The Blackmores Limited (ASX: BKL) share price has climbed just over 2% in the last month. In comparison, the S&P/ASX 200 index (ASX: XJO) is up 1.5% over the same period.

In early trading today, the Blackmores share price is up 0.56% at $78.97 apiece.

As the nutritional supplement company prepares to report its FY21 earnings on Thursday, let’s take a look at what happened to the Blackmores share price last earnings season back in February.

What did Blackmores deliver in its half year results?

Blackmores detailed a pattern of growth in its FY21 half-year results in February, including:

• Revenue of $302.6 million that grew 4% on a constant currency basis
• International and China revenue growth of 13% and 25% respectively
• 10% decline in ANZ revenue to $148 million
• Net profit after tax (NPAT) of $19.4 million, an 8% increase from the year prior
• Fully franked interim dividend of 29 cents per share.

While Blackmores did not shed any colour on guidance expectations, it did state that revenue in H2 would be “slightly lower” than H1.

Furthermore, it announced it would hand back $2.4 million of the $10.4 million in Jobkeeper assistance provided by the government for COVID-19 relief.

How did the Blackmores share price react?

The results were well received by the market, as investors drove the Blackmores share price north in the days following the announcement.

Blackmores shares climbed around 10% in the two days after the report, peaking at $81.41 before retracing to $76.57 the week after.

Afterwards, the Blackmores share price regained momentum and again shot back up near its 52-week high, closing at $87.19 on 15 March.

One month after its FY21 half-year results, Blackmores shares closed at $82.92, a 12% climb, despite no other market-sensitive information during this time.

Considering how its earnings growth was a positive to the Blackmores share price in February, investors will no doubt hope for a similar performance this time around.

This is especially true when factoring the recent run-up on the charts the company’s shares have exhibited since May.

At the current Blackmores share price, the company has a market capitalisation of $1.5 billion.

The post What happened to the Blackmores (ASX:BKL) share price last earnings season? appeared first on The Motley Fool Australia.

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• Own Blackmores (ASX:BKL) shares? Here’s what to expect during reporting season

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 owns shares of and has recommended Blackmores 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 Whispir Ltd (ASX: WSP) share price is climbing this morning. This follows the cloud-based communications company releasing its full-year results for the 2021 financial year.

At the time of writing, Whispir shares are up 5.93% to $2.50. It has been a challenging year for the Whispir share price. It’s dropped 36% since the beginning of 2021. However, in the past 5 days, the company’s value has crept up 10.8%.

Whispir share price in focus following double digit revenue growth

Here are the highlights from the company’s full-year results:

• Annualised recurring revenue up 28.5% to $53.6 million
• Recurring revenue now represents 96.7% of total revenue, up from 95.6% in FY20
• FY21 revenue of $47.7 million, up 22% from the prior corresponding period
• Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $4.7 million, up from a loss of $5.6 million in FY20
• Net loss after tax of $9.65 million, a 2% improvement on FY20
• Net new customers of 171 during the financial year, bringing the total to 801 in FY21

What happened in FY21 for Whispir

The market is responding positively to the Whispir share price on Wednesday after the company released its full-year results for FY21. Growth metrics across the board were solid, with most financial measures indicating an increase of 20% to 30% from the prior year.

According to the release, Whispir achieved total revenue of $47.7 million in FY21 – representing an increase of 22% from the previous year. Similarly, annualised recurring revenue grew by 28.5% to $53.6 million.

This growth was underpinned by the increased usage of existing customers. In addition, new customers — to the tune of 171 across Whispir’s operating regions — pushed the company’s top-line result higher.

Looking at the geographic breakdown of performance — Australia and New Zealand delivered growth of 29% to $39.7 million. Meanwhile, the company’s Asia and North America segments shrunk by 1% and 12% respectively.

Fortunately, the latter geographies are smaller in revenue terms to begin with. However, the challenging international growth environment may be an eyebrow-raiser for some investors.

According to Whispir, the challenging international environment reflects the impacts of COVID-19 and a pivot in its marketing strategy in North America during the year.

What did management say?

Commenting on the result, Whispir Chief Executive Officer Jeromy Wells said:

During FY21 the Whispir platform continued to scale with ARR increasing 28.5% and largely driven by increased usage amongst existing customers who are extracting more value from the platform, as well as new customer sign-ups across each region.

