The Orocobre Limited (ASX: ORE) share price has dived lower today despite a fair half-year (HY21) results announcement.

At the time of writing, the Orocobre share price is trading down 5.12% at $4.82 after diving to an 8% low mid-morning.

Here are some factors beyond its results that could be pushing its share price lower. 

What’s driving the Orocobre share price? 

The broader ASX 200 and US market is facing significant selling pressure on rising bond yields. The S&P/ASX 200 Index (ASX: XJO) is down 1.90% at the time of writing, while US indices all fell between 1.75% to 3.50% overnight. 

To add further insult to injury, the Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) – comprising companies around the world involved in the lithium cycle, from mining and refining the metal through to battery production – fell by more than 7% last night. 

The lithium ETF’s top three holdings, which make up approximately 25% of its net assets, include top lithium producers Albemarle Corporation and Gangfeng Lithium, and the notorious Tesla Inc (NASDAQ: TSLA). 

A slump in the lithium ETF overnight has carried over into ASX lithium shares, with Pilbara Minerals Ltd (ASX: PLS), Galaxy Resources Limited (ASX: GXY) and Orocobre all diving lower today. 

Half-year results summary 

For the half-year ended 31 December 2020, Orocobre delivered 7,738 tonnes of lithium carbonate, up 21% on the prior corresponding period, with revenue of US$27.0 million.

The company highlighted its focus on cost reduction and improved operational efficiency for the half, resulting in a 19% fall in cash cost of sales to US$3,777/tonne.  

That said, the company was still selling lithium at a loss, with an average sales price of US$3,492/tonne. The negative margin of US$285/tonne for HY21 resulted in earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of US$6.3 million. 

On a more positive note, the company anticipates that 2H21 sales will increase by more than 50% to approximately US$5,500/tonne with improving market conditions.  

The company maintains a sound capital position with total group cash of US$262.3 million.

Lithium markets rebounding strongly 

Orocobre focused the latter half of its results presentation on the recent recovery of the lithium market.

The company cited that Chinese spot lithium carbonate prices were up 50% between September 2020 and December 2020. This was driven by a faster than expected decrease in lithium chemical inventories and a sharp increase in electric vehicle demand. 

Orocobre believes that the strong desire for decreased carbon emissions will accelerate the move to electric vehicles and other green technologies.  The company said it was well-placed to grow its existing production capacity to leverage the improving lithium market. 

More reading

• Why the Galaxy Resources (ASX:GXY) share price is tumbling lower today
• Are ASX lithium shares poised for the next leg up? 
• Here’s why the Pilbara Minerals (ASX:PLS) share price is dropping today
• Pilbara Minerals (ASX:PLS) share price jumps 6% on broker upgrades
• Pilbara Minerals (ASX:PLS) share price climbed 12% today, but why?

Kerry Sun owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 Orocobre (ASX:ORE) share price dives despite a recovery in lithium markets appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qXRh2z

Douugh Ltd (ASX: DOU) shares began trading higher in the first minutes of market open, before quickly reversing the trend. At the time of writing, the Douugh share price is trading flat at 21.5 cents.

This comes after the financial wellness app provider announced it is in the final stages of completing its Goodments acquisition.

Why the Douugh share price is in focus

The Dough share price is languishing today despite the company reporting a share sale agreement with Goodments to accelerate the launch of its Wealth Jars offering.

According to this morning’s release, Douugh has executed a binding share sale agreement to acquire the issued share capital of Goodments.

Established in 2017, Goodments is a wealth management app that allows customers to trade responsibly and ethically through a range of securities. The company operates in Australia and has over 13,000 customers on its database.

Douugh stated that the takeover of Goodments will help fast-track the rollout of its Wealth Jars feature. The new offering will allow customers to accelerate their savings goals through investing in custom-built portfolios and fractionalised single shares. The company said that, with Wealth Jars working alongside the Autopilot feature, it can justify charging a monthly subscription fee.

In addition, the new wealth offering will include retirement and superannuation services.

