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

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

Amazon (NASDAQ: AMZN) is coming off a remarkable fourth quarter with $125 billion in sales. That staggering figure will be difficult to repeat. Still, the outlook is optimistic as the e-commerce retailer and technology giant gets ready to report first-quarter earnings on Thursday, April 29.

Folks are shopping more on Amazon because it offers convenience, but more importantly as of late they are doing so because it offers some safety from exposure to the coronavirus. Investors will home in on the second part of that equation when Amazon reports first-quarter earnings.

More than 150 million people in the U.S. have received at least one dose of a coronavirus vaccine. Shareholders are wondering what will happen to customer shopping habits as more of the population gets vaccinated. In that context, here are three things you will want to take note of in the next earnings release.

Three factors to watch in Amazon’s next report

The first thing investors will want to look at is net sales. The company is guiding for growth of 36% year over year at the midpoint, which would be another quarter of over $100 billion in revenue. Folks appear to be maintaining the shopping habits they developed during the pandemic. And even though vaccinations are gaining momentum worldwide, the end of the pandemic regretfully is still nowhere in sight. That could mean a sustained increase in spending at Amazon.

Second, those interested in Amazon stock will want to know how much operating income it earned in the quarter. The e-commerce retailer is spending roughly $2 billion every quarter on COVID-related expenses, weighing on profits even as sales are surging. The hope is that if Amazon continues to serve customers well during the pandemic, then in the aftermath, COVID-related expenses will drop off while many of the newly attracted customers will remain. But even with the billions of extra costs, Amazon’s operating income surged in 2020, rising 57% from the previous year.

And third, look for management to discuss how consumer behavior is changing as people in the U.S. are leaving their homes more often. Amazon proved a reliable and safe supplier of essential items for people during the most acute phases of the pandemic. Now as over 135 million people in the U.S. have received at least one dose of a coronavirus vaccine and are starting to feel more comfortable leaving their homes, it could hurt sales at Amazon.com.

What this could mean for investors 

Analysts on Wall Street expect Amazon to report revenue of $104.36 billion and earnings per share of $9.45, which would be increases of 38.3% and 88.6%, respectively, year over year. The revenue estimate is slightly higher than the midpoint of management’s guidance. 

The surges in revenue and new customers are pushing profits at Amazon to record levels at an extraordinary rate. For instance, operating profit in 2020 was $22.9 billion, up more than 10 times from the $2.2 billion in 2015. But Amazon’s stock is only up about 1% year to date. That can partly be due to investor fears about a drop in sales in the aftermath of the pandemic as consumers return to their old habits. However, if you’re in it for the long haul, Amazon’s trajectory remains positive.

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

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Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 McGrath Ltd (ASX: MEA) share price has jumped higher in early trade. That comes after the Aussie real estate group provided a trading update and its latest full-year profit guidance.

Why is the McGrath share price surging?

Shares in the real estate company have rocketed higher at the open after it reported a significant earnings uplift. McGrath expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of $16.5 million to $17.5 million.

For context, McGrath’s FY2020 underlying EBITDA totalled just $3.7 million. The McGrath share price is responding positively following this morning’s update. It comes after a bumper half-year result and McGrath’s advice that it expects strong trading conditions to persist in the second half.

McGrath reported half-year underlying EBITDA of $6.6 million, up from $1.6 million in 1H 2020. The positive momentum behind that result has persisted in the third quarter, giving rise to the higher forecasts for McGrath’s full-year earnings.

A strong Aussie housing market has been a key factor in the significant earnings upgrade. McGrath said the residential property market has seen a number of positive indicators in recent times. Those include rising national home values, strong sales volumes and strong new household borrower commitments.

The McGrath share price has shot higher at the open following this morning’s update. McGrath CEO Eddie Law said, “The combination of improving business and consumer sentiment, record low interest rates and lower stock levels in the market, has driven strong price growth in recent months”.

Investors have clearly been buoyed by this morning’s news. Strong business performance and favourable conditions have shareholders buying strongly on Monday morning.