Additionally, regarding the company’s future opportunities, Mr Wells said:

We see significant opportunity for growth in the underserved SME and SMB segments identified in North America. We have successfully delivered new customer growth in the recent half as a result of adding more capability to execute against our strategic plan and our refined persona-led strategy.

What’s next for Whispir?

Looking ahead, Whispir intends to focus on increasing customer numbers, platform usage, and revenue across its operating regions. While the pandemic has produced a headwind in customer wins in Asia, it has also accelerated the digitisation of many businesses.

Additionally, the company provided guidance for FY22 for four important metrics:

• Year-end annual recurring revenue between $65.4 million and $70 million, representing growth of 22% to 31%
• Revenue between $57.2 million and $60.2 million, representing growth of 20% to 26%
• Operating EBITDA loss between $15.5 million and $13 million
• Research and development spend between $17.5 million and $18 million, representing 70% to 80% growth

Whispir share price snapshot

Unfortunately for shareholders, the Whispir share price has underperformed the S&P/ASX 200 Index (ASX: XJO) by a significant margin over the past year.

The benchmark index returned 21.8% as it recovered from the crash in March 2020. Meanwhile, shares in the communication platform have tumbled 50.6% during the past year.

Whispir currently holds a market capitalisation of $275.9 million.

The post Whispir (ASX:WSP) share price up 6% on solid FY21 result appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Whispir Ltd. The Motley Fool Australia has recommended Whispir 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 IDP Education Ltd (ASX: IEL) share price is on the move on Wednesday morning following the release of its full year results.

In early trade, the language testing and student placement company’s shares were down as much as 9% to $25.24 before rebounding to be up 1%.

IDP Education share price higher after 36% profit decline

• Revenue down 10% (or 5% in constant currency) to $528.7 million
• English Language Testing revenue flat at $325.6 million
• Student Placement revenue down 25% to $143.3 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 330% to $145.2 million
• Adjusted net profit after tax dropped 36% to $45 million

What happened in FY 2021 for IDP Education?

For the 12 months ended 30 June, IDP Education reported a 10% reduction in revenue to $528.7 million and a 36% decline in adjusted net profit after tax to $45 million. This reflects ongoing operational disruptions caused by COVID-19 related government restrictions.

Positively, the company’s IELTS volumes still managed to grow 5% year on year despite COVID-19. This led to revenues in the English Language Testing business remaining flat on a reported basis and growing 8% in constant currency. This appears to be supporting the IDP Education share price today.

The main impacts were felt in the Student Placement business. Australian revenues fell 34% and Multi-Destination revenues in the business fell 17% on a reported basis and 11% in constant currency. Management notes that placements to Australia were hardest hit, falling 40% versus last year. International border closures meant student enrolments were largely limited to those willing to commence their studies online.

One positive was the company’s Digital Marketing business, which saw its revenue rise by 8% to $30 million. This was thanks to its institutional clients looking to IDP’s global digital platform for marketing and data insights.

At the end of the period, the company’s cash balance stood at $307 million. This was largely unchanged year on year.

What did management say?

IDP’s Chief Executive Officer and Managing Director, Andrew Barkla, was pleased with the company’s resilient performance.

He said: “Our diverse business model and long-term strategy allowed us to decisively navigate the disruptions of the past sixteen months. Importantly, our business took critical steps during the year to further strengthen our leadership position in preparing the industry for recovery.”

“IELTS demonstrated its through-the-cycle appeal as volumes rebounded despite ongoing restrictions across our global network,” he added.

What’s next for IDP Education?

Unsurprisingly, no guidance has been provided for FY 2022. However, Mr Barkla appears positive that the company is well-placed for the future after five years of transforming the business.

He said: “IDP took another significant step in FY21 to deliver on our vision of building a global platform and connected community. By bringing together human connections and digital innovation, we are guiding people on their journey to achieve lifelong learning and global career aspirations.”

“Over the past five years we have transformed our business and built a digital platform to complement our trusted human connections. With our people, customers and institutions now on one global platform, our stakeholders have begun to benefit from even stronger support at all stages of their journey.”

“Our recent acquisition of the British Council’s IELTS operations in India, along with investments in digital marketing and the IELTS technology platform have strategically positioned us to grow IELTS market share going forward,” the CEO said.

The IDP Education share price is up 35% in 2021.

The post IDP Education (ASX:IEL) share price higher despite 36% FY21 profit decline appeared first on The Motley Fool Australia.

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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 Nine Entertainment Co Holdings Ltd (ASX: NEC) share price has fallen more than 7% at the open after the group’s latest full-year results release.

