Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the ones listed below that have recently been named as buys.

Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first ASX growth share to look at is data services company Appen. Its million-strong crowdsourced experts prepare the data that goes into artificial intelligence (AI) and machine learning models. A testament to the quality of its service is that many of the biggest tech companies in the world such as Google and Facebook are customers. And while demand softened during the pandemic, there are signs that a rebound is taking place.

Citi recently put a buy rating and $18.00 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to look at is Life360. It is the growing technology company behind the Life360 mobile app. This is a market leading app for families. It offers useful features such as communications, driver safety, and location sharing. The company has also recently expanded into the wearables market via the acquisition of Jiobit. This increases its total addressable market and opens up cross selling opportunities. At the end of June, it had more than 32 million users on its platform. This was over 4 million more than it had just three months earlier.

Morgan Stanley currently has an overweight rating and $9.80 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. It recently released its FY 2021 results and revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. Pleasingly, the company still has a long runway for growth over the next decade. This is due to increasing online penetration rates and its leadership position online. The company estimates that in 2020 just 7% to 9% of category sales were made online.

Morgan Stanley has an overweight rating and $16.00 price target on Temple & Webster’s shares.

The post Here are 3 buy-rated ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Why the Appen (ASX:APX) share price fell 7% last time it reported
• Why the Temple and Webster (ASX:TPW) share price has jumped 18% in a month
• 2 top ASX shares to buy according to WAM
• 2 exciting ASX growth shares that are rated very highly
• 2 quality ASX growth shares rated as buys

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, Life360, Inc., and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for an easy way to invest, then exchange traded funds (ETFs) could be worth considering. This is because rather than deciding on which individual shares you should buy, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, I have picked out three popular ETFs that could be worth a closer look. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this fast-growing area of the market is heavily under-represented on the ASX. Among the companies you’ll be owning a slice of are cyber security giants Accenture, Cloudflare, Crowdstrike, and Okta.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ETF to look at is the iShares Global Consumer Staples ETF. This fund gives investors exposure to many of the world’s largest global consumer staples companies. These are well-known companies such as Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart. Given how demand for these types of products is relatively consistent whatever the economy throws at them, this ETF could be suitable for investors that are looking for lower risk options.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies with exposure to the growing video game market. Among the shares included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The post 3 popular ETFs that could be top options for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX growth shares that are rated very highly
• 2 highly rated ETFs for ASX investors next week
• 3 excellent ASX tech shares that could be buys
• Healthcare, miners among top performing ASX ETFs in July
• How this ASX ETF is helping protect our school kids

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 BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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 final day of the week ended with some of Australia’s most well-known company’s sending their FY21 numbers out for judgement day. After reporting to the ASX, these three companies were put under the microscope of investors.

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

Those that delivered today

Cochlear Limited (ASX: COH)

Shares in Cochlear fell 7.43% after the medical device company reported its FY21 full-year results. Despite solid numbers across the board and positive guidance for the year ahead, investors weren’t satisfied.

The takeaway points:

• Cochlear implant units up 15% to 36,456
• Sales revenue up 10% to $1,493.3 million
• Underlying earnings per share up 40% to $3.60
• Full year dividend up 59% to $2.55
• IT systems upgrade to cost $100‐$120 million over the next four to five years
• FY 2022 guidance: Net profit growth of 12% to 20%

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price traded uneventfully after reporting on the ASX its full-year results for FY21. Shares in the airport operator hardly budged, finishing the day down 0.26%.

The takeaway points:

• Net loss after tax benefit of $97.4 million. This is up 81.7% on the prior corresponding period’s (pcp) loss. This includes a 36% drop in aeronautical revenue and a 40.6% plunge in retail revenue.
• Revenue down 31.3% on the pcp to $351 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp.
• A negative cash flow of $565.5 million for the 6 months.

TPG Telecom Ltd (ASX: TPG)

TPG shareholders were sent for a wild ride on the ASX on Friday after the telco giant reported its first-half results for FY21. Shares moved upwards at the open before swinging ~7% to the downside. Yet, the company’s shares finished the day only down 0.45%.

