The Genworth Mortgage Insurance Australia (ASX: GMA) share price has plunged 6.23% at the time of writing today, after the insurer reported its half-year results.

After reporting a $90.0 million net loss after tax, Genworth has advised it will not pay an interim dividend for 1H20.

What are the key statistics?

I’ve summarised some key financial metrics from Genworth’s results below:

• Gross written premium up 30% to $239.3 million
• Net earned premium up 2.2% to $150.8 million
• Net claims incurred up 26.6% to $101.1 million
• Insurance loss of $128.1 million compared to $77.3 million profit, largely driven by $194.5 million of acquisition costs
• Statutory net loss after tax of -$90.0 million compared to an $88.1 million profit in 1H19.
• Underlying net loss after tax of -$85.5 million versus $43.1 million in 1H19 net profit
• Basic earnings per share came in at -21.8 cents versus 20.6 cents in 1H19.
• Net assets down 8.0% from 1H19 to $1.41 billion.
• Loss ratio increased to 67.0%, up from 54.1% in 1H19.

What did management have to say?

CEO Pauline Blight-Johnston said Genworth’s first half performance reflected “sound fundamentals” and set the company up well to manage the impacts of COVID-19.

A deferred acquisition cost writedown of $181.8 million (pre-tax) hit the company’s bottom line. So too did a $35.5 million increase in loss reserving for the year ahead.

Volume numbers were strong, with new insurance written in its lenders mortgage insurance business up 8.1% to $13.5 billion.

Strong housing market growth in major capital cities (pre-COVID) and the record low-interest rate environment were cited as strong supporting factors.

Those low rates weren’t all good news, however, with 1H20 annualised investment return coming in at 1.7% in 1H20, down from 2.6% p.a. in 1H19.

As at 30 June 2020, 81% of Genworth’s $3.2 billion investment portfolio was in cash and high investment grade fixed interest securities.

What about the capital position?

The $90 million net loss after tax has dropped the Genworth share price by more than 6% today.

However, the insurer’s balance sheet and regulatory capital position remains strong.

Genworth reported a regulatory solvency ratio 1.77 times the prescribed capital amount, well above the board’s target 1.32 to 1.44 times range.

Genworth’s credit rating was also recently affirmed by Standard & Poor’s at ‘A-‘ with Fitch revised from ‘A+’ to ‘A’.

COVID-19 outlook

The Genworth share price is on the move today after kicking off the August earnings season a little early. 

The insurer did report increased estimation uncertainty because of the coronavirus pandemic. 

This uncertainty is driven by disruption to businesses, the expected downturn in gross domestic product (GDP) and the effectiveness of government and central bank measures to support the economy.

Genworth also noted an anticipated increase in future claims “due to the economic impacts of COVID-19”.

How has the Genworth share price performed this year?

The Genworth share price has fallen 55.3% since its full-year earnings result on 5 February and is down 52.3% for the year.

That compares to a 9.7% decline in the S&P/ASX 300 Index (ASX: XKO) over the same period.

That 4 February price has proven to be the high point for the insurer’s share price in the year to date.

Prior to this morning’s market open, the Genworth share price was trading at $1.84 per share. It’s now trading at $1.74 per share (at the time of writing). The company’s price to earnings (P/E) ratio is 6.04 with a market capitalisation of $709.52 million.

More reading

• Results: Marley Spoon share price surges 40% on market update
• Value stocks to rise on strong A$ and broker picks the cheapest ASX stocks to buy today
• 3 tips for investing in ASX 200 shares for beginners
• How to invest $10,000 in ASX 200 shares for growth and dividends
• 3 reasons to buy Vanguard Australian Shares Index ETFs

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (Index:^AXJO) big 33% surge in the past four months pushed a number of stocks beyond good value. Broker have just downgraded their recommendations on a number of these outperformers.

The latest clutch of downgrade candidates come from the resources sector after they released their latest quarterly production and profit updates.

Brokers have used this as a trigger to downgrade their recommendations on these stocks after their solid run.

Quality holding but little upside

The most notable is the Rio Tinto Limited (ASX: RIO) share price with Morgans dropping its rating on the stock “hold” from “add”.

Australia’s largest iron ore miner posted its half year result yesterday evening. While Rio Tinto’s earnings were ahead of the broker’s estimates, its interim dividend disappointed.

The miner’s first half underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$9.6 billion was ahead of the US$9.0 that Morgans was forecasting. But operational cash flow was weaker than expected.

“As a result RIO announced an interim ordinary dividend of US$1.55ps (53% payout ratio) with no special dividend, which fell short of our US$1.74ps estimate,” said the broker.