The McGrath share price has been charging higher in the last 6 months. Prior to this morning’s open, the Aussie real estate shares were up 140.7% to 65 cents per share since 27 October 2020. But today’s news has resulted in a further 7.69% gain to see the company’s shares currently trading at 70 cents.

Foolish takeaway

The McGrath share price is on the move after the company significantly boosted its forecast underlying EBITDA figures for FY2021.

More reading

• Why the McGrath (ASX:MEA) share price is climbing today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sigma Healthcare Ltd (ASX: SIG) share price has come under pressure on Monday morning.

At the time of writing, the pharmacy chain operator and distributor’s shares are down 3.5% to 66.5 cents.

Why is the Sigma share price tumbling?

Investors have been heading to the exits on Monday after Sigma announced that its Managing Director and Chief Executive Officer (CEO), Mark Hooper, has tendered his resignation after almost 11 years at the helm.

According to the release, Mr Hooper has provided six months’ notice and expects to leave the company by the end of October 2021.

The outgoing CEO commented: “Our transformation has progressed to plan and has returned Sigma to a position of strength, which creates the ideal opportunity to hand over the leadership to a new CEO. The business is now in great shape, the financial performance is strong, and we have built a platform for sustainable growth over the next few years.”

“Position of strength”

Mr Hooper certainly is leaving Sigma in a position of strength. Last month Sigma released its full year results and revealed a 39.2% increase in underlying EBITDA to $81.1 million.

It also revealed the “building blocks in place” to underpin its target of 10% per annum growth in underlying EBITDA for the next two years and ~$100m by FY 2023.

Sigma’s Chairman, Ray Gunston, said “On behalf of the Sigma Board, I have regrettably accepted Mark’s resignation, however we understand his desire to pursue other opportunities after more than ten years in the role. He has demonstrated strong leadership and personal dedication for the benefit of shareholders, customers and Sigma team members. I sincerely thank Mark for his tremendous contribution throughout his tenure.”

“Mark became CEO at a tough time for Sigma and put it on a pathway for a stronger future. He then undertook the biggest transformation in the company’s history and has set Sigma up for strong earnings growth. I personally, and all of us at Sigma, are very grateful for Mark’s hard work, vision and support over more than 10 years,” Mr Gunston concluded.

Sigma advised that it will shortly commence an executive search for a new CEO both internally and externally.

More reading

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• NIB (ASX:NHF) share price on watch following business update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has started the week in the red.

In morning trade, the clinical stage biopharmaceutical company’s shares are down just under 5% to $2.44.

Why is the Paradigm share price sinking lower today?

Investors have been selling Paradigm’s shares this morning after it provided an update on its dealings with the US Food and Drug Administration (FDA).

This is in relation to its investigational new drug (IND) application to the FDA for the proposed pivotal clinical trial treating subjects with pain associated with knee osteoarthritis (OA).

Paradigm previously revealed that it submitted its over 30,000 page IND application to the FDA on Friday 26 March.

This morning the company revealed that it has received a few questions from the FDA during the current 30-day IND review period. Positively, those questions were answered by Paradigm within 48 hours of receipt.

However, on Friday 23 April, Paradigm received a verbal indication from the FDA that the regulator would be putting further questions to Paradigm outside the 30-day IND review period.

The release explains that the FDA was unable to provide all questions within the initial IND review period and has advised it will submit them to Paradigm within the next 30 days.

Many of the questions, based on the brief discussion the company had with the FDA, are related to newly submitted non-clinical data.

Disappointingly, this could delay proceedings and lead to the company falling behind schedule on its plan to enrol clinical trial subjects.

Nevertheless, management advised that Paradigm is ready to review and answer questions when they are received. Once in receipt of Paradigm’s responses, the FDA will review them within 30 days.

Following today’s decline, the Paradigm share price is now trading a disappointing 37% lower than its 52-week high of $3.88.

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• Why the Paradigm (ASX:PAR) share price is charging higher today
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Motley Fool contributor James Mickleboro 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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In morning trade, the Westpac Banking Corp (ASX: WBC) share price is pushing higher despite the release of a mixed announcement.

