The A2 Milk Company Ltd (ASX: A2M) share price has slid 43% since the start of 2021.

After opening the year at $11.65, its shares have since dropped to swap hands for $6.64 apiece.

Unsurprisingly, the milk and milk-based products producer’s shares have performed significantly worse than the broader market.

In 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 12.2%, while the All Ordinaries Index (ASX: XAO) has increased by 11.7%.

Let’s take a look at what’s been impacting the A2 Milk share price through 2021.

What’s driving the A2 Milk share price down?

While the A2 Milk share price has been sliding, the company has remained relatively quiet. In fact, the market hasn’t heard any news from it since May.  

However, A2 Milk’s most recent announcement highlighted the company’s struggles against the COVID-19 pandemic.

In May, A2 Milk reported it was changing tack on how it’s addressing the fall of the daigou network and cross-border e-commerce channels that it once relied on. It also downgraded its guidance for financial year 2021 for the fourth time.

The A2 Milk share price crashed 13% on the back of the new plan. Unfortunately, the market seemingly hasn’t changed its view on the company since.

Perhaps it was because A2 Milk was restating the same message it had been for many months prior. Without an international reseller network and Chinese demand for its infant formula products, the company’s revenue had slowed significantly.

In May, A2 Milk downgraded its financial year 2021 guidance. It stated it expected to report revenue of between $1.15 billion and $1.2 billion (converted from New Zealand Dollars at the exchange rate of the time of writing).

For comparison, the company reported $1.65 billion in revenue for the 2019 financial year (once again, converted from New Zealand Dollars).

Whether A2 Milk’s guidance came to fruition will be answered tomorrow. The company is expected to report its results for financial year 2021 on Thursday.

All eyes will be on the A2 Milk share price to see if the company’s outlook for financial year 2022 is more optimistic.

The post Here’s why the A2 Milk (ASX:A2M) share price is down 42% so far in 2021 appeared first on The Motley Fool Australia.

More reading

• 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
• Here are 3 ASX 200 share investors can’t leave alone today

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 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index ended the day up 0.2% at 7,503 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market is expected to continue its positive run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher this morning. This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.15%, and the Nasdaq push 0.5% higher.

Afterpay and Zip full year results

The Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price will be on watch today when the two buy now pay later (BNPL) providers hand in their full year results. While both companies have pre-released much of their numbers, there will still be a lot to look out for. This includes their losses for the year and their expansion plans for FY 2022.

Oil prices rise gain

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 3.1% to US$67.68 a barrel and the Brent crude oil price is up 3.5% to US$71.20 a barrel. Oil prices pushed higher in response to U.S. regulators issuing their first full approval for a COVID-19 vaccine.

WiseTech Global full year results

The WiseTech Global Ltd (ASX: WTC) share price could be on the move today when it releases its full year results. In February, the logistics solutions platform provider provided guidance for full year revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. This represents year on year growth of 9% to 19% and 30% to 50%, respectively.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a subdued day on Wednesday after the gold price edged lower. According to CNBC, the spot gold price is down slightly to US$1,806.1 an ounce. Traders appear undecided whether a spike in COVID cases globally will delay the Federal Reserve’s tapering plans.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 rises, Kogan sinks, Ansell slumps
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• Here are the 3 most traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday

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 AFTERPAY T FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and 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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Are you looking for blue chip ASX 200 shares to add to your portfolio? If you are, the two ASX shares listed below could be worth a closer look.

Here’s what analysts think of these shares:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a world class portfolio comprising warehouses, large scale logistics facilities, and business and office parks.

These properties are in demand and count some of biggest companies in the world as tenants. This led to Goodman reporting a 98.1% occupancy rate at the end of FY 2021. This ultimately underpinned a solid 15% increase in operating profit to $1.22 billion for the 12 months.

Positively, more of the same is expected in the future. Thanks to strong customer demand in its markets, which is translating into high occupancy, rental growth, and strong investment returns, management is guiding to 10% growth in operating earnings per share in FY 2022.

Goodman’s FY 2021 result went down well with analysts at Citi. In response, the broker retained its buy rating and $26.00 price target on the company’s shares. This compares to the latest Goodman share price of $22.99.

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to consider is REA. This property listings company has been a strong performer in recent years despite battling a housing market downturn and the COVID-19 pandemic. This demonstrates the resilience of REA’s business model and its exceptionally strong position in the ANZ market.

