Pro Medicus Limited (ASX: PME) shares are climbing in morning trade despite the company announcing its co-founders have offloaded a parcel of their shares. At the time of writing, the Pro Medicus share price is up 2.5% to $46.40.

Co-founders sell shares

The Pro Medicus share price is on the rise regardless of the fact the health imaging company reported its co-founders have sold off a portion of their stake in the business.

According to this morning’s release, Pro Medicus co-founders Dr Sam Hupert and Mr Anthony Hall have each sold 1 million shares. The sale transacted at market close yesterday (18 February) at the price of $45.97 per share.

Pro Medius noted that the offload of shares by the co-founders represents less than 4% of their entire individual holdings. Dr Sam Hupert and Mr Anthony Hall now have 27,137,660 and 27,109,000 ordinary shares respectively after the change.

The company stated that both co-founders do not intend to sell further shares in the foreseeable future.

Words from the chair

Pro Medicus chair Peter Kempen commented on the sale of the shares:

We announced in February 2018 that the Board had encouraged the founders to consider selling up to 3 million shares each, in order to improve the liquidity in the company’s shares. This latest transaction completes that process. The sale, to a number of local institutions, was done “at market” which reflects the very strong underlying demand for the company’s shares.

Mr Kempen added:

Dr Hupert and Mr Hall remain actively engaged in the company and are committed to its future. This is evidenced by the fact that they remain the two key stake holders, with their combined holding post this recent sale being in excess of 52% of the shares on issue.

Pro Medicus share price snapshot

The Pro Medicus share price has been a stellar performer over the past 12 months, jumping by more than 100%. Pro Medicus shares hit a 52-week low of $14.50 in March before accelerating to an all-time high of $47.62 this week.

At the current share price of $46.60, Pro Medicus is a whisker away from breaking that feat again.

More reading

• Pro Medicus (ASX:PME) share price in focus after broker upgrade
• One year on and 50% up, the All Technology Index is booming
• Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking
• Why the Evolution (ASX:EVN) share price crashed despite record results
• Why the Pro Medicus (ASX:PME) share price is getting thumped today

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus Ltd. 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 Pro Medicus (ASX:PME) share price is climbing today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2NziZUB

The 4DS Memory Ltd (ASX: 4DS) share price has plunged in early trade this morning after the semiconductor developer announced its half-year results.

At the time of writing, the 4DS Memory share price is trading down 5.26% at 18.5 cents.

The numbers, what do they mean?

4DS has been building out its patent portfolio as it continues working towards its next-generation memory. Between August to December last year, the company added 6 additional USA patents. All of these were in relation to the company’s interface Switching ReRAM technology.

Progress continues to be made towards the development of the company’s memory. In late December, 4DS’ Second Non-Platform Lot underwent analysis – the results were deemed positive on 1 February, as we reported on.

However, all of these business activities come at a cost. 4DS is still in the development stages of its memory, which means little to no revenue is being derived from operational activities. For the half-year reported, 4DS recorded $29,378 in revenue, down 4% from the prior year.

Meanwhile, the company expanded bottom-line losses by 6% to $3.1 million. Most of the loss is due to the continued investment in research and development – which accounted for $2.13 million of expenditure in the half.

Remind me, where’s the memory up to?

The positive results confirmed on 1 February from the Second Non-Platform Lot produced some key takeaways:

• The company has been able to repeat the results for key memory characteristics (speed, endurance, and retention).
• 19 out of the 21 device wafers were functional, with the nonfunctional wafers developed outside the imec process window.
• Additional process parameters insights were gained.

Now, 4DS is awaiting results from its Second Platform Lot. These wafers commenced production at imec in Belgium on 27 January. Worth noting, this lot is using imec’s memory platform that has the capability to read and write selected bits and bytes.

Furthermore, results from the Second Platform Lot are expected in the second quarter of 2021. 4DS has stated the results from the Second Platform Lot will pave the way for fabricating wafers with chips that are fully functional megabit memories.

4DS share price recap

The 4DS Memory share price has experienced volatility throughout the year. For the shareholders that have held on, however, the returns have been pleasant. In the last 12 months, the 4DS share price has appreciated by 222%. It’s not all smooth sailings, 4DS is more volatile than 75% of Australian stocks over the past 3 months. 

