The exclusive S&P/ASX 200 Index (ASX: XJO) club made history this week.

Investor lobby group Australian Council of Superannuation Investors (ACSI) revealed Thursday that Australia’s 200 largest public companies now all have at least one woman on the board.

The feat was achieved with the appointment of female directors at the last 2 holdouts — Silver Lake Resources Limited (ASX: SLR) and Chalice Mining Ltd (ASX: CHN).

ACSI chief Louise Davidson welcomed the milestone.

“The benefits of having more women in governance roles are well established and are being clearly recognised in boardrooms around Australia,” she said. 

“More diverse boards make for better-governed companies, which is intrinsically linked to long-term shareholder value.”

ASX 200 gender diversity accelerated in 11 years

ACSI first started its campaign for better gender diversity on ASX 200 boards back in 2010. That year, only 8% of board positions were held by women.

In 2015, ACSI set a target of 30% seats to be held by female directors. At that time, there were still 34 companies in the ASX 200 that had all-male boards.

Now 126 businesses out of 200 have achieved the 30% representation goal. Fifteen companies in the ASX 200, as of this week, have boards that are majority female.

According to ACSI, this progress shows how investors, boards and others can work collaboratively to actually achieve diversity.

But Davidson reminded all there is plenty more to do.

“It’s important that we maintain the momentum for change and continue to increase both the number of women and diversity of experience on boards,” she said. 

“There is more work to be done to achieve gender balance, which we define as a minimum of 40% women, 40% men and 20% unallocated to allow flexibility for board renewal. Listed companies should set a time frame within which they will achieve gender balance on their boards.”

Outside the board

Of course, the board is a very small part of large public companies.

There is still a significant lack of diversity at the executive level in ASX 200 businesses.

In October, superannuation fund HESTA launched its 40:40 Vision campaign to reform c-suite positions among Australia’s largest publicly listed employers.

HESTA chief executive Debby Blakey said at the time that, at the current anaemic rate of reform, it would take 80 years before 40% of executive leadership was female.

“We see lack of gender diversity in leadership as a financial risk. Companies that fail to consider 50% of the population for leadership positions risk missing out on the best people, and the performance of the organisation will eventually suffer.”

The post ASX 200 just reached a massive milestone appeared first on The Motley Fool Australia.

More reading

• Silver Lake Resources (ASX:SLR) share price jumps on FY21 earnings
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
• These were the worst performing ASX 200 shares last week
• Here are 3 ASX 200 shares being heavily traded on Monday
• Here’s why the Charger Metals (ASX:CHR) share price has surged 100% in a week

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

from The Motley Fool Australia https://ift.tt/3BgFykj

The AUB Group Ltd (ASX: AUB) share price is on the move down during Thursday’s session as the insurance company reported its FY21 earnings.

AUB shares are now changing hands at $23.70 apiece, an approximate 7% drop from the market open.

Let’s comb over AUB’s results in a bit finer detail.

AUB share price slides despite strong net profit and earnings growth in FY21

• Underlying net profit after tax (NPAT) of $67.1 million, up 25.7% from the year prior
• Underlying earnings per share of 87.93 cents, a growth of 22% on the year
• Reported NPAT of $70.6 million, a year on year increase of 50.3%
• Fully franked final dividend of 39 cents, which is an increase of 9.9% from FY20
• FY22 guidance: NPAT guidance of $70 million to $73 million

What happened in FY21 for AUB Group?

In a positive for the AUB Group share price, the company grew its reported NPAT 50% year on year to $70.6 million. This came through to give shareholders an earnings per share (EPS) of 87.93 cents, signifying a 22% growth from the year prior.

The company also recognised a 23% increase in underlying NPAT. AUB explained that the growth in NPAT on an underlying and reported basis was due to “strong underlying organic growth, primarily in the Australian broking division”. Profits were also underscored by the “divestment of Altius”, as per the release.

By division, AUB saw strengths in its Australian broking business, where underlying NPAT grew 22% year on year to $72 million. This was underlined by a “strong contribution” from the Experien investment on 1 August 2020.

In its BizCover segment, profit before income tax (PBIT) increased by 190% on the year, due to organic profit “assisted by operating leverage”.

Conversely, in its New Zealand operations, the company’s PBIT actually decreased by 13% to just over $10 million. AUB explained this was due to a change in the accounting treatment of its Software as a Service (SaaS) costs.