Nine Entertainment share price slumps despite earnings surge

Some of the key takeaways from today’s result for the year ended 30 June 2021 (FY21) include:

• Revenue up 8% on the prior corresponding period (pcp) to $2,332 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 43% on pcp to $564.7 million
• Net profit after tax (NPAT) up 76% on pcp to $278 million
• Basic earnings per share (EPS) up 83% to 15.3 cents
• Full-year dividend up 3.5 cents to 10.5 cents per share

What happened in FY21 for Nine Entertainment?

Prior to today’s move, the Nine Entertainment share price had rocketed 69.3% higher in the last 12 months. It was a big year for the Aussie media group with the launch of Stan Sport and the completion of agreements with major digital platforms like Facebook (NASDAQ: FB) and Alphabet (ASX:GOOGL)’s Google.

Nine reported ad market growth amid a focus on brand exposure from advertisers. The Aussie media group also noted growth in revenue and profitability for its TV Combined segment and strong audience results across all platforms.

Significant revenue growth combined with prudent cost management saw Nine generate a strong pro forma operating cash flow of $346.2 million and reduce net leverage to 0.4 times during the year.

What did management say?

Nine Entertainment CEO Mike Sneesby had the following to say this morning:

After a year which began in the depths of COVID, we are pleased to report 43% growth in EBITDA for FY21. Whilst this growth was consistent across both halves, the drivers in each half were quite different, highlighting the strength of Nine’s mix of advertising and subscription-based assets.

While the past year has proven challenging, we have been able to establish the base to execute on our longer term strategy.

We are starting FY22 with strong momentum across all of our businesses — in terms of audiences and revenue, advertising and subscription. With the foundation of Nine’s unique assets, strong cash flows and a supportive Board, we have a clear vision for the future as Australia’s Media Company.

What’s next for Nine and its share price?

Nine’s metro free to air (FTA) ad revenue is expected to be up almost 20% in the FY22 year to date compared to the same quarter last year.

The Nine Entertainment share price is one to watch as the media group forecasts FY22 Publishing EBITDA of $30 million to $40 million. In its subscription business, Stan’s revenue run rate is more than $340 million with total FY22 costs expected at the lower end of the previous $70 million to $90 million guidance range.

The Nine Entertainment share price has climbed 19% higher in 2021 after accounting for Wednesday morning’s slump.

The post Nine Entertainment (ASX:NEC) share price slumps 7% despite earnings surge appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. 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 BetMakers Technology Group Ltd (ASX: BET) share price will be on watch this reporting season.

With the betting company slated to report its earnings for FY21 on Thursday, investors will be interested to know how the company responded last year.

Let’s take a look at how the BetMakers share price reacted last earnings season.

FY20 results spurs BetMakers share price

Initially, the BetMakers share price did not raise any eyebrows last reporting season.

Shares in the wagering company were relatively flat immediately after releasing its full-year results for FY20.

However, there was significant buying interest for shares in BetMakers after investors had time to interpret the company’s report.

A couple of days after reporting, buyers flocked for shares in the wagering company, sending its share price soaring more than 20% higher.

Highlights from the company’s FY20 report included;

• Revenue of $9.2 million, up 34% from the prior corresponding period (pcp)
• 74% increase in gross profit of $6.3 million
• $2.9 million increase in EBITDA of $0.8 million for FY20

Snapshot of Betmakers share price

It has been a landmark year for the BetMakers share price thus far.

Shares in the wagering company have soared more than 85% since the start of 2021.

There have been several catalysts fuelling the BetMakers share price.

Most recently, shares in the wagering company received a boost after fixed-odds wagering was legalised in New Jersey.

The legalisation of fixed-odds wagering bodes well for the company’s US ambitions.  BetMakers currently holds a 10 year agreement to deliver and manage fixed-odds thoroughbred horse racing in New Jersey.

The BetMakers share price also received a boost in late July after the company released a promising quarterly update.

The wagering company recorded $8.9 million in cash receipts for the fourth quarter of FY21, a 71% increase on the previous quarter.

BetMakers attributed the strong growth to improved sentiment in the Australian market and positive results from its international expansion.

In addition, the company cited its recent acquisition of Sportech PLC for enhancing the company’s revenue-generating opportunities.

Investors will be keen to see if BetMakers can replicate its strong growth when the company releases its full-year results for FY21 tomorrow.