More reading

• Why has the 4DS Memory (ASX:4DS) share price crashed 12% lower?
• 4DS Memory (ASX:4DS): Non-volatile memory, volatile share price

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 The 4DS Memory (ASX:4DS) share price plummets 5% today. Here’s why appeared first on The Motley Fool Australia.

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

The Sezzle Inc (ASX: SZL) share price is trading lower on Friday morning despite the release of an announcement.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 1% to $10.33.

Despite this decline, the Sezzle share price is still up a remarkable 65% since the start of the year.

What did Sezzle announce?

This morning Sezzle released an announcement relating to a new agreement with a payments giant.

According to the release, the company has signed an agreement with digital banking and payments services company, Discover.

The agreement will allow select US merchants on the Discover Global Network to offer their customers an interest-free BNPL option through Sezzle’s platform. Positively, the process will involve little to no upgrades to their existing payments systems.

The Discover Global Network has more than 48 million merchant acceptance locations and two million ATM and cash access locations around the world. Discover is accepted by 99% of places that take credit cards in the United States. Its brands also include Diners Club International and PULSE.

Agreement to accelerate business development

Sezzle’s Executive Director and President, Paul Paradis, believes the agreement will help accelerate business development.

He commented: “Our partnership with Discover will help to further accelerate our business development efforts by connecting our team with Discover and its established relationships.”

Discover’s Senior Vice President of Global Business Development and Acceptance, Jason Hanson, spoke positively about the agreement.

Mr Hanson said: “Our merchant partners are always a top priority and we know that providing them with additional payment options, such as a buy now, pay later structure, can be beneficial, especially in the current economic environment.”

“We are able to leverage our unique technology capabilities and vast network of merchant relationships to provide Sezzle the ability to grow its business and provide new payment opportunities,” he added.

More reading

• Why is the Splitit (ASX:SPT) share price underperforming Afterpay and Zip?
• Why the Sezzle (ASX:SZL) share price is charging 7% higher today
• Zip (ASX:Z1P) share price is soaring 13%, smashing another record high
• These ASX shares are helping this fund manager smash the market
• Why Mesoblast, Newcrest, Sezzle & Telstra shares are racing higher

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

The post Sezzle (ASX:SZL) share price tumbles despite new agreement appeared first on The Motley Fool Australia.

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

Lovisa Holdings Ltd (ASX: LOV) shares are off to a flying start this morning after the company released its half-year financial report earlier today. In the opening minutes of trade, the Lovisa share price has rocked 19.09% higher to $13.10.

How did Lovisa perform?

Earlier today, the jewellery and accessories retailer released its financial report for the first half of FY21.

The Lovisa share price is soaring despite the company reporting a 26.7% decline in profit after tax of $19.6 million. Lovisa also reported a 9.8% fall in revenue of $146.9 million for the half-year.

Lovisa noted that same store sales fell 4.5% for the half year, with gross margins at 77.2% compared to 78.9% 12 months ago.

The jewellery chain cited that the first quarter was heavily impacted by government responses to the COVID-19 pandemic. Lovisa highlighted temporary store closures in Victoria and weakness in global markets as contributing to the company’s poor performance.  

Despite the dour financial results, Lovisa boasted a strong balance sheet for the half year with $42.5 million cash in hand. As a result, the company declared an interim dividend of 20 cents per share, up from 15 cents in the prior corresponding period.

What is the outlook for Lovisa?

Lovisa is a leading retailer in fashion jewellery, strategically targeting the affordable jewellery segment. The company currently boasts 460 stores in Australia and abroad, with notable locations in the United Kingdom, France and the United States.

The company did not provide an outlook or guidance for the full year. However, Lovisa’s management noted that the first seven weeks of the second half showed an improving sales trajectory. Lovisa highlighted a 12% increase in overall same store sales for the period.

The company also noted strength in Southern Hemisphere markets, whilst advising Northern Hemisphere stores faced challenging conditions.

In addition, Lovisa informed the market that its acquisition of the beeline retail business is expected to be completed in the coming months, accelerating the company’s European expansion.