The terms in detail

The binding share sale agreement will entail Douugh issuing 8,211,080 ordinary shares to Goodments at a price of 18.268 cents apiece. This brings the total value to $1.5 million to fully acquire Goodments.

Pending all conditions being met, settlement is expected to occur within five business days once the terms have been satisfied.

Management commentary

Douugh founder and CEO Andy Taylor hailed the company’s progress, saying:

We’re excited about the opportunity Goodments presents to accelerate the delivery of our Wealth Jars offering, as well as generating revenue as a standalone product in the Australian market in the short-term, prior to the launch of the Douugh platform.

Douugh is deliberately focused on building a responsible investing platform for savers to grow their money over the long term. We are not looking to appeal to day traders.

What’s next?

Looking ahead, Douugh noted that once the acquisition is completed, it will ramp up the revitalisation of Goodments. This will include investing in additional marketing resources, expanding distribution channels and moving forward with key improvements on Goodments’ roadmap.

It’s projected that the changes made will boost Douugh’s margins and short-term cash flow.

Douugh share price snapshot

The Douugh share price is up over 1,100% since the company listed in October last year. Year to date, Douugh shares have also increased by around 26%. Based on the current share price, the company has a market capitalisation of around $80 million.

More reading

• Why Chorus, Douugh, IOUpay, & Reliance shares are tumbling lower
• Douugh (ASX:DOU) share price plummets 9% today despite strong start
• Payright (ASX:PYR) shares get speeding ticket after 32% surge
• The Novatti (ASX:NOV) share price rocketed 38% today
• Why the Sezzle (ASX:SZL) share price is charging 7% higher today

Motley Fool contributor Aaron Teboneras 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 What’s with the Douugh (ASX:DOU) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aV2jjx

The Aristocrat Leisure Limited (ASX: ALL) share price tumbled in the market sell-off as it posted its outlook for the year.

The Aristocrat share price lost 3.5% to a one-month low of $30.73 when the S&P/ASX 200 Index (Index:^AXJO) crashed 2.5% at the time of writing.

But Aristocrat is in good company. All sectors on the ASX are trading in the red, and its growth shares that are taking the beating.

Growth shares taking brunt of selloff

It’s growth darlings like the Afterpay Ltd (ASX: APT) share price, Kogan.com Ltd (ASX: KGN) share price and Pointsbet Holdings Ltd (ASX: PBH) share price that’re leading the sell-off.

Aristocrat falls into the “growth” category too. It’s more about rising bond yields that is behind the sell-off in the Aristocrat share price than its outlook, in my view.

The gaming machine maker issued a trading update at its annual general meeting today. Management is forecasting growth for the financial year ending 30 September 2021 over FY20.

Aristocrat share price ignores outlook for 2021

It plans to do this by maintaining or growing its market leading positions in Gaming Operations. This is measured by the number of machines that are operating and game performance.

Aristocrat has grown its “floor share” in gaming venues and it believes this will continue.

But it’s the digital business that is exciting growth investors. On that front, management is tipping further growth in Digital bookings. It also expects User Acquisition spend to remain between 25% and 28% of overall Digital revenues.

Are margins under pressure?

However, the growth will come at a cost. Aristocrat anticipates an increase in costs across the business as it builds scale and continued investments to drive longer-term growth.

The dour margin forecast may have spooked some investors, but rising bond yields are also casting a shadow over the group.

Why rising bond yields matter to the Aristocrat share price

The 10-year US government bond yield jumped over 1.614% last night to a more than one-year high, reported CNBC.

Bond investors were spooked by poor demand for the US government’s latest bond auction and the risk of rising inflation. The 10-year Australian bond yield is also being pushed higher and higher yields will lower the valuation of shares, particularly growth shares.

ASX shares that can continue to grow their top and bottom lines regardless of the volatile economic environment will eventually win out over the longer-term.

But it’s the more speculative shares that got pumped up by record low rates that will suffer the most in a rising yield environment.

Watch out fellow Fools! The era of cheap money could be coming to an end.