The post How the BetMakers (ASX:BET) share price responded last reporting season appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

One of the surprise announcements at Tesla‘s (NASDAQ: TSLA) artificial intelligence event last week was a humanoid robot: Tesla Bot. Despite unveiling it with a dancing human in a robot costume, it was not a joke.

The electric car and green energy company (and now a robotics company?) hopes to have a prototype by next year. The humanoid bot will aim to help eliminate dangerous, repetitive, and boring tasks, Tesla CEO Elon Musk said after Tesla Bot was announced.

With such an exciting potential product, should investors start pricing this into the stock?

Absolutely not.

Meet Tesla Bot

With the Tesla Bot still in early development, specs on the new product were unsurprisingly sparse. Tesla did say it would be 5 feet 8 inches tall, weigh 125 pounds, walk at a speed of 5 mph, and be able to deadlift 150 pounds.

While Tesla Bot may seem “out there,” Musk said the company would be essentially employing technology it’s already developing for its vehicles.

“Tesla is arguably the world’s biggest robotics company,” Musk said during the event, “because our cars are like semi-sentient robots on wheels.” Tech used in its cars that could be utilized in Tesla Bot would include its neural nets for recognizing the environment, sensors, batteries, and actuators.

“It’s intended to be friendly, of course,” Musk said. Even more, there are precautions in place: The company will set it at a mechanical level so that you can run away from it and, if needed, “most likely” overpower it, the CEO added. Whew. Thank you, Tesla!

Why investors should be skeptical

Analysts seem to be largely ignoring Tesla Bot as a potential driver for the stock — and they’re right to do so.

Wedbush analyst Daniel Ives even called Tesla Bot “an absolute head scratcher.” Meanwhile, Wells Fargo analyst Colin Langan says the company’s 2022 target timeline for a prototype robot may be too optimistic. Neither of them increased their price targets for Tesla stock in response to the news.

The analysts are right to be raising eyebrows. Investors shouldn’t start pricing anything in until there’s a clear path to revenue and profits. If anything, the Tesla Bot could be viewed as a distraction and could be a net negative for the stock. But given the company’s history of doing extraordinary things and exceeding expectations, investors may want to at least refrain from counting the project against Tesla. Not only could it potentially turn into a driver for the business someday but it may be the type of project needed for Tesla to attract some of the world’s greatest minds in the artificial intelligence space.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Tesla Bot a catalyst for Tesla stock? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Medibank Private Ltd (ASX: MPL) share price will be one to watch when trading resumes this Wednesday. That’s after the health insurance company released its full-year results for FY21.

At close of trade yesterday, shares in the company were swapping hands for $3.53 – down 1.67%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, ended the day 0.17% higher.

Let’s take a closer look at today’s announcement.

Medibank share price in focus with falling dividend payout ratio

• Revenue increased 1.99% on the prior corresponding period (pcp) to $6.9 billion.
• Net profit after tax (NPAT) jumped 39.8% to $441 million. Despite operating expenses increasing 1.12% on the pcp, a 4,900% leap in net investment income ($120 million) aided the rocketing NPAT.
• Earnings per share (EPS) of 16 cents – up 39.8% on the pcp.
• A full-year dividend payout of 12.7 cents per share (6.9 cent final + 5.8 cent interim payment), fully franked. It’s an increase of only 5.8% on the pcp – despite the larger profit rise. The payout ratio fell from 90.1% to 87.7%. At the current share price, the payout represents a dividend yield of 3.60%.

What happened in FY21 for Medibank?

The biggest news of the year — in general and for the Medibank share price — would arguably be the coronavirus pandemic.

Medibank CEO David Koczkar addressed the impact of the virus on the company in today’s release:

More people continue to prioritise their health and wellbeing and see greater value in private health, given the uncertainty around COVID and heightened pressure on the public system.

The investments we have made over the last few years have enabled us to step up and provide broader support to our customers during this period, while accelerating our growth at the same time.

Koczkar became CEO in this financial year, taking the helm on 17 May. His predecessor, Craig Drummond, announced his retirement in late February.

What else did management say?

Koczkar also addressed the company’s performance at large, saying:

We have delivered a high-quality result underpinned by strong policyholder growth across both brands, our highest ever customer advocacy, growth in Medibank Health, and ongoing focus on management expenses.

This result is a clear demonstration that focusing on our customers’ needs and being disciplined in how we run our business delivers strong results.

What’s next for Medibank?

