacted traffic and purchasing behaviour in January, as did delays to the restart of school.

The company expects such impacts will lessen this month and continue improving through the remainder of the financial year.

With a strong inventory position and supply chain, its ready to trade through the busy Easter and Mother’s Day periods.

It will look to grow its market share in baby and kids clothing and its store numbers in the current half. It’s also working to improve its womenswear offerings and its online capabilities.

Best & Less is aiming to hold its operating profit margin amid the inflationary environment, supply chain challenges, and workforce pressures.

Best & Less share price snapshot

2022 hasn’t been good to the Best & Less share price.

Today’s gains included, it has fallen 11% since the start of the year. Though, it’s still 53% higher than it was this time last year.

The post ‘Great outcome’: Best & Less (ASX:BST) share price rockets 9% on maiden dividend appeared first on The Motley Fool Australia.

More reading

• ASX retail shares have slumped in 2022. Could there be more pain to come?
• 2 ASX retail shares going cheap: Fund manager

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.

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Concerns over rising tensions in the Ukraine have hit the S&P/ASX 200 Index (ASX: XJO) on Tuesday. In afternoon trade, the benchmark index is down 1.2% to 7,144.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 13% to $4.11. This follows the release of the infection prevention company’s half year update. Although Nanosonics reported strong growth over the COVID-impacted prior corresponding period, things weren’t so positive compared to the previous half. Nanosonics reported a 45% reduction in profit half on half. It also warned that its full year operating expenses would be up markedly year on year.

Superloop Ltd (ASX: SLC)

The Superloop share price is down 12.5% to 94 cents. This morning the telco released its half year results and revealed a 125% increase in revenue to $119.8 million. However, due to extreme margin weakness, its underlying EBITDA only grew 12.2% to $9.1 million.

Uniti Group Ltd (ASX: UWL)

The Uniti share price has fallen 11% to $3.30 following the release of the telco’s half year results. Superloop reported a 98% increase in revenue to $109.5 million and a 140% jump in underlying EBITDA to $70.5 million. As strong as this was, it was still short of the market’s expectations. This was due to weaker margins in the Wholesale & Infrastructure segment.

Zip Co Ltd (ASX: Z1P)

The Zip share price has continued its slide and is down 9% to $2.15. Investors have been selling this buy now pay later provider’s shares since the release of its half year trading update on Monday. The larger than expected loss appears to have sparked fears that Zip may need to raise capital again in the near future.

The post Why Nanosonics, Superloop, Uniti, and Zip shares are tumbling today appeared first on The Motley Fool Australia.

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• Uniti (ASX:UWL) share price tumbles 10% despite revenue surging 98%
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• Nanosonics (ASX:NAN) share price sinks amid 45% half-on-half profit decline
• 5 things to watch on the ASX 200 on Tuesday

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 Nanosonics Limited, SUPERLOOP FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Uniti Group 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 Mineral Resources Ltd (ASX: MIN) share price has fallen more than 28% in the past month. The bulk of these losses came when the company reported its first-half results for the 2022 financial year.

At the time of writing, Mineral Resources shares are down 3.84% to $45.54 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 1.24% to 7,144.2 points.

Let’s take a closer look and see what’s been dragging on Minerals Resources shares lately.

What’s been impacting Mineral Resources shares?

Investors are selling off Mineral Resources shares as weak sentiment hits the mining services company.

This is in sharp contrast to when its shares were trading at a 52-week high of $66.88 in late January.

With the company delivering a disappointing performance for the six months ending 31 December, investors were unimpressed.

Revenue fell 12% on the previous year to $1.4 billion. This was caused by a significant reduction in iron ore revenue due to weakening Platts and wider discounts.

In addition, costs increased for haulage by $54 million and shipping by $151 million over the prior corresponding period.

Overall, the underlying net loss after tax stood at $36 million, down 108% year on year.

On the day of the release on 9 February, the Mineral Resources share price fell 8.91% reflecting missed expectations.

However, the bloodbath didn’t stop there with the company’s shares falling a further 8.16% over the next four trading days.

