Shares in open hotel commerce platform SiteMinder Ltd (ASX: SDR) are sliding into the red today. It comes as the company releases its results for the half year ended 31 December 2021.

At the time of writing, the SiteMinder share price is trading more than 3% down at $5.82 as investors respond poorly to the company’s mixed results.

SiteMinder shares slip on revenue gains with underlying net loss

Key investment takeouts from the company’s earnings result include:

• Total revenue was up 9% on H1FY21 (10.4% in constant currency (cc)) to $55 million
• Global customer base increased 6% during the half, with annualised property growth in the Americas up 15%
• Annualised recurring revenue (ARR) grew 13.5% (cc) from H1FY21 to $111 million
• Monthly average revenue per user (ARPU) grew 7.7% (cc) on H1FY21 to $280
• Underlying free cash outflow of $16.6 million (30% of revenue) with available cash and term deposits of $113 million
• Underlying net loss was $18.6 million reflecting investments to reaccelerate
• Reported net loss was $87 million

What else happened this period for SiteMinder?

This is the first half-yearly report for the company as an ASX share since its initial public offering (IPO) in November last year.

Annualised recurring revenue (ARR) at the end of H1FY22 was $111 million, growing 13.5% in constant currency terms from the same time last year. This result outpaced revenue growth and reflected “the acceleration of SiteMinder’s business”.

The company’s customer property count also increased from 32,800 to 33,400 over the quarter. This led annualised property growth to accelerate from 5% in Q1FY22 to 8% in Q2FY22.

It also saw some relief from the recovery in global travel to its transaction revenues. Revenue saw a rebound from the prior year.

“Around a third or 32% of customers have adopted an average of one transactional product – up 9 percentage points from the prior year,” the company said.

Despite growth at the top, SiteMinder reported a net loss for the period of $87 million. This was underpinned by a one-off cost of $61.8 million “relating to the higher revaluation of preference shares while a private company.”

Management commentary

SiteMinder CEO and managing director Sankar Narayan responded to the announcement:

In line with the continued reopening of travel markets and the rebuilding of our go-to-market capacity, SiteMinder’s growth is accelerating once again and our performance over the past six months stands as a testament to our ability to withstand the ongoing challenges presented by travel globally. We continue to exhibit our resilience through growth in total revenue and our subscription base, as well as ARR, ARPU and improved unit economics. Our performance also reflects the scale and breadth of our global business, with both the Americas and EMEA driving Company growth, and we are hopeful that the Asia Pacific will continue to reopen during 2022, to provide additional strength to our growth recovery.

What’s next for SiteMinder?

The release notes that SiteMinder is targeting pre-COVID revenue growth rates of 31% (achieved from FY17 to FY19).

This would place the company on the same trajectory it was on before the pandemic hit, ceteris paribus.

Although, “realisation of this target will depend on many factors outside of the Company’s control, including the substantial abatement of COVID-19 related influences on the accommodation and travel industry.”

SiteMinder share price snapshot

The SiteMinder share price is down 13% this year to date and has fallen nearly 1% into the red over the past month of trading.

Time will tell in which direction this relatively new ASX share will head as we roll through 2022.

The post Recurring revenue or recurring losses? This ASX share just sunk on mixed earnings appeared first on The Motley Fool Australia.

More reading

• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• 2 ASX small-cap shares breaking multi-year highs today
• Top brokers name 3 ASX shares to buy today
• Netwealth (ASX:NWL) share price craters 14% on mixed half-year results
• Is now the time to buy the dip in ASX 200 shares?

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. owns and has recommended SiteMinder Limited. 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/zpX5beS

This Wednesday’s trading session has been a positive one overall for ASX shares. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up a robust 0.88%. But that’s nothing compared to the BetaShares Crypto Innovators ETF (ASX: CRYP).

CRYP units are presently enjoying a very pleasing 4.82% bounce and are sitting at $6.53 each. So what could be behind this ETF’s very pleasant day so far?