Lovisa share price snapshot

Incorporating today’s gains, the Lovisa share price has now rallied 13% in year-to-date trading. Lovisa shares fell as low as $2.45 in March 2020 before surging more than 400% to their current levels.

Based on the current Lovisa share price, the company has a market capitalisation of around $1.2 billion. 

More reading

• This ASX growth share is cheap like a value stock

Motley Fool contributor Nikhil Gangaram 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 Lovisa (ASX: LOV) share price rockets 19% on half year results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3k3c1n0

Chemist Warehouse is taking a step closer to an initial public offering (IPO) in what could be the hottest float on the ASX in years.

Even investors who aren’t keen on participating should take note. The health of any bull market can be often be measured by the IPO market.

On that front, Chemist Warehouse is creating a buzz. The Australian Financial Review reported that it is preparing to send out a formal request for proposal to investment banks.

Chemist Warehouse could be the hottest ASX IPO in 2021

Interest is expected to be high given that the potential debutant is our country’s largest pharmacy chain with a turnover estimated at $5 billion.

The fees generated from the float for the lucky chosen investment bankers will be very substantial.

But investment bankers will have their work cut out for them. The ownership structure of the privately held Chemist Warehouse is messy even though current equity holders have undertaken a clean-up to prepare for the IPO.

Biggest ASX IPO since Medibank Private?

Investment banks will still need to put on their thinking caps to recommend how best to structure Chemist Warehouse for life as a public company.

It’s too early to tell what IPO price the pharmacy giant will fetch, but the AFR suggested it could be north of $5 billion.

Of course, that doesn’t say much. I believe an IPO candidate like Chemist Warehouse would list with a market cap multiple of more than one times its annual revenue. Of course, I am assuming it is profitable with only a modest amount of debt.

Assuming the valuation is above $5 billion, Chemist Warehouse could become the biggest ASX float since Medibank Private Ltd (ASX: MPL) in 2014.

Key question facing would be investors

The real question then is at what multiple can Chemist Warehouse attain? While it’s a household name and the industry leader by miles, investment banks handling the bookbuild will need to show the group still has multiple growth levers.

It’s a little harder to see where future growth will come from outside of organic growth in the sector. It could look overseas, but many Australian companies don’t have a good track record on this front.

According to IBIS World, My Chemist Retail Group (which owns Chemist Warehouse) commands 21.1% of the Australian market. That’s well ahead of other ASX-listed peers.

Sigma Healthcare Ltd (ASX: SIG) is the second largest at 16.8% of the market, while Australian Pharmaceutical Industries Ltd (ASX: API) holds 8.6%.

Chemist Warehouse was founded by Jack Gance and Mario Verrocchi. They started the company in 1995 with five outlets. This has grown to more than 300 stores employing 9,500 staff across the country today.

More reading

• Leading brokers name 3 ASX shares to sell today
• Why Argosy Minerals, Sigma, Vocus, & Zip shares are charging higher
• Here’s why the Sigma (ASX:SIG) share price is surging 6% higher
• Here’s why the Medibank (ASX:MPL) share price is edging higher today

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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 Is Chemist Warehouse set to become the ASX biggest IPO in 7 years? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3k5eOfA

The QBE Insurance Group Ltd (ASX: QBE) share price has come under pressure this morning.

At the time of writing, the insurance giant’s shares are down 1% to $8.63.

This means the QBE share price is now down 42% since this time last year.

Why is the QBE share price trading lower?

The QBE share price has fallen today following the release of its FY 2020 results.

For the 12 months ended 31 December, on a constant currency basis and adjusting for disposals, QBE reported a 10% increase in gross written premiums (GWP) to US$14,643 million.

Management advised that this reflects premium rate momentum, improved premium retention across all divisions, and strong new business growth in North America and International.

However, as it previously warned, this GWP growth could not stop the company from posting an enormous loss in FY 2020. QBE reported a loss after tax of US$1,517 million for the 12 months. This compares to a net profit after tax of US$550 million in FY 2019.

This loss includes a disappointing underwriting result, a significant reduction in investment income, impairment of goodwill and deferred tax assets in North America, and charges related to rationalisation of legacy IT platforms and its real estate footprint.