But Morgans still regards the stock as a worthy core holding for investors and its 12-month price target on Rio Tinto is $107 a share.

Fool’s gold

Meanwhile, JP Morgan downgraded its recommendation on the IGO Ltd (ASX: IGO) share price following the release of its quarterly production report.

The nickel miner’s joint-venture gold project, Tropicana, is the key reason why the broker cut its rating on IGO to “neutral” from “overweight”.

“We had been expecting a weaker production year but costs were significantly higher than us with ~$560/oz relating to stripping and $65/oz to [underground],” said the broker.

“The significant [year-on-year] increase costs/stripping has snuck up on us. We are not sure if it’s an investment in the future of the past.”

JP Morgan lowered its price target on the stock to $5.45 from $6.10 a share.

Lost its shine

The broker also lowered its call on the St Barbara Ltd (ASX: SBM) share price to “neutral” from “overweight”.

The gold miner’s Gwalia project is to blame with management forecasting production of 175,000 to 190,000 ounces in FY21 at a cost of $1,435 to $1,560 an ounce.

Further, St Barbara also gave a soft guidance for Gwalia for FY22 and FY23, which is significantly weaker than what JP Morgan was expecting.

The broker dropped its price target on the stock to $3.60 from $4.40 a share.

More reading

• ASX 200 jumps 0.7%: Fortescue impresses, Macquarie’s tough Q1, big four banks rise
• Why IOOF, IGO, Janus Henderson, & Qantas shares are dropping lower
• Fortescue’s share price in focus as it beats guidance on record quarterly shipments
• K2Fly share price on watch after update
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau owns shares of Rio Tinto Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mesoblast limited (ASX: MSB) share price is pushing higher on Thursday following the release of its quarterly update.

At the time of writing the shares of the global leader in allogeneic cellular medicines for inflammatory diseases are up 1.5% to $3.71.

What did Mesoblast announce?

During the fourth quarter Mesoblast reported cash receipts of US$2.1 million. These were from royalties it received from JCR Pharmaceuticals for the sales of TEMCELL in Japan for the treatment of acute Graft versus Host Disease (aGvHD).

This was not enough to offset its operating costs during the quarter, leading to a net cash usage of US$19.6 million for the three months ended 30 June 2020.

But thanks to its US$90 million (A$138 million) capital raising in May, Mesoblast finished the quarter in a very strong financial position. At the end of June the company had cash on hand of US$129.3 million (A$188.4 million).

It also notes that over the next 12 months it may have access to an additional US$67.5 million through existing financing facilities and strategic partnerships.

Remestemcel-L update.

In addition to its finances, the company provided investors with an update on its lead product candidate remestemcel-L.

This promising product has two major milestones on the horizon, which could make or break Mesoblast’s financial year.

Mesoblast’s Chief Executive, Dr Silviu Itescu, commented: “Remestemcel-L has two imminent major milestones, the interim analysis in the ongoing Phase 3 trial of remestemcel-L in COVID-19 patients with acute respiratory distress syndrome and the FDA advisory committee panel review of our submission for potential approval of RYONCIL (remestemcel-L) in children with steroid-refractory acute graft versus host disease.”

“Together with the upcoming Phase 3 read-outs in chronic heart failure and back pain, these key milestones will take the Company into the most significant period in its history,” he added.

According to the release, the independent Data Safety Monitoring Board (DSMB) has set a date for early September to complete the first interim analysis of the Phase 3 trial of remestemcel-L in ventilator-dependent COVID-19 patients with moderate to severe acute respiratory distress syndrome (ARDS).

The trial’s first 90 patients will have completed 30 days of follow up during August, after which the DSMB will perform an interim analysis review of the safety and efficacy data.

At that point, the DSMB will inform Mesoblast on whether the trial should proceed as planned or should stop early.

Given that there are currently no approved treatments for COVID-19 ARDS, the primary cause of death in patients infected with COVID-19, this will no doubt be closely watched by investors.

More reading

• 3 junior ASX healthcare shares with explosive growth potential
• ASX 200 drops 1.1%: Big four banks fall, Resolute rockets, Afterpay tumbles
• Why Afterpay, BHP, Cann, & Mesoblast shares are tumbling lower
• Why Mesoblast might be the best ASX healthcare growth share to own right now
• 4 exciting ASX biotech shares surging higher today

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is charging higher. The benchmark index is currently up 0.7% to 6,050 points.

Here’s what has been happening on the market today:

Fortescue impresses.

