The Lark Distilling Co Ltd (ASX: LRK) share price is climbing back from a 21% nosedive yesterday after the company announced the shock departure of its CEO.

At the time of writing, the Lark share price has rebounded 6.94% to $3.85.

Need to be brought up to speed? Here’s what is happening…

Why has the Lark CEO quit?

In a rather sudden announcement, Lark CEO Geoff Bainbridge has handed in his resignation in order to attend to a “personal matter” made known to the Board the day before.

It turns out that the personal matter involves a case of extortion. The Australian newspaper reported yesterday that it had obtained a video in which Bainbridge appears to be engaging in drug use.

Lawyers representing Bainbridge were quoted by the paper saying he is “the subject of a continuing, sophisticated and recently intensified extortion attempt by persons overseas using manipulated unverified images”. 

Further, the lawyers said: “The attempted extortion of Mr Banbridge commenced years before he had any involvement in Lark Distillery…”

In the meantime, non-executive director Laura McBain has taken the reins as interim managing director.

And seeing as Lark had been hunting for a CEO successor since December as part of its long term planning, the process has been kicked into overdrive.

Lark share price snapshot

The Lark share price opened yesterday at $4.10 and dropped as low as $3.48 throughout the day. By market close, Lark shares were sitting at $3.60 each — a decrease of just under 21%.

Today, Lark began trading at $3.99 but dropped back to $3.84 around lunchtime trade.

Over the last 12 months, the Lark share price has increased by 127%. In March last year, the shares were trading at a 52-week low of $1.63.

The shares hit a 52-week high of $5.61 in October, not long after the distiller completed the first stage of a capital raising, collecting $45.5 million from newly issued shares.

The company has a market capitalisation of $271 million.

The post Lark (ASX:LRK) share price rebounds 7% following sell-off appeared first on The Motley Fool Australia.

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• Here’s why the Lark (ASX:LRK) share price is nosediving 21% today

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The Newcrest Mining Ltd (ASX: NCM) share price is holding up despite the company reporting a fall in revenue, profit, and production.

Newcrest shares are currently swapping hands for $23.80 apiece, a 1.26% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.66%.

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

Newcrest share price gains on financial results

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

• Statutory profit of US$298 million (A$414 million), down 46% on previous corresponding period (PCP) of H1 FY21
• Revenue of US$1,715 million, a 21% fall on PCP
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $740 million, a 35% drop on PCP
• Gold production down 20% on PCP
• Copper production down 27% on PCP
• All-in sustaining cost of US$1,194 per ounce, up 23%
• All-in sustaining cost margin of US$502 per ounce, down 40%

What else happened in the half?

Newcrest declared a fully franked interim dividend of 7.5 US cents (10.4 AU cents), to be paid on Thursday, 31 March 2022.

The company reported major growth in its mineral resources and ore reserves, including a 10% rise in gold ore reserves to 54 million ounces.

The underlying profit was lower due to a planned upgrade of the Cadia SAG mill motor, which was completed in November. Production was also lower at the Lihir gold mine due to an expected fall in the grade of the ore.

The results reflected falling gold and copper sales due to less production at the mine, the company said. This wasn’t helped by a lower realised gold price, higher freight costs, and a strengthening Australian dollar against the US dollar impacting operating costs. Supply issues and rising demand also put pressure on the operating costs.

On a positive note, a higher realised copper price and less income tax expense partially offset these concerns. Overall, operating costs were lower due to lower sale volumes, a decreasing gold price, and other volume-linked costs.

Additionally, the company highlighted it is creating a brighter future via its safe and responsible mining. There has not been a fatality at the mine for six years.

Management commentary

Investors are pushing the Newcrest share price higher on the back of the results. This positive sentiment was echoed by CEO Sandeep Biswas, who said:

We have taken a big step forward in our profitable growth agenda during the first half of FY22. The depth and quality of our global organic growth portfolio was demonstrated through the announcement of the findings of the Cadia PC1-2, Red Chris Block Cave, Havieron Stage 1, and Lihir Phase 14A Pre-Feasibility Studies.