AUB’s Australian agencies PBIT gained 14% from FY20 and reached about $15 million, and gained about 1% in EBIT margin to 31.9%.

Finally, the company declared a fully franked dividend of 39 cents per share, a 10% increase from this time last year. This brings the total dividend to 50 cents per share, on par with FY20.

What did management say?

Speaking on the announcement, AUB Group CEO Michael Emmet said:

“FY21 was a year of extraordinary ups and downs. Our clients and our teams continued, as they do today, to face significant personal and commercial stresses given the range of COVID-19 consequences and interventions. I am very proud of the way in which the AUB family has dealt with this. The business continues to demonstrate a remarkable resilience although one we do not take for granted.

Touching on operations, Emmet added:

The transformation of AUB Group has continued at pace during FY21. Our exit from Health and
Rehabilitation Services is complete, the performance improvement in Austbrokers has accelerated,
BizCover continues to grow both revenue and profit at an impressive rate while the remediation of
Agencies is starting to deliver results with both margin and profit improvement during the period. We
are however far from done. Our New Zealand operations are still in the early stages of transformation,
running until FY23.

What’s next for AUB Group?

In another potential positive for the AUB Group share price, it has provided NPAT guidance in the range of $70 million to $73 million. This calls for a 15.7% – 20.7% growth from FY21.

It assumes that premium rates will increase in the range of 5% to 6%, and that “continued small bolt-on acquisitions” are included in the guidance outlook.

In addition, AUB would “provide updated guidance” if “major acquisitions” were to occur, as current forecasts exclude these.

The AUB Group share price has posted a year to date return of 47%, which has outpaced the S&P/ASX 200 index (ASX: XJO)’s climb of about 14% since January 1.

The post AUB (ASX:AUB) share price sinks 7% despite 50% growth in profit appeared first on The Motley Fool Australia.

More reading

• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22
• FINEOS (ASX:FCL) share price jumps 15% on solid FY21 result
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Objective (ASX:OCL) share price jumps on profit increase
• Which ASX shares are leading the ASX 300 today?

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

from The Motley Fool Australia https://ift.tt/3gzil4Z

The A2 Milk Company Ltd (ASX: A2M) share price has fallen around 10% after the company’s FY21 result.

FY21 numbers

Management reported that revenue and the earnings before interest, tax, depreciation and amortisation (EBITDA) margin were within guidance, but down heavily.

Revenue fell 30.3% to $1.21 billion and EBITDA plunged 77.6% to $123 million, including $109 million in stock write-downs and $10 million in Mataura Valley Milk (MVM) acquisition costs.

Net profit after tax (NPAT) dropped 79.1% to $80.7 million.

A2 Milk said actions taken from the fourth quarter of FY21 to address excess inventory are proving effective with channel inventory levels reducing, product freshness improving and market pricing increasing – rebalancing of channel inventory is expected to continue through the first quarter of FY22.

Management said that brand health metrics remain strong overall with some improvements in recent tracking research after a lot of marketing in China.

But what about A2 Milk’s FY22 expectations?

The outlook for a business may influence investor thoughts about the A2 Milk share price.

A2 Milk said that the company is confident in the underlying fundamentals of the business and that the growth opportunity in core markets remains positive.

Management said that the long-term outlook is positive with production innovation, category expansion and new markets, supported by its balance sheet.

The company is expecting that revenue for the first half of FY22 (including MVM) will be marginally lower than the first half of FY21 mainly because of lower English label infant nutrition sales offset by the addition of MVM revenue. FY22 second half recent is expected to be “significantly higher” than the second half of FY21 because of actions taken to rebalance its channel inventory, increase marketing investment and the inclusion of MVM revenue.

A2 Milk’s gross profit margin is expected to be broadly similar to the underlying gross profit margin of FY21. It reflects the annualised benefit of higher infant nutrition prices and the product mix benefit from an overall growth in infant nutrition volume. However, these benefits are expected to be offset by cost of goods headwinds related to increasing milk, ingredient and packaging costs.

The company wasn’t able to give EBITDA outlook commentary. However, it is expecting that depreciation and amortisation will increase by around $20 million because of the inclusion of FY22.

The A2 Milk share price has been challenged by the daigou/reseller channel for its English label products. This is expected to be “prolonged”. It’s adapting the strategy and expects growth to return over time.