At the time of writing, the banking giant’s shares are up almost 1% to $25.31.

This leaves the Westpac share price trading just short of its 52-week high of $25.52.

What did Westpac announce?

Investors have been buying the bank’s shares this morning despite revealing that its half year profits would be hit by notable items.

According to the release, there are a number of notable items that will impact its profit for the period by a total of $282 million after tax. The release explains that these items will impact both its cash earnings and statutory net profit equally.

Among its most notable items are additional provisions for customer refunds, payments, associated costs, and litigation provisions of $220 million.

There is also a $115 million write-down of capitalised software and other intangibles, $56 million for ending its relationship with IOOF Holdings Limited (ASX: IFL), an $84 million write-down of goodwill related to Lenders Mortgage Insurance, and an accounting loss on sale in Westpac Pacific along with transaction costs and payments associated with divestments totalling $113 million.

What else?

As you might have noticed, the notable items listed above add up to far more than $282 million.

That’s because these losses were partly offset by net gains in a couple of its tech investments.

The release explains that Westpac will recognise a net gain on the revaluation of its investment in Coinbase of $288 million and a gain on sale of its holding in Zip Co Ltd (ASX: Z1P) of $18 million.

Software capitalisation

In addition to the above, the bank has advised of changes in its software capitalisation policy.

Westpac has increased the threshold before a project is capitalised to $20 million (previously $1 million).

This policy has been applied from 1 October 2020 and will see the bank expense a higher portion of its investment spending from now on. However, the higher expense is not treated as a notable item and will have no impact to the carrying value of capitalised software at 30 September 2020.

Following today’s gain, the Westpac share price is now up 29% since the start of the year.

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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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The share price of ASX data visualisation company Pointerra Ltd (ASX: 3DP) has been on a tear over the last week, surging almost 27% higher to $0.735 by the close of trade on Friday.

The gains came after the release of Pointerra’s March quarter activities update, in which the company reported record cash receipts from customers.

In early trade this morning, the Pointerra share price is up 2.7% trading at 75.5 cents.

Company background

So, what does Pointerra do, exactly?

The ASX tech company develops cloud-based technology to help clients manage and visualise large 3D datasets. Its digital software allows clients from industries like construction, utilities or mining and resources to easily manipulate massive datasets to plan and design large development and construction projects.

The company’s software, which can be accessed through a web browser from anywhere in the world, also enables massive amounts of 3D data to be easily shared among clients and their stakeholders. However, Pointerra gives clients the ability to control who has access to their data, ensuring it also remains secure.  

What was in the quarterly update?

What really got Pointerra’s share price zooming last week was the release of its activities update for the March quarter. The company reported record quarterly cash receipts from customers of $1.37 million (up from just $0.64 million for the March quarter FY20). It was also a cashflow positive quarter for the young company, with net cashflows from operating activities coming in at $0.21 million.

Pointerra is also well-positioned to benefit from post-COVID government initiatives.

The company stated that it had seen an uptick in demand for its platform from clients in the architecture, engineering and construction industries – particularly in Australia, the US and the UK – as local, state and federal governments invest in infrastructure activities to try and spur economic recoveries following the pandemic.

What happened to the Pointerra share price after the update?

After sliding lower over the first half of the week, the Pointerra share price surged almost 30% higher after the report’s release on Thursday. Pointerra shares jumped a further 10% on Friday, meaning they were up almost 27% for the full week and edging back towards their 52-week high of $0.925. Year-to-date, Pointerra shares have now gained more than 40%.

Pointerra shares have so far easily outperformed those of the company’s closest competitor on the market, Nearmap Ltd (ASX: NEA).

Despite surging as high as $2.77 in mid-February, overall Nearmap shares have slumped this year, falling almost 10% lower to $2.07.

It will be interesting to watch Nearmap over the next few months to see if it also benefits from the same post-COVID business tailwinds as Pointerra.

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Rhys Brock owns shares of Pointerra Limited and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Pointerra 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 Woolworths Group Ltd (ASX: WOW) share price could be on the move this week when it releases its third quarter update.