More reading

• ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher
• The Harvey Norman (ASX:HVN) share price slips despite soaring profits
• Hansen Technologies (ASX:HSN) share price rises on profit surge
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• Why the Afterpay (ASX:APT) share price is sinking 14% today

Brendon Lau owns shares of Aristocrat Leisure Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Growth outlook fails to save the Aristocrat share price today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pTcARt

At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is a sea of red following a broad market selloff. Rising bond yields have spooked investors, leading to the benchmark index falling 2.3% to 6,678.7 points.

Here’s what is happening on the market today:

Afterpay returns and tumbles lower

The Afterpay Ltd (ASX: APT) share price has returned from its trading halt and tumbled lower. This morning the payments company announced the completion of an upsized convertible notes offering which raised $1.5 billion. These notes are due in 2026 and are convertible into fully paid ordinary shares with an initial conversion price of $194.82. This represents a 45% premium to the Afterpay share price prior to the trading halt. The funds will be used to increase its interest in its US business and support its growth.

AMP joint venture with Ares

The AMP Ltd (ASX: AMP) share price has avoided the selloff and is pushing higher on Friday. The catalyst for this was the financial services company announcing a potential joint venture with Ares Management. The two companies have signed a non-binding Heads of Agreement to form a $2.25 billion joint venture which will see Ares inject up to $1.55 billion in cash into AMP.

Kogan half year results

The Kogan.com Ltd (ASX: KGN) share price is also tumbling lower today. Investors have been selling its shares after the market selloff overshadowed a strong half year result. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% jump in adjusted net profit after tax to $36.5 million. This was driven by a 76.8% increase in Kogan active customers to 3 million and strong sales growth by its Exclusive Brands and Kogan Marketplace segments.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the AMP share price with a 4% gain. This follows its joint venture announcement. The worst performer has been the Orica Ltd (ASX: ORI) share price with a 20% decline. This morning the company warned that a number of factors were weighing on its performance. Combined these are expected to impact its pre-tax earnings by up to $125 million.

More reading

• The Harvey Norman (ASX:HVN) share price slips despite soaring profits
• Why AMP, Bubs, BWX, & Lynas shares are pushing higher
• Hansen Technologies (ASX:HSN) share price rises on profit surge
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• Why the Afterpay (ASX:APT) share price is sinking 14% today

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 Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bJFs9M

The Harvey Norman Holdings Ltd (ASX: HVN) share price is slipping today, down 4.15% to $5.08 in morning trade.

We take a look at Harvey Norman’s results for the financial half year ending 31 December (H1 FY21) below.

What did Harvey Norman report for the half year?

The Harvey Norman share price is sliding today despite reporting soaring profits and announcing a record dividend payment. Perhaps caught up in the wider selloff on the S&P/ASX 200 Index (ASX: XJO) today?

The international ASX retailer reported total revenue for the half-year of $5.2 billion, up 25.8% from the prior corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) leapt 76% year-on-year to $779.8 million.

Net profit after tax and non-controlling interests came in at $462.0 million, an increase of 116% from the $213.6 million reported in H1 FY20. Profit before tax soared 114% year-on-year, to $643.9 million.

Earnings per share (EPS) also more than doubled, up 109.5% to 37.08 cents.

Harvey Norman’s net assets increased 13.9% to $3.74 billion. The company had a net cash position of $21.8 million compared to a net debt position of $553.2 million at the end of H1 FY20.

Management notes

Commenting on the results, Harvey Norman chair Gerry Harvey said:

The solid results delivered this half is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy and its ability to adapt and transform to the changing retail landscape and continue to navigate the uncertainties presented by COVID-19…

The robust cash flows generated from operating activities of over $391 million dollars this half year has enabled us to invest in our businesses and paydown external debt. At 31 December 2020, the consolidated entity had $499 million of unused, available financing facilities, and is well-placed to respond to challenges and capitalise on opportunities as they arise.

The company noted that the early months of H2 FY21 are seeing continuing strength in sales revenue. From 1 January through to 23 February, aggregated sales revenue grew 21% compared to the same time frame in 2020.

Harvey Norman declared an interim dividend of 20 cents, fully franked, the biggest interim dividend it’s ever paid.