Well, as a start, cryptocurrencies have enjoyed some very good gains recently. Over the past 48 hours, crypto flagbearer Bitcoin (CRYPTO: BTC) has appreciated by roughly 5.5%. The second-largest cryptocurrency Ethereum (CRYPTO: ETH) has rocketed more than 10% over the same period.

So this has obviously provided a strong foundation for a crypto-based ETF like BetaShares Crypto Innovators.

But let’s take a look at how the CRYP ETF’s underlying holdings have been performing this week as well. After all, an ETF is only worth the sum of its parts, whatever they may be.

CRYP ETF surges after rally in Bitcoin, cryptocurrencies

So the BetaShares Crypto Innovators ETF’s top holding is currently Coinbase Global Inc (NASDAQ: COIN), with a hefty 10.6% weighting in the fund. Its next largest holding is Silvergate Capital Corp (NYSE: SI) at 10.4%, followed by Microstrategy Incorporated (NASDAQ: MSTR) at 9.3%.

Last night (our time), Coinbase shares surged more than 7% on the US markets, possibly in response to the movements of cryptocurrencies like Bitcoin and Ethereum that we discussed earlier. Silvergate Capital did even better, rising by 10.06%. And Microstrategy shares enjoyed a 6.8% pop.

So this extraordinary strength across most of CRYP’s underlying portfolio is probably behind the big valuation jump today.

But even so, investors in this ASX ETF have still struggled of late. CRYP units remain down by more than 16% in 2022 so far, and by more than 40% since this ETF was listed on the ASX back in November last year.

The BetaShares Crypto Innovators ETF charges a management fee of 0.67% per annum.

The post Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today? appeared first on The Motley Fool Australia.

More reading

• Ethereum and Bitcoin price in focus as world’s biggest asset manager eyes cryptos
• How a war in Ukraine could send the Bitcoin price skyrocketing
• 3 exciting ETFs for ASX investors next week
• Here’s why these deep-pocketed investors are eyeing green Bitcoin
• Is this ‘impediment’ holding back the Bitcoin price?

Motley Fool contributor Sebastian Bowen owns Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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/OQAG6Cd

It’s an exciting day for owners of these ASX small-cap shares – they’re hitting their highest share price in years.

Shares in both Monash IVF Group Ltd (ASX: MVF) and Maggie Beer Holdings Ltd (ASX: MBH) are revelling in reporting season.

The Monash IVF share price has hit its highest point since August 2019 ­– surging to $1.135 in intraday trade.

Meanwhile, the Maggie Beer share price reached a new all-time high of 61 cents earlier today on the back of the company’s half-year earnings.

Let’s take a closer look at what’s got small-cap enthusiasts excited about these ASX shares.

What’s boosting the share price of these ASX small-caps today?

First off, Maggie Beer’s surge follows some tasty figures in the company’s half-year earnings.

Over the course of the 6 months ended 31 December 2021, Maggie Beer’s sales increased 113% compared to those of the previous first half, reaching $64.5 million.

Meanwhile, its trading earnings before interest, tax, depreciation, and amortisation (EBITDA) soared 438% to $9.8 million.

The company also broke even after reporting a net profit after tax (NPAT) of $5.5 million.

Maggie Beer’s first half of financial year 2022 was bolstered by its recent acquisition of Hampers & Gifts Australia.

While the Maggie Beer share price rose 3.3% earlier today, it is now at 60 cents, up 1.69%.

As Maggie Beer’s stock was surging, that of Monash IVF was also up despite no word from the reproductive services provider.

However, the market might be anticipating big things from the company’s own first-half earnings. They’re set to drop tomorrow.

Its share price has also come off its multi-year high this afternoon. It’s currently trading at $1.12 – down from its intraday high of $1.135.

The post 2 ASX small-cap shares breaking multi-year highs today appeared first on The Motley Fool Australia.