Medibank is forecasting a 2.4% growth in underlying average net claims in FY22. This is in line with the second half of the prior financial year. It is also hoping to achieve a 3% growth in policyholders.

The company also has a $15 million target for productivity savings and is targeting inorganic growth for Medibank Health and Health Insurance for FY22. Let’s see what this will mean for the Medibank share price.

Medibank share price snapshot

Over the past 12 months, the Medibank share price has increased 23.4%. This is about 1.5 percentage points better than the ASX 200. Year-to-date, Medibank shares have increased 16.1% – outpacing the benchmark index by around 4 percentage points.

Medibank Private has a market capitalisation of approximately $9.7 billion.

The post Medibank (ASX:MPL) share price on watch after 40% jump in profit appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 WiseTech Global Ltd (ASX: WTC) share price could be on the move today.

This follows the release of the logistics solutions company’s full year results which revealed that the company outperformed its guidance in FY 2021.

WiseTech share price on watch after smashing guidance

• Total revenue up 18% (or 24% in constant currency) to $507.5 million
• CargoWise revenue increased 26% to $331.6 million
• Acquisition revenue rose 6% to $175.9 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 63% to $206.7 million
• Net profit after tax doubled to $105.8 million
• Free cash flow up 149% to $139.2 million, underpinning a 141% increase in its final dividend to 3.85 cents per share
• Outlook: More strong growth in FY 2022

What happened in FY 2021 for WiseTech?

For the 12 months ended 30 June, WiseTech was on form again and delivered strong top and bottom line growth. Revenue increased 18% to $507.5 million and EBITDA jumped 63% to $206.7 million. The former was at the high end of its guidance range of $470 million to $510 million, whereas the latter smashed its updated earnings guidance range of $165 million to $190 million. This could bode well for the WiseTech share price today.

This strong result was underpinned by growth in usage and increased market penetration. The latter includes six new global rollouts secured in FY 2021 and the signup of FedEx since the end of the financial year. Another positive was organisation-wide efficiencies that delivered $22 million of gross cost reductions in FY 2021. This was ahead of target.

Another positive from the result that could support the WiseTech share price today was that its revenue growth was predominantly from recurring sources. The company advised that of the $101.4 million additional revenue generated in FY 2021, $97.3 million was recurring.

What did management say?

WiseTech’s Founder and CEO, Richard White, said: “Our strong CargoWise revenue growth in FY21 demonstrates industry recognition of our customer value proposition. We have continued to gain momentum in our market penetration with six new CargoWise global rollouts by large global freight forwarders secured in FY21, and the signing of FedEx post 30 June 2021. Importantly, we have a strong pipeline of potential new global customers, which we are actively pursuing.”

“Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.”

What’s next for WiseTech?

Also potentially giving the WiseTech share price a lift on Wednesday was its guidance for FY 2022.

On the basis that market conditions do not materially change, management anticipates FY 2022 revenue growth of 18% to 25% (representing revenue of $600 million – $635 million) and EBITDA growth of 26% to 38% (representing $260 million – $285 million).

Mr White concluded: “The strong growth in CargoWise revenue and margins we have seen in FY21 is testament to our product-led strategy, which is delivering increased usage by existing customers and new global rollout wins. We are benefitting from the acceleration in structural shifts from legacy systems to integrated global software solutions and industry consolidation, as large customers acquire businesses and add them to their CargoWise rollouts. Looking ahead we remain focused on R&D that delivers breakthrough products that enable and empower those that own and operate the supply chains of the world.”

The post WiseTech (ASX:WTC) share price on watch after smashing FY 2021 earnings guidance appeared first on The Motley Fool Australia.

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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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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Later this week the A2 Milk Company Ltd (ASX: A2M) share price will be on watch when it releases its full year results.

With its shares down 43% since the start of the year, clearly expectations are low this time around.

However, that wasn’t the case in February when the company released its results. And unfortunately, with the company failing to deliver on expectations, the a2 Milk share price came crashing down to earth.

What happened to the A2 Milk share price last time it announced its results?

In February, the a2 Milk share price dropped 16% after it posted a 16% decline in revenue to NZ$677.4 million and a 32.2% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$178.5 million.

Though, the biggest impact to the a2 Milk share price came from what was the third downgrade to its earnings guidance of FY 2021.

What happened?

The company was originally guiding to strong revenue growth with an earnings before interest, depreciation and amortisation (EBITDA) margin of 30% to 31% in FY 2021.