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today after its fourth quarter update impressed the market. During the fourth quarter Fortescue shipped 47.3 million tonnes (mt) of iron ore, bringing its FY 2020 total shipments to 178.2mt. This means the miner outperformed the top end of its guidance of 177mt. It is also a 6% increase on the prior year. In FY 2021, management is aiming to ship 175mt to 180mt.

Big four bank rise.

It has been a reasonably positive but subdued day for the big four banks. Although the big four are all pushing higher, they are underperforming the ASX 200 index. The Commonwealth Bank of Australia (ASX: CBA) share price is the best performer in the group with a 0.45% gain. Earlier today Goldman Sachs released its revised estimates for the big four’s dividend payments in FY 2020.

Macquarie update.

The Macquarie Group Ltd (ASX: MQG) share price is pushing higher after the release of its first quarter update at its annual general meeting. The investment bank advised that it has been impacted by mixed trading conditions during the first quarter. As a result, its operating profit during the quarter was slightly down on the prior corresponding period. No guidance was provided for the full year due to the uncertain global economic outlook.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the WiseTech Global Ltd (ASX: WTC) share price with a 5% gain. A number of tech shares are pushing notably higher today following a positive night of trade on the tech-heavy Nasdaq index. The worst performer has been the Sandfire Resources Ltd (ASX: SFR) share price with a 7% decline. The copper miner’s FY 2021 guidance appears to have disappointed investors.

More reading

• 3 latest ASX 200 stocks to be downgraded by top brokers today
• Why Afterpay, Fortescue, Marley Spoon, & Splitit shares are racing higher
• Here are the dividends this broker thinks CBA and the big four will pay in 2020
• Fortescue’s share price in focus as it beats guidance on record quarterly shipments
• Macquarie share price on watch after Q1 update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price had a top day yesterday, along with all of the ASX banking shares.

At the time of market close, ANZ shares were up 2.12% to $18.45 a share. Even after yesterday’s rise, ANZ shares remain a lot closer to the bottom of their 52-week range ($14.10) than the top ($28.79).

At the time of writing, shares are $18.48, so are ANZ shares a buy today?

Is the ANZ share price still cheap?

So why were ANZ shares in hot demand yesterday? Well, it was the Australian Prudential Regulation Authority’s (APRA) relaxing of the rules… sorry, ‘expectations’ surrounding the payment of dividends that got investors riled up for ASX bank shares.

The new ‘expectation’ is that banks and other ASX financial companies must aim to pay out a maximum of 50% of their earnings in dividends. Previously, APRA had told banks to keep a lid on dividend payments until the fog from the current economic outlook cleared. This was done in order to make sure the Australian financial system had enough of a buffer to withstand whatever the coronavirus-induced economic crisis throws its way.

Clearly, APRA is seeing enough certainty that it doesn’t see any problems with modest dividend payments from our major banks. And that’s why ANZ, along with the rest of the ASX banking shares, were on investors’ buying lists yesterday.

Is it time to buy ANZ?

Although the news yesterday will be welcomed by income investors, it is worth noting that it is likely to be some time before dividends from ANZ and the other banks return to the levels investors have become accustomed to.

Prior to 2020, it was common for ANZ and the other banks to pay out as much as 80–90% of their earnings as dividends. A 50% cap will obviously not allow this situation to return. So it will be some time (in my view) before ANZ shareholders start seeing 80 cents per share payouts once more.

Even so, is there still a buy case for ANZ at its current price, which is still historically very low?

I’m not convinced. Economic growth is probably going to be very sluggish for many months, even years. In all likelihood, that means there won’t be any real growth in demand for credit and loans – which is how a bank makes money. Further, once the banks stop allowing deferral of mortgage payments, it’s possible that some distressed loans will be defaulted on. That’s very bad news for a creditor like ANZ.

Finally, it looks as though interest rates will be at record lows for some years yet if the Reserve Bank of Australia’s indications are to be believed. Banks don’t tend to be able to produce healthy profits in a low-rate environment. There’s not much fat on a 2.5% mortgage, after all. And bank customers don’t tend to respond well to receiving interest rates of 1% or less on their savings and term deposits.

Foolish takeaway

I think banks like ANZ will be fine over the long-term as our economy slowly recovers from the pandemic over the next few years. But I don’t think there’s enough upside to justify an investment into ANZ right now. Thus, I’m tipping there are better places to have your capital today than ANZ shares.

More reading

• Here are the dividends this broker thinks CBA and the big four will pay in 2020
• ASX 200 drops 0.2%, APRA boosts big 4 ASX banks
• ASX big banks stocks outperform even as APRA caps dividends
• APRA eases dividend restrictions, ASX bank shares rally
• Top broker warns earnings expectations for the ASX reporting season are too high

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Travel. It’s not exactly a booming industry in the current climate.