The takeaway points:

• Revenue increased 71% to $2,630 million
• EBITDA up 67% to $886 million
• Net profit after tax down 8% to $76 million
• Fully franked interim dividend of 8 cents per share

ASX shares reporting next week

What a colossal week of earnings on the ASX. I hope everyone gets a good rest over the weekend because next week will be even busier for shares reporting on the ASX.

Some of the big-name companies set to release their financials next week include Altium Limited (ASX: ALU), Oil Search Ltd (ASX: OSH), WiseTech Global Ltd (ASX: WTC), A2 Milk Company Ltd (ASX: A2M), Appen Ltd (ASX: APX), Qantas Airways Limited (ASX: QAN), Woolworths Group Ltd (ASX: WOW), and Wesfarmers Ltd (ASX: WES).

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

The post The ASX reporting wrap-up: Cochlear, Sydney Airport, TPG appeared first on The Motley Fool Australia.

More reading

• Cochlear (ASX:COH) share price sinks: How did its result compare to expectations?
• Why Cochlear, Santos, St Barbara, & TPG shares are dropping
• How does the TPG (ASX:TPG) earnings result compare to Telstra?
• The Cochlear (ASX:COH) share price tumbles 7% despite dividend boost
• ASX 200 midday update: Cochlear & TPG sink, Inghams jumps

Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium, Appen Ltd, Cochlear Ltd., and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Altium, Appen Ltd, Wesfarmers Limited, and WiseTech Global. The Motley Fool Australia has recommended A2 Milk, Cochlear Ltd., and TPG Telecom 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 BCI Minerals Ltd (ASX: BCI) share price has advanced higher this Friday. This comes as the salt and potash developer released its full-year results for the 2021 financial year.

At market close, BCI Minerals finished the day trading for 44 cents, up 2.33%.

BCI Minerals share price lifts on strong growth across the board

The BCI Minerals share price is bucking yesterday’s heavy 15.69% fall to push higher today. For the 12-month period ending 30 June 2021, the company delivered strong earnings. Here are some of the key numbers.

• Total revenue increased 108% to $160.5 million (FY20 $77.2 million);
• Earnings before interest, tax depreciation and amortisation (EBITDA) rocketed 248% to $28.9 million (FY20 $8.3 million);
• Net profit after tax (NPAT) exploded 5,400% to $22 million (FY20 $0.4 million); and
• No final dividend declared for the full-year.

What happened in FY21 for BCI Minerals?

During the financial year, BCI Minerals focused on completing the Optimised Feasibility Study (OFS) and progressing funding, approvals, tenure and offtake aspects for the Mardie Project.

In addition, the company conducted de-risking activities during the optimisation phase to increase confidence in Mardie estimates and value potential. This included geotechnical work, flowsheet and equipment design, process piloting and progress with funding.

The optimisation results confirmed Mardie can become a Tier 1 asset with a minimum life of 60 years.

In December, the Federal Government’s Northern Australia Infrastructure Facility (NAIF) approved a 15-year $450 million loan for the Mardie Project. The NAIF loan is expected to sit alongside other debt tranches. A number of commercial banks and other lenders are working through credit approval processes.

Engagement with potential buyers of Mardie’s salt and sulphate of potash (SOP) products continued over the course of the year. Two additional non-binding Memoranda of Understanding (MOUs) were signed with Chinese chemical companies for up to 0.5 million tonnes per annum of salt. This brings currently 16 MOUs in place, covering 100% of 3-year salt production and 80% of 3-year SOP production.

What’s the outlook for BCI Minerals?

Looking ahead, BCI Minerals advised it is in a strong capital position to advance the Mardie Project to Final Investment Decision (FID) later this year.

The company has a cash balance of $110 million, with nil debt and ongoing Iron Valley royalty earnings.

In the interim, the company plans to continue investing its cash reserves in developing the Mardie Project. Construction of embankment trial walls is currently underway.

BCI Minerals plans to secure any remaining approvals, tenure, as well as $1.2 billion in funding for the Mardie Project. If successful, this will allow the main construction of the site to commence in early 2022.