More reading

• The Monash IVF (ASX:MVF) share price is gaining 6% today. Here’s why

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/k3PGDUg

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this lithium producer’s shares to $14.00. Citi has revised its earnings estimates higher for Allkem. This follows a big increase to the broker’s lithium price forecasts due to demand outstripping supply for the battery making ingredient. The Allkem share price is trading at $9.41 on Wednesday.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $54.00. This follows the release of BHP’s half year results, which were well-ahead of the broker’s expectations. And with spot commodity prices still at high levels, it feels more of the same could be coming in the second half. Macquarie also highlights that the Big Australian’s new debt target range provides scope for M&A activity or increased capital returns. The BHP share price is fetching $47.11 today.

JB Hi-Fi Limited (ASX: JBH)

Analysts at Credit Suisse have retained their outperform rating and increased their price target on this retail giant’s shares to $60.27. In response to its trading update for January and share buyback, Credit Suisse has lifted its earnings estimates. Outside this, the broker likes JB Hi-Fi due to its exposure to the work-from-home trend and improvements from The Good Guys business. The JB Hi-Fi share price is trading at $53.86 on Wednesday.

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

More reading

• BHP’s stunning dividend, rates to rise, energy falls. Scott Phillips on Nine’s Late News
• Is it a buy? Top brokers rate BHP (ASX:BHP) share price after solid earnings
• Top fundie says these blue chip ASX shares are a buy
• Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results?
• Why Dexus, JB Hi-Fi, Seek, and Sims shares are climbing today

Motley Fool contributor James Mickleboro owns Orocobre Limited. 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/kJYrnxz

The Netwealth Group Ltd (ASX: NWL) share price is carrying a heavy weight on its shoulders today after the financial services platform provider released its half-year report.

In afternoon trading, the Netwealth share price is lingering 14% below yesterday’s closing price of $14.85. It is currently trading at $12.79, down 13.87% for the day so far.

Earlier in the day, Netwealth shares reached an intraday low of $12.20, representing a descent of 17.8%.

Netwealth share price feels the heat on mixed first-half result

• Revenue up 17% from prior corresponding period (pcp) to $84.7 million
• Total funds under administration (FUA) of $56.7 billion, increasing 46% pcp
• Record net FUA inflows of $7.6 billion, representing an increase of 71%
• Record underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $43.8 million, up 7%
• Statutory net profit after tax (NPAT) relatively flat at $27.1 million, down 1.8%
• Interim fully franked dividend declared of 10 cents per share, up 10% pcp.

What else happened in the first half?

Despite the disappointment reflected in the Netwealth share price today, the first half was a period of growth in many ways for the company.

According to the release, clients on Netwealth’s platforms increased by 21.4% to 107,103. In the process, its market share increased to 5.2% at the end of September 2021 — rising from 4.1% a year prior.

The company’s funds under management (FUM) also experienced solid growth during the first half. Specifically, Netwealth landed an additional $17.9 billion in funds, taking the total to $56.7 billion, an increase of 46%.

However, beefed-up funds and higher revenue did not make it to the bottom line. Instead, $31 million in employee benefits chewed up the bulk of Netwealth’s elevated top-line income.

The 32% rise in employee benefits is a result of the company’s investment in people. Netwealth grew its team by 86 people to a total of 457. As part of this, a substantial number of those added were dedicated to its IT team.

What’s next?

Moving forward, Netwealth expects growth to continue to accelerate as the industry further consolidates. Notably, Netwealth has been acting as a consolidating force in recent times.

In November 2021, platform rival, Praemium (ASX: PPS) received a non-binding proposal from Netwealth. However, the board of Praemium knocked it back — a move that saw the Netwealth share price sink.

Any lift in interest rates by the Reserve Bank of Australia (RBA) is also being considered a positive outcome for Netwealth. Margins would likely increase above the current 105 basis points if the RBA moved the cash rate above 50 basis points in March. The current cash rate is 0.1%.

Finally, the financial platform expects its forecasted FUA net inflow to exceed $13.5 billion.

Netwealth share price snapshot

In recent times, ASX investors appear unconvinced by the potential in the Netwealth share price. Much like other financial platform peers, shares in the 23-year-old company have fallen over the past year.

Compared to the 5% return delivered by the S&P/ASX 200 Index (ASX: XJO), the Netwealth share price is down 28.6% in the past 12 months.