The outlook for the commodities that we mine is strong, and we have additional opportunities to further enhance our gold and copper production profile. Our team continues to pursue the potential for further open pit and underground opportunities to extend the life of Telfer, the development of Wafi-Golpu and potentially Namosi, all of which represent upside opportunity to our current base case projections.

What’s next for Newcrest?

Newcrest is on track to deliver its FY22 production guidance on the back of it completing major maintenance in September and the Cadia SAG mill motor upgrade.

The miner expects performance at the Lihir mine will improve in the second half of the financial year due to higher-grade ore.

Its all-in sustaining cost guidance also remains unchanged. However, the costs of managing COVID-19 are expected to be around $50-$60 million, up from the $35-$45 million estimated at the start of the financial year. This is due to government restrictions on travel, staff absences, logistic challenges, and isolation.

Newcrest believes the outlook for the commodities it mines is strong. The company will continue to improve its gold and copper production profile.

Commenting on the future outlook, Biswas added:

Following a solid start to the financial year, Newcrest is well placed to deliver a strong second half, to continue to pursue profitable growth, and to progress our Forging an Even Stronger Newcrest plan.

Newcrest share price summary

The Newcrest share price has fallen 3% in the past year, while it is up 3% in the past week.

For perspective, the benchmark ASX 200 has returned around 6.5% over the past year.

Newcrest has a market capitalisation of roughly $19.2 billion based on today’s share price.

The post Newcrest (ASX:NCM) share price lifts despite 46% profit drop appeared first on The Motley Fool Australia.

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• Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher
• Is Newcrest Mining (ASX:NCM) set to start a share buyback in 2022?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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 NRW Holdings Limited (ASX: NWH) share price is soaring after the company released its half-year results for the FY22 period before the market open.

At the time of writing, the diversified service provider’s shares are fetching $1.98 apiece, up 14.9%.

Let’s take a closer look at NRW’s performance in the first half.

NRW share price advances following growth across key metrics

The NRW share price is well into the green on the back of the company’s robust results for the six months ending 31 December 2021. Here are some of the key highlights:

• Revenue of $1,160 million, down 0.7% on the prior corresponding period (pcp) (H1 FY21 $1,168 million)
• Earnings before interest and tax (EBIT) of $74.6 million, up 26.4% (H1 FY21 $59 million)
• Profit before income tax of $64.2 million, up 59.3% (H1 FY21 $40.3 million)
• Cash balance of $195.9 million, up 33.7% on the prior period ($146.5 million)
• Fully franked interim dividend of 5.5 cents per share, up 37.5% (H1 FY21 4 cents per share).

What happened in H1 FY22 for NRW?

Investors are bidding up the NRW share price today as the company announced upgraded earnings for the FY22 period.

NRW is comprised of three divisions, which are civil, mining, and minerals, energy and technologies (MET).

In the civil business, revenue was lower than the pcp as major Pilbara-based projects were completed in FY21.

NRW noted that the high activity level in FY21 meant they had to hire more staff at unprecedented levels. Projects cost more because staff availability was severely impacted by COVID-19 measures including border closures. 

Lower activity in the first half of FY22 meant not as many staff were needed, which in turn has contributed to improved margins.

Across to the mining segment, activity levels increased by around 10% excluding the impact of lower revenue (and depreciation) on the Boggabri project.

Revenue increased to $611.3 million from $585.4 million in H1 FY21.

Lastly, revenue in the minerals, energy and technologies business increased to $359.2 million compared to $118.3 million in H1 FY21. This was mostly due to the inclusion of Primero, which was acquired by NRW in February 2021.

Over the six months to 31 December, the NRW share price rose by 20.4%.

What did NRW management say?

NRW managing director and CEO, Jules Pemberton, touched on the result, saying:

The results reflect what we said we would do. Activity levels are as we expected despite a series of challenges related to the COVID-19 pandemic. Earnings have recovered and delivered to the high end of guidance. We have also made progress in resolving claims and that is reflected in significantly improved cashflows in the half.

What’s the outlook for NRW for the remainder of FY22?

NRW advised that pandemic restrictions have continued for longer than previously anticipated. This has led to some challenges around recruiting staff for specific trades on future projects.