Also weighing on the QBE share price was its adjusted result. Excluding all the one-offs, on an adjusted basis, QBE’s recorded a net cash loss after tax of US$863 million. This compares to an adjusted net cash profit after tax of US$733 million a year earlier.

Unsurprisingly, given its significant loss, the QBE board has not declared a final dividend for FY 2020. 

Management commentary

QBE’s Interim CEO, Richard Pryce, was disappointed with the company’s performance in FY 2020, but appears positive about the year ahead.

He commented: “While obviously very disappointed with the headline loss, premium momentum accelerated across 2020 and has continued into 2021. Coupled with the improved positioning of the underlying business, we enter this year with confidence and optimism.”

“I look forward to leading the business in 2021; my primary focus remains performance improvement including that the Group takes full advantage of currently favourable market conditions by maximising premium rate increases while driving targeted growth in portfolios and regions offering the most profitable new business opportunities,” Mr Pryce added.

Outlook

Not even QBE’s outlook for FY 2021 could help drive the QBE share price higher today.

Based on several factors, such as assuming a normal crop result, QBE believes it exited FY 2020 with a combined operating ratio of ~95%. This compares to FY 2020’s actual combined operating ratio of 104.2%. (Anything below 100% is profit, whereas above is a loss.)

In light of this, at this stage, QBE is expecting margin expansion in FY 2021.

Also failing to give the QBE share price a boost today was news that dividend payments are likely to return this year.

The QBE board advised that, subject to global economic conditions not deteriorating materially, it expects to resume dividend payments of up to 65% of adjusted cash profits in FY 2021.

More reading

• Top brokers name 3 ASX shares to sell next week

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.

The post QBE (ASX:QBE) share price sinks after posting US$1.5bn loss appeared first on The Motley Fool Australia.

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

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.

Fortnite developer Epic Games escalated its battle with Apple Inc (NASDAQ: AAPL) by filing an antitrust complaint in the European Union (EU) over the fees Apple takes for in-app purchases made from apps downloaded from its App Store.

Although the two will face off in court in May, Epic is making its war on Apple’s payment system a global affair, having filed similar lawsuits against it in the US, Australia, and the UK.

Last summer, Epic Games bypassed Apple’s fees by allowing Fortnite players to pay the developer directly for any in-app purchases. Apple’s cut of such payments typically runs as high as 30%.

Although many developers have chafed over the system, none took on Apple for fear of losing access to the platform. That’s part of the argument Epic is using in filing its lawsuit, writing in a blog post:

Apple has not just harmed but completely eliminated competition in app distribution and payment processes. Apple uses its control of the iOS ecosystem to benefit itself while blocking competitors and its conduct is an abuse of a dominant position.

Apple responded to the end run around its App Store fees by booting Epic Games from the platform, leading to lawsuits and countersuits. Epic is still unavailable from the App Store.

Apple argues the fees help the App Store remain secure, and Epic’s efforts at bypassing the system violate the guidelines that apply to all developers accessing the system.

Although Epic has suffered a significant loss of Fortnite players after being booted from the App Store and the iOS operating system, the video game developer says it’s not seeking to levy any monetary damages against Apple, only that fairness and competition be restored to the system.

Epic CEO Tim Sweeney said, “What’s at stake here is the very future of mobile platforms.”

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

More reading

• TSMC could soon make Apple’s AR dreams a reality
• Why investors should look beyond the ASX 200 to US share markets
• Nasdaq at record high! Here’s what it means for the ASX 200
• Amazon’s CEO quits. Time to sell?
• 4 most trusted ASX companies (and the 4 least trusted)

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

The post Fortnite maker Epic Games files antitrust lawsuit against Apple in the EU appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3s6sVEa

In morning trade the Goodman Group (ASX: GMG) share price is pushing higher.

At the time of writing the global integrated property company’s shares are up 2% to $17.33.

This means the Goodman share price has limited its year to date decline to 10.5%.

Why is the Goodman share price pushing higher?

Investors have been buying Goodman shares this morning following the release of its half year results.

For the six months ended 31 December, the company reported a 16% increase in operating profit to $614.9 million. This reflects new developments, strong demand, and 3% like-for-like net property income growth.

