The NIB Holdings Limited (ASX: NHF) share price edged higher on Friday ahead of its FY21 full-year results on Monday.

Indeed, investors will be watching this space when the company reports its numbers for the second half of the financial year.

At Friday’s market close, NIB shares ended the day up 1.14% to $7.98.

Let’s take a look to see how NIB performed for the first half of FY21 and how its share price reacted.

What did NIB report for the first half of FY21?

NIB delivered its half-year result for the 2021 financial year in late February, revealing mixed numbers across the board.

Here’s a summary of the financial details that NIB posted for its last earnings season.

• Total group revenue of $1.3 billion, down 1.1% on the prior corresponding period
• Group expense claim of $1 billion, up 0.9%
• Group underlying operating profit (UOP) of $86.9 million, up 4.4%
• Net profit after tax (NPAT) of $66.2 million, up 15.9%
• Fully-franked interim dividend of 10 cents per share (in line with H1 FY20’s interim dividend of 10 cents per share)

Following the release, NIB shares advanced from $5.33 on 22 February to as high as $5.87 on the day. This represents an increase of around 10% for the private health insurer.

However, investors were quick to take profit off the table, sending the company’s shares lower in the aftermath.

What should investors look out for this earnings season?

According to Goldman Sachs, NIB is expected to report total FY21 revenue of $2,521 million. In comparison, the prior corresponding year brought in $2,438 million.

Group UOP is forecasted to come in at $217 million, compared to $150 million in FY20.

The NIB board is predicted to declare a final dividend of 14.5 cents per share. This represents a growth of 75% when matched against FY20 (14 cents per share).

Goldman Sachs noted improved earnings contribution from ancillary businesses and further corporate white-label partners driving market share gains. However, weighing down the result could be softer-than-expected travel insurance performance.

NIB share price snapshot

NIB shares have been on fire lately, rocketing 20% over the last month. When looking at a longer time frame, its shares accelerated by more than 60% since this time last year.

It’s worth noting that the NIB share price is closing in on its all-time high of $8.20 achieved in July 2019.

NIB has a market capitalisation of roughly $3.6 billion, with approximately 457.7 million shares on issue.

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

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• NIB Holdings (ASX:NHF) share price looks attractive long term – Expert

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Are you looking for some attractive dividend yields to boost your income? Then look at the ones listed below.

Here’s why these dividend shares have been tipped as great options for income investors right now:

National Australia Bank Ltd (ASX: NAB)

The first dividend share to look at is NAB. This banking giant has been a strong performer in FY 2021 and looks well-placed to deliver a robust full year result in the coming months.

In addition to this, the bank’s capital position is very strong and well-ahead of APRA’s unquestionably strong benchmark. This is even after recently announcing the acquisition of Citi’s Australian consumer operations for $1.2 billion.

This should put the bank in a position to reward shareholders with generous dividends and potentially even further buybacks in the near term.

Goldman Sachs is positive on the bank. It likes NAB due to its cost management initiatives, strong position in business banking, and its excellent management of volumes and margins.

The broker has a conviction buy rating and $30.62 price target on the bank’s shares. This compares to the latest NAB share price of $27.41. Goldman expects yields of 4.5%, 5%, and 5.3%, respectively, between FY 2021 and FY 2023.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider is Super Retail. It is the retail group behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

Super Retail’s businesses performed very strongly in FY 2021 thanks to a favourable redirection in consumer spending. This led to the company reporting a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.

In response to the result, the team at Credit Suisse put an outperform rating and $14.40 price target on its shares.

The broker is also forecasting dividend per share of 51.6 cents in FY 2022 and 50 cents in FY 2023. Based on the current Super Retail share price of $12.77, this will mean fully franked yields of 4% and 3.9%, respectively.

The post 2 ASX shares with generous fully franked dividend yields 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 owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sonic Healthcare Limited (ASX: SHL) share price gained 4% last week.

That compares to a loss of 2% on the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 healthcare share will be closely watched tomorrow, when the company releases its results for the financial year ending 30 June 2021.