The post BCI Minerals (ASX:BCI) share price advances following 108% increase on revenue appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 mid cap ASX shares as buys
• Here are 3 buy-rated ASX growth shares
• 3 popular ETFs that could be top options for ASX investors
• The ASX reporting wrap-up: Cochlear, Sydney Airport, TPG
• 2 ASX dividends shares with attractive yields

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

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Are you looking for some quality ASX dividend shares to add to your income portfolio?

Then you might want to look at the ones listed below. Here’s what you need to know about these dividend shares:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to consider buying. This is due to its strong market position, focus on automation, and the normalisation of shopping trends.

It was thanks to a couple of these factors that Coles just handed in a solid full year result for FY 2021. For the 12 months ended 30 June, Coles reported sales revenue growth of 3.1% to $38,562 million and net profit after tax growth of 7.5% to $1,005 million. The latter was a touch ahead of the market’s expectations. This allowed Coles to increase its full year dividend by 6% to a fully franked 61 cents per share.

Analysts at Morgans were pleased with the company’s performance. In response, the broker retained its add rating and lifted its price target to $19.80. It is now forecasting dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023.

Based on the current Coles share price of $18.79, this represents yields of 3.2% and 3.3%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America. This includes the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.

While traffic volumes have been impacted by the pandemic and recent lockdowns, they are expected to rebound once trading conditions return to normal.

In the meantime, Ord Minnett believes it is worth sticking with the company. Its analysts currently have a buy rating and $15.50 price target on its shares.

The broker is forecasting dividends of 36.5 cents per share in FY 2022 and then 48.4 cents per share in FY 2023. Based on the current Transurban share price of $14.02, this will mean yields of 2.6% and 3.5%, respectively.

The post 2 ASX dividends shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• The Coles (ASX:COL) dividend climbed 6% in FY 2021
• ASX 200 midday update: BHP sinks, CSL outperforms guidance, Coles rises
• Coles (ASX:COL) share price climbs following FY21 results
• 2 blue chip ASX 200 dividend shares that could be buys
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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) has seen the week out with a whimper rather than a bang this Friday. At the closing bell, the ASX 200 was down an anaemic 0.05% to 7,460 points. Yawn.

So let’s instead take a look at the ASX 200 shares that topped ASX trading volumes this Friday.

The 3 top trading ASX 200 shares this Friday

South32 Ltd (ASX: S32)

The diversified ASX 200 miner South32 is our first share to check out today. This Friday has seen an impressive 21.53 million South32 shares change hands. South32 reported its FY21 earnings yesterday morning, and the response from the markets has been swift. The miner lost 0.52% yesterday, but has seen a far nastier 3.14% fall during trading today.

Over the past 5 trading days, this miner has lost around 7.7% of its value. It’s likely that the steep sell-off we are seeing during today’s session is behind the elevated number of South32 shares that have swapped hands this Friday.

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is the next cab off the rank today. Telstra has seen a very impressive 25.66 million of its shares change hands today. This appears to be the result of a strong move in the Telstra share price today. At the end of trading, Telstra was up a solid 1.26% to equal its 52-week high of $4.02 a share.

As my Fool colleague Marc reported this morning, this move may have been sparked by reports that Telstra is looking to diversify its earnings base with a potential purchase of Meridian Energy Ltd‘s (ASX: MEZ) Australian electrical generation assets. It’s probably this excitement that is leading to so many Telstra shares trading today.

PIlbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is last on our list today, with an astonishing 29.95 million shares bought and sold on Friday. A regular top-trading share, Pilbara’s move today seems to be in pure response to the company’s share price.

Pilbara has had a clanger of a week, falling from $2.38 a share on Monday to $2.02 at the final bell yesterday, a slide of more than 15%.

Seeing as the company has lost a chinky 5.6% just today, it’s likely this intense selling pressure is what is behind so many Pilbara shares changing owners this Friday.

The post Here are the 3 top trading ASX 200 shares this Friday appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals (ASX:PLS) share price is sinking, still up 140% this year
• What’s going on with ASX lithium shares today?
• Telstra (ASX:TLS) share price hits 52-week high amid diversification rumours
• How does the TPG (ASX:TPG) earnings result compare to Telstra?
• August has been a great month so far for the Telstra (ASX:TLS) share price

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended 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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Today, the S&P/ASX 200 Index (ASX: XJO) flailed around before settling close to its previous close. The benchmark index finished down 0.03% to 7,462.3 points. A mix of different mining companies weighed on the Aussie index, while utilities and consumer staples put on a good showing.

