Reporting is wrapping up for the first half of FY21, and we have seen stellar results from some ASX dividend shares.

Investors hunting for dividends could do well to look at the big miners, which reported record dividends in their most recent results.

BHP Group Ltd (ASX: BHP) saw dividends increase by 55%, while Rio Tinto Limited (ASX: RIO) increased dividends by 26% and Fortescue Metals Group Limited (ASX: FMG) upped its interim dividend by 93%.

The miners benefited from strong demand for commodities, including iron ore, which is trading at record prices. Let’s take a look at these ASX dividend shares in more detail. 

BHP Group

BHP announced record dividends this week as strong demand for iron ore helped the miner increase underlying net profit. The miner announced a record half-year dividend of US$1.01 per share. This represents an 85% payout ratio on an underlying basis and brings BHP’s shareholder returns to more than $30 billion over the past three years.

Profit from operations was up 17% to US$9.8 billion thanks to strong underlying operational performance. The company achieved record iron ore production in Western Australia alongside copper extraction at the Escondida copper mine in Chile. Higher prices for both commodities contributed to strong free cash flow.  

Attributable profit was down by a fifth to US$3.8 billion due to an exceptional loss of US$2.2 billion. This predominantly related to impairments of New South Wales Energy Coal and associated deferred tax assets. Nonetheless, underlying basic earnings per share (EPS) increased by 16% to US119.4 cents a share.

Commenting on the half-year results, CEO Mike Henry said, “Our operations generated robust cash flows, return on capital employed increased to 24 per cent and our balance sheet remains strong with net debt at the bottom of our target range.” 

BHP’s outlook for global economic growth and commodity demand remains positive thanks to policymakers in key economies signalling an enduring commitment to growth. Combined with population growth and rising living standards, these factors are expected to drive continuing growth in demand for energy, metals, and fertilisers.

The company is also accelerating its plan to be lower cost and more productive. With a portfolio of essential products that will support a more prosperous world, BHP says it is well-positioned to generate sustainable returns for shareholders and value for its commodities. 

Rio Tinto

Rio Tinto joined BHP in the record dividend club by delivering the biggest dividend in its history. The continued strength in iron ore prices drove the miner to achieve its biggest profit in nine years.

Rio Tinto announced its full-year results this week for the year ended 31 December 2020. A total dividend of 557 US cents per share was declared, including a special dividend of 93 US cents per share. This represented a 72% full-year payout ratio.

Underlying earnings were US$12.4 billion, 20% above 2019. Net earnings were up 22% to US$9.7 million, reflecting $1.1 billion of impairments, most of which were taken in the first half of 2020. This compared to $1.7 billion of impairments in 2019. Underlying earnings per share rose 21% to 769.6 US cents per share. 

Rio Tinto ended the financial year with a strong balance sheet, including a $0.7 billion net debt, a decrease of $3 billion. This reflected the strength of free cash flow, partly offset by $6.3 billion of cash returns to shareholders in 2020.

“Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society,” said chief executive Jakob Stausholm. 

Fortescue Metals 

Fortescue was another miner smashing dividend records this reporting season. On Thursday, Fortescue reported a record half-year performance with a 93% increase in interim dividends.

Commenting on the half-year results, Fortescue CEO Elizabeth Gains said: “Fortescue’s performance for the first half of FY21 has been outstanding. Revenue of US$9.3 billion for the first half exceeded the prior comparable period by 44 per cent, with realised prices increasing by 42 per cent.”

Shipments, earnings, and operating cash flow for 1H FY21 surpassed any half year in Fortescue’s history. 

The metals giant reported net profit after tax (NPAT) of US$4.1 billion and earnings per share of US$1.33, an increase of 66% on the prior corresponding period. Net cash flow from operating activities was US$4.4 billion. Free cash flow was US$2.5 billion after investing $1.9 billion in capital expenditure.

The fully franked interim dividend of $1.47 per share represents an 80% payout of 1H FY21 NPAT. Fortescue has a commitment to shareholder returns targeting the top end of its dividend policy to pay out 80% of full-year NPAT. With 20% of NPAT available to fund future growth, the company intends to allocate 10% to fund renewable energy growth and 10% to fund other resource growth opportunities. 