Nonetheless, the business is seeking to capture growth opportunities across the resources, infrastructure and renewables sectors.

The pipeline of opportunities currently stands at $19.5 billion. The order book has increased to $4 billion compared to $3.4 billion in June 2021. This is likely to continue growing following the completion of contract extension negotiations with Coronado Coal.

Revenue guidance for the full year remains between $2.4 billion to $2.5 billion. NRW noted that it has secured work in hand for the remaining six months of FY22 that supports the revenue forecast at the low end of the range.

In addition, earnings guidance (EBITA) for the full year has been updated to a range of $150 million to $155 million, reflecting the strong first-half results.

The post NRW (ASX:NWH) share price leaps 14% on ‘high end’ earnings and upgraded guidance appeared first on The Motley Fool Australia.

More reading

• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.6% to 7,330.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Challenger Ltd (ASX: CGF)

The Challenger share price is up 6.5% to $6.73. Investors have been buying the annuities company’s shares following the release of its half year results. Challenger reported a 21% increase in normalised net profit before tax to $238 million. This means the company is on track to achieve its FY 2022 normalised net profit before tax guidance of between $430 million and $480 million.

CSL Limited (ASX: CSL)

The CSL share price is up 4% to $274.49. This follows a positive response from brokers to the biotherapeutics company’s half year results. For example, both Morgan Stanley and Ord Minnett upgraded the company’s shares to overweight and accumulate ratings, respectively.

NRW Holdings Limited (ASX: NWH)

The NRW share price has jumped 14% to $1.97. This follows the release of the mining contractor’s half year results. For the six months ended 31 December, NRW delivered a 26% increase in operating earnings to $74.6 million. This represents the high end of its guidance range. In light of this strong form, management has narrowed its full year guidance towards the top end of its previous range.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is up almost 5% to $27.87. This follows the release of the energy producer’s full year results, which revealed the more than tripling of its profits in FY 2021. Thanks to a modest increase in sales volumes and a surge in realised prices per barrel, Woodside reported a 93% increase in operating revenue to US$6,962 million and a 262% jump in underlying net profit after tax to US$1,620 million.

The post Why Challenger, CSL, NRW, and Woodside shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• NRW (ASX:NWH) share price leaps 14% on ‘high end’ earnings and upgraded guidance
• The ‘tide is beginning to turn’: CSL (ASX:CSL) share price tipped to rise
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• 5 things to watch on the ASX 200 on Thursday

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 CSL Ltd. The Motley Fool Australia has recommended Challenger 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 Global Lithium Resources Ltd (ASX: GL1) share price is surging after the company released news of its Manna Lithium Project.

The project’s maiden inferred JORC mineral resource estimate has nearly doubled the company’s overall lithium mineral resource base.

At the time of writing, the Global Lithium share price is $1.51, 14.77% higher than its previous close.

However, earlier today Global Lithium shares soared to $1.56 – representing an 18% gain.

Let’s take a closer look at the news that’s sending the lithium explorer’s shares rocketing.

Global Lithium stock surges as resources nearly double

Global Lithium acquired 80% of the Manna Lithium Project in December for $33 million. Now, the Manna Project ­has received its maiden resource estimate.

It has been inferred to contain 9.9 million tonnes at 1.14% lithium oxide and 49 tantalum pentoxide parts per million.

That brings the company’s overall lithium estimates across both the Manna Project and its 100% owned Marble Bar Project to 18.4 million tonnes.

Global Lithium exploration manager Bryan Bourke said the company’s new mineral resource position is “a huge achievement for a company that only listed on the ASX in May last year.”

“We will carry out significant exploration programs at both sites in 2022 in parallel with a surging global lithium market that we plan to supply in the coming years,” Bourke continued.

Global Lithium is working to get approvals and plan logistics for a drilling program at the Manna Project.

Global Lithium share price snapshot

As Bourke noted, the company debuted on the ASX in 2021. Global Lithium launched with a share offer of 20 cents apiece during its initial public offering (IPO).

That leaves shareholders who got on board with the company prior to its listing boasting a 657% gain on their investment.

Additionally, since the start of 2021, the company’s share price has gained 32%.