Ahead of the release, I thought I would take a look to see what the market was expecting from the retail conglomerate.

What is expected from Woolworths in the third quarter?

As I mentioned here earlier today, analysts at Goldman Sachs note that the supermarket industry is entering an “interesting phase”.

This is because it is now cycling through the COVID-19 pantry stocking boom from the height of the pandemic.

Furthermore, the broker notes that National Australia Bank Ltd (ASX: NAB) retail sales data points to a sharp decline in supermarket sales during the month of March.

The banking giant “reported cashless retail sales in the Supermarket and grocery segment to have been down c. -14% in March,” Goldman explained.

What does this mean for Woolworths?

While the broker expects Woolworths to have outperformed rival Coles Group Ltd (ASX: COL), it is still forecasting a decline in sales.

Goldman expects Woolworths to report revenues of $16.3 billion for the third quarter, down 1% on the prior corresponding period.

This will be driven by a 1% decline in comparable store Australian food sales, a 2.5% decline in comparable New Zealand food sales, a 2% increase in comparable liquor sales, and a 10% jump in BigW comparable store sales.

Is the Woolworths share price in the buy zone?

According to the note, Goldman Sachs remains positive on the retail giant and has retained its buy rating and $43.60 price target on its shares.

It commented: “While sales are expected to be volatile, we continue to believe that industry profitability will be manageable over CY21 and believe the current market concerns over a price war in the sector are overstated.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 NIB Holdings Limited (ASX: NHF) share price will be on watch this morning. This comes after the company provided investors with a trading update as well as a full-year outlook.

At last week’s market wrap, the private health insurer’s shares finished at $5.39.

How did NIB perform?

NIB shares could be on the move today as investors weigh up the company’s latest trading performance and outlook.

For the 9 months ending 31 March 2021, NIB reported that its business was “performing well” despite the ongoing uncertainty surrounding the COVID-19 pandemic.

The company’s core Australian Residents Health Insurance (arhi) business saw an increase in policyholders, recording a total of 641,804, up 3.7% compared to FY20. NIB stated that claims experience, especially risk equalisation, is lower than originally expected.

Consequently, unaudited group underlying operating profit (UOP) for the period is sitting at $140.9 million.

The company’s provision for deferred and suspended claims during the pandemic (COVID-19 provision) for arhi came to $59 million. This compares to $70.7 million recorded for the first half of FY21. NIB noted that deferred healthcare treatments during COVID lockdown periods appears to be slower for Q3 than during the first half of FY21. The group stated that forecasting claims experience remains challenging in the current environment.

Nonetheless, according to NIB, its strong arhi performance coupled with the stable trading conditions in New Zealand is offsetting its weaker performing segments. These include the company’s international inbound health insurance (iihi) and travel insurance businesses.

NIB is focusing on diverting its investment to a number of projects. It hopes that providing improved health services to members and travellers will lead to continued growth.

The NIB share price will be in focus today after the company advised it is forecasting group UOP to increase to between $200 million and $225 million. In the first half of FY21, the company achieved a UOP of $86.9 million.

NIB revealed it will present its FY21 results to the ASX on 23 August 2021.

About the NIB share price

Over the last 12 months, the NIB share price has gained around 12% but has fallen close to 11% year to date. The company’s shares reached a 52-week high of $6.16 at the start of this year, before slightly pulling back.

On valuation metrics, NIB commands a market capitalisation of roughly $2.4 billion, with 457.7 million shares on issue.

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Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. 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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The Ioneer Ltd (ASX: INR) share price is one to watch this morning after a pre-market update from the Aussie miner.

Why is the Ioneer share price on watch?

Shares in the Aussie mining group are worth watching after its latest quarterly update. That included a cash flow and activities update for the period ended 31 March 2021 (Q3 2021).

Ioneer reported “solid progress” in its cornerstone Rhylite Ridge Project as it recorded a $1.31 million net operating cash flow loss. A number of US and European institutional investors backed an $80 million placement during the quarter. The Ioneer share price rocketed higher during the period despite tumbling after the 38 cents per share placement.