However, with its Chinese label infant nutrition, it’s expecting to grow sales in FY22 as well as moderately increasing its market share. A2 Milk is focused on winning new clients and expanding distribution. Inventory levels are reducing and product freshness is improving.

The A2 Milk share price might also have been affected by its final comments:

Recovery in English label channels is expected to be slow and market growth in China will be subdued for some time.

The post Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22 appeared first on The Motley Fool Australia.

More reading

• How do the A2 Milk (ASX:A2M) results compare to broker expectations?
• ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises
• A2 Milk (ASX:A2M) share price crashes 10% on disappointing FY22 outlook
• A2 Milk (ASX:A2M) share price on watch after 79% profit decline and weak outlook
• 5 things to watch on the ASX 200 on Thursday

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 A2 Milk. 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/3ydaVKQ

The FINEOS Corporation Holdings PLC (ASX: FCL) share price is gaining upwards momentum today.

Investors are buying shares in the insurance software company with ferocity on Thursday after it released its full-year results for FY21.

At the time of writing, FINEOS shares are up 16% to $4.27. As a result, the software company is again trading around levels witnessed in April this year.

FINEOS share price shines on top line gain

• Revenue up 23.3% to €108.3 million (AUD$175.6 million)
• Annual recurring revenue reached €45.7 million at 30 June 2021
• Gross profit of €72 million representing an increase of 23% from FY20
• Proforma earnings before interest, tax, depreciation, and amortisation (EBITDA) down 49.6% to €7.9 million
• Net Loss after tax widened from €227,183 to €12.485 million

What happened in FY21 for FINEOS

The market is certainly exhibiting excitement for the FINEOS share price following its results today. In fact, trading volume for the day so far is roughly two and a half times its monthly average.

According to its release, the software company achieved total revenue of €108.3 million in the financial year. This represents an increase of 23.3% on FY20. Likewise, subscription revenue surged 48.6% to €40.1 million. Such an increase bodes well for the company, as it grows its portion of revenue that is recurring.

It wasn’t by chance that FINEOS managed to up the ante with respect to revenue in FY21. Rather, it was the expansion of its life, accident, and health core systems — reaching over 60 carriers. Intentionally, the United States now accounts for 73% of total revenue, rising from 59% in the previous reporting period.

Furthermore, the successful acquisitions and integrations of Limelight Health and Spraoi during the year contributed to the strong growth. Specifically, Limelight Health added €9.2 million and Spraoi contributed €0.4 million.

Much of this reported growth was from cross-selling and up-selling to FINEOS’ existing customer base. Indicating that the company is not purely ‘buying revenue’ through acquisition, FINEOS reported organic growth of 12.5%.

Another positive for shareholders, the company appears to have marginally de-risked its client concentration. In FY20, ~74% of total revenue was comprised of the top 10 clients. Whereas, in its latest full-year result, this figure has been reduced to 65%.

Finally, losses widened due to acquisition costs — in addition to increased spend on research and development (R&D). Though, this doesn’t appear to be weighing on the FINEOS share price today.

What did management say?

Commenting on the result, FINEOS Chief Executive Officer Michael Kelly said:

FINEOS’ growth journey continued into 2021 as we grew revenue, clients, headcount and product offering. We’re now positioned as the number one player for group employee benefits in the North American market, measured by revenue, by number of clients and by the end-to-end “quote to claim” product that we provide.

Our primary focus was and continues to be increasing our subsription revenues as we grow FINEOS into the global market leading software-as-a-service platform for life, accident, and health insurance.

Additionally, regarding the company’s acquisitions during the period, Mr Kelly said:

We are pleased with the revenue growth, specifically our higher margin subscription revenue which grew
by 48.6% to €40.1 million. Within this, organic growth was a strong 32.4% with the balance from the two acquisitions we made during the year (Limelight Health and Spraoi). This year’s revenue growth was
attributable to successful client implementations, cloud upgrades and add-on cross sales.

What’s next for FINEOS ?

Heading into FY22, the company is guiding for €125 million to €130 million in revenue. Positively, subscription revenue is expected to increase approximately 30%.

FINEOS management mentioned that these growth projections are supported by a robust pipeline of significant cross-sell and up-sell opportunities with existing clients. These are in addition to some fresh client opportunities also being presented.