The post Global Lithium (ASX:GL1) share price rockets 18% on ‘huge achievement’ appeared first on The Motley Fool Australia.

More reading

• How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022?

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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Could the Magellan Financial Group Ltd (ASX: MFG) share price be a buy? It’s due to hand in the FY22 half-year result this week, so it’s going to be under the spotlight after all of the disruptions over the last few months.

The company may have some surprises. But we already know some of the things that the ASX share is going to say.

Magellan loses significant funds under management (FUM)

An important part of profit generation for funds management businesses is the amount of FUM it has. It may be obvious to say, but usually higher FUM means higher revenue and profit. Lower FUM can therefore translate into lower profitability.

At 30 November 2021, Magellan had total FUM of $116.4 billion.

On 20 December 2021, Magellan announced that it had lost the St James’ Place investment mandate, representing 12% of annual revenue.

At 31 December 2021, the FUM had dropped to $95.5 billion.

The FUM had fallen to $93.5 billion at 31 January 2022.

Unusually, Magellan then released a mid-month FUM update. At 9 February 2022, FUM had dropped again to approximately $87.1 billion. This was a combination of market movements, cash distributions paid, net outflows and notifications since 1 January 2022. It has experienced net outflows of around $5.5 billion since 1 January 2022, including net institutional outflows of $5 billion.

Billions are flowing out of Magellan at the moment, which is hurting the Magellan share price.

Underperformance may be a key reason that investors are pulling out. As an example, over the year to 31 January 2022, the Magellan Global Fund has underperformed its benchmark by 10%. It’s also showing underperformance over the last three, five and seven years.

Hamish Douglass steps down

Hamish Douglass was well-known as being the investment leader of Magellan.

But Mr Douglass has now taken a medical leave of absence to prioritise his health after intense pressure and focus on both his professional and personal life. The Magellan share price fell after the announcement of this news.

Mr Chris Mackay, Magellan’s co-founder, inaugural chair and chief investment officer between 2006 to 2012, will oversee the portfolio management of Magellan’s global equity retail funds and global equity institutional mandates.

Magellan noted that Mr Mackay is a highly experienced and respected global equity portfolio manager, with a “very strong” long-term record of managing global equities. He has been the portfolio manager of MFF Capital Investments Ltd (ASX: MFF) since 2013.

The funds management business also announced that Ms Nikki Thomas has rejoined the business as a co-portfolio manager. She originally joined Magellan in January 2008 and was involved in the global equity strategy since its inception in July 2007 to December 2017.

Is the Magellan share price a buy?

Despite the 60% drop of the Magellan share price over the last six months, analysts still don’t think it represents good value.

For example, UBS rates Magellan as a sell, with a price target of just $17 with potential for further FUM declines and the possible need to reduce fees to stop FUM flowing out.

Morgan Stanley also thinks Magellan is a sell, with a price target of $17.20.

Credit Suisse is ‘neutral’ on the business, but the price target is $16.50. Retail FUM outflow is expected to pick up around the end of the financial year as financial advisors look at what’s happened.

The post Is the Magellan (ASX:MFG) share price a smart contrarian buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns MFF Capital Investments Limited and Magellan Financial Group. 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 CSL Limited (ASX: CSL) share price is shooting higher again on Thursday.

In afternoon trade, the biotherapeutics company’s shares are up a sizeable 5% to $276.18.

This means the CSL share price is now up an impressive 14% in the space of just two days.

Why is the CSL share price charging higher?

Investors have been bidding the CSL share price higher since the release of its half year results on Wednesday.

For the six months ended 31 December, CSL reported a 5.3% increase in revenue to US$6,041 million but a 5% constant currency decline in net profit after tax to US$1,722 million.

However, getting investors excited was management speaking positively about the outlook for plasma collections and upgrading its full year profit guidance.

The tide is turning

The team at Morgans remains positive on the CSL share price and has put an add rating and $327.60 price target on its shares. This implies potential upside of almost 19% for investors even after its recent gains.