Harvey Norman share price snapshot

Over the past 12 months, Harvey Norman shares have gained 18%. The ASX retailer came roaring back from the past COVID sell-off, with shares up 108% since the 23 March lows.

Year-to-date, the Harvey Norman share price is up 7%.

More reading

• ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher
• Hansen Technologies (ASX:HSN) share price rises on profit surge
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• WPP Aunz (ASX:WPP) share price dips on 32% profit drop

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.

The post The Harvey Norman (ASX:HVN) share price slips despite soaring profits appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dMpHSc

Nuix Ltd (ASX: NXL) shares are getting smashed today after the company reported its first results since its initial public offering (IPO). At the time of writing, the Nuix share price has plummeted an eye-watering 27.31% to $6.52.

Let’s take a look at how the analytics software company has been performing.

What’s pushing the Nuix share price lower?

Investors are driving the Nuix share price lower today after the company released its inaugural results since listing on the ASX late last year.  

For the six months ending 31 December, Nuix announced a 4% decline in revenue to $85.3 million. Overall, the software solutions company reported a statutory net loss of $16.6 million. However, on a proforma basis Nuix reported a net profit after tax (NPAT) of $9.4 million.

Nuix noted that profit margins for the period increased, with software licences generating 98% of revenue for the first half.

The company also highlighted its commitment to continued investment in research and development. Nuix noted that 26% of revenue from the first half of FY21 was spent on product enhancements.

Despite dour financial highlights, Nuix flagged increasing customer numbers. For the first half of FY21, the company saw a 17% increase in new business. In addition, Nuix also reported larger dollar value deals were completed.

CEO of Nuix Mr Rod Vawdrey noted that the results demonstrated “the stickiness” of the business’ customer base.

Nuix also highlighted its strong capital position with $103 million cash on hand.

Outlook

Nuix is a provider of investigative analytics and intelligence software. The company’s Discover, Workstation, and Investigate platforms help users convert data from emails, social media and communications into actionable intelligence. Nuix currently licences its software to more than 1,000 customers across 78 countries.

Unlike many other companies this reporting season, Nuix also provided guidance for the full year. For FY21, the company forecast a full-year revenue target of $193.5 million and pro forma earnings of $63.6 million.

Nuix noted that it expects a strong 2021, fuelled by “exponential growth in data and regulatory compliance”.

Investors were quick to sell their shares following the company’s release today, with the Nuix share price hitting an intraday and all-time low of $6.42 in morning trade. Based on the current Nuix share price, the company has a market capitalisation of around $2.8 billion.

More reading

• 2 exciting mid cap ASX shares to buy and hold
• 2 outstanding ASX growth shares to buy
• 2 outstanding ASX growth shares that could be strong buys
• 3 outstanding ASX shares growing rapidly
• 2 ASX shares that this fundie really likes right now

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Nuix (ASX:NXL) share price is tanking 27% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3r06BvQ

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a hugely disappointing note. At the time of writing, the benchmark index is down 2.35% to 6,673.3 points.

Four ASX shares that have defied the selloff are listed below. Here’s why they are pushing higher:

AMP Ltd (ASX: AMP)

The AMP share price is up over 3.5% to $1.45. Investors have been buying the financial services company’s shares after it announced a potential joint venture with Ares Management. The two companies have signed a non-binding Heads of Agreement to form a $2.25 billion joint venture which will see Ares inject up to $1.55 billion in cash into AMP.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has pushed 4% higher to 57.2 cents following its half year results release. The infant formula company reported a 33% decline in revenue to $18.3 million and a loss before tax of $17.1 million.  It appears as though investors were expecting an even worse result. Looking ahead, Bubs is expecting a modest improvement in the second half compared to the first.

