If you’re looking for growth shares to add to your portfolio, then you may want to get better acquainted with the ASX shares listed below.

Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first growth share to look at is Altium. Its electronic design software platforms, Altium Designer and Altium 365, are leaders in their field. In fact, they are so far ahead of the competition that management is targeting market domination later this decade. At that point, it expects to be generating annual revenue of US$500 million. This will be more than double what it is achieving at present. This growth is expected to be underpinned by strong demand for this type of software due partly to the growing Internet of Things and artificial intelligence industries.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to look closely at is Pushpay. It is a leading donor management and community engagement platform provider in the faith sector. It has been growing its operating revenue at a rapid rate in recent years thanks to a combination of organic growth and the benefits of acquisitions. Pleasingly, the latter has continued in FY 2022 with Pushpay announcing the US$150 million acquisition of Resi Media earlier this week. Management expects the strategically compelling acquisition of a market-leading faith-focused streaming platform to broaden Pushpay’s core product offering.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. As with the others, Temple & Webster has been growing at a very quick rate in recent years. This has been driven by the structural shift to online shopping and its strong market position. For example, Temple & Webster recently released its full year results and revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. Positively, the shift online is still only in its infancy, particularly for this category in Australia. This bodes well for the future.

The post 3 exciting ASX growth shares for smart investors appeared first on The Motley Fool Australia.

More reading

• 2 great ASX shares to consider
• 2 ASX shares primed to grow double-digits for years: experts
• Top broker names Temple & Webster (ASX:TPW) share price as a buy
• 2 ASX COVID-19 shares reporting big growth
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium, PUSHPAY FPO NZX, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Altium and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The 4DS Memory Ltd (ASX: 4DS) share price has slipped into the red on Thursday as the memory technology company reported its FY21 earnings.

4DS Memory shares were exchanging hands at 16 cents apiece at market close, a 5.88% drop.

What’s sinking the 4DS Memory share price today?

Major points from the company’s FY21 results today included:

• Operating loss ballooned to $6.64 million from $5.45 million the year prior
• Loss before income tax (LBIT) of $6.66 million, a 20% increase into the red from FY20
• Total comprehensive loss for the year increase 22% year on year to $6.63 million after foreign currency effect
• Research and development (R&D) costs increased to $4.2 million from $3.78 million last year
• Other income came in at $213,000, up from $33,511 a year ago.

What happened in FY21 for 4DS Memory?

4DS Memory made “significant progress” in the development of its Interface Switching ReRam technology this year. It also extended two collaborations between Imec and Western Digital Corporation for another 12 months.

In addition, the company was granted 8 more US patents, bringing the total to 31, specific to the company’s interface switching ReRam technology.

4DS Memory’s second “non-platform lot” was manufactured by Imec and testing was completed by February this year. The data showed that the device was functional and “does what it says on the tin” to an effect.

Furthermore, the company reported that produced second platform lots had arrived at 4DS Memory’s facility in Fremont for testing.

4DS Memory recognised other income of $213,000 in FY21, whilst R&D costs increased by about 11% to $4.2 million.

The company’s operating loss ballooned from $5.45 million to $6.64 million over the year, which ultimately blew the LBIT out by 20% from FY20 to $6.66 million.

Consequently, 4DS Memory recognised a total comprehensive loss for the year of $6.63 million, a 22% year on year increase in its after-tax loss.

What did management say?

Regarding the impacts of COVID-19 on its business, 4DS Memory noted in the release:

COVID-19 related restrictions did not significantly affect the company’s operations. However, for the safety of all employees, only a limited number of employees were allowed be at the Fremont facilities at the same time. Productivity was maintained by scheduling on-site tasks over longer days including weekends and holidays.

Touching on the company’s second platform lot, it added:

The results of the analysis of the second platform lot and the third non-platform lot bring 4DS and its partners closer to realising their strategic objective of commercialising the company’s technology.

What’s next for 4DS Memory?

4Ds Memory advised it was finalising the production date of its third platform lot. This is expected to start late in the third quarter of 2021.

The company is set on advancing its third platform lot while strengthening its joint collaboration with Western Digital’s subsidiary HGST, which is a “global storage leader”.