The majority of this value destruction has occurred in 2022, after a volatile ride throughout 2021.

The post Netwealth (ASX:NWL) share price craters 14% on mixed half-year results appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• 3 ‘champion stocks’ for ASX investors in 2022
• Netwealth (ASX:NWL) share price lifts on record net inflows of $3.6bn
• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue

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. owns and has recommended Netwealth. The Motley Fool Australia owns and has recommended Netwealth. 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/9NG6Ts0

The S&P/ASX 200 Index (ASX: XJO) is edging higher today, up 0.57% in afternoon trade, continuing February’s rebound.

But ASX 200 shares, taken together, remain down 4.5% in 2022.

The local and global equity markets took a big hit in January as investors mulled the impact of looming interest rate rises, both in the United States and here at home.

The US Federal Reserve is widely expected to raise its benchmark rate at least 5 times this year from the current record low of 0.25%.

The Reserve Bank of Australia (RBA) has signalled a more dovish path. But most analysts are predicting the central bank will also be raising the cash rate from the all-time low of 0.10% later this year.

Commonwealth Bank of Australia (ASX: CBA) economists now expect the first RBA hike to come in June.

Then there are the simmering tensions on the Ukraine border. Russian forces remain positioned for a potential invasion despite pulling back some armoured units. Another recent headwind for ASX 200 shares.

With that in mind, is now the time to buy the dip?

Is now the time to buy the dip in ASX 200 shares?

Timing the market is no easy feat, to say the least.

But investors who are eyeing ASX 200 shares following the recent pullback might be interested to hear US investment bank JP Morgan’s bullish outlook for global share markets.

JP Morgan’s latest global asset allocation report was spearheaded by the company’s co-head of global research, Marko Kolanovic.

According to Kolanovic (quoted by The Australian):

Markets have been volatile recently and sentiment dour as investors grapple with monetary policy normalisation and geopolitical risks.

However, we believe risk asset markets have mostly adjusted to monetary policy shifts by now, short-term rates markets have likely moved too far versus what the central banks will ultimately deliver in hikes this year, and a China policy pivot can offset a good part of developed markets’ central bank tightening impact.

While a shooting war between Russia and Ukraine remains a very real risk, Kolanovic said if this eventuated it “would likely prompt a dovish reassessment by central banks” and the impact on global markets, and ASX 200 shares, should be “limited”.

“We expect risky asset markets to rebound as they digest these risks and sentiment improves, aided by inflows from systematic investors and corporate buybacks,” he said.

Advantage commodities

As for how investors in ASX 200 shares might want to position themselves, Kolanovic – addressing global equity markets – said (quoted by The Australian):

We continue to favour value, cyclical and higher beta market segments given their still cheap valuations and light positioning, and since they are beneficiaries of rising bond yields and higher commodity prices. We also retain our commodities overweight, focused on energy, given our supercycle thesis and geopolitical risk asymmetry.

Even as central bank hawkishness has ramped up, with market assumptions perhaps having gone too far in some cases, the silver lining to the recent pain is that equities are better equipped to handle it going forward.

Then there’s the pandemic recovery bounceback coupled with strong employment conditions in the US, Australia, and many developed nations.

JP Morgan’s analysts forecast a “strong cyclical recovery” in 2022 with borders reopening, releasing pent-up demand. The Australian international border will open on February 21.

“Bearish sentiment seems overdone as the conditions for ‘late cycle’ or recession are not met,” Kolanovic said. “Even as inflation has dented sentiment, ultimately the consumer is healthy given the strong jobs market.”

If JP Morgan has this one right, leading ASX 200 shares could enjoy some healthy tailwinds in the months ahead.

The post Is now the time to buy the dip in ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Why did ASX 200 energy shares weigh on the index today?
• These 3 ASX 200 shares are topping the volume charts this Tuesday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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/YGQaiXC

ASX 200 shares are showing signs of a V-shaped recovery with the benchmark S&P/ASX 200 Index (ASX: XJO) climbing 57 basis points this past week.