Demand was so strong for its properties during the half that the company leased an additional 1.9 million square metres. This equates to $269 million of annual rental property income across the company and partnerships. This left Goodman with an occupancy rate of 97.9% and a weighted average lease expiry (WALE) of 4.4 years.

In light of its strong half, the Goodman board has declared a 15 cents per share interim distribution. This is in line with its full year guidance of 30 cents per share.

Online shopping drives growth for Goodman

Goodman’s Chief Executive Officer, Greg Goodman, revealed that the shift to online shopping and the digital economy are driving its growth. And given the outlook for the digital economy over the 2020s, this bodes well for the Goodman share price.

He said: “The logistics and warehousing sector are playing a significant role globally in providing essential infrastructure to the digital economy. On average, global online sales increased by 30% in 2020 and are expected to show strong growth over the next five years.” 

“We are experiencing strong demand from customers as they meet increasing consumer requirements and higher utilisation of properties.”

This has led to Goodman once again increasing its development work to capture this demand.

Mr Goodman explained: “Our development activity is reflecting these trends and the flow-on effects in the digital space. As a result, we have again increased the levels of development work in progress to $8.4 billion. Maintaining a strong balance sheet and retaining income has provided us with significant liquidity, stability and financial resources for sustainable growth.”

In respect to its work in progress, management advised that strong customer demand and the desirability of sites has translated into a continued high pre-commitment of 69%. Furthermore, projects completed are averaging 95% commitment.

Going carbon neutral in 2021

Also giving the Goodman share price a boost today could be its carbon neutral targets.

Goodman was aiming to be carbon neutral by 2025. However, management now expects to achieve this by June 2021.

Mr Goodman said: “We view our approach to sustainability as one that leads to positive economic, environmental and social outcomes for our business, stakeholders and the planet. We are focussed on energy efficiency, climate resilience and the wellbeing of our customers and people. Customer demand for strategically located space, close to consumers that makes a positive contribution towards a more sustainable world has never been more important.”

Outlook

Perhaps the main reason the Goodman share price is performing positively today is its guidance for FY 2021.

After its strong first half, management has upgraded its full year operating profit guidance to $1.2 billion. This will be a 12% increase on FY 2020’s operating profit and compares to previous guidance of 9% growth.

Greg Goodman commented: “The Group has significant human capital and expertise, financial resources and a strategic real estate portfolio to generate opportunities in changing operating conditions. Our business is performing strongly. The continuing shift in use and requirements from our customers, driven by the long-term trends in the digital economy is supporting continued demand for our properties.”

“Consequently, we have upgraded our FY21 forecast operating profit to $1.2 billion (up 12% on FY20). Forecast distribution for FY21 will remain at 30.0 cents per security, in keeping with our financial risk management policy,” he concluded.

More reading

• 2 fantastic ASX shares to buy right now
• 2 compelling ASX 200 blue chip shares to buy in February
• Forget growth or value: Here’s a neutral way to pick shares
• How COVID-19 has set ASX logistics shares up to outperform in 2021
• 2 of the best blue chip ASX shares to buy

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.

The post Why the Goodman (ASX:GMG) share price is pushing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3k2FxJJ

Anteris Technologies Ltd (ASX: AVR) shares will be on watch this morning following the release of the company’s preliminary results for the 2020 full year. At the closing bell yesterday, the Anteris share price finished the day down 3.8% at $5.00.

Let’s take a look and see how the structural heart company performed for the period.

FY20 performance

The Anteris share price could be under pressure today after the company reported a disappointing end to its FY20 performance.

According to yesterday’s late market release, Anteris advised it achieved a significant drop off across its key metrics.

For the period ending 31 December, total revenue fell to $7.1 million, a decline of 58% over the prior corresponding period. Most of the revenue generated came from the manufacturing of its CardioCel and VascuCel patches under the LeMaitre Vascular Inc. agreement. In addition, the company began winding down operations in the Infusion segment. COVID-19 had a minimal impact on Anteris due to the early implementation of its risk-management strategies.

Other income for the company totalled $4.8 million, which included $2.2 million in licencing income from 4C Medical Technologies. This was in relation to the transfer of the sterilisation method for use with Anteris’ ADAPT tissue technology. The other monies consisted of research and development tax incentives and COVID-19 stimulus packages.