Fortescue finished the half-year with net debt of US$110 million, including cash on hand of US$4 billion. The excellent operating performance in the first half combined with a continued focus on capacity optimisation has supported an increase in FY21 shipments guidance to 178–182mt. Full-year capital expenditure is expected to be in the upper end of the range of US$3 billion –US$3.4 billion.

Capital expenditure in the first half was US$1.9 billion, consisting of US$647 million in sustaining and operational development capital, US$58 million in exploration, and US$1.2 billion in major projects.

ASX dividend shares deliver 

ASX mining shares have been dividend stalwarts for some time now, but have outdone themselves this reporting season with record returns for shareholders.

The commodities boom is driving strong results for ASX miners, and many expect it to continue as the COVID-19 vaccine rolls out, which should result in a ramp-up in economic activity.   

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Oz Minerals (ASX:OZL) share price hits 13-year high as profit jumps 30%
• Fortescue (ASX:FMG) share price pushes higher after declaring huge dividend
• ASX 200 dips, EML soars after reporting, Appen sinks
• Rio Tinto (ASX:RIO) share price on watch after announcing special dividend

Motley Fool contributor Kate O’Brien owns shares of BHP Billiton Limited and Rio Tinto Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It certainly has been a positive day for the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

In afternoon trade, the banking giant’s shares are up 3.5% to $26.72.

This leaves the ANZ share price trading within sight of its 52-week high of $27.29.

Why is the ANZ share price charging higher?

Investors have been buying ANZ shares on Thursday following the release of its first quarter update this morning.

For the three months ended 31 December, the banking giant reported unaudited cash earnings from continuing operations of $1,810 million. This was an impressive 54% jump on the average of the last two quarters of FY 2020.

Also giving the ANZ share price a boost was news that the bank is reversing some COVID-19 provisions. Today’s update included a COVID-19 collective provision release of $173 million.

This represents ~10% of the $1,700 million set aside during FY 2020. Though, management may not be done there. At this point, it feels this release is prudent when balancing the improvement in the economic outlook at the end of the December quarter with the level of ongoing uncertainty.

This appears to hint that if things continue to improve, further releases could be made in the coming quarters.

How does this compare to expectations?

According to a note out of Goldman Sachs, ANZ’s cash earnings result was better than it was expecting. It notes that this was largely due to a significant outperformance in bad and doubtful debts.

The broker was also pleased to see that its pre-provision operating profit (PPOP) was running ahead of what its analysts were forecasting for the first half.

Another positive was the bank’s expenses, which were flat versus the second half quarterly average.

And finally, ANZ’s CET1 ratio of 11.7% is running well ahead of what Goldman is forecasting for the first half. It notes that this is being driven by better profitability and lower credit risk-weighted assets.

Is the ANZ share price in the buy zone?

Although the company is outperforming Goldman Sachs’ estimates, at this point, it still doesn’t see enough value in the ANZ share price to recommend it as a buy.

For now, the broker has retained its neutral rating and $24.43 price target.

Though, this could change in the coming days once the broker has had chance to fully digest the result.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• ANZ (ASX:ANZ) share price rises, Q1 profit surges 54%
• ANZ (ASX:ANZ) share price on watch after $1.8 billion Q1 cash profit
• 5 things to watch on the ASX 200 on Thursday
• Westpac (ASX:WBC) share price on watch as it delivers $2bn quarterly profit result

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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Star Entertainment Group Ltd (ASX: SGR) shares have managed to stay out of the red today, despite the company reporting a 33.1% fall in profits. At the time of writing, the Star Entertainment share price is up 0.27% to $3.69.

Results impacted by COVID

Star Entertainment owns and operates a number of resorts and venues including The Star Sydney, The Star Gold Coast, and Treasury Brisbane. Considering the very physical nature of these businesses, social distancing restrictions and border closures have materially impacted patron volumes.

As a result, group revenue came to $749.9 million for the half-year, down 36.2%. Sydney venue earnings were significantly dampened by the patron cap per-area, no co-mingling, and caps on table utilisation. VIP revenues across Syndey, Gold Coast, and Brisbane were dismantled – all falling 94% or more.

Slot machine revenues appeared to be a saving grace for the company. Both Brisbane and Gold Coast revenues from the slots increased by 7% and 8% respectively.