Pleasingly, its strong business model was on display for all to see in FY 2021. REA delivered a 13% increase in revenue to $928 million and a 19% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $565 million. The latter was ahead of expectations.

Positively, with the housing market rebounding strongly, REA’s outlook is looking increasingly positive. This should be boosted by price increases, new revenue streams, acquisitions, and its excellent cost control.

Goldman Sachs is very positive on the company. It has a buy rating and $190.00 price target on its shares. This compares to the latest REA share price of $154.38.

The post 2 excellent blue chip ASX 200 shares named as buys 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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If you have room for a growth share or two in your portfolio, you might want to consider the shares listed below.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. The appliance manufacturer has been growing at a solid rate in recent years thanks to strong demand and its international expansion.

This positive form continued in FY 2021, with Breville delivering one of the stronger full year results this month. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.

This result was supported by favourable tailwinds brought about by COVID-19 such as more cooking and working at home, which underpinned an increase in demand for whitegoods such as cooking equipment and coffee machines.

UBS was pleased with its result and in response retained its buy rating and $35.70 price target. It likes the company due to its attractive long term growth potential.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX growth share to look at is PointsBet. It is a leading sports betting company with operations in both the ANZ and US markets.

It recently released its fourth quarter update and revealed that it achieved full year turnover of $3,781.4 million in FY 2021. This was up an impressive 228% on FY 2020’s turnover.

Management advised that this was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

Goldman Sachs is very positive on the company and has a buy rating and $14.90 price target on its shares.

Its analysts note that PointsBet has a strong position in the US and a huge market opportunity ahead of it. It expects the US sports betting market to grow at a compound annual growth rate of 40% out to 2033. It estimates that it will be worth US$39 billion a year at that point.

The post 2 rapidly growing ASX shares rated as buys appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy 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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Appen Ltd (ASX: APX) share price certainly has been out of form in 2021.

Since the start of the year, the artificial intelligence data services company’s shares are down 50%.

This compares to a 12% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Appen share price under pressure on 2021?

Investors have been selling down the Appen share price this year due to the impact that COVID-19 was having on demand for its services.

In May Appen’s CEO, Mark Brayan, commented: “COVID interrupted many businesses last year and that in turn reduced their digital ad spend for a period. This impacted our major customers’ sources of revenue, and although digital ad spend has bounced back nicely, that experience is driving them to invest in new AI products that are less reliant on advertising.”

Also weighing on the Appen share price were comments about data privacy and anti-trust concerns that were impacting developments.

Mr Brayan said: “Our customers are developing new AI products in response to COVID’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. This dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from us.”

“As stated before, machine learning is an iterative process, and our customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of our larger programs,” he added.

Is this a buying opportunity?

One leading broker that believes the weakness in the Appen share price could be a buying opportunity is Citi.

A note from this month reveals that its analysts have retained their buy rating and $18.80 price target on the company’s shares.

This is despite the broker suspecting that a slower recovery in demand could lead to Appen falling short of the market’s first half EBITDA estimates this month due to lower margins.

Citi is expecting EBITDA of US$27 million for the half, which is ~20% lower than consensus estimates.

Based on the current Appen share price of $12.71, Citi’s price target implies potential upside of 48% over the next 12 months.

Citi is more positive on its longer term prospects. It believes Appen is well placed to benefit from the higher spending on artificial intelligence in the future. It also expects the company to leverage its increased capabilities and expand its addressable market.

The post Top broker names Appen (ASX:APX) share price as a buy appeared first on The Motley Fool Australia.

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• 2 excellent ASX tech shares with strong growth potential
• Why AGL, Appen, CBA, & Rio Tinto shares are tumbling lower

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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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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Another day of reporting on the ASX has drawn to a close. That means it is time for us to summarise some of the big-name results that you might have missed on the ASX today.

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

Those that reported on the ASX today

Ansell Limited (ASX: ANN)

Shares in Ansell sank 9.2% after the personal protection equipment seller reported its FY21 full-year results. Despite reporting impressive metrics for FY21, the market focused on the forward guidance — with medical PPE expected to taper off.