To further illustrate, the Ishares Core S&P/ASX 200 ETF (ASX: IOZ) has climbed more than 1% during this time, as investors throw support behind the large end of the market once more.

In amongst the noise, there is a little-covered ASX 200 share that released its half-yearly results today and investors are piling in as a result.

At the time of writing, the Orora Ltd (ASX: ORA) share price is up 7.7% to fetch $3.57 on the back of its results for the half year ended 31 December 2021.

Orora touts itself as a leading sustainable packaging and visual solutions provider. It has a foothold in the design and manufacture of packaging products such as glass bottles, beverage cans, corrugated boxes, recycled paper, multi-walled paper bags, and point of purchase displays.

But this ASX 200 share isn’t a small enterprise. At last check, it had a market cap of more than $3 billion and trades on a 4.2% trailing dividend yield.

Orora share price jumps as NPAT, EPS spike in 1H FY22

The company announced several investment highlights in its earnings release today, including:

• Underlying earnings per share (EPS) came in at 11.8 cents per share, up 22.9% year on year
• Underlying net profit after tax (NPAT), before significant items, was $102.7 million, up 12.9% year on year (13.6% on a constant currency basis)
• Sales revenue was $1.98 billion, up 9.6% on the previous year (10.6% on a constant currency basis).
• Underlying earnings before interest and tax (EBIT) was $154.5 million, up 10.4%
• Operating cash flow came in at $145.5 million with cash conversion at 75%
• Return on average funds employed (RoAFE) was 24.8%, up from 21.4% year on year.

What else happened for Orora this period?

The Group reported an increase in underlying NPAT and EBIT with the bottom line growing by 23% from the same time last year.

Orora says this demonstrates the “continued strength of the Group’s diversified packaging assets and sustainable earnings”.

Investors might recall that back in October 2021, Orora announced a $150 million on-market buyback. Today’s release notes, as at 31 December 2021, the buyback is approximately 20% complete.

As a result, 9.3 million shares were bought at an average price of $3.37 per share for total consideration of $31.5 million, the company notes. According to the announcement, the buyback is forecast to be completed during 2022.

The company was also pleased with its Australasian business during the half. It says it largely avoided the impacts of Chinese wine tariffs, noting that “100% of this capacity [is] now redeployed to new product categories”.

Orora also claims it is on track to achieve its “2025 goal of 60% recycled content in the glass packaging it manufactures”.

It also says it is “well on track to achieving a 40% reduction in greenhouse gas emissions for Scope 1 and 2 by 2035 through a range of initiatives which include alternative furnace technologies”.

Management commentary

Speaking on the announcement, Orora Managing Director and CEO Brian Lowe said:

I am pleased to report that Orora delivered a strong result for the first half of the fiscal year 2022. Our performance reflects the unwavering focus of our team on executing our strategic priorities in the context of a global pandemic. The Group reported an increase in underlying net profit after tax and underlying EBIT on the prior corresponding period, demonstrating the continued strength of the Group’s diversified packaging assets and sustainable earnings. Our North American business produced another outstanding result in the first half, continuing to drive improvements in operating and financial performance, exercising pricing discipline in a higher inflation operating environment and delivering strong earnings growth in both the manufacturing and distribution OPS businesses.

What’s next for Orora?

The company is forecasting FY22 EBIT to be higher than the full-year result of FY21. In its Australasia business, “EBIT growth is expected for the Beverage business in 2H22, with FY22 EBIT to be broadly in line with FY21”.

Whereas in North America, “with sustained improvement in the performance of both OPS and OV, we expect 2H22 EBIT to be up on the [prior year] with continued strong earnings growth for the full year”, it said.

Orora share price snapshot

Orora shares have climbed almost 28% in the last 12 months and are up another 2% this year to date.

In fact, the company’s shares are in the green across all time frames, unlike the benchmark indices.

The post This under-the-radar ASX 200 share just jumped 8% following solid half-year results. And it pays dividends! appeared first on The Motley Fool Australia.