Brisbane operations fared the best during the half as a result of fewer COVID-19 restrictions. Non-gaming revenues for the sunny city were down by only 15%, compared to 45% and 64% for Gold Coast and Sydney respectively.

Managing through the storm

The Star Entertainment share price is treading water today after management advised its prudent action during the half led to a 40% reduction in operating expenses. Both variable and fixed costs were reduced to weather impacted revenues.

The company plans to deleverage the business throughout FY21. Steps being taken include asset sales, capex reductions, and continuing the suspension of dividends.

Furthermore, $50 million in fixed costs are targeted to be saved as part of the plan. In the first half alone, 248 salaried roles have been removed.

Star Entertainment share price spotlight

As has been the case for many physical-based businesses, the Star Entertainment share price has taken a beating over the past year. While the S&P/ASX 200 Index (ASX: XJO) has fallen 3.5% during the last 12 months, Star Entertainment shares have fallen by more than 10%. 

The Star share price lost its sparkle from February 2020, once the implications of lockdowns became apparent. The share price went for a bungee jump, plummeting from $4.33, down to $1.53 in March only to spring back to $3.35 by June.

More reading

• Why the ANZ (ASX:ANZ) share price is storming higher today
• Why the LiveTiles (ASX:LVT) share price is tumbling 11% lower today
• The NRW Holdings (ASX:NWH) share price has plunged 16%. Here’s why
• Why the Woodside (ASX:WPL) share price is tumbling lower today
• The Perpetual (ASX:PPT) share price fell 7% after this announcement

Motley Fool contributor Mitchell Lawler 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.

The post Star Entertainment (ASX:SGR) share price rises despite 33% fall in profit appeared first on The Motley Fool Australia.

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The LiveTiles Ltd (ASX: LVT) share price has returned from its trading halt and is tumbling lower.

At one stage the intranet and workplace technology software provider’s shares were down as much as 11% to 26 cents.

The LiveTiles share price has since recovered some of this decline but currently trades 6% lower at 27.5 cents.

Why is the LiveTiles share price under pressure?

This morning the LiveTiles share price returned from its trading halt after it released an update which provides more colour on yesterday’s new contract announcement.

On Wednesday, LiveTiles revealed that it had secured a “record multi-million dollar deal with one of the largest healthcare companies in the US.”

However, no details were provided in respect to how many millions the contract was worth or who the contract was with. This appears to have caught the eye of the ASX Ltd (ASX: ASX), which prompted today’s update.

What was today’s update?

This morning LiveTiles stated: “Pursuant to ASX Listing Rule 3.1, LiveTiles confirms the customer is United Healthcare Group.”

According to the ASX, listing rule 3.1 states that “an entity must disclose all information concerning it that it becomes aware of from any source and of any character, if a reasonable person would expect the information to have a material effect on the price or value of its securities.”

In light of this, the company revealed what record multi-million dollar deal means to it.

It advised that the contract is for an initial and minimum term of three years, with a minimum contract value of A$3.0 million.

It does, however, have the potential to grow up to A$12.2 million over the life of the contract. This is based on the customer’s possible employee headcount growth over the next five years and the inclusion of additional products and services that may be required as the project evolves.

Management advised that there are no material conditions that need to be satisfied, nor is there other material information relevant to assessing the impact of the commercial agreement on the price or value of the company’s shares.

Judging by the LiveTiles share price today, some investors may have believed the contract was going to be even larger based on its first announcement.

More reading

• Why the LiveTiles (ASX:LVT) share price is rocketing 20% today
• Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today
• Why the LiveTiles (ASX:LVT) share price is surging 17% higher today
• LiveTiles (ASX:LVT) shares placed in trading halt
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher

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 LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES 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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The NRW Holdings Limited (ASX: NWH) share price is plunging today, down 16% at $2.35 in afternoon trading.

Let’s take a look at the mining and construction services provider’s results for the first half of the 2021 financial year ending 31 December.

What financial results did NRW Holdings report?

In this morning’s release, NRW reported a range of strong results. However, today’s sharp share price fall is possibly due to a sizable drop in profits in the half-year.

The positive results include record first-half revenue of $1.168 billion. That’s an increase of 44% from the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased, up by 28% to $132.8 million compared to H1 FY20.