Also, 4DS now will continue building its development agreement with Imec, to continue pioneering its “non-volatile memory technology”.

The 4DS Memory share price is up 28% year to date, thereby beating the S&P/ASX 200 index (ASX: XJO)’s gain of 14% since January 1.

The post The 4DS Memory (ASX:4DS) share price sinks 6% on widened operating loss in FY21 appeared first on The Motley Fool Australia.

More reading

• 4DS Memory (ASX:4DS) share price crashes 21% on technical update
• Why is the 4DS Memory (ASX:4DS) share price halted?

The author Zach Bristow has no positions 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 Huon Aquaculture Group Ltd (ASX: HUO) share price has closed lower on Thursday after the Aussie salmon farmer’s latest full-year results release.

Huon share price edges lower after $128 million loss

For those who missed it, Huon announced its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

• Revenue up 24% on the prior corresponding period (pcp) to $426.4 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of -$113.2 million, compared to +$48.8 million in FY20
• Operating cash flow down 136% on pcp to -$3.0 million
• Earnings per share (EPS) of -120.79 cents compared to +5.63 cents in FY2020

The Huon share price closed down 0.26% following the result, having slumped as low as 2.34% throughout the day.

What happened for Huon in FY20?

It’s been a big few months for Huon. Australia’s second-largest salmon producer reported a drop in global salmon prices due to COVID-19 and noted the impact of surging freight costs on its finances.

There were also the November 2020 fires in one of its fish pens that saw the company lose 50,000 fish, followed by a December 2020 fire. Adding insult to injury, Huon lost a further 130,000 fish in a mass escape after a cage was damaged during cleaning.

Lower salmon prices and disruptions throughout the year ultimately combined to weigh on the FY21 earnings result.

The Huon share price has still managed to climb 44% higher in 2021 but the bulk of those gains have come in the last month following a takeover bid by Brazil-based meat processer, JBS.

Huon shares surged on August 6 after the company announced it had entered into a Scheme Implementation Deed with JBS to acquire 100% of Huon shares.

What’s next for Huon and its share price?

Huon’s outlook for revenue is “more positive compared to this time last year”. The company is targeting a greater balance in its sales mix with expected growth from international market sales as a proportion of overall revenue.

Despite the significant losses in FY21, the Huon share price remained largely unchanged with the JBS takeover being the main driver of value at the moment.

The post Huon (ASX:HOU) share price edges lower after $128 million loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 IDP Education Ltd (ASX: IEL) share price was on form on Thursday.

The language testing and student placement company’s shares rose 2% to $29.00.

This leaves the IDP Education share price trading within sight of its record high of $30.34.

Can the IDP Education share price keep rising?

The good news is that one leading broker still see a lot of value in the IDP Education share price even though it is close to a record high.

According to a note out of Goldman Sachs this morning, the broker has retained its buy rating but slightly trimmed its price target on the company’s shares to $34.00.

Based on the current IDP Education share price, this implies potential upside of 17% over the next 12 months.

Why is Goldman bullish on IDP Education?

Goldman Sachs was pleased with IDP Education’s performance in FY 2021. Particularly given the headwinds it was facing because of COVID-19.

Pleasingly, with these headwinds easing, the broker is confident that the coming years will be even stronger. The note reveals that its analysts are expecting its Northern Hemisphere operations to underpin a strong result in FY 2022. After which, it expects its ANZ operations to support further strong growth in FY 2023. It is partly for this reason why it feels the IDP Education share price is such good value now.

Goldman said: “IEL’s business has proven resilient during the pandemic so far and is poised to deliver strong growth in FY22 driven by Northern Hemisphere demand. Qualified SP [student placement] leads in the Northern Hemisphere in 2H21 were above pre-COVID levels. IELTS volumes have shown a similar recovery.”

“We believe this sets the business up for a very strong FY22 in its Northern Hemisphere IELTS testing markets and multi-destination SP. The pending reopening of ANZ to international students is likely commence in late FY22, driving FY23 growth.”

Post-FY 2023, the broker believes “compelling long-term structural growth in international student volumes and IELTS testing demand should drive earnings in FY24 and beyond.”