With that in mind, we take a look back to see how Sonic Healthcare’s shares responded following last year’s results.

What did Sonic report for FY20?

On 20 August 2020, The Motley Fool reported that Sonic Healthcare’s share price hit a record “after its profit results allayed a key concern of its critics”.

Here are some of the key numbers that Sonic released for FY20:

• Group revenue increased 11% to $6.86 billion
• Underlying net profit increased 7% to $552 million
• Operating cash flow increased 26% to $1 billion
• Final dividend declared of 51 cents per share; total FY20 dividend increased 1.2% year-on-year

The company defied naysayers who’d been concerned that one of its core revenue drivers – routine screening and diagnostics – would be hobbled by the pandemic as people delayed visiting medical facilities for regular checkups.

While that segment of the company’s business did take a hit, a surge in coronavirus testing managed to help deliver the 11% boost to revenue.

How has Sonic Healthcare’s share price performed since then?

Since market open on the day after it deliver its FY20 results, Sonic has gained 24%. By comparison the ASX 200 is up 22% in that same time.

Year-to-date the Sonic Healthcare share price has surged 31% in 2021.

The post How did the Sonic Healthcare (ASX:SHL) share price respond last earnings season? appeared first on The Motley Fool Australia.

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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 Sonic Healthcare 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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Looking for growth shares to buy this month? Then you may want to consider the three listed below.

Here’s why they have been tipped as growth shares to buy:

NEXTDC Ltd (ASX: NXT)

The first ASX growth share to look at is NEXTDC. It is a leading data centre operator benefiting greatly from the structural shift to the cloud. This shift has led to growing demand for data centre capacity over the last few years, which has resulted in strong revenue and operating earnings growth. And with this shift still ongoing, the future looks bright for NEXTDC. Particularly if its overseas expansion is a success.

UBS is positive on the company. It currently has a buy rating and $15.40 price target on its shares.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX growth share to look at is this sports betting company. Its operations in the ANZ and US market are growing very quickly and generating significant revenue. Positively, the latter market is still in its infancy and only just opening up to this type of betting. This bodes well for the future given the size of the market. For example, Goldman Sachs expects the US sports betting market to grow at a compound annual growth rate of 40% out to 2033. At that point it believes it will be worth US$39 billion a year.

Goldman currently has a buy rating and $14.90 price target on its shares.

Zip Co Ltd (ASX: Z1P)

A final ASX growth share to look at is Zip. This buy now pay later (BNPL) provider has been growing at a strong rate over the last few years thanks to the increasing popularity of the payment method and its international expansion. The good news is the company still has a very long runway for growth. Management notes that the US market alone is worth $5 trillion.

Analysts at Citi currently have a buy rating and $14.90 price target on its shares.

The post Why Zip (ASX:Z1P) and these growth shares could be buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd and ZIPCOLTD FPO. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Baby Bunting Group Ltd (ASX: BBN)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this baby products retailer’s shares to $6.15. This follows the release of a full year result ahead of the broker’s expectations. Macquarie notes that while online sales surged, the vast majority of its sales involve customer store visits. It feels this highlights the strength of the company’s store assets. Looking ahead, it is partly for this reason that Macquarie remains positive on its medium term outlook. The Baby Bunting share price ended the week at $5.50.

Breville Group Ltd (ASX: BRG)

Another note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this appliance manufacturer’s shares to $34.37. Macquarie notes that Breville delivered a result in line with its estimates in FY 2021. Positively, the broker appears confident there’s a lot more to come from Breville. It highlights its increasing investment and expansion into new geographies. The Breville share price was fetching $32.68 at the end of the week.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating and $30.00 price target on this banking giant’s shares. This follows the release of Westpac’s third quarter update last week. According to the note, Citi highlights that Westpac’s update appears to indicate that it is trading slightly ahead of expectations in the second half. Looking ahead, the broker is optimistic that its system growth will recover in both mortgage and business lending. The Westpac share price was trading at $25.76 at Friday’s close.