Profits, however, were down. The company reported NPATN (which incorporates earnings before amortisation of acquisition intangibles and non-recurring transactions costs at normal 30% tax rate) of $40.3 million. That’s down 12% from the $47.6 million reported in the prior corresponding period.

NRW reported a cash balance of $171.4 million and said it had reduced its net debt by $43.2 million to $96.5 million.

The company also confirmed it was moving to compulsory acquisition to take over Primero Group Ltd (ASX: PGX).

Management comments

Looking ahead, NRW CEO Jules Pemberton said:

Growth is expected to continue as a result of increasing expenditure on infrastructure projects at state and federal level, demand for commodities remaining strong and as a consequence of the recently announced Primero acquisition…

The addition of Primero to the MET business represents a further diversification of our strategic platform to offer clients continuity of services across the whole lifecycle of resource projects – from early planning, design, development, construction to operations and maintenance.

Our exposure and now strengthened capability to participate in the future energy minerals and renewables sectors is also set to grow through Primero’s existing client base…

NRW will pay an interim dividend of 4 cents per share, up 60% from the first half of the 2020 financial year.

NRW share price snapshot

After being savaged during the wider COVID-19 market selloff last year, NRW shares are up 114% from their 19 March 2020 lows. Even with that gain, shares are still down 19% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is down 1% over that same period.

Year-to-date, the NRW share price is down 21%.

More reading

• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today
• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why the Asaleo Care (ASX:AHY) share price is up 5% today
• NRW (ASX:NWH) share price jumps on acquisition update
• The Rhipe (ASX:RHP) share price slides despite strong sales growth

Motley Fool contributor Bernd Struben 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 Woodside Petroleum Limited (ASX: WPL) share price has come under pressure today following the release of its full year results.

At the time of writing, the energy producer’s shares are down 3% to $25.13.

How did Woodside perform in FY 2020?

For the 12 months ended 31 December, Woodside delivered record full year production of 100.3 million barrels of oil equivalent (boe). It also had its best-ever safety performance despite the difficult external conditions. The company reported a total recordable injury rate of 0.88 per million work hours.

However, due to a 33% reduction in the volume weighted average price of its products to US$32 per boe, the company reported a 26% decline in operating revenue to US$3,600 million.

Things were even worse on the bottom line due to previously announced non-cash impairments and onerous contract provisions. For FY 2020, Woodside recorded a net loss after tax of US$4,028 million.

On an underlying basis, net profit after tax came in at US$447 million. This was down 58% year on year from $1,063 million in FY 2019.

In light of this poor form, the company declared a final dividend of 12 U.S. cents per share. This brought its full year dividend to 38 U.S. cents per share, which is also down 58% year on year.

Woodside’s CEO, Peter Coleman, commented: “Strong production outcomes were delivered even though we weathered a direct hit from Tropical Cyclone Damien in February, followed by operational challenges posed by the pandemic. The outstanding performance of our base business in 2020 was reflected in our low unit production cost of US$4.8 per barrel of oil equivalent and the high reliability of our operated LNG facilities.”

Outlook

Also potentially weighing on the Woodside share price today could be its guidance for the year ahead.

Management expects the company’s production to fall from 100.3 Mmboe in FY 2020 to between 90 and 95 MMboe in FY 2021. This is partly due to KGP LNG Trains 2 and 4 each being shut down for approximately one month.

The company is also forecasting an increase in investment expenditure to between US$2,900 million to US$3,200 million. This compares to US$2,000 million in FY 2020.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Woodside (ASX:WPL) share price on watch after latest oil market forecasts
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday

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 Perpetual Limited (ASX: PPT) share price is down just over 7% to $31 at midday today. This comes after the financial services provider released its first half of 2021 results.

Let’s review how the business and the Perpetual Limited share price have performed over the six-month period.

Perpetual Limited’s first half 2021 highlights

Perpetual Limited reported $89.2 billion in total assets under management.

For the half-year ended 31 December 2020, Perpetual reported a net profit after tax (NPAT) of $29.2 million. Indeed, this is a significant drop compared to the NPAT for the half-year ended 31 December 2019 of $51.6 million.

Perpetual reported an underlying profit after tax of $52.6 million for the half-year ended 31 December 2020. Similarly, down slightly compared to $58.9 million for the half-year ended 31 December 2019.