Overall, Goldman is forecasting a 69% compound annual growth rate (CAGR) for its earnings over the next three years. It also sees opportunities for this growth rate to increase through acquisitions.

Its analysts explained: “Our 3-yr EPS CAGR of 69% justifies our Buy rating in our view. The growth profile is likely to be enhanced by potential future acquisitions, which are not included in our earnings forecasts. These may include further consolidation of the IELTS market.”

The post IDP Education (ASX:IEL) share price tipped by broker to jump 17% appeared first on The Motley Fool Australia.

More reading

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• IDP Education (ASX:IEL) share price higher despite 36% FY21 profit decline
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price climbed 4% today after the business released its FY21 result to the market.

But the travel business also told investors about its plans for FY22, which included a targeted return to profitability.

FY21 result

If you didn’t catch the Flight Centre result, it said that it saw a $507.1 million underlying loss before tax in FY21, which was similar to the result in FY20 and in line with its guidance.

The underlying loss after tax improved from $378 million to $364 million. The statutory loss after tax improved from $662 million to $433 million.

Flight Centre said that operational performance has improved significantly during the pandemic.

Although the FY21 second half revenue increased by 48% compared to the FY21 first half, this growth was offset by the $41 million reduction in retained employee government subsidies, mainly relating to jobkeeper, and a $42 million increase in underlying costs.

Flight Centre experienced month on month sales revenue growth despite COVID-19 impacts, with a COVID-era record in June 2021.

Corporate total transaction value (TTV) was tracking at 30% of pre-COVID levels by the end of the financial year. It also said there was a rapid recovery in the US late in the fourth quarter for leisure and corporate.

Travel restrictions are being relaxed or removed in several key markets, although ongoing lockdowns are impacting the ANZ recovery. It noted strong and immediate rebounds after travel restrictions are lifted.

Could the FY22 plans influence the Flight Centre share price?

Flight Centre management outlined a number of observations and plans for FY22.

It said that it’s investing to win market share and gain further competitive advantages by enhancing its platforms and products to capitalise on market share opportunities.

The ASX travel share also said that it’s looking to increase its leisure market share and/or profitability in key markets through enhanced multi-channel offerings, alongside network rebalancing.

Flight Centre is targeting a return to monthly profitability in both corporate and leisure during FY22. However, this relies on vaccination efficacy (against the Delta variant and other possible strains), governments reopening domestic borders and keeping them open.

The company is also focused on the resumption of further international travel, with a potential material benefit from trans-Atlantic flights reopening.

Management said the company has earnings leverage to markets with positive short-term outlooks. Before COVID-19, 54% of its underlying segment earnings came from the Americas and EMEA (Europe, the Middle East and Africa).

However, the business is not yet in a position to provide FY22 guidance because of the lack of clarity around government timeframes for border re-openings and removal of other travel restrictions.

To reach breakeven, the company needs to generate around 50% of its pre-COVID TTV in corporate and around 40% in leisure. This is based on the company’s current level of expenditure.

Flight Centre warned it could be some years before the sector returns to pre-COVID levels.

The post Own Flight Centre (ASX:FLT) shares? Here’s what the company has planned for FY22 appeared first on The Motley Fool Australia.

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• Flight Centre (ASX:FLT) share price on watch after $364 million loss in FY21
• Here are the top 10 ASX 200 shares on Wednesday

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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 Whitehaven Coal Ltd (ASX: WHC) share price has closed 4.95% higher on Thursday having pared back early losses from its results for the year ended 30 June 2021 (FY21).

Whitehaven share price rebounds 5% on earnings result

In case you missed it, here are some of the key takeaways from this morning’s full-year result:

• Revenue down 9.3% on the prior corresponding period (pcp) to $1.56 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 33% on pcp to $204.5 million
• Operating cash flows down 5% on pcp to $138.8 million
• Net loss after tax before significant items of $87.3 million, after $30 million net profit after tax (NPAT)

The Whitehaven share price initially crashed following the softer earnings result before slingshotting higher on Thursday afternoon. Shares in the Aussie coal miner closed the day up 4.95% in a stunning turnaround.

Investors may be wondering what caused the lower revenues and earnings figures. The obvious place to start with any commodity-based company is with commodity prices themselves.