More reading

• Sweet dreams: ASX 200 shares that have provided big returns without the worry

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/i7GUQjz

The Pro Medicus Limited (ASX: PME) share price is lifting today amid a nearly 53% boost in net profit in its half-yearly results.

The company’s shares are currently trading at $50.31, an 8.59% gain.

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

Pro Medicus share price ascends amid half-yearly results

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

• Revenue up 40.3% to $44.33 million
• Net profit after tax (NPAT) of $20.68 million, a 52.7% gain
• Underlying profit before tax of $28.8 million, a 53.5% improvement
• Cash reserves of $76.17 million, up $14.91 million
• Fully-franked interim dividend of 10 cents per share, a 42.9% boost

What else happened in the half?

Pro Medicus experienced growth in the North American market, where revenue increased by 50%. One highlight was winning a key contract with Novant Health worth $40 million over seven years. The company also renewed a five-year contract with Allegheny Health in Pennsylvania worth $12 million.

The company’s European business also achieved a 39.6% boost in revenue. Key to this was extending a German government hospital contract to a fourth site.

And finally, its Australian business saw a 7.3% gain in revenue compared to the previous corresponding period. Key to this was rolling out the Healius Ltd (ASX: HLS) contract and extending its contract with I-Med.

Pro Medicus continued its major investment in research and development in Australia and overseas.

Big ups from management

CEO Dr Sam Hupert said the result was the strongest half-year revenue and profit in Pro Medicus’ history.

We thought it was a good result with all our key financial indicators heading in the right direction, not just revenue growth but also profit growth, margin expansion and retained earnings.

There were two key drivers behind the result: The first was the significant jump in transaction revenue from our US contracts which grew by 36.8%.

The second key driver was the extension of the German government contract that we announced in 2015 to a
fourth hospital which was a material sale.

What’s next for Pro Medicus?

Pro Medicus is looking to further boost its presence in the United States. It is actively targeting a “growing number of opportunities in this market.”

The company is confident in its future pipeline with a presence across academic, non-academic, corporate and private markets. There is a momentum shift toward cloud-based opportunities with many customers adopting a “cloud-first” strategy. Moreover, Pro Medicus sees this as a strategic advantage given its fully cloud-native offering.

What’s more, the board believes there are enough cash reserves to fund the growth of the business from its internal sources. The dividend will be paid to shareholders on 25 March.

Pro Medicus share price summary

The Pro Medicus share price has climbed 10.2% in the past year. However, Pro Medicus shares are down nearly 20% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

Pro Medicus has a market capitalisation of $5.2 billion, based on today’s share price.

The post Pro Medicus (ASX:PME) share price surges 8% on historic results appeared first on The Motley Fool Australia.

More reading

• 2 unstoppable ASX shares growing rapidly
• Are ASX growth shares still worth holding in 2022?
• Leading broker says Pro Medicus (ASX:PME) share price is a buy
• 2 medical tech ASX shares for turbulent times
• 5 things to watch on the ASX 200 on Monday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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/XwB7LtG

There are some ASX shares that are delivering ongoing growth year after year.

Businesses that continue to scale could be ones watch to keep an eye on because of how compounding works over time.

Investors may want to know about these two ASX shares that keep growing:

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading medical imaging IT provider. It provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups around the world.

The company just released its FY22 half-year result which showed that revenue rose 40.3% to $44.3 million. Net profit jumped 52.7% to $20.7 million and the interim dividend rose 42.9% to 10 cents per share.

It continues to win most of the major new contracts that are up for grabs. For example, it won a $40 million, 7-year contract from Novant Health – a community-based integrated delivery network that spans three US States.

Pro Medicus is making significant progress with all key implementations with previously won contracts such as the Intermountain one.

The reason for the big jump in the ASX share’s revenue and profit was the several older wins had come ‘on-stream’ towards the second half of FY21 such as Northwestern, NYU and Medstar.

But there could be more wins to come – management said that the pipeline remains strong with a “good spread” of opportunities in different markets, with many being cloud-based. Many are interested in more than one Visage software solution.