But just a few weeks later in September the company downgraded its guidance to revenue of NZ$1.8 billion to NZ$1.9 billion but held firm with its ~31% margin guidance. This would mean modest revenue growth of 4% to 10% and EBITDA of NZ$558 million to NZ$589 million for the year.

Then in December, its revenue guidance was downgraded by almost half a billion dollars to NZ$1.4 billion to NZ$1.55 billion. Management also downgraded its margin guidance to 26% and 29%, which implies EBITDA of NZ$364 million to NZ$450 million.

Half year results guidance downgrade

It got worse. Investors were quick to sell down the a2 Milk share price with the release of its half year results when management downgraded its guidance to revenue of NZ$1.4 billion with EBITDA of NZ$336 million to NZ$364 million. A far cry from where it started.

Unfortunately, that wasn’t the end of the story, with a further downgrade coming in May.

This means that when a2 Milk hands in its full year results this week, it is expecting to report revenue of NZ$1.25 billion with EBITDA of NZ$132 million to NZ$150 million. The latter will be a reduction of 73% to 76% year on year.

Investors will be hoping the bar has been set so low this time that the company outperforms this guidance. Though, as we have seen over the last 12 months, a miss would not be beyond the company.

The post The A2 Milk (ASX:A2M) share price crashed 16% last time it reported appeared first on The Motley Fool Australia.

More reading

• Here’s why the A2 Milk (ASX:A2M) share price is down 42% so far in 2021
• Here’s what has been moving the A2 Milk (ASX:A2M) share price in August 2021
• Here’s why the A2 Milk (ASX:A2M) share price is up 11% this week
• A2 Milk (ASX:A2M) share price lifts amid trademark stoush
• Why the A2 Milk (ASX:A2M) share price has underperformed the ASX 200 in the last year

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.

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Luckily for income investors, the Australian share market is home to a good number of quality dividend shares.

Two that are highly rated right now are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket giant. Over a century after GJ Coles opened his first store in Collingwood, Victoria in 1914, Coles has gone on to become one of Australia’s most recognisable brands and one of the big two players in the supermarket industry.

The company now has 800 supermarkets across the country, over 900 liquor retail stores, and over 700 Coles express stores. From this vast network, the company processes more than 21 million customer transactions each week. That’s the equivalent of 35 transactions every second.

But Coles isn’t settling for that and continues to target further store network expansion. For example, in FY 2022 the company is aiming to open 20 new supermarkets.

The company is also aiming to reduce costs through its Smarter Selling strategy and focus on automation. This includes the development of almost fully automated distribution centres, which will be operational in the coming years.

Macquarie is positive on the company’s future due partly to its investment in its omnichannel. It has an outperform rating and $19.80 price target on its shares.

The broker is also forecasting fully franked dividends per share of 62.2 cents in FY 2022 and 64.8 cents in FY 2023. Based on the current Coles share price of $18.26, this will mean yields of 3.4% and 3.55%, respectively.

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be another ASX dividend share to consider. Telstra has just released its FY 2021 results and posted an 11.6% reduction in total income and a 9.7% decline in underlying EBITDA to $6.7 billion.

Once again, the NBN rollout weighed on its EBITDA result. Telstra recorded an in-year NBN headwind of $650 million for FY 2021. If you exclude this, the company’s underlying EBITDA would have fallen only $70 million year on year.

The good news is that the NBN headwind is easing, its costs are reducing, and its mobile business is performing strongly. As a result, management is expecting its underlying EBITDA to grow for the first time in years in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9%. After which, management appears confident that it can deliver a further increase in FY 2023.

Goldman Sachs believes Telstra will deliver on these targets. So much so, the broker believes that a long-awaited dividend increase could be coming in the not so distant future.

It is forecasting fully franked dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024. Based on the current Telstra share price of $3.93, this will mean yields of 4.1% through to FY 2023 and then 4.6% in FY 2024.

Goldman has a buy rating and $4.30 price target on its shares.

The post Telstra (ASX:TLS) and this dividend share have been named as buys appeared first on The Motley Fool Australia.

More reading

• Is the Telstra (ASX:TLS) share price a buy today?
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• 10 ASX shares we’re overweight in right now: fund
• How does the Woolworths (ASX:WOW) dividend compare to its sector?
• The Telstra (ASX:TLS) share price has gained 23% in the last 6 months

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 COLESGROUP DEF SET and Telstra Corporation 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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