Whitehaven’s EBITDA margin slipped from $21 per tonne in FY20 to just $14 per tonne in FY21. That was largely as a result of the company’s average realised price falling 8.7% to $95 per tonne.

The Aussie coal miner reported 14.4 million tonnes in sales during the year which was broadly in line with FY20 numbers but fell short of what the market was expecting.

Despite a weak result this morning, it’s actually been a strong year for shareholders. The Whitehaven share price has rocketed 150% higher in the past 12 months and 41% in 2021 alone.

Whitehaven CEO Paul Flynn reflected on the FY21 result:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.

Investors saw those highs and lows mirrored in the Whitehaven share price move on Thursday, recovering from a 3.4% drop at the open to finish the day up 4.95% at $2.33 per share.

That’s just shy of the company’s high of $2.44 per share and gives the company a market capitalisation of $2.4 billion.

The post Whitehaven (ASX:WHC) share price rebounds 5% on earnings appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Thursday
• Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues
• Here are the top 10 ASX 200 shares on Monday
• Whitehaven (ASX:WHC) share price lifts 6% ahead of earnings this week
• How did the Whitehaven (ASX:WHC) share price respond last earnings season?

Motley Fool contributor Ken Hall 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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Well, what a mammoth day for reporting on the ASX. Investors were inundated with full-year report after full-year report — we don’t blame you if you’re still working your way through some of those announcements.

Unfortunately, the higher number of earnings released did not coincide with a better outcome for the broader market.

Out of the companies listed in the S&P/ASX 200 Index (ASX: XJO), only 72 rose or remained flat — the remaining 128 slipped lower.

We’ll quickly unpack today’s results and then wrap things back up for tomorrow:

Those that reported on the ASX today

A2 Milk Company Ltd (ASX: A2M)

Shares in A2 Milk took the elevator downwards after the company reported its FY21 full-year results. As border closures continue to impact the daigou sales channel, the infant formula maker incurred significant damage to its revenue and earnings.

The takeaway points:

• Revenue down 30.3% to NZ$1.21 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 77.6% to NZ$123 million
• Stock write-downs of NZ$109 million
• Net profit after tax down 79.1% to NZ$80.7 million
• Cash balance of NZ$875.2 million
• Board decides against capital return
• Outlook: Tough year ahead in FY 2022

The A2 Milk Company share price finished the day down 12.32% trading at $6.01.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price was a more positive performer following its reporting of full-year results for FY21.

Shares in the supermarket giant inched 0.42% higher to $40.99 on the back of a major jump in earnings. The company also announced a $2 billion buyback and a bumper dividend to boot.

The takeaway points:

• Group sales rose 5.7% to $67,278 million
• e-Commerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

Appen Ltd (ASX: APX)

Lastly, the Appen share price plummeted on the ASX today after reporting its earnings fell more than 50% in its FY21 result. Investors were clearly rattled by the decrease, resulting in the tech company’s shares falling 21.4% to $10.86 by the end of the session.

The takeaway points:

• Group revenue down 2% to US$196.6 million
• Annual contract value increased 16% to US$119.6 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 14.3% to US$27.7 million
• Interim dividend of AUD4.5 cents per share 50% franked declared, flat on 1H20 dividend.
• Net profit after tax down 55.1% to US$6.7 million
• Appen to acquire location data provider Quandrant for US$25 million upfront
• Outlook: higher confidence in the pipeline supported by a stronger order book

ASX shares reporting next week

We might have reached the peak of the ASX reporting mountain today. However, tomorrow we embark on the journey back down with a handful of companies dispensing their results.

Some of the big-name companies set to release their financials tomorrow include BWX Limited (ASX: BWX), Freedom Foods Group Ltd (ASX: FNP), Wesfarmers Ltd (ASX: WES), Bega Cheese Ltd (ASX: BGA), and Pointsbet Holdings Ltd (ASX: PBH).

To see the full line-up, check out our ASX Reporting Season Calendar.

The post The ASX reporting wrap-up: A2 Milk, Woolworths, Appen appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, A2 Milk sinks, Appen plummets
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• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22
• Which ASX shares are leading the ASX 300 today?

Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended A2 Milk. 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 Santos Ltd (ASX: STO) share price slumped today after news broke that the company is facing a lawsuit.