But, regardless of the weakened results, analysts at Bell Potter raised their 12-month price target by 22% to $61.35 per share.

However, the teams at Goldman Sachs and Macquarie both cut their ratings by 7% to $50.00, and 6.7% to $70.00, respectively. Based on the latter, this represents a potential upside of 53% from where Mineral Resources trades today.

Mineral Resources share price snapshot

Despite the heavy losses for the month, Mineral Resources shares are still up 15.4% since this time last year.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $8.66 billion, with approximately 188.85 million shares outstanding.

The post Why has the Mineral Resources (ASX:MIN) share price tumbled 28% in a month? appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) shareholders are a hardy bunch.

While some other big bank rivals have powered ahead after the Hayne Royal Commission and the arrival of the COVID-19 pandemic, ANZ shares have been on a road to nowhere.

In fact, over the past 5 years the stock price has dipped 10.5%.

Yikes.

Much has been written in business media about ANZ’s struggles last year with home loan applications. Sluggish processes and systems have meant the bank has helplessly seen its share of the mortgage market in terminal decline.

Just in December, APRA numbers showed the bank losing 0.1% in the owner-occupier housing market. ANZ did gain 0.1% in investor loans but that was the same growth rate as the previous month.

A couple of months ago, the bank suffered perhaps its most brutal blow to its dignity.

ANZ technically dropped out of the long-standing club of the biggest 4 banks in Australia, when Macquarie Group Ltd (ASX: MQG) intruded briefly.

It was a savage reminder that nothing can be taken for granted anymore.

But is there a light at the end of the tunnel for ANZ shares?

Rising interest rates and faster mortgage processing 

Red Leaf Securities chief executive John Athanasiou told The Motley Fool that 2022 was looking brighter for ANZ shares. 

“Their margins have slightly decreased, but we see that improving,” he told Ask A Fund Manager.

“All the big four, essentially, will benefit from rising rates. That’ll improve margins and it’ll moderate the negative impact low interest rates have had on their margins.”

To add to this, the bank is forecast to give out a grossed-up dividend yield of more than 7%.

Athanasiou is not the only professional investor bullish on ANZ.

According to CMC Markets, 9 out of 15 analysts rate the stock as a “buy”. Eight of those high conviction, rating ANZ as a “strong buy”.

According to Athanasiou, ANZ will reap benefits from fixing up its much-maligned home loan approval processes.

And this upside gives the stock the crucial edge over its big four rivals.

“We know that ANZ has made a lot of progress in simplifying their home loans. They’ve lost their market share, but they’ve improved their back office, their technologies,” he said.

“Which means that your home loan will be approved in a far more timely fashion compared to its peers.”

ANZ shares are down 1.3% for the year, to trade at $27.64 on Tuesday afternoon.

The post Why ANZ (ASX:ANZ) shares have been punished, but experts are now bullish appeared first on The Motley Fool Australia.

More reading

• 2 big-cap ASX shares that even this small-cap expert recommends
• Is the ANZ (ASX:ANZ) share price a buy for the 7.3% dividend yield?
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Own ANZ (ASX:ANZ) shares? The bank just tipped $70m into a new ‘green’ partnership

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has taken a nasty fall so far this Tuesday amid global geopolitical concerns. At the time of writing, the ASX 200 has lost 1.27% at 7,141 points.

But rather than letting that get us down, let’s instead check out the ASX 200 shares that are currently heading the market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far this Tuesday

Alumina Limited (ASX: AWC)

Alumina is our first ASX 200 share to start with today. This aluminium and alumina producer has had a hefty 18.52 million shares trade on the markets so far this Tuesday. This volume comes after the company reported its full-year results for the 2021 calendar year this morning.

As we covered earlier, Alumina saw profits and dividends both rise, as well as a boost to cash inflow. However, that appears to have disappointed investors, with the Amumina share price currently down a depressing 3.29% to $2.06 a share at the time of writing. It’s probably this steep fall, together with the earnings, that has sparked this high trading volume we’re seeing.