Meanwhile, the R&D costs aren’t expected to decrease for the next year. Instead, R&D expenses will continue as the company integrates its acquisitions and works more on product development.

Additionally, the company will be focused on further cloud upgrades in FY22. In particular, several migrations are slated across the United States and ANZ regions during the year.

FINEOS share price snapshot

Although the FINEOS share price is gleaming green today, the past year does not mimic the same performance. Over the past 12 months, the FINEOS share price has fallen 21.5%. For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 22.3%.

The post FINEOS (ASX:FCL) share price jumps 15% on solid FY21 result appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are leading the ASX 300 today?

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 recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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/2WnilOn

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.7% to 7,481.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are soaring:

Blackmores Limited (ASX: BKL)

The Blackmores share price has jumped 11% to $88.68. This follows the release of the health supplements company’s full year results. For the 12 months ended 30 June, Blackmores reported a 1.3% increase in revenue to $575.9 million and a 51.7% jump in underlying net profit after tax to $25.4 million.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is up 4% to $16.99. This morning the leading travel agent reported its FY 2021 results and revealed a 74.2% decline in total transaction value (TTV) to $3,945 million. This ultimately led to Flight Centre reporting an underlying loss after tax of $364 million. However, management stated its belief that it can reach profitability in FY 2022. This appears to have boosted its shares.

Kuniko Ltd (ASX: KNI)

The Kuniko share price is rocketing 230% higher to $2.55. At one stage today, the battery metals explorer’s shares were up as much as 350% amid excitement around its exploration activities in Norway. Kuniko shares were spun out of Vulcan Energy Resources Ltd (ASX: VUL) earlier this week and began trading at just 20 cents.

Qantas Airways Limited (ASX: QAN)

The Qantas share price has risen 3.5% to $5.04. This is despite announcing a $2.35 billion pre-tax loss this morning. However, news that the airline is getting ready for international flights to resume before Christmas appears to have offset this and given the Qantas share price a boost today. This is based on the theory that Australia’s international borders will be cracked open when 80% of eligible Australians are vaccinated against COVID-19.

The post Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are leading the ASX 300 today?
• Qantas (ASX:QAN) share price up amid plan to restart international travel
• Why the Kuniko (ASX:KNI) share price is rocketing 96% higher today
• Flight Centre (ASX:FLT) share price lifts 4% as investors look to vaccinated future
• ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises

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 owns shares of and has recommended Blackmores Limited. 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.

from The Motley Fool Australia https://ift.tt/3zoIgE0

The Objective Corporation Limited (ASX: OCL) share price has jumped almost 5% on Thursday following the software group’s results for the year ended 30 June 2021 (FY21).

Objective share price jumps on profit, dividend increase

Some of the key takeaways from today’s results include:

• Revenue up 36% on the prior corresponding period (pcp) to $95.1 million
• Net profit after tax (NPAT) up 46% on pcp to $16.1 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 49% to $25.6 million
• Earnings per share (EPS) up 45.8% on pcp to 17.2 cents
• Final dividend increased by 2.0 cents per share to 9.0 cents per share

The Objective share price skipped higher on Thursday following the update and remains up 4.87% to $19.59 at the time of writing.

What happened for Objective in FY21?

FY21 was a record year for Objective’s investment in research and development (R&D). The Aussie software group invested $23.1 million in R&D, representing 24% of group revenue.

Objective kicked off the year by acquiring Itree Pty Limited in July 2020 for $18.4 million. The business was fully integrated into the group in FY21 as the group transitioned to a subscription revenue model.

Objective reported strong recognised revenue increases across key segments like ECMaaS (+73%), Connect (+30%), Trapeze (+34%) and RegWorks (+33%).

Operating costs increased by 11% to $54.6 million while annualised recurring revenue (ARR) jumped by 31% to $74.2 million.

What did management say?

Objective CEO Tony Walls commented on the latest results:

We are really pleased with our performance in FY2021 – delivering outstanding outcomes for our customers, and protecting our employees and their families while facing an uncertain operating environment.

Our financial results in FY2021 reflect the continued delivery of our strategic plan, with strong growth in recurring revenue and earnings underpinning our highest ever investment in innovation.

In FY2022 we expect the momentum of our business to drive a continued material lift in revenue and profitability.