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

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Baby Bunting. 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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Last reporting season was not kind to the Audinate Group Ltd (ASX: AD8) share price.

Shares in the audio tech company tanked nearly 7% after Audinate released its results for FY20 last August.

Investors will be hoping that the Audinate share price doesn’t repeat its performance this reporting season.

Audinate specialises in hardware and software solutions for the audio-visual (AV) market. The company’s flagship and award-winning Dante program is a global leader in AV connectivity.

Here’s how the Audinate share price responded last year

In its full-year results for FY20, the company reported revenue of $30.3 million for the financial year, with a 30% increase in software revenue.

Audinate noted that royalties from its Dante platforms and retail software sales had fuelled growth.

However, the impact of the COVID-19 pandemic was reflected in the company’s bottom line, with Audinate reporting a net loss of $4.1 million after tax.

Despite the cancellations of major music festivals, the company was able to offset losses with higher demand in education and conferencing applications.

In addition, the company noted a stronger balance sheet after raising $40 million in an oversubscribed placement.

Snapshot of the Audinate share price

Fast-forward to 2021 and it’s a very different picture for the Audinate share price.

Shares in the audio technology company have stormed more than 29% higher since the start of the year and are currently nudging record-highs.

In October last year, Audinate noted that sales momentum had started recovering. This was reinforced in the company’s results for the first half of FY21, which saw revenue return to pre-COVID levels.

A major catalyst for the company was its trading update for FY21.

Audinate noted that the company had generated unaudited revenue of US$25.0 million for FY21, up 23% from FY20.

The company also cited 74% quarter-on-quarter growth, highlighting a strong Aussie dollar.

However, Audinate did note constraints from global supply chains as a near-term risk.

What do the brokers say?

Analysts have also jumped behind the Audinate share price. A note from UBS last month saw analysts retain their buy rating on Audinate and initiate a share price target of $11.30.

The broker cited Audinate’s strong fourth quarter update with analysts backing the company’s outlook.

The proof will be in the pudding when Audinate reports its full-year results.

The company is scheduled to report on Monday.

The post The Audinate (ASX:AD8) share price tanked 7% last time the company reported 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 AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

ARB Corporation Limited (ASX: ARB)

According to a note out of Macquarie, its analysts have downgraded this 4×4 accessories company’s shares to an underperform rating but lifted their price target on them to $44.00. This follows the release of a very strong result for FY 2021, with its EBIT almost doubling. However, although its sees plenty of growth opportunities and expects a strong result in FY 2022, it isn’t enough to stop the downgrade. Macquarie feels its valuation is stretched. The ARB share price ended the week at $51.47.

Coles Group Ltd (ASX: COL)

A note out of UBS reveals that its analysts have retained their sell rating and $16.50 price target on this supermarket operator’s shares. UBS notes that Coles delivered a full year result in line with expectations in FY 2021. However, this wasn’t enough for a change of rating. UBS continues to believe that Coles will struggle to gain market share and isn’t convinced the cost savings it is targeting with its Smarter Selling strategy will underpin margin expansion. The Coles share price was fetching $18.72 at Friday’s close.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this pizza chain operator’s shares to $82.28. According to the note, the broker was pleased with Domino’s performance in FY 2021 and notes that its guidance for new store openings has been upgraded. This has led to Credit Suisse increasing its estimates and price target accordingly. However, it still feels its shares are overvalued at the current level and has retained its underperform rating. The Domino’s share price ended the week notably higher than this price target at $141.72.

The post Top brokers name 3 ASX shares to sell next week 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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended ARB Corporation Limited and Dominos Pizza Enterprises 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 A2 Milk Company Ltd (ASX: A2M) share price has risen by 11% since the start of August 2021.

But it’s still down heavily over the last six months and the past year. In the past half-year A2 Milk shares have fallen by 38% and over the last 12 months it has dropped 65%.

Why has it fallen so much?

A2 Milk has seen demand for its products fall significantly.

In the third quarter of FY21, infant nutrition sales in the ANZ segment were $99.5 million and in the cross-border e-commerce channel was $22.1 million, compared to the third quarter of FY20 this was a decline of 56% and 77% respectively.