BWX Ltd (ASX: BWX)

The BWX share price has jumped 11.5% to $4.48 after reporting its half year results this morning. The personal care products company reported a 0.6% increase in revenue to $84.5 million and a 133.1% jump in net profit after tax to $9.9 million. However, it is worth noting that its profit was boosted by a one-off benefit of $5.8 million. This relates to the final consideration payable under the Egide Compensation Plan to the sellers of the Andalou Naturals business.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is up 2% to $5.78. Investors have been buying the rare earths producer’s shares after it reported a surge in first half profits. For the six months ended 31 December, Lynas reported a 12.4% increase in revenue to $202.5 million and an 82% jump in EBITDA to $80.6 million. Management also spoke positively about the future, commenting that “Lynas has a unique position in an exciting market.”

More reading

• Lynas (ASX:LYC) share price dips despite posting 944% increase in net profits
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• BWX (ASX:BWX) share price jumps 11% as profits glow
• AMP (ASX:AMP) share price on watch with proposed $2.3bn joint venture
• Why the Afterpay (ASX: APT) share price is down 8% today

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 BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why AMP, Bubs, BWX, & Lynas shares are pushing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dObWmc

The Betmakers Technology Group Ltd (ASX: BET) share price has dropped 6.11% this morning following the release of the company’s half-year (1H21) results.

At the time of writing, the Betmakers share price is trading at 84 cents a share.

Here’s the rundown on how the betting technology company has performed in the 6-month period ended 31 December 2020.

Betmakers half-year performance wrap

In today’s release, Betmakers reported a $7.6 million revenue for 1H21, an 88% gain on the previous corresponding period.

The company – which provides data analytics and content for bookmakers globally and distributes racing content – posted a 1H21 loss of $4.4 million. This is 697% higher than its loss of $556,000 in 1H20.

Betmakers advised that the loss included $3 million of share-based payments and about $831,000 in expenses related to acquisitions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was negative $1.7 million.

However, it wasn’t all bad news, with 1H21 net assets soaring to $90.1 million from $6.5 million in the pcp. 

Earnings per share (EPS) leapt from 13 cents a share in 1H20 to 75 cents, and total assets as of 31 December 2020 came in at $81.6 million, up from $33.7 million.

Betmakers finished the period with cash and cash equivalents totalling $68.6 million, a booming number compared to the $2.7 million held at the end of the pcp.

Outlook

The business advised that its acquisition of Sportech’s tote and digital assets is on track. Betmakers expects to complete the acquisition during the next financial quarter.

The company said the tote and digital business combined with BetMakers’ existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA for the period.

When the deal is complete, 36 states in the United States will have access to the company’s technology.

Betmakers is also pursuing new opportunities in the US state of New Jersey as well as other growth acceleration activities.

Betmakers share price snapshot

Over the past year, the Betmakers share price has gained 150% and climbed 34.3% year-to-date.

The company’s market capitalisation is currently $614.4 million, and 773.5 million shares are outstanding.

More reading

• Why is the Betmakers (ASX: BET) share price down 5.4%?
• Here’s why the Betmakers (ASX:BET) share price is soaring
• Betmakers (ASX:BET) share price jumps 9% to touch 52-week high

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group 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.

The post Betmakers (ASX:BET) share price drops 6% after $4 million loss appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3syjwW9

The Hansen Technologies Limited (ASX: HSN) share price is on the rise today, up 2.27% at the time of writing to $4.06 a share. That’s especially impressive when you consider that the broader S&P/ASX 200 Index (ASX: XJO) is taking a pretty big tumble today and is currently down 2.41%.

The catalyst for Hansen’s move to the upside appears to be its earnings report for the first half of the 2021 financial year (1H21), posted to the ASX after market close yesterday afternoon.

What kind of results did Hansen deliver?

It was a sea of green from Hansen in 1H21. The company reported that revenues came in at $147.1 million, a 2% bump on the prior corresponding period (1H20). That’s on a constant currency basis (reported revenue was $142.2 million).

That helped the company post underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $54.3 million on a constant currency basis, a 44% increase on 1H20. That represents an EBITDA margin of 36.9%. Reported EBITDA was $52.3 million, which helped push net profits after tax (excluding tax-affected amortisation) up 77% to $31.6 million on a constant currency basis (or $29.6 million reported).

It also helped to push down Hansen’s net debt by 18%, which is now down $20.7 million over the half to $95.8 million.