ASX travel shares like Webjet Limited (ASX: WEB) have been smashed this year as the coronavirus pandemic has brought the industry to a halt.

Some investors think travel shares are cheap to buy right now. Others think it’s like trying to catch falling knives.

So, what’s a ‘good price’ to buy ASX travel shares at in 2020?

Pricing in default and solvency risk

I think this is a big issue when it comes to the travel industry.

No matter how well run a company is, most wouldn’t have planned for their industry to totally shutdown for 1-2 years or more.

That’s exactly what has happened in the travel industry. International borders have been slammed shut while even domestic travel is heavily restricted.

That means booking services like Webjet have seen volumes dry up. It’s a similar story for Sydney Airport Holdings Pty Ltd (ASX: SYD).

Sydney Airport traffic numbers have plummeted this year. However, the Aussie airport does have one thing going for it: strong tangible assets.

Sydney is arguably as much of an infrastructure share as an ASX travel share. Many investors would argue that now is a great time to buy high-quality infrastructure assets for a low price.

Of course, buying ASX travel shares relies on them staying afloat. Personally, I think Sydney would be a safer way to get exposure given the tangible asset backing.

Even if earnings dry up, you’d imagine Sydney’s financial backers would want to keep their claim to the underlying assets. That’s harder for a service-based business like Webjet which relies on booking volumes.

The Sydney Airport share price is down 38.4% this year while Webjet shares have slumped 70% in 2020.

So, are they in the buy zone yet or should you be waiting?

When is the right time to buy ASX travel shares?

This is clearly a very individual decision. Every investor will have their own portfolio with different risk exposures and return expectations.

For me, I think it’s still too early to buy ASX travel shares. It’s hard to bet on a company that has very minimal cash flow for the foreseeable future.

I’d rather risk losing some of the upside potential for the safety of waiting to see some more financial numbers and operational forecasts.

There could be some great value in ASX travel shares at the moment but I’m not willing to take the downside risk to get the potential gains.

More reading

• 2 top ASX dividend shares to buy for income in 2020
• Short-sellers are targeting these ASX stocks ahead of the reporting season
• Is the oOh!Media share price set to run higher?
• Why Bubs, IAG, Star Entertainment, & Webjet shares are dropping lower
• These are the 10 most shorted shares on the ASX

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Marley Spoon AG (ASX: MMM) share price has rocketed 40.4% higher in early trade after a strong market update yesterday evening.

Why is the Marley Spoon share price surging?

The big catalyst here was Marley Spoon’s strong quarterly update yesterday afternoon.

Marley Spoon upgraded its full-year guidance to at least 70% revenue growth in 2020, up from ~30% previously.

That has helped propel the Marley Spoon share price to a new record high of $3.32 per share this morning before edging back slightly to $3.30 at the time of writing.

The company delivered 13.2 million meals in Q2 2020 with more than 90% of revenue coming from repeat customers.

Marley Spoon reported its first positive global operating earnings before interest, tax, depreciation and amortisation (EBITDA) last quarter.

The food delivery service is now active in 8 countries around the world across Australia, Europe and North America.

What were the highlights from the market update?

The Marley Spoon share price is on the charge in early trade after reporting ‘very strong performance’ across all top line metrics for the June quarter.

Quarterly net revenue rocketed 129% higher compared to Q2 2019, while active customer and total order numbers rose by 104% and 114% respectively.

On top of that, Marley Spoon reported positive operating EBITDA of 4.5 million euros (A$7.4 million) with a global contribution margin (CM) for Q2 at 30.5%.

Marley Spoon is one example of an ASX share that has actually benefitted from the onset of the coronavirus pandemic. 

It wasn’t just in Australia where the food delivery company saw strong results. Quarterly revenue for Australia rocketed 103% higher to 24 million euros (A$39.4 million).

The United States is the company’s fastest-growing segment. Quarterly segment revenue rocketed 171% to 38 million euros (A$62.4 million) while European revenue surged 83% to 11 million euros (A$18.1 million).

It’s easy to see why the Marley Spoon share price has surged to a new record high in today’s trade. Strong volume numbers and a record contribution margin have propelled quarterly earnings higher.

It also represents the second consecutive quarter of positive operating cash flow for the company. Net cash flow from operations climbed to 7.6 million euros (A$12.5 million) following last quarter’s 0.5 million euros (A$0.8 million) result.