The proceeds from that capital raise provide the funding necessary to accelerate development of the Nevada-based project. Uses include advancing detailed engineering, environmental, research and consulting expenses as well as working capital and general purposes.

Ioneer reported the successful production of battery-grade lithium hydroxide from the pilot plant feedstock. That’s a significant milestone in delivering a higher premium product to boost sales.

Discussions for various offtake agreements are “progressing well” with a first lithium offtake announcement expected in the June quarter.

The Ioneer share price has had a strong start to the year with solid gains in the first quarter. Shares in the Aussie lithium-boron mining group are up by around 30% as at Friday’s close to 36.5 cents per share.

Ioneer is waiting on a Notice of Intent (NOI) from the US Bureau of Land Management (BLM) to pave the way for construction commencement. That’s currently expected to occur during the fourth quarter once the final Record of Decision (ROD) is received.

The company also signed a memorandum of understanding (MOU) with Caterpillar Inc. during the quarter. That MOU came after the completion of an autonomous haul truck feasibility study at the site.

Two new non-executive directors were appointed during the period with both Rose McKinney-James and Margaret R. Walker based in the US.

Foolish takeaway

The Ioneer share price is one to watch this morning after the company’s latest quarterly update. Shares in the Aussie-US miner have been on fire to start the year, climbing 30.4% in 2021.

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Motley Fool contributor Ken Hall 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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There are a handful of ASX dividend shares that have been rated as buys by dividends. These businesses offer bountiful payouts and could pay even bigger payments in FY21.

Stocks with good yields are in higher demand at the moment because of how low official interest rates are right now.

Brokers have picked out these two ASX shares as ideas:

Waypoint REIT Ltd (ASX: WPR)

Waypoint is Australia’s largest real estate investment trust (REIT) that is a pure play on fuel and convenience retail real estate.

It’s currently rated as a buy by the broker Morgans, it has a price target on the ASX dividend share of $2.94.

Morgans liked how Waypoint REIT’s income kept flowing from tenants in FY20 despite all of the COVID-19 impacts. In FY20 Waypoint was able to grow its distributable earnings per security (EPS) by 4.25% to 15.15 cents.

In FY21, the REIT is expecting to grow its distributable EPS by 3.75% to 15.72 cents. The expected FY21 growth is primarily underpinned by fixed 3% rent increases across the majority of the portfolio. That includes the sale of $20 million to $30 million of non-core assets, but assumes no acquisitions.

At 31 December 2020, its net tangible assets (NTA) per security was $2.49 – an increase of 8.7% over the prior corresponding period. The current share price is trading at around that NTA.

In FY21, Morgans is expecting Waypoint REIT to pay a distribution of 15.7 cents per security, translating to a distribution yield of 6.3%.

Inghams Group Ltd (ASX: ING)

Inghams is one of the largest poultry businesses in Australia and New Zealand. It has national networks of processing and distribution facilities.

The board of Inghams recently decided to change its dividend payout ratio policy to be in a range of 60% to 80% of underlying net profit after tax (NPAT). That means that it might be more attractive for dividend investors.

In the ASX dividend share’s FY21 half-year result, poultry volume growth was 4%, with total revenue growth of 4.6% and total poultry revenue growth of 6.1%.

Underlying net profit after tax (NPAT) before AASB16 changes grew 10.7% to $46.5 million. The interim dividend was increased by 2.7% to 7.5 cents. Growth of profit allows for the sustainable growth of the dividend.

In terms of the company’s outlook, it said that it will continue to focus on the execution of its five-year strategy to deliver more consistent, predictable and reliable returns to shareholders.

Inghams said the net impact of lower feed prices is expected to be modest in the second half, given the recent surge in international demand and customer cost pass through mechanisms.

The broker Citi rates Inghams as a buy, though it pointed to the Woolworths Group Ltd (ASX: WOW) contract negotiation as a potential headwind. The price target is $4.40 and it expects Inghams to pay a grossed-up dividend yield of 6.2% in FY21.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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