At market close, Santos shares are down 2.27% to $6.02. It is worth noting that this means the company’s share price is now at a new low for the 2021 calendar year.

What happened?

According to the Financial Review, Santos is being taken to the Federal Court by an activist group over wrongful claims. This relates to the company stating that it produces clean energy and has set itself up to achieve zero emissions in the future.

The Australasian Centre for Corporate Responsibility (ACCR) noted that Santos’ 2020 annual report made false remarks about natural gas as a clean source of fuel. It also disputed that the company has a clear plan to reach net zero emissions by 2040.

Santos aims to expand production capacity at its Barossa gas/LNG project and Dorado oil field development. This will undoubtedly leave the company producing greater emissions, which the ACCR argues.

Previously, Santos said that it will rely on the development of carbon capture and storage (CCS) technology to negate emissions. The ACCR is calling into question whether this is credible.

The group filed the lawsuit on Wednesday stating that the company’s approach to addressing climate change is misleading and deceptive.

Santos is yet to formally respond to the accusations by the ACCR. It did say however it would not be appropriate to comment on matters before the court.

The court case is being recognised as a world first in challenging a company’s target of net zero emissions.

About the Santos share price

Over the past 12 months, Santos shares have moved in circles, up 7% in the period. However, year to date has moved in the opposite direction, down around 3%.

Based on today’s price, Santos commands a market capitalisation of roughly $12.5 billion, with approximately 2 billion shares on issue.

The post Santos (ASX:STO) share price slumps amid misleading emissions lawsuit appeared first on The Motley Fool Australia.

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

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The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch on Friday.

This follows the release of the lithium miner’s full year results after the market close.

Pilbara Minerals share price on watch after sales surge

• Shipments up 142% to 281,440 dry metric tonnes (dmt)
• Revenue up 108.9% year on year to $175.8 million
• Cash gross margin of $46.2 million compared to cash gross margin loss of $12.2 million in FY 2020
• EBITDA of $21.4 million compared to loss of $33.9 million a year earlier.
• Statutory net loss after tax of $51.4 million
• Cash balance of $115.7 million

What happened in FY 2021 for Pilbara Minerals?

For the 12 months ended 30 June, Pilbara Minerals reported a significant improvement in its cash gross margin to $46.2 million. This was driven by a combination of improved market conditions and strong operational performance at the company’s Pilgangoora Lithium-Tantalum Operations in Western Australia.

Management notes that a significant increase in demand from customers during the second half of the year supported total FY 2021 spodumene concentrate shipments of 281,440 dmt. This enabled better utilisation of the processing plant.

Another positive was the completion of several key process plant improvement projects. These resulted in increased feed, higher utilisation, and improved lithia recoveries. This ultimately led to a reduction in the average unit cash operating cost to A$519/dmt (CIF China), supporting an improved cash gross margin from operations.

Finally, on the bottom line, Pilbara Minerals recorded a $47.9 million improvement in its consolidated net loss after tax to $51.4 million. This is after accounting for $26.6 million of depreciation and amortisation, $17.1 million of non-cash acquisition costs written off, and net financing costs of $29.1 million.

What did management say?

Pilbara Minerals’ Managing Director, Ken Brinsden, was pleased with the company’s performance in FY 2021.

He said: “What an incredible turnaround we have seen during the second half of FY2021. Global demand growth for lithium raw materials has now really kicked-in and it is resulting in substantial increases in the price received for our products.”

“Our world-class asset base has been further enhanced by the Altura acquisition, as we now own two processing plants and have the ability to rapidly ramp-up production from the second plant into a market that is low in spodumene concentrate supply. Importantly, production from this second plant is completely uncommitted.”

“This additional capacity, along with the restart of the Ngungaju Plant, will see us supply the market with around 550,000-580,000tpa of spodumene concentrate by June 2022 through our existing offtake agreements and newly-established BMX platform,” he added.

What’s next for Pilbara Minerals?

The good news for the Pilbara Minerals share price is that the company is forecasting a major lift in shipments in FY 2022.

It is forecasting shipments of 440,000 to 490,000 dmt for the year. This will be a 56.3% to 74.1% increase on FY 2021’s shipments of 281,440 dmt.