Management pointed out that these declines compared to the third quarter of FY20 reflected the “extraordinary uplift” in sales last year as the initial effects of the pandemic were beginning to be felt. Sales were down compared to the second quarter of FY21 in the CBEC channel due to actions taken to reduce distributor levels as planned, and ANZ segment sales were down reflecting lower daigou offtake.

In the interest of the long-term health of the A2 brand and the medium-term outlook of the business, management are/were taking more aggressive actions to address its excess inventory which will benefit consumers and the company’s customers, distributors and partners.

The daigou margin support program will cease and it will work with its customers and distributors to improve the dating of inventory. It will improve the freshness of product available in store and online and should improve the competitiveness to consumers, particularly new users.

Rebalancing inventory continued for the fourth quarter of FY21. A2 Milk also warned this may continue into the first quarter of FY22. It is also spending on marketing to ensure it can shift its products.

What could be driving the A2 Milk share price higher?

A2 Milk hasn’t released any market updates recently. And guidance was lowered a few months ago.

It said that it was targeting revenue for FY21 in the range of $1.20 billion to $1.25 billion. Management said an immediate recovery was not expected. The earnings before interest, tax, deprecation and amortisation (EBITDA) margin is expected to be between 11% to 12% (excluding acquisition costs). However, that included a stock provision of between $80 million to $90 million, which was in addition to the $23 million stock provision recognised in the first half of FY21.

But in terms of the A2 Milk share price, there has been media speculation, such as in the Australian Financial Review, which suggests that the food giant Nestle is thinking about launching a takeover bid for A2 Milk.

There hasn’t been an official response from A2 Milk yet. But the AFR reported the company said it “does not comment on media speculation or rumours”.

Time will tell whether an offer eventuates from Nestle for A2 Milk.

At the current A2 Milk share price, it is valued at 24x FY23’s estimated earnings.

The post Here’s what has been moving the A2 Milk (ASX:A2M) share price in August 2021 appeared first on The Motley Fool Australia.

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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.

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AGL Energy Limited (ASX: AGL) released its earnings for financial year 2021 (FY21) last week, to the detriment of its share price.

As The Motley Fool Australia reported at the time, the AGL share price slipped after the release of its annual report. It ended the day 5.53% lower than the previous session.

But AGL is just one of the ASX’s big energy providers and comparing its results to those of its peers could be a useful exercise.

One obvious listed competitor to AGL is Origin Energy Ltd (ASX: ORG). While there are marked differences between the two energy companies, the demerger AGL is currently battling towards being one, they still tend to run in the same pack.

So, how do AGL’s earnings stack up against those of Origin? Let’s take a look.

AGL earnings report detailed a $2 billion loss

As mentioned above, the market reacted poorly to AGL’s earnings. Here’s a snapshot of how it performed during FY21:

• Revenue dropped 10% to $10.9 billion
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $1.66 billion –down 18% on that of FY20
• Statutory loss of around $2.05 billion
• Underlying profits of $537 million – FY20 saw $816 million of underlying profits
• 35-cent final dividend, 33% less than the final dividend of FY20

The day after AGL released its earnings, the company’s share price regained some ground before falling once more. It’s currently 5.9% lower than it was before AGL’s release.

Let’s see if Origin offered up any competition.  

How does Origin’s FY21 compare?

Origin didn’t do much better during FY21.

Like AGL, Origin saw its share price drop after it released its earnings on Thursday. Origin’s shares fell 4% on the back of its annual report.

However, Origin’s shares bounced back on Friday to end the session 1.3% lower at Wednesday’s close.

Here’s how it performed:

• Revenue down 8% to around $1.2 billion
• Around $2 billion of underlying EBITDA – 35% less than in FY20
• Statutory loss of approximately $2.2 billion
• Underlying profit of $318 million – FY20 saw around $1.03 billion of underlying profits
• Unfranked 7.5 cent final dividend – 25% less than FY20’s final dividend.