However, as always, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered gains while the broader market was red:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Treasury Wine Estates Ltd (ASX: TWE) was the biggest gainer today. Shares in the winemaker increased 5.60% despite no announcements. Find out more about Treasury Wine Estates here.

The next best performing ASX share out of the top 200 today was Origin Energy Ltd (ASX: ORG). The energy company’s shares climbed 3.34% to $4.33 despite no announcements. Uncover the latest Origin Energy information here.

Today’s top 10 biggest gains were made in these ASX shares:

Our top 10 ASX shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Which ASX companies are ending the week as the biggest movers today?
• Why Adairs, Redbubble, Treasury Wine, & Western Areas are storming higher
• ASX 200 midday update: Cochlear & TPG sink, Inghams jumps
• The Treasury Wines (ASX:TWE) dividend bumped up by 60%
• The Origin (ASX:ORG) dividend has dropped 20%

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited and Treasury Wine Estates 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 climbed into the green this week.

Whereas the S&P/ASX 200 Index (ASX: XJO) has posted a loss of 1.66% over the past week, A2 Milk shares are up 11%.

Let’s investigate further.

What’s happening with A2 Milk?

The big news earlier in the week was regarding A2’s potential acquisition targeting from global foods powerhouse Nestle.

Recall that A2 has faced headwinds this year. The Chinese infant nutrition markets posed particularly challenging dynamics for the company.

Moreover, the company advised that recent actions taken to address headwinds in its cross-border e-commerce channels “would not result in sufficient improvement” on Q3 pricing and sales.

As such, Nestle purportedly is targeting the milk company, albeit choosing to wait for its FY21 results before making a decision.

However, in an interesting turn of events, A2 Milk is currently engaged in a trademark battle with Nestle.

The company is appealing a decision that Nestle would be allowed to keep its own infant formula range, that contains the A2 protein.

A2’s original challenge was rejected on grounds the company failed to establish a case for opposition.

Given there is no market-sensitive information today, it stands to reason that investors are pushing the A2 Milk share price higher this week on the back of this major event.

A2 Milk share price snapshot

The A2 Milk share price has had a choppy year to date, posting a loss of 43%. Over the past 12 months, the company’s shares have also fallen by around 64%.

As a result, these returns have lagged the broad index’s return of around 25% over the past year.

A2 Milk shares closed on Friday at $6.52, down 1.21% on the day.

The post Here’s why the A2 Milk (ASX:A2M) share price is up 11% this week appeared first on The Motley Fool Australia.

More reading

• 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
• Here are the top 10 ASX shares today
• Who’s starting the week off as the biggest mover on the ASX 300 today?

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Facebook Inc (NASDAQ: FB) is taking a step into the metaverse with its latest virtual reality (VR) application. The announcement has brought heightened attention to the Facebook share price. Shares in the social media giant have already climbed 32% since the start of 2021.

In a press release today, Facebook unveiled its answer to Zoom, known as ‘Horizon Workroom’, or more simply as ‘Workrooms’ — the VR experience aims to be a more immersive environment for people who work together to communicate and collaborate.

Remote working of the future

While COVID-19 has resulted in a massive influx of remote working out of necessity, some people still argue that real collaboration can’t occur outside of the workplace. Video teleconferencing company, Zoom Video Communications Inc (NASDAQ: ZM), would argue otherwise.

Communicating with colleagues is critical in just about every occupation. Thanks to the modern internet, much of the population has been able to continue to interact with others while being homebound. However, as Facebook points out — working remotely can feel isolating, and creative collaborating can feel stifled — queue Workrooms.

Facebook’s Workrooms utilises the company’s Oculus Quest 2 VR headset to bring colleagues together virtually. According to the company, Workrooms is “designed to improve your team’s ability to collaborate, communicate, and connect remotely, through the power of VR”.