In contrast, 1H21 operating revenue was up 10% on the pcp to $280.6 million. In this case, growth was predominantly driven by the international asset management division and completed acquisitions. 

The company Directors resolved to pay a fully franked interim dividend of 84 cents per share. Down compared to $1.05 per share paid during the prior comparative period (pcp).

CEO speaks about performance

Commenting on the half-year performance, CEO and Managing Director, Mr. Rob Adams, said: 

“We continue to make strong progress in executing our strategy. Our Asset Management teams have remained true-to-label, delivering solid performance for the period across all capabilities, including Australian equities in particular. Our first half was bookended by the completion of our strategic acquisitions of Trillium and then a 75% interest in Barrow Hanley. These acquisitions combine with the successful build-out of our US distribution team, to be transformational milestones for Perpetual as we continue to build world-class investment and distribution capabilities to provide greater diversification by business line, geography and asset class.”

The Perpetual Limited share price at a glance

Year-to-date, the Perpetual Limited Share price is down 3.68%. However, an institutional share placement and share purchase plan was implemented during the period. Thus resulting in $270.1 million (net of costs) in proceeds.

The company’s market capitalisation is $1.9 billion with 56.5 million shares outstanding.

More reading

• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today
• Real reporting season surprise isn’t about profits but dividends
• Top ASX shares to buy in February 2021
• Why Afterpay, Cleanaway, Mosaic Brands, & Perpetual shares are dropping lower
• Why the Perpetual (ASX:PPT) share price is falling today

Motley Fool contributor Gretchen Kennedy 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 Treasury Wine Estates Ltd (ASX: TWE) share price is up 12% at the time of writing.

Yesterday, the global wine business delivered its FY21 half-year result to investors, which showed a heavy profit decline. However, management also said they were more confident about a recovery in some aspects of the business.

Brokers have had their say about the company’s result and medium-term prospects.

If you didn’t catch the report yesterday, here are some of the main numbers:

Highlights of Treasury Wine Estates’ FY21 half-year result

The company said that its earnings before interest, tax, SGARA and material items (EBITS) fell by 23% to $284.1 million and the EBITS margin declined by 3.8 percentage points to 20.1%.

Underlying net profit after tax (NPAT) declined 24% to $175.3 million and underlying earnings per share (EPS) fell 24% to 24.3 cents.

Statutory NPAT declined 43% to $120.9 million and statutory EPS declined 43% to 16.8 cents.

On the positive side of things, Treasury Wine Estates said that retail and e-commerce channels continue to perform at elevated levels across all key markets, reflecting a shift in consumer behaviour towards in-home consumption of well-known and trusted brands.

However, there continues to be disruption to sales channels for higher margin luxury wine and reduced shipments to China because of the Chinese investigations and rules introduced relating to anti-dumping.

Despite the decline in profit, Treasury Wine Estates was still able to reduce net debt by $403.7 million and the board declared a fully franked dividend of 15 cents per share.

Re-organisation

TWE is going to implement a new divisional operating model, aiming at maximising the benefits of a separate focus across brands, rather than regions. Those three new divisions will be: Penfolds, Treasury premium brands and Treasury Americas.

The company also said that it has progressed on key initiatives to deliver a future state premium wine business in the US, including the planned exit of a significant portion of the commercial brand portfolio. Treasury Wine Estates also said it’s going to explore the divestment and exit of other non-priority brands, operating assets and leases as it focuses on growing its premium brand portfolio to drive growth in the region.

Growing management confidence about re-allocating products

The company has been working on a response to the Chinese measures. TWE has increasing confidence about its plans for re-allocating its Penfolds Bins and Icon range from China to other markets.

It’s expecting to continue to engage with its customer and consumer base, with modest benefits to commence towards the end of FY21.

Broker thoughts on TWE

Morgans said that the report was better than it had expected thanks to the domestic market and Asia. The broker also pointed to an improving balance sheet and good cashflow. It said it would buy TWE shares if the share price were to significantly decline. It increased its price target to just over $11.