The takeaway points:

• Sales of approx. US$2 billion – up 25.6% on the prior corresponding period (pcp).
• Earnings before interest and taxes (EBIT) jumped 56% to US$338 million.
• Net profit after tax (NPAT) surged 57% on the pcp to US$248 million.
• Basic earnings per share (EPS) of US$1.922 – up 60% on the pcp.
• Full-year dividend of US76.8 cents per share (US43.6 cents final + US33.2 cents interim). This is 54% higher than the pcp and represents a dividend yield of 2.63%.

Kogan.com Ltd (ASX: KGN)

The Kogan share price went off the edge of an ASX cliff following its reporting of full-year results for FY21. Shares in the online retailer plummeted 15.8% lower following a significant reduction in earnings due to an increase in costs associated with logistics, acquisition, and management payments.

The takeaway points:

• Gross sales increased 52.7% to $1,179 million
• Revenue jumped 56.8% to $780.7 million
• Gross profit rose 61% to $203.7 million
• Adjusted net profit after tax up 43.2% to $42.9 million
• Reported net profit after tax down 86.8% to $3.5 million
• Kogan.com active customer base up 46.9% to 3,207,000, Mighty Ape up to 764,000
• Cash balance of $12.8 million and no final dividend
• Outlook: No guidance but poor start to FY 2022

Nanosonics Ltd. (ASX: NAN)

To end things on a positive note, the Nanosonics share price soared on the ASX today after the ultrasound probe disinfector manufacturer reported a rebound in performance in its full-year earnings for FY21. The news was met with euphoria, with the share price increasing 21.9%.

The takeaway points:

• Revenue up 3% against the prior corresponding period (pcp) to $103.1 million.
• Significant recovery in the FY21 second half, with revenue up 39% compared to the first half.
• The global installed base rose 13% to 26,750 units.
• Earnings before interest and tax was down 7% to $10.8 million.
• Profit after income tax fell 15% to $8.6 million.

ASX shares reporting next week

It was another busy day on the ASX for reporting. However, tomorrow can lay claim to its own set of exciting companies that are slated to release full-year results.

Some of the big-name companies set to release their financials tomorrow include Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), Whispir Ltd (ASX: WSP), Worley Ltd (ASX: WOR), WiseTech Global Ltd (ASX: WTC), and Lovisa Holdings Ltd (ASX: LOV).

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

The post The ASX reporting wrap-up: Ansell, Kogan, Nanosonics appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Kogan sinks, Ansell slumps
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• Nanosonics (ASX:NAN) share price up 28% after earnings beat and new product announcement
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Ansell (ASX:ANN) share price plunges 10% despite dividend boost

Motley Fool contributor Mitchell Lawler owns shares in Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Ansell 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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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Cochlear Limited (ASX: COH)

According to a note out of Citi, its analysts have retained their sell rating but increased the price target on this hearing solutions company’s shares to $220.00. Citi has reduced its earnings forecasts for the coming years due to its expectation of lower margins. It also fears that the market is expecting too much from Cochlear in the near term and that it may take longer than previously expected for sales to normalise. The Cochlear share price was trading at $236.69 today.

Evolution Mining Ltd (ASX: EVN)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $3.90 price target on this gold miner’s shares. Goldman notes that Evolution delivered a result largely in line with expectations in FY 2021. And while the broker has increased its earnings estimates for the coming years to reflect increased production at Mungari and the inclusion of Kundana, it isn’t enough for a change of rating. The broker has retained its sell rating on relative valuation grounds and due to risks to its growth profile. The Evolution share price was fetching $4.04 on Tuesday.

NIB Holdings Limited (ASX: NHF)

Another note out of Citi reveals that its analysts have downgraded this private health insurer’s shares to a sell rating with a reduced price target of $6.30. This follows the release of a disappointing full year result for FY 2021. Citi was particularly disappointed with the performance of NIB’s international business. It also isn’t confident on the outlook for the business and feels its shares are fully valued at the current level. The NIB share price was trading at $6.59 today.

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

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• NIB and Ampol share prices fall, new record for Domino’s. Scott Phillips on Nine’s Late News
• Why Ansell, Kogan, Monadelphous, & NIB shares are tumbling lower
• 5 things to watch on the ASX 200 on Tuesday
• The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings
• ASX 200 rises, NIB plummets, Sonic drops

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and NIB Holdings 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 S&P/ASX 200 Index (ASX: XJO) rose by around 0.2% today to 7,503 points.

Here are some of the highlights from the ASX:

Kogan.com Ltd (ASX: KGN)

The Kogan share price fell around 16% after the e-commerce ASX share announced its FY21 result. It was the worst performer in the ASX 200.