Investors will be eyeing off the Anteris share price in morning trade after the company reported earnings before interest, tax, depreciation and amortisation (EBITDA) sank to a loss of $13.7 million. This is in comparison to the EBITDA loss of $4.1 million recorded in the prior FY19 period.

Selling, general and administrative expenses stood at $22.1 million, an improvement from the $34.5 million in FY19. Initiated by management, cost-saving measures were attributed to lower employee, travel and conference costs. In addition, the prior period impairment of Admedus Vaccines, and favourable currency exchange movements helped support cost control.

Overall, the business recorded a net loss of $15.3 million, mostly due to investment in its 3D single-piece aortic DurAVR valve.

Anteris revealed a cash balance of $4.4 million for the end of December. It’s worth noting that the company entered into a short-term facility for $1.2 million at an interest rate of 1.15% per month. The loan will be secured against the research and development refund.

The board declared that no dividend will be paid to shareholders.

About the Anteris share price

The Anteris share price is down over 30% since this time last year. Anteris shares reached a 52-week high of $9.18 in April, before plummeting down to a low of $3.01 in August.

Based on the current share price, Anteris has a market capitalisation of close to $33 million.

More reading

• Cleanaway (ASX:CWY) share price torn between record results and leadership uncertainty
• Cochlear (ASX:COH) share price in focus after delivering a solid half year result
• Wesfarmers (ASX:WES) share price on watch after broker upgrade
• CSL (ASX:CSL) share price hit by broker downgrade
• ‘Idiot’ ASX directors to be protected in treasurer’s new plan

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 Why the Anteris (ASX:AVR) share price will be on watch today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3s7Jfoc

Will record earnings will be enough to offset the leadership uncertainty hanging over the Cleanaway Waste Management Ltd (ASX: CWY) share price?

That’s the question on shareholders’ mind this morning after outgoing Cleanaway CEO Vik Bansal unveiled a 75.3% surge in statutory interim net profit to $79.4 million.

But before you get too excited about the big profit surge, the group’s underlying profits in 1HFY21 grew more modestly.

Cleanaway delivers record results

Underlying net profit improved 6.5% to $79 million, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) expanded 2.9% to $263.8 million and net revenue was flat at $1.07 billion.

Not to take anything away from Bansal – the underlying net profit and EBITDA still marked a record for the group.

Not firing on all cylinders

Cleanaway’s Solid Waste Services business performed solidly with revenue increasing 2.1% to $713.2 million.

This was offset by a decline in its Industrial and Waste Services division as management terminated lower value contracts. The Liquid Waste and Health Services division also detracted from top-line growth due to the lingering effects of COVID-19.

Key highlight are margins

But it’s notable that margins across all the businesses expanded in the first half and Cleanaway increased its interim dividend by 12.5% to 2.25 cents a share.

Further, the group is expecting to break FY20’s record underlying net profit this financial year.

There is perhaps an air of expectations that Bansal would deliver a good result, but herein lies the bigger issue.

Foolish takeaway

This is the last result he will be handing down as captain of the ship as he’s being “transitioned” out of the business. His ungraceful exit comes amid a scandal where the astute boss is accused of creating a culture of workplace bullying.

Executive chairman Mark Chellew will be taking over and will be supported by chief operating officer Brendan Gill.

This will likely mean more volatility for the Cleanaway share price for two reasons. The market is forward looking, so the solid first half result in itself won’t be enough to keep investors onside.

The market also hates uncertainty and a changeover of the guards usually creates unpredictability – especially when a well-regarded CEO exits the building.

Of course, when I say “well-regarded” I mean by the investment community, although it is hard to judge anyone from only one angle.

More reading

• These ASX shares are falling after being hit by broker downgrades today
• Why Afterpay, Cleanaway, Mosaic Brands, & Perpetual shares are dropping lower
• ASX 200 rises 0.8%
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• ASX 200 up 0.65%: Zip update impresses, Netwealth rockets, Cleanaway dumped

Motley Fool contributor Brendon Lau 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 Cleanaway (ASX:CWY) share price torn between record results and leadership uncertainty appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ds5Doe