Morgans commented: “CSL – 1H above expectations; the “tide is beginning to turn” 1H results were better than expected, albeit in line with management’s assumptions, with net profit down 5% in cc on 4% revenue growth. Seqirus was the standout on pandemic driven demand for influenza vaccines, while Behring went backwards as plasma-based products were constrained on tight supply and higher costs, although certain Specialty product saw gains.”

“Promisingly, plasma collections continue to improve, although remain slightly below pre-pandemic levels, and while industry wide issues remain (eg Omicron; staffing; increase costs), the worst appears behind us,” it added.

All in all, it may not be too late for investors to pick up CSL shares, according to this top broker.

The post  The ‘tide is beginning to turn’: CSL (ASX:CSL) share price tipped to rise appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
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• Down by a quarter in less than three months, is the CSL (ASX:CSL) share price a buy?

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 CSL Ltd. 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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Origin Energy Ltd (ASX: ORG) shares were one of the worst performing out of the entire S&P/ASX 200 Index (ASX: XJO) in morning trade on Thursday.

It’s difficult to discern what exactly is causing the company’s shares to fall today. Mainly because two significant pieces of information have been released to the market this morning.

Firstly, the energy provider released its half-year results, posting a loss of $131 million. However, the news hitting headlines today is the company’s proposal to bring forward its exit from coal-fired power generation to 2025.

Origin’s coal power plants to go up in smoke in 2025

Investors are mostly sitting on the pessimistic side of the fence today amid the company’s latest stride toward net-zero emissions. Although, shares have bounced back strongly throughout the session.

According to the release, Origin Energy wants to get out of coal-fired power generation sooner rather than later. The plan is to move the retirement of Australia’s largest coal-fired power plant, Eraring power station, to August 2025.

Notably, the closure of Eraring would be seven years ahead of its previous plans. However, Origin shares are not responding positively to the news.

The ASX-listed company has submitted its notice to the Australian Energy Market Operator (AEMO) today. The AEMO introduced this notice period in 2018, requiring large electricity generators to provide a minimum of three years’ notice before a closure.

A three-year window will enable other sources of power generation to make up for any supply losses to the grid. In this situation, the loss would be substantial. Eraring currently supplies around a fifth of New South Wales’ energy, offering 2,880 megawatts of capacity.

Providing reasoning for the proposed early closure, Origin CEO Frank Calabria said:

[…] the cost of renewable energy and battery storage is increasingly competitive, and the penetration of renewables is growing and changing the shape of wholesale electricity prices, which means our cost of energy is expected to be more economical through a combination of renewables, storage and Origin’s fleet of peaking power stations.

Origin sharesholders could soon be battery-backers

In place of the power plant, Origin is proposing a “well-progressed” plan for a battery of up to 700 megawatts. In addition, the company is looking to bring online more renewable infrastructure, including the Shoalhaven pumped hydro scheme.

Early retirement of the large-scale coal-fired plant will put Origin in good step for its net-zero emission targets. However, not everyone is as excited about the announcement.

Austalia’s federal energy minister, Angus Taylor, has voiced concerns over electricity affordability for households. This comes after Taylor shared similar worries with AGL Energy Limited (ASX: AGL) and its plan to bring forward power station closures as well.

Origin shares have been benefitting from the rise in natural gas — which is touted as a cleaner alternative to coal. The Origin share price is up 30% in the past 12 months.

Today’s announcement marks a milestone in the energy giant’s pivot away from coal.

The post Australia’s largest coal power plant set for early D-day. What it means for Origin (ASX: ORG) shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Wesfarmers Ltd (ASX: WES) share price is plummeting today after the company released its earnings for the first half of financial year 2022.

The conglomerate behind retail brands Bunnings, Kmart, and Officeworks reported its profits had slumped 14.2% while its earnings before interest and tax (EBIT) slid 12.3%.

At the time of writing, the Wesfarmers share price is $51.68, 5.9% lower than its previous close.

That’s an uptick on its morning low of $51.26 – a 6.6% tumble.

Let’s take a closer look at the news dragging Wesfarmers’ stock lower on Thursday.

Wesfarmers share price slides on COVID-19 impacts

The Wesfarmers share price has slumped after the company’s managing director Rob Scott declared the first half “the most disrupted period for our businesses since the onset of COVID-19“.