Gross sales rose by 52.7% to $1.18 billion, with revenue growing by 56.8% to $780.7 million. Gross profit rose even quicker, growing by 61% to $203.7 million.

Adjusted net profit after tax (NPAT), which excludes certain expenses like share-based compensation and acquisition costs, saw growth of 43.2% to $42.9 million. Adjusted earnings per share (EPS) increased by 27.2% to $0.41.

But the reported profit saw a major reduction. Net profit fell 86.8% to $3.5 million, reflecting one-off inventory, logistics and Mighty Ape acquisitions costs. EPS dropped 88.3% to $0.03.

Kogan active customers increased 46.9% to 3.2 million. But Mighty Ape active customers went up to 764,000.

Due to ordering too much inventory, it experienced significantly higher storage costs, which saw variable costs rise to $44.9 million, up from $20.1 million in FY20. It also had to spend on marketing to lower its inventory levels to the size relevant for the business.

Kogan also suffered from logistics ‘detention charges’ of $7.7 million incurred as part of its variable costs, as well as COVID-19 related warehousing and supply chain interruptions.

The board decided not to pay a final dividend.

In a trading update for FY22, it said that gross sales were 5.1% above July 2020. The July 2021 gross profit margin was stronger than June 2021, but lower than July 2020. It generated $2.1 million of adjusted EBITDA, which reflected ongoing high operating costs, though this is “gradually reducing”.

In the first 18 days of August 2021, it has seen further improvement, with gross sales 24.5% above July and gross profit 25% above July.

Ansell Limited (ASX: ANN)

The Ansell share price was another of the ASX 200 shares to suffer a big sell-off. It dropped over 9% today.

The glovemaker reported its FY21 result that showed total sales increased by 25.6% to $2.03 billion. This result was driven by organic growth of the healthcare division, with a rise of revenue of 34.8%. There was volume growth for surgical and life sciences, and favourable pricing and mix for the exam and single unit segment.

Total earnings before interest and tax (EBIT) grew by 56% year on year to US$338 million. This was driven by higher production volume and operating leverage.

Net profit increased by 57.5% to US$246.7 million. The board decided to increase the full year dividend by 53.6% to US 76.8 cents.

Whilst Ansell acknowledged that COVID-19 will continue to feature in FY22, it’s expecting lower demand in areas that have benefited the most during the onset of COVID-19, such as chemical body protection and undifferentiated exam/single use gloves. Pricing is expected to feature throughout this financial year, both positively and negatively.

The ASX 200 share also said that there have been more cases in South East Asia, causing disruption to its factories and suppliers in the region, which have hurt operations. It could hurt sales in the first half of FY22. Increased freight costs and shipping delays are also expected throughout FY22.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the best performer in the ASX 200 today, rising by 22%.

It reported in FY21 that revenue went up 3% to $103.1 million, with gross profit increasing 6% to 80.4%.

There was a “significant” recovery in the second half with revenue of $60 million, up 39% compared to the first half.

Full year consumables revenue was up 9% to $76.4 million, with capital revenue of $26.7 million (down 11%).

EBIT fell 7% to $10.8 million, whilst profit after tax declined 15% to $8.6 million. Free cashflow for the year was $5.9 million, with second half free cashflow of $8.3 million.

Management said that there has been a significant increase in the Trophon opportunity in North American, resulting from an increased estimate of the total addressable market. The change was from 40,000 units to 60,000 units, reflecting growth in the ultrasound market over the last eight years.

It’s expecting a return to double digit revenue growth in FY22, driven by an ongoing increase in the installed base globally and increased usage of consumables across all regions.

Nanosonics also launched a new digital product platform called ‘Nanosonics AuditPro’. It is a digital workflow compliance management system with potential applications across a range of medical instruments.

The post ASX 200 rises, Kogan sinks, Ansell slumps appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Ansell, Kogan, Nanosonics
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• Here are the 3 most traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Ansell 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 Janison Education Group Ltd (ASX: JAN) share price edged higher in trading today. This comes after the educational technology company released its full-year results for the 2021 financial year.

At the final bell today, Janison shares were up 0.6% to 84.5 cents.