What’s next for Objective and its share price?

There was no FY22 guidance provided by Objective in the latest release. However, shares in the Aussie software group have climbed higher on the back of the strong FY21 result.

The Objective share price is up 71.4% in 2021 and the company has a market capitalisation above $1.8 billion.

The post Objective (ASX:OCL) share price jumps on profit increase appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are leading the ASX 300 today?
• This ASX tech share fell 87%, but we love it now
• Why Objective, Pinnacle, Resolute, & Xero shares are pushing higher
• Objective (ASX:OCL) share price jumps 6% to record high on strong FY 2021 result

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. owns shares of and has recommended Objective Corporation 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/3ydpmi9

The S&P/ASX 300 Index (ASX: XKO) is heading south today, breaking the week’s consecutive days in green territory.

At the time of writing, the ASX 300 is down 0.64% to 7,383.5 points.

Here’s a summary of which ASX shares are topping the charts today.

FINEOS Corp Holdings PLC (ASX: FCL)

The FINEOS share price is up a mammoth 16.98% to $4.30 following the company’s release of its full-year results.

The insurance software company highlighted robust growth, driven by its subscription revenues. In total, FINEOS achieved revenue of €108.3 million (A$175.41 million), up 23.3% on FY20.

The company did not include a dividend payment for the FY21 year.

City Chic Collective Ltd (ASX: CCX)

Another significant mover today is the City Chic share price, up 14.26% to an all-time high of $6.25. The fashion retailer released its full-year results, announcing strong revenue of $258.5 million, up 32.9% on FY20. This was underpinned by online sales growth of $184.6 million, up 49.3%.

No dividend was stated for the second half of the FY21 period.

Blackmores Ltd (ASX: BKL)

Following suit, the Blackmores price is up 11.34% to a 52-week high of $88.84.

The strong rise in Blackmores shares comes as the company provided its full-year results to the market. The health supplements business reported positive numbers despite operating in a changing COVID-19 environment.

The company is set to reward eligible shareholders with a fully-franked dividend payment of 42 cents per share.

And the ASX 300 companies moving the other way?

Appen Ltd (ASX: APX)

Falling heavily is the Appen share price, down a massive 20.77% to $10.95.

The artificial intelligence data services company released its half-year results for the FY21 period, registering disappointing numbers across key metrics. Most notably, Appen’s net profit after tax fell 55.1% to US$6.7 million. 

The board decided to maintain its 50% franked interim dividend of 4.5 cents per share.

Link Administration Holdings Ltd (ASX: LNK)

Also in decline is the Link share price, down 12.43% to $4.51.

The administration services company dropped its full-year results to the market, recording losses due to COVID-19 headwinds. In addition, European business and regulatory changes in its Retirement and Superannuation Solutions (RRS) business brought in lower revenues.

Link declared a fully franked dividend of 5.5 cents per share, up 4.5 cents in H1 FY21.

The post Which ASX shares are leading the ASX 300 today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises
• City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth
• Blackmores (ASX:BKL) share price edges lower despite profit surge
• Link (ASX:LNK) share price down as revenue slides 6% in FY21
• Appen (ASX:APX) share price tanks after 55% profit fall

Motley Fool contributor Aaron Teboneras owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd and Link Administration Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Blackmores Limited. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc and Link Administration Holdings 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/3Dkbje7

Unlike most ASX 200 shares, Australia and New Zealand Banking Group Ltd (ASX: ANZ) will not be contributing to this month’s earnings season. Due to some calendar quirks, ANZ is waiting until 20 October to deliver its FY2021 full-year numbers.

However, last month, we did get a surprise development from this ASX bank. ANZ announced that it would be embarking on a $1.5 billion on-market share buyback program. In the weeks since this announcement, you might have caught a few ASX notices announcing the various parcels of shares ANZ has now purchased. The latest of these came just yesterday morning, and announced ANZ had bought 485,652 (or $13.77 million worth of) its own shares the previous day.

So what does this buyback program mean for you, assuming you are an ANZ investor?

How will ANZ share buyback program work?

Well, unlike some other recently announced ASX 200 buyback programs, ANZ’s is an ‘on-market’ one. This means that the bank will be buying shares off the market, just as you or I might do on any given day.