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical essentially describes itself as Australia’s original ethical fund manager, which started in 1986. The idea is to provide investors with investment products that align with their values whilst also providing competitive returns. Those investments are guided by the Australian Ethical Charter.

The company is experiencing ongoing demand for greener and ethically-focused investment strategies, both through the superannuation and non-superannuation investment options.

In the six months to December 2021, the ASX share almost an increase of funds under management (FUM) by close to $1 billion, rising to $6.94 billion. This included $0.6 billion of net flows and $0.27 billion of positive market movements.

FY21 underlying profit after tax grew 19% to $11.1 million. FY22 half-year profit is expected to be between $5 million to $5.5 million. The mid-point increase would be 8% year on year.

Australian Ethical said that it will continue to invest in its high-growth strategy given the positive momentum it’s experiencing and the scale of the opportunity ahead. It’s spending on its investment, sales and customer service teams and enhancing the product development and technology platforms.

The post 2 unstoppable ASX shares growing rapidly appeared first on The Motley Fool Australia.

More reading

• Are ASX growth shares still worth holding in 2022?
• Leading broker says Pro Medicus (ASX:PME) share price is a buy
• 2 medical tech ASX shares for turbulent times
• 5 things to watch on the ASX 200 on Monday
• Green light, red light! Why did the Australian Ethical (ASX:AEF) share price plunge 13% today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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/IO1KCGm

What could possibly go wrong with the ASX exchange-traded fund (ETF) sector? ETFs had a spectacular year last year, recording both record inflows and funds under management. So it might come as a surprise to hear that 2022 hasn’t been quite as kind as of yet.

According to the new Australian ETF Review from ETF provider BetaShares, ASX ETFs have indeed had a rough start to 2022. Although inflows towards ASX ETFs were still positive over January 2022, it wasn’t enough to stem the outflowing tide from global markets. According to BetaShares, total funds under management for the sector fell 3.7% over January. That represents a loss of $5.1 billion in funds under management. That left the ASX ETF sector with a total of $131.8 billion in funds under management at the end of January.

That was despite the launch of two new active ASX ETFs during the month, bringing the total number to 282 on the ASX. As an aside, BetaShares is expecting active ETF launches to remain “very frequent” throughout the rest of the year.

ASX ETFs suffer as global markets fluctuate

But even though ASX ETFs had a rough January overall, the sector has still grown by 36%, or $35.5 billion, over the past 12 months.

BetaShares also noted that monthly trading value over January increased by a hefty 26% to $10.3 billion. That’s reportedly the second-highest monthly level on record.

So which ETFs were investors buying and selling over January? The research tells us that the BetaShares Australia 200 ETF (ASX: A200) was the most popular ETF by inflows over the month that was. A bit over $300 million found its way into A200. Next up was the Vanguard Australian Shares Index ETF (ASX: VAS), with slightly more than $220 million. Following that, we had the Vanguard MSCI Index International Shares ETF (ASX: VGS) with roughly $118 million in inflows.

Conversely, the iShares S&P/ASX 200 ETF (ASX: IOZ) saw the largest outflows over January, with more than $353 million leaving that fund. Other ETFs experiencing outflows were mostly bond, or fixed-interest funds. Those included the iShares Core Composite Bond ETF (ASX: IAF) and the iShares Treasury ETF (ASX: IGB). 

So another interesting month for ASX exchange-traded funds over January. The sector is clearly not immune from the market volatility we have seen over 2022 thus far. But it arguably is also showing resilience too. It will be interesting to see what the rest of 2022 brings to ASX ETFs. 

The post What’s going so wrong for ASX ETFs in 2022 so far? appeared first on The Motley Fool Australia.

More reading

• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 3 exciting ETFs for ASX investors next week
• Hot ETF? Here’s how the VAS (ASX:VAS) share price has performed in 2022 so far…
• The Vanguard Australian Shares ETF (ASX:VAS) just got a major 2022 makeover. Here’s what has changed…
• Is VAS (ASX:VAS) really the best ASX ETF on the share market?

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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/N1BUAwq