Earnings per share (EPS) also rose 77% to 15.9 cents per share on constant currency (14.9 cents reported).

Due to the surge in profits, Hansen has declared an interim dividend of 5 cents per share, up 67% on the prior period. The dividend represents a payout ratio of 31% of earnings per share and is equal to the company’s final dividend for 2H20, although it doesn’t come with the addition of a 2 cents per share special dividend that we saw for that period last year. It also only comes 22% franked.

On an annualised basis, that dividend would give Hansen shares a forward dividend yield of 2.46%. The board stated that, “having considered Hansen’s capital requirements, strong capital structure and liquidity position, the Board has determined an increased interim dividend to return money to shareholders is appropriate.”

Looking forward

Hansen has also upgraded its guidance for the 2021 financial year. The board expects revenues to come in between $295–305 million on a constant currency basis for the financial year (or $285–295 million reported), and underlying EBITDA margins of between 33-35%.

Hansen CEO Andrew Hansen had this to say on the results overall:

The 1H21 result was a great outcome for Hansen across all key metrics, continuing our strong performance through the global pandemic. We have grown revenues 1.9% on a constant currency basis, driven a strong increase in profitability leading to a record half-year EBITDA while investing in our business to position Hansen Technologies for a ‘COVID-normal’ world… This result proves the long-term resilience of our business modelof growing revenues and EBITDA over the long-term by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

Judging by today’s move in the Hansen share price, it seems investors concur.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• WPP Aunz (ASX:WPP) share price dips on 32% profit drop
• ASX 200 up 0.85%: A2 Milk & Zip shares hammered, Afterpay to raise $1.25bn
• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Hansen Technologies (ASX:HSN) share price rises on profit surge appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3kBhaDf

The Galaxy Resources Limited (ASX: GXY) share price has been caught up in the market selloff on Friday.

At the time of writing, the lithium miner’s shares are down 4% to $2.57.

Why is the Galaxy share price tumbling lower?

It appears as though the broad market selloff today has overshadowed the release of Galaxy’s full year results which revealed big improvements in trading conditions.

For the 12 months ended 31 December, Galaxy reported annual production of 108,658 dry metric tonnes (dmt) at 5.95% Li2O. This means the company achieved its full year guidance for FY 2020.

However, with its cash cost per tonne increasing 14% to US$447 and the average realised selling price at US$352 per tonne, Galaxy recorded another sizeable (but narrowing) loss.

For FY 2020, the company reported revenue of US$55.3 million and a loss after tax of US$31.3 million.

This left Galaxy with cash and financial assets of US$215.1 million and no debt at the end of the period. Management believes this is sufficient to advance both its growth projects.

Management commentary

Galaxy’s CEO, Simon Hay commented: “Galaxy experienced challenging market conditions throughout most of 2020 and posted a net loss after tax for the year of US$6.3 million, excluding mid-year inventory write down and impairments of US$25.0 million. Revenue in FY2020 was adversely impacted by the realised selling price for spodumene being 30% below FY2019 levels.”

“Pleasingly, Mt Cattlin’s unit cash cost of production reduced in H2 despite an increase in the exchange rate. The cash used in operations of US$6.3 million was US$29.0 million lower than FY2019 due to stringent cost control and the moderated operational settings implemented at Mt Cattlin at the beginning of 2020.”

What about the future?

Positively, FY 2021 looks set to be a better year for the company thanks to rising lithium prices. This could bode well for the Galaxy share price when the market volatility eases.

Management advised that its Mt Cattlin is ramping up production in response to strong customer demand, improving prices, and reduced inventory levels.

Furthermore, first quarter shipments of 45,000 dmt are contracted at “materially higher prices.”

More reading

• Are ASX lithium shares poised for the next leg up? 
• Top brokers name 3 ASX shares to sell next week
• 3 ASX shares that helped this fund manager smash the market
• Top brokers name 3 ASX shares to sell next week
• Here’s why the Galaxy Resources (ASX:GXY) share price is dropping lower

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 Why the Galaxy Resources (ASX:GXY) share price is tumbling lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pR6roV