This stands in stark contrast to recent buyback programs announced by both Woolworths Group Ltd (ASX: WOW) and ANZ’s banking peer Commonwealth Bank of Australia (ASX: CBA). These two companies have initiated an ‘off-market’ buyback.

This means that existing shareholders can opt to sell their shares back to the company in exchange for some lucrative tax benefits. We looked at Woolworths’ new buyback program, and what it means for investors, just today.

This situation does not apply to ANZ’s program though.

Shareholders will not be able to sell their shares back to the bank directly. And if they do want to sell, it will have to be through the regular channel, meaning no special tax concessions for existing investors.

So how will this benefit shareholders then?

How buybacks benefit shareholders

Well, a share buyback program, even an on-market one, still benefits all existing shareholders. That’s because when ANZ buys back its own shares, it effectively destroys them, reducing the total number of all shares outstanding. In other words, it redivides its pizza (ANZ) into slightly larger slices (ANZ shares).

Thus, if you already own ANZ shares, your ownership of the total company will increase. This has two concurrent effects.

Firstly, it will probably result in higher ANZ share prices over time due to the simple laws of supply and demand (less supply equates to higher prices).

Secondly, it means that, if all else is equal, earnings per share (EPS) and dividends per share will also increase, seeing as there are fewer shares to divide the earnings and dividends between.

In this way, share buybacks are often compared to dividends as a way to return capital to shareholders, albeit without the cash and tax implications of a dividend.

So ANZ shareholders should benefit materially from this buyback program, assuming ANZ is paying a fair price to buy back its own shares. Something for all ANZ investors to consider today!

At the time of writing, ANZ is trading at a share price of $28.42 a share. That gives this ASX bank a market capitalisation of $80.91 billion, a price-to-earnings (P/E) ratio of 17.22 and a dividend yield of 3.69%.

The post ANZ (ASX:ANZ) share buyback, what does it mean for you? appeared first on The Motley Fool Australia.

More reading

• Is the ANZ (ASX:ANZ) share price a buy right now?
• Here’s what has been moving the ANZ (ASX:ANZ) share price in August 2021
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 2 ASX 200 dividend shares with big yields

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

from The Motley Fool Australia https://ift.tt/3Dlkj2X

The A2 Milk Company Ltd (ASX: A2M) share price has come under significant pressure on Thursday.

In afternoon trade, the struggling infant formula company’s shares are down 10% to $6.17.

This means the A2 Milk share price is now down 47% since the start of the year.

Why is the A2 Milk share price sinking today?

The A2 Milk share price is being sold down on Thursday following the release of the company’s full year results.

For the 12 months ended 30 June, the company reported a 30% decline in revenue to NZ$1.21 billion, a 77.6% fall in EBITDA to NZ$123 million, and a 79.1% reduction in net profit after tax to NZ$80.7 million.

This was driven by declines in revenue across all geographical segments during FY 2021. This was particularly the case for its two key segments. China & Other Asia revenue fell 16.6% to NZ$583.4 million and ANZ revenue dropped 42% to NZ$559.7 million.

How does this compare to expectations?

Over the last 12 months, the A2 Milk share price has been sold off due to management downgrading its guidance four times.

Fortunately, the company eventually achieved its final guidance, but only just. A2 Milk was guiding to revenue of $1.2 billion to $1.25 billion and EBITDA of $132 million to $150 million (before acquisition costs).

As mentioned above, A2 Milk ended up reporting revenue of NZ$1.21 billion and EBITDA of NZ$123 million (or NZ$133 million excluding acquisition costs).

However, the team at Bell Potter were optimistic that the company would perform better than this. Which may explain some of the weakness in the A2 Milk share price today.

What was the broker expecting?

According to a recent note, Bell Potter was expecting sales of NZ$1,222.7 million, EBITDA of NZ$138.2 million, and adjusted net profit after tax of NZ$96.5 million. The company missed on all three of these metrics.

Bell Potter also revealed that it was expecting EBITDA in the region of NZ$319.4 million in FY 2022. This compares to the consensus estimate of NZ$264 million, which the broker felt was “on low side.”

While no guidance has been provided for the year ahead, management’s outlook commentary appears to make achieving the broker’s FY 2022 estimate a very big ask.