Janison share price climbs after revenue growth of 38%

The Janison share price finished the day in positive territory after the company delivered its FY21 results for the 12 months ending 30 June 2021. Here are some of the highlights:

• Total group revenue of $30.2 million, up 38% on the prior corresponding period (FY20 $21.9 million);
• Gross margin of 55%, up 9 percentage points (FY20 46%);
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $3 million, up 21% (FY20 $2.5 million);
• Net loss after tax (NPAT) of $3.2 million, down 49% (FY20 $2.2 million);
• $23 million cash on hand with no debt

What happened to Janison in FY21?

Janison said FY21 has proven to be a successful year operationally, with group revenue expanded through its three main drivers. This includes the PISA for Schools rollout (available in 15 countries, up from 7 in FY20), ICAS growth of $6 million in new revenue, as well as capturing acquisition and expansion opportunities.

The Programme for International Student Assessment (PISA) is an online platform that measures a 15-year-old’s ability in mathematics, science, and reading.

Annual recurring revenue (ARR) surged by 117% to $18.3 million, weighted heavily towards new clients and products. 

In addition, the sales mix continued to improve as customers opted for the company’s standardised assessment platform. In turn, this led to Janison achieving a more efficient business with higher gross profit margins.

The company also said it is continuing to invest in its core assessment platform to maintain its market-leading position.

What this means for the Janison share price going forward remains to be seen.

What’s next for Janison in FY22?

Looking ahead, Janison expects sales momentum and revenue growth to run into FY22. It sees education, and assessments, continuing to be digitised post-COVID-19, further expanding the company’s footprint.

The global education technology market is currently worth approximately US$268 billion, and is forecast to rapidly increase.

Janison noted school lockdowns have the potential to delay revenue but also present opportunities, such as its remote exams.

The company however did not provide a sales or profit guidance for FY22.

The post Janison (ASX:JAN) share price up after strong FY21 financial scorecard appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Ansell, Kogan, Nanosonics
• Leading brokers name 3 ASX shares to sell today
• ASX 200 rises, Kogan sinks, Ansell slumps
• BHP (ASX:BHP) share price lifts despite credit downgrade risk
• The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano

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. owns shares of and has recommended Janison Education Group Limited. The Motley Fool Australia has recommended Janison Education 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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August has been a painful month for the BHP Group Ltd (ASX: BHP) share price, following a sharp 16% selloff last week.

BHP shares have managed to edge 1.3% higher from Friday’s close, finishing Tuesday’s session at $44.92.

Alongside BHP’s full year FY21 results last week, the company also revealed a merger with Woodside Petroleum Limited (ASX: WPL) to combined their respective oil and gas assets via an all-stop merger.

The Australian Financial Review (AFR) reported concerns that BHP will be less diversified following its divestment of oil and gas assets, with S&P Global threatening to downgrade the miner’s credit rating to a record low.

Oil divestment might not be a good thing after all

The AFR looks back at BHP’s history of “shedding assets and reducing the number of commodities it produces … having quit businesses such as diamonds, manganese, alumina and aluminium over that period while formulating plans to exit oil, gas, thermal coal and some of its coking coal mines”.

In a post-divestment world, BHP’s production portfolio will comprise copper, iron ore, metallurgical coal, energy coal and nickel.

More recently, BHP approved a US$5.7 billion investment in the Jansen Stage 1 potash project, aligned with its strategy of growing exposure to future-facing commodities in world class assets.

According to the company’s FY21 results, it said that this investment would provide “increased leverage to key global mega-trends including rising population, changing diets, decarbonisation and improving environmental stewardship”.

The Jansen Stage 1 project is expected to begin production in the 2027 calendar year, followed by a ramp up period of two years.

The AFR reported that “S&P says those ‘future-facing’ commodities are unlikely to fill the hole left by the petroleum division in the immediate future”.

“We could lower our ratings on BHP by up to two notches in the coming months, based on our updated review of the strength of the group’s business risk profile, if the divestment of its petroleum assets takes place as proposed. The rating action will be subject to our reassessment of the company’s portfolio compared to its immediate peers.”

BHP share price snapshot

At its highest point this year, the BHP share price was up 28.56% year-to-date.

Last week’s harsh selloff has shrunk these gains to a measly 5.87%.

BHP investors should note its shares will go ex-dividend on Thursday, 2 September for a final dividend of US$2.00 per share.

The post BHP (ASX:BHP) share price lifts despite credit downgrade risk appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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