However, Citi wasn’t really convinced. It was impressed by the Asia result considering the China difficulties, but first half conditions are expected to continue in the second half. Citi still considers TWE shares as a sell, with a price target of $8.60.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why CSL, Domino’s, IPH, & Treasury Wine shares are storming higher
• Why the Treasury Wine (ASX:TWE) share price is falling
• Leading brokers name 3 ASX shares to sell today
• Why ARB, Domain, Redbubble, & Treasury Wine shares are sinking today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from a soft start and is pushing higher. At the time of writing, the benchmark index is up 0.1% to 6,890.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are trading lower:

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price has crashed 17% to 80.2 cents. This follows the release of the gold-focused mineral exploration company’s stage 1 feasibility study. That study reveals that the Bellevue Gold Project is on track to become a top 25 Australian gold mine with a production profile of 160kozpa in the first 5 years and life of mine production of 151kozpa. It appears as though some investors were expecting an even stronger study.

Coles Group Ltd (ASX: COL)

The Coles share price has fallen 4% to $16.50. This may have been driven by a broker note out of Credit Suisse this morning. Following the release of its half year results, it believes Coles is losing market share and could continue to do so in the second half. In light of this, it has downgraded Coles’ shares to a neutral rating and cut the price target on them to $19.04.

NRW Holdings Limited (ASX: NWH)

The NRW share price has sunk 17% to $2.34 following its half year results release. For the six months ended 31 December, the contractor reported a 44% increase in revenue to $1,168 million and a 28% lift in EBITDA to $132.8 million. However, despite this strong growth, on the bottom line the company posted a 17% decline in net profit to $29 million. This was driven largely by a significant increase in depreciation.

Perpetual Limited (ASX: PPT)

The Perpetual share price is down 7% to $31.24. This follows the release of the fund manager’s half year results. Perpetual reported a 10% increase in operating revenue to $280.6 million but an 11% decline in underlying profit after tax to $52.6 million. This led to a 20% reduction in its interim dividend to 84 cents per share.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why the Coles (ASX:COL) share price is sinking 6% today
• Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks
• Coles (ASX:COL) share price on watch following half year update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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Crown Resorts Ltd (ASX: CWN) shares opened higher today despite the casino operator reporting a significant earnings hit in its FY21 half-year results (1H FY21). Soon after open, the Crown share price quickly lost ground, only to recover again to its current level of $9.80, up 1.14% for the day so far.

Here’s a summary of how Crown has been performing.

Crown share price resilient despite revenue falls

The Crown share price is holding its own today regardless of the company reporting a 62.1% drop in statutory revenue to $581 million for the reporting period. 

Operating cash flow also tumbled from $419.1 million in 1H FY20 to $72.3 million in 1H FY21.

Earnings before interest, tax, depreciation and amortisation (EBITDA) took a massive 99% hit, coming in at $4.4 million. This compares to $446 million in EBITDA reported for the prior corresponding period.

These heavy reductions in revenue and earnings are mainly attributed to Crown Melbourne having remained closed for much of the first half due to trading restrictions associated with coronavirus.

As a result, the Crown board determined not to declare an interim dividend on ordinary shares.

CFO comments

Commenting on the impact of COVID-19 across various Crown Resort sites, chief financial officer Alan McGregor said:

Crown’s first half results reflect the severe impact on operations from the COVID-19 pandemic. In particular, Crown Melbourne was closed for most of the half.

Crown Perth re-opened with restrictions towards the end of June 2020 and has traded above expectations despite ongoing COVID-19 restrictions, and limited marketing and promotional activity… 

Crown Melbourne has progressively recommenced operations from November, albeit with only limited initial access to the property. Since the easing of restrictions on 9 December, results had shown improvement but continued to be impacted by ongoing limitations on capacity…

Crown Sydney opened in a restricted capacity in late December and, while gaming operations are yet to commence, the non-gaming elements have seen encouraging property visitation.

Crown share price snapshot

The Crown Resorts share price has fallen by around 17% over the past year. Crown shares fell as low as $6 during March 2020 before surging more than 60% to their current levels. The company has been regularly making news regarding the New South Wales Independent Liquor and Gaming Authority’s inquiry into its suitability to hold a gaming license. 

Based on the current Crown Resorts share price, the company has a market capitalisation of $6.6 billion with 677.2 million shares outstanding.

More reading

• Why investors are watching the Crown (ASX: CWN) share price
• Crown (ASX:CWN) loses its CEO as fallout continues
• ASX 200 falls, Melbourne lockdown bites, Baby Bunting drops
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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