However, one thing that could weigh on the Pilbara Minerals share price is its cost guidance for FY 2022. It is guiding to unit cash operating costs of A$525 to A$575/dmt (CIF China), up from A$519/dmt.

Management advised that its costs are expected to be higher during FY 2022 and FY 2023 due to elevated strip ratios, Pilgan production ramp up, and the restart of the Ngungaju operation.

After which, the company is aiming to bring its unit cash operating cost down to A$450 to A$500/dmt.

Pilbara Minerals share price outperformance

The Pilbara Minerals share price has been an exceptionally strong performer this year.

Since the start of the year, its shares have risen 155%. This compares to a 12% gain by the ASX 200 over the same period.

The post Pilbara Minerals (ASX:PLS) share price on watch after doubling sales in FY21 appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares this Tuesday
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• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
• Which ASX companies are the top movers in the ASX 300 today?

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. 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 Novonix Ltd (ASX: NVX) share price dipped into the red during afternoon trade on Thursday as the lithium-ion company reported its FY21 earnings.

Novonix shares closed the day at $4.10 apiece, a 5.53% drop from the open.

Let’s delve a little deeper.

Novonix share price sinks despite revenue growth and narrowing net loss

• Revenue from ordinary activities of $5.2 million, a 22.9% year on year increase
• Loss before tax of $18 million, down 9.7% from the year prior
• Basic earnings per share (EPS) of (4.9 cents), an improvement from (14.7 cents) in FY20
• Net asset growth to $184.4 million from $66.5 million the year prior
• Net tangible assets per share of 41 cents, up from 14 cents a year ago.

What happened in FY21 for Novonix?

In what could be a positive for the Novonix share price, the company recorded net asset growth from $66.5 million to more than $184 million over the year.

This comprised around $137 million in cash and cash equivalents as of 30 June 2021. Novonix also grew revenue by 23% year over year which narrowed the statutory after-tax loss to $18 million (down from $20 million this time last year).

In addition, the company was selected to receive US$5.6 million in funding from the US Department of Energy to “support the development of new, continuous high-efficiency furnace technology”.

This would be used for the “production of lithium-ion battery synthetic graphite material”. The company is partnering with Phillips 66 for the funding opportunity, as per the report.

Novonix is also partnering with Emera Technologies to “tap into the significant opportunities that are available throughout North America” when it comes to “manufacturing energy storage systems for community microgrids”. The pair is developing a “battery pack” to support these microgrids’ requirements.

Finally, the company announced in June that it is under “conditional contract” to purchase and retrofit the “former Alstom building”. This will be the company’s “second facility Tennessee”.

The facility would accommodate a “planned 8,000+ tonne per year production operation”, as per the release. As such, the expansion would bring the company’s total production capacity of anode materials to 10,000 tonnes a year. It is expected to come online by FY23.

What did management say?

Speaking on the release, Novonix’s directorship said:

We are focused on the development of technologies that support key ESG criteria in the field of battery materials and technologies, including: longer life batteries, higher energy efficiency, reduced chemical usage, reduced waste generation, and cleaner power inputs. Our vision is to accelerate adoption of battery technologies for a cleaner energy future.

Regarding the year that was, it added:

Fiscal Year 2021 has been transformational for NOVONIX. The company continued to execute against its long-term strategic and operational roadmap, strengthen its capital structure, and explore additional avenues to create value for shareholders.

What’s next for Novonix?

The company outlined its “growth strategies” for FY22 in the report. It hopes to “execute on development of synthetic graphite production”, with a plan to expand to 150,000 tonnes per annum.

In fact, the company is targeting a capacity of 10,000 tonnes per annum in “early 2023”. It then intends to expand capacity to 40,000 tonnes in 2025 and 150,000 tonnes in 2030.

In addition, Novonix is also aiming to commercialise its “proprietary pipeline” of advanced battery materials. Here it is seeking to “meet key testing milestones” over the coming year and a half.

The Novonix share price has posted a year to date return of 238%. This far outpaces the S&P/ASX 200 index (ASX: XJO)’s return of about 14% over the same time.

The post Novonix (ASX:NVX) share price slides despite 23% revenue growth appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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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