In stark contrast to Zoom’s 2D interaction, Workrooms allows users to enter a completely virtual space with multiple people. From there, people can share documents on a virtual screen, take notes on a virtual keyboard, and wave their virtual hands in the air — pretty cool huh.

Apparently, Facebook employees have been using their own creation for months to conduct their own virtual meetings.

Commenting on the innovation, CEO and Founder Mark Zuckerberg said:

These kinds of experiences, where you can actually feel present with other people, are I think a much richer way to interact than the types of social apps we’ve been able to build on phones or computers.

The product announcement follows discussions of how Facebook wants to push into the next frontier of the internet… the metaverse. Perhaps Workrooms is the first public piece of that ambitious puzzle.

Facebook share price compared to Zoom

Surprisingly, despite a continuation of lockdowns and restrictions across some geographies, the Zoom share price has underperformed even the S&P/ASX 200 Index (ASX: XJO). Specifically, the video conferencing company’s shares have gained 14.3% in the past year.

In comparison, the Facebook share price has outperformed the Aussie benchmark index. Even more impressively, the social media company has inched out an outperformance of the S&P 500, which returned 30.1% over the past year.

The post Facebook (NASDAQ:FB) share price in focus as it reveals its answer to Zoom appeared first on The Motley Fool Australia.

More reading

• Why Facebook stock slipped on Tuesday
• Will Snap be worth more than Facebook by 2030?
• Amazon investors are getting its e-commerce business for free
• Why Facebook’s outlook for rest of 2021 doesn’t scare me
• Why Facebook stock moved higher on Wednesday

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 Mitchell Lawler owns shares of Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook and Zoom Video Communications. The Motley Fool Australia has recommended Facebook and Zoom Video Communications. 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 Cochlear Limited (ASX: COH) share price has been the worst performer on the S&P/ASX 200 Index (ASX: XJO) on Friday.

In late afternoon trade, the hearing solutions company’s shares are down 7% to $237.81.

Why is the Cochlear share price under pressure?

Investors have been selling down the Cochlear share price on Friday following the release of its full year results.

Although the company delivered a profit result in line with its guidance, it fell short of the market’s expectations.

Unfortunately for the Cochlear share price, this was the case for its guidance for FY 2022 as well. This has left analysts scrambling to adjust their estimates and recommendations today.

How did Cochlear’s result compare to expectations?

Goldman Sachs has been running the rule over the Cochlear result. It notes that the company’s revenue was in line with expectations, but its earnings fell short.

The broker commented: “FY21 revenue in-line, earnings (2)% below. Revenue of $1,489m was in-line with consensus, with YoY growth of +19% representing a +1% CAGR from FY19. Gross margins fell 200bps from 75% to 73% (half driven by FX), whilst opex grew +5%, contributing to a (2)% earnings miss, albeit still comfortably within the middle of guided range ($237m vs. $225-245m).”

While that was disappointing, the biggest impact on the Cochlear share price appears to have been its guidance.

Goldman explained: “COH targets earnings of $265-285m in FY22, representing growth of +12-20% on a heavily Covid-impacted comparator, approximately (12)-(5)% below current consensus.”

“Developed markets are expected to grow in FY22 but COH highlights that surgery rates remain highly variable and that, whilst guidance factors some continuing Covid impact, it does not consider a more material disruption that significantly impacts sales.”

Goldman added: “It is worth highlighting that FY22 earnings guidance implies a +0-2% 3-year CAGR from FY19, suggesting the recovery will likely still take longer than for many other stocks in the sector.”

Are its shares in the buy zone?

While Goldman Sachs hasn’t updated its recommendation yet, it previously had a sell rating and $189.00 price target.

Given the above, it seems highly unlikely that the broker’s opinion will change on the Cochlear share price once it has fully digested the result.

The post Cochlear (ASX:COH) share price sinks: How did its result compare to expectations? appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Cochlear, Sydney Airport, TPG
• Why Cochlear, Santos, St Barbara, & TPG shares are dropping
• The Cochlear (ASX:COH) share price tumbles 7% despite dividend boost
• ASX 200 midday update: Cochlear & TPG sink, Inghams jumps
• Cochlear (ASX:COH) share price on watch after hitting FY21 earnings guidance

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. 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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