The Omicron variant’s spread caused supply chain disruptions, staffing challenges, and store closures, with the company’s crown jewel retailers hit hard.

It reported around 34,000 of its store trading days were impacted by store closures or trading restrictions. That’s around 20% of the half’s trading days.

Likely, as a result, Bunnings, Kmart, Target, and Officeworks all saw their earnings drop.

The former suffered least, with its EBIT falling just 1%. Officeworks’ was hit harder, dropping 18%. Meanwhile, Kmart and Target saw their combined earnings drop 55%.

Profits from Wesfarmers’ chemicals, energy, fertiliser, industrials, and safety businesses weren’t enough to save the embattled conglomerate.

The group’s net profits for the period ended up falling 14%.

Likely helping spur the market to bid the stock down, Wesfarmers also announced a lower interim dividend.

Shareholders will receive an 80 cent dividend for the first half – 9% lower than that of the first half of financial year 2021.

And the company’s pain isn’t over yet. It expects to report continuous COVID-19 impacts in its full-year results.

Today’s tumble sees the Wesfarmers share price trading 23% lower than its 52-week high of $67.20, reached in August.

Though, it’s now just 5.4% off its 52-week low of $49.01.

The post Wesfarmers (ASX:WES) share price plunges 6% as Omicron takes its toll appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
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• 5 things to watch on the ASX 200 on Thursday
• Own Wesfarmers (ASX:WES) shares? Here’s what to watch when the company reports this week
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers 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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This particular S&P/ASX All Ordinaries Index (ASX: XAO) company is enjoying an impressive trading week, riding a share price increase of 15.77% to $2.79 over the past five days.

Fleet management company, SG Fleet Group Ltd (ASX: SGF) released its half-year results yesterday. To say ASX investors were pleased with the details might be an understatement given the 19% share price spike by the session’s end.

Today, the SG Fleet share price is down 1.77% to $2.78 at the time of writing.

SG Fleet share price spikes on 16% profit surge

For the half-year ending 31 December 2021, SG Fleet highlighted:

• $29.7 million in profit, a 16.6% increase against the prior corresponding period (1H21)
• Underlying net profit after tax (NPAT) of $39.3 million, up 54.3%
• Underlying earnings per share (EPS) at 12.02 cents per share, up 23.5%
• Fully franked interim dividend of 8.318 cents a share, up 15.7%.

The company saw increases in both reported and underlying NPAT — including an “$8.1 million and $9 million four-month contribution respectively” from the LeasePlan Australia and New Zealand businesses.

After acquiring LeasePlan in September last year, SG Fleet expects to continue reaping the benefits.

SG Fleet announced that shareholders will be paid a fully franked interim dividend of 8.318 cents a share on 10 March.

What else happened in the half?

SG Fleet also gave an update on both its local and global operations.

The Australian segment of the business saw “a significant number of new accounts” and “several large contract extensions”, the company said.

It also reported that customers were increasingly replacing their fleets with hybrid or electric vehicles.

Just across the water, the company’s New Zealand business continued to be impacted by the country’s COVID-19 lockdowns. However, it was buoyed by the renewal of “a large government contract”, according to the announcement.

SG Fleet also saw a “number of new business opportunities” as the United Kingdom began to relax its COVID-19 restrictions.

Since 31 December 2021, the price of this ASX All Ordinaries share has increased by 6.9%.

Management commentary

Speaking on the results, CEO Robbie Blau said:

Our Corporate businesses in Australia, New Zealand and the UK continued the strong performance delivered during the COVID-19 period and Novated demand is growing steadily. Supply disruption still dominates our operating environment and this impacted our ability to deliver the increasing number of orders won in this and earlier periods. A significant proportion of this order pipeline will consequently be delivered in future periods.

SG Fleet shares underperform All Ordinaries index

Over the past 12 months, the SG Fleet share price has increased by just 1.4%. By comparison, ASX All Ordinaries shares increased collectively by 6.4%.

SG Fleet saw its 52-week high of $3.29 in June last year and hit its annual low of $2.21 in late January.

The company has a market capitalisation of $967 million.

The post Why this ASX All Ordinaries share has rocketed 16% in a week 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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