As you can see, there are some noticeable similarities between the two energy companies’ financial years.

Most obviously, both AGL and Origin reported an earnings loss of more than $2 billion. They were both plagued by lower wholesale energy prices and lessening demand due to COVID-19.

However, AGL’s revenue fell further than Origin’s, and it cut its dividend more enthusiastically.

All in all, FY21 wasn’t great for either AGL or Origin. Their significantly differing paths forward will likely make interesting viewing.

AGL share price snapshot

The AGL share price has been underperforming for a while.

As of Friday’s close, it has dropped 41% year to date. It has also slipped 53% since this time last year.

Right now, shares in AGL are worth $7.15 apiece.

The post How does the AGL (ASX:AGL) earnings result compare to Origin? appeared first on The Motley Fool Australia.

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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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Some leading ASX dividend shares have reported their FY21 results which showed profit growth as well as much higher dividends.

Reporting season is a useful time to get insights into how a business is performing. A board’s decisions into the dividend declarations can potentially provide insight into the leadership’s thoughts about the strength and medium-term outlook for the business.

Here are two ASX dividend shares that just reported increased dividends:

Inghams Ltd (ASX: ING)

Poultry business Inghams announced that for FY21 its annual dividend would be 16.5 cents per share, fully franked. That was an increase of 17.9% year on year. That represented a dividend payout ratio of 71%. It was in line with its policy of paying between 60% to 80% of underlying net profit after tax (NPAT).

The company experienced both volume growth and operating leverage. Group core poultry volume increased by 4.2% to 446.9kt. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 9.6% to $448.7 million, underlying net profit after tax grew 57.4% to $86.7 million and statutory net profit after tax rose 107.7% to $83.3 million.

The ASX dividend share also managed to reduce its inventory by $30 million. There was excess frozen processed poultry stock that had built up as a result of the effects of COVID-19. Inventory is now in its desired band.

It has been busy making investments for further growth. Inghams made progress with its two new hatcheries, with the Victorian facility now operational and WA expected to commence around the middle of FY22. In addition, the NZ$17 million investment in a new fully cooked processing line in Auckland is “progressing well” and is expected to be completed in the first half of FY22.

Inghams said it expects to see the consumer recovery restart when vaccination rates increase and the current lockdowns are lifted. Volumes are expected to show continued growth with new business across various channels. Feed costs have stabilised.

Citi rates the ASX dividend share as a buy, with a price target of $4.35. It thinks the Inghams share price is valued at 16x FY22’s estimated earnings

Adairs Ltd (ASX: ADH)

Adairs was another business to unveil a much bigger dividend. It announced a final dividend of 10 cents per share, taking the FY21 full year dividend to 23 cents per share. That was an increase of 109% compared to FY20.

It saw group sales rise by 28.5% to $499.8 million (with a 33.2% increase of Adairs online sales). The underlying Adairs gross margin went up 520 basis points to 66.7%. Underlying earnings before interest and tax (EBIT) grew 97.3% to $109.1 million, statutory net profit rose 80.7% to $63.7 million and earnings per share (EPS) jumped 79% to 37.7 cents.

Physical stores are still an important part of the picture for Adairs. That’s why it opened four new homemaker stores and upsized six stores (four homemakers and two regular stores). The company said that the store upsizing strategy continues to deliver a strong return on investment. The FY22 pipeline for new and upsized stores is a net new two to four stores and it’s planning to upsize a further eight to ten stores. That equates to an increase of 8% or more in gross lettable area over the next 12 months.

The ASX dividend share’s new national distribution centre is expected to be fully operational by the end of September 2021, which, once transitioned, is expected to lead to annual savings of around $3.5 million per annum.

Adairs noted that restrictions are impacting sales in FY22. Adairs stores have seen a 27% decline of sales in the first seven weeks of FY22, contributing to a 11.7% drop in total sales (including online sales). Adairs online sales were up 12.9% and Mocka sales were up 16.1%.

The post 2 top ASX dividend shares that just delivered big growth appeared first on The Motley Fool Australia.

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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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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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