The post How do the A2 Milk (ASX:A2M) results compare to broker expectations? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises
• A2 Milk (ASX:A2M) share price crashes 10% on disappointing FY22 outlook
• A2 Milk (ASX:A2M) share price on watch after 79% profit decline and weak outlook
• 5 things to watch on the ASX 200 on Thursday
• The A2 Milk (ASX:A2M) share price crashed 16% last time it reported

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 recommended A2 Milk. 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/3sLuusG

The Qantas Airways Limited (ASX: QAN) share price is in the air today after the airline reported its earnings for financial year 2021 and announced its plans to restart international flights.

While Qantas’ dented bottom line hasn’t put the market off, the airline’s comprehensive plan to get Australians back overseas has likely left many wanderlusting Aussies feeling hopeful.

Right now, the Qantas share price is $5.03, 3.39% higher than its previous close. Today’s boost brings its gains for the week so far to an impressive 17.6%.

So, let’s take a look at Australia’s largest airline’s path forward.

Qantas share price up amid international travel hopes

The Qantas share price is taking off today after it outlined its plan to take off internationally, starting in December.

Qantas’ plan rests on the National Cabinet’s plan to transition out of COVID-19 which states Australia’s international borders will be cracked open when 80% of eligible Australians are inoculated against COVID-19.

Qantas believes the 80% target will be reached in December. And so, the airline hopes to be flying to other nations with similarly high rates of vaccination before the end of 2021.

Countries Australians could soon travel to include Singapore, the United States, Japan, United Kingdom and Canada.

Asia Pacific

Singapore and Japan are among the nations Qantas hopes will be on its departure board in December.

Qantas also expects the trans-Tasman bubble to be reopened by December and is selling tickets for flights to New Zealand from then.

Qantas also expects to fly Boeing 787s, Airbus A330s, 737s, and A320s to Fiji before the year ends.

The airline is planning to restart flights to Hong Kong in February.

Europe

The United Kingdom is on top of Qantas’ bucket list.

Qantas’ expects its non-stop flights to London to be back in the air as soon as possible. However, the airline is wary Western Australia might not relax its border restrictions which may see Qantas taking off and landing the 17-hour flight in Darwin.

Additionally, 5 A380s will be returning to Australia ahead of schedule. Some of these will be operating flights between Sydney and London (via Singapore) from November 2022.

North America

The United States and Canada might also see Australians arriving on Qantas flights from December.

Additionally, some of the returning A380s will begin flying between Sydney and Los Angeles from July 2022.

Qantas will also use its range of A330-200 aircraft to fly from Brisbane to Los Angeles and San Francisco.

And then what?

Qantas expects the rest of Qantas’ and Jetstar’s international network to open up from April 2022 at the earliest, with capacity increasing gradually from then.

The airline’s next stops might include Bali, Jakarta, Manila, Bangkok, Phuket, Ho Chi Minh City and Johannesburg.

That news has likely got many travel bugs excited. It also goes without saying, opening its international network once more will likely do great things for the Qantas share price.

Qantas will return 10 A380s with upgraded interiors to service by early 2024. Though, the exact timing will depend on how quickly the market recovers.

Additionally, Qantas will receive 3 new Boeing 787-9s in financial year 2023 after it retires 2 A380s.

Jetstar will also get its first 3 Airbus A321neo LR aircraft from early financial year 2023. The new planes will allow it to redeploy some of its existing 787s to other markets.

Commentary from management

Qantas’ CEO Alan Joyce commented on the plan that might be driving the Qantas share price today. He said:

I know the prospect of flying overseas might feel a long way off – especially with New South Wales and Victoria in lockdown. Some people might say we’re still being too optimistic.

But the current pace of the vaccine rollout means all Australian states are on track to reach the 80% target by December – which is the trigger for starting to carefully open to some parts of the world.

And if the emotional response to our recent vaccine ad is any indication, the idea of planning a trip might encourage even more people to get the jab…

We can adjust our plans if the circumstances change, which we’ve already had to do several times during this pandemic.

The post Qantas (ASX:QAN) share price up amid plan to restart international travel appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price rises despite big COVID-19 blowout
• Qantas (ASX:QAN) share price on watch following $2.35 billion pre-tax loss
• Qantas (ASX:QAN) share price lifts 5% as ad campaign hits home
• The Qantas (ASX:QAN) share price fell 6% last time the company reported
• It’s been a good week for the Qantas (ASX:QAN) share price

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/3mtKfDs