Foolish takeaway

These are some strong quarterly growth numbers from the food delivery company. The Marley Spoon share price has rocketed over 40% to a new record high, with investors clearly impressed by the latest figures.

The S&P/ASX 300 Index (ASX: XKO) has started the day strongly with a 0.66% gain so far.

More reading

• Earnings: Genworth share price plunges 6% after $90 million half-year loss
• Why Afterpay, Fortescue, Marley Spoon, & Splitit shares are racing higher
• Marley Spoon share price on watch after 129% jump in Q2 revenue
• Can the Marley Spoon share price climb even higher?
• Is now the time to sell your ASX shares?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is charging higher and on course to end its losing streak. The benchmark index is currently up 0.7% to 6,048.5 points.

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

The IOOF Holdings Limited (ASX: IFL) share price has tumbled 5.5% lower to $4.97 following its fourth quarter update. During the quarter IOOF’s funds under management, advice and administration (FUMA) grew to $202.3 billion. This represents a quarterly increase of $6.7 billion or 3.4%. While that was positive, the same could not be said for its earnings commentary. IOOF advised that it expects to report an underlying net profit after tax of approximately $128 million to $130 million in FY 2020. This will be a sharp decline from $198 million a year earlier.

The IGO Ltd (ASX: IGO) share price is down a further 3.5% to $4.63. The nickel producer’s shares have come under significant pressure this week after its guidance for FY 2020 fell short of expectations. IGO expects its revenue to be $892.4 million and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at $459.6 million. The latter falls well short of Macquarie’s estimate of $530 million.

The Janus Henderson Group PLC (ASX: JHG) share price has dropped 3.5% to $30.18. This follows the release of its second quarter update after the market close on Wednesday. That update revealed assets under management (AUM) of US$336.7 billion at the end of June. While this was up 14% compared to the prior quarter, it was driven entirely by favourable market movements. The fund manager reported net outflows of US$8.2 billion for the quarter.

The Qantas Airways Limited (ASX: QAN) share price is down 2% to $3.42. Investors appear to have been selling the airline operator’s shares due to concerns over the domestic travel market after more borders were closed. On a more positive note, this morning the ACCC advised that Regional Express Holdings Ltd (ASX: REX) will be allowed to continue to coordinate flight schedules with Qantas and Virgin Australia on 10 regional routes. The competition watchdog has authorised this until the end of June 2021.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why GUD, IGO, Nitro Software, & St Barbara shares are dropping lower
• ASX 200 flat: Big four banks higher, St Barbara and IGO sinks on Q4 updates
• Why the IGO share price is the worst performer on the ASX 200 today
• Is the oOh!Media share price set to run higher?

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to follow the lead of U.S. markets and record a strong gain. At the time of writing the benchmark index is up 0.7% to 6,049.6 points.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

The Afterpay Ltd (ASX: APT) share price is up 3.5% to $70.09. A good number of tech shares are charging higher on Thursday along with Afterpay. This follows a very positive night of trade on Wall Street’s technology-focused Nasdaq index. It recorded a gain of 1.35% overnight after the U.S. Federal Reserve kept rates on hold at close to zero.

The Fortescue Metals Group Limited (ASX: FMG) share price has climbed 3% to $17.34 following the release of its fourth quarter update. Fortescue shipped 47.3 million tonnes (mt) during the quarter, taking its FY 2020 total shipment to 178.2mt. This means the company has outperformed the top end of management’s guidance of 177mt. It is also 6% higher than the previous financial year. In FY 2021 it is aiming to ship 175mt to 180mt.

The Marley Spoon AG (ASX: MMM) share price has rocketed 32% higher to $3.17. Investors have been fighting to get hold of the global subscription-based meal kit provider’s shares following its second quarter update. Thanks to a surge in demand due to the pandemic, the company’s second quarter revenue came in at 73.3 million euros. This was an impressive 129% increase on the prior corresponding period.

The Splitit Ltd (ASX: SPT) share price is up 3% to $1.41. This morning the buy now pay later provider released its second quarter update and revealed record quarterly merchant sales volume of US$65.4 million. This was an increase of 260% on the prior corresponding period. It led to gross revenue of US$2.4 million, which was a sizeable 460% increase on the same period last year.

More reading

• Splitit share price jumps 8% on stellar Q2 update
• Fortescue’s share price in focus as it beats guidance on record quarterly shipments
• Despite the Zip Co share price falling 24% in the last couple of weeks, it remains a popular stock to buy for CommSec investors
• 5 things to watch on the ASX 200 on Thursday
• Marley Spoon share price on watch after 129% jump in Q2 revenue

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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