Liontown Resources Limited (ASX: LTR)

ASX 200 battery minerals company Liontown is next up this Tuesday. Today’s trading session has seen a hefty 19.04 million Liontown shares trade hands thus far. Unlike Alumina, Liontown has had no major news or announcements come out as it presently stands.

But the company has had a very nasty share price fall during today’s trading session. Liontown shares are currently down by 9.76% at $1.34 each, a new low watermark for 2022 thus far. It’s this steep drop that is probably responsible for this elevated volume.

South32 Ltd (ASX: S32)

South32 is our final and most traded ASX 200 share of the day as it currently stands. So far, a whopping 20.79 million of this diversified miner’s shares have been bought and sold on the markets today. Again, there’s nothing new out of South32 today.

The company did report a well-received earnings last week though, which initially saw South32 shares jump in value. However, that has all been whittled away by the 2.96% share price tumble the company has experienced so far this Tuesday. It’s this drop that is probably behind South32’s pole position on this list, perhaps assisted by the company’s share buyback program.

The post These 3 ASX 200 shares are topping the volume charts on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• Think VAS is the best ASX index fund? These ETFs have beaten it over the past decade…
• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• Alumina (ASX:AWC) share price sinks despite dividend boost
• Banking on the South32 (ASX:S32) dividend? Here’s what you need to know

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Veem Ltd (ASX: VEE) share price is deep in negative territory on Tuesday afternoon following the release of the company’s first-half results.

After disappointing investor expectations, the marine technology company’s shares have fallen by 13.64% to trade at 76 cents each at the time of writing.

Veem reports weakened result for H1 FY22

The Veem share price is heading south today following the company’s performance for the six months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $26.3 million, down 7.4% on the prior corresponding period (H1 FY21 $28.4 million)
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $2.9 million, down 49% (H1 FY21 $5.7 million)
• Net Profit After Tax (NPAT) of $0.3 million, down 90% (H1 FY21 $3 million)
• Earnings Per Share (EPS) of 0.2 cents per share, down 91% (H1 FY21 2.3 cents per share)
• Unfranked interim dividend of 0.0007 cents per share.

How did Veem perform in H1 FY22?

As foreshadowed at the company’s annual general meeting (AGM), there were a number of factors that impacted the above results.

The first was the company vigorously competing for staff in a very tight labour market caused by border closures. This means that Veem has been unable to recruit many skilled tradespeople when needed. This, in turn, constrained capacity (production hours) and increased costs through payment of overtime and higher wages.

In addition, raw materials price increases have eroded margins, particularly the bronze (copper and nickel) used for propellers.

The company has also been impacted by a surge in freight costs and shipping times which have affected its margins.

At year’s end, Veem had a cash balance of $4.6 million and an undrawn overdraft facility of $3.4 million.

What’s the outlook for Veem?

Looking ahead, Veem is confident that it can continue driving growth of its gyrostabiliser product in the global marine market.

Notably, the company is the only major supplier in the large marine gyrostabiliser market. The total addressable opportunity is valued at US$1.1 billion for new builds and US$13.5 billion for retrofits.

Management noted that its significant investment and ongoing development provides a major barrier for entry for potential competitors.

The global demand for propellers is expected to remain robust, with Veem already increasing its manufacturing capacity last month.

The company expects sales of propellers to increase in line with capacity and also be boosted by price rises.

In addition, Veem’s defence revenue is expected to remain strong. Deliveries under the upcoming Collins Class submarine full cycle docking are scheduled to commence in April 2022.

Nonetheless, investors have sold off the Veem share price after the company advised that revenue over the next period will likely be similar to the first half. This is due to the tight labour market, rising raw materials and freight costs, freight and supplier uncertainty, and COVID-related issues.

The company refrained from providing earnings or profit guidance for the FY22 full year.

Veem share price snapshot

The Veem share price is down more than 19% year to date and almost 16% over the past 12 months.

The company has a current market capitalisation of around $103 million.

The post Double-digit losses: Veem (ASX:VEE) share price sinks 14% following first-half results 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 recommended VEEM Ltd. The Motley Fool Australia has recommended VEEM 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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