Carsales.Com Ltd (ASX: CAR) had a strong day on the markets yesterday after releasing its full-year result. In fact, the Carsales share price jumped 4.2% higher to a new all-time high.

Despite the strong gains, however, I still like the look of Carsales over the next 12-24 months.

What did Carsales report yesterday?

The Aussie online classifieds business reported a solid result, especially in the context of the current climate.

The group reported adjusted revenue up 1% to $423 million with good growth in Australia and South Korea.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 6% to $237 million, with an EBITDA margin of 55%.

Adjusted net profit after tax jumped 6% to $138 million despite reporting a 9% decline in statutory profit to $120 million.

The Carsales share price surged higher following the result to a new all-time high of $20.29 per share before edging back to its current price of $20.23. That means shares in the Aussie business are up 20.5% this year compared to a 7.8% decline in the S&P/ASX 200 Index (ASX: XJO).

Why I like the Carsales share price

The latest full-year result shows that the Carsales business is resilient despite the tough economic conditions.

The coronavirus pandemic continues to weigh on earnings and make it difficult to forecast beyond this year.

However, I think that economic uncertainty may have a silver lining for Carsales. The recent goverment stimulus measures have seen an increase in vehicle purchases as many Aussies splash out with their new dollars.

While the stimulus may subside, I think many will still look to sell vehicles that they now can’t afford, or look to buy second-hand to save some cash.

That’s good news for the Carsales share price which could benefit from increased volumes.

On top of that, we’re also seeing a change in work and commuting dynamics. That means more Aussies could move out of inner city areas and require a car for travel. We could also see a move away from public transport to reduce the danger of contracting COVID-19.

Finally, I think the strong momentum behind the Carsales share price is a good thing for investors. It won’t last forever, but I think it may continue to climb beyond its current all-time high in 2020.

More reading

• Why it may not be too late to chase ASX reporting season record breakers
• Mirvac share price on watch as profit slumps 45%
• Where to next for the McMillan share price following Wednesday’s results?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 0.7%, CSL soars 6.4%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. 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.

The post Why the Carsales share price is still a buy at an all time high appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2DZl1sR

The WiseTech Global Ltd (ASX: WTC) share price rocketed 34.5% higher yesterday, but is the Aussie tech share overvalued?

Why did the WiseTech share price surge 35%?

The big factor was a bumper full-year earnings result from the logistics software company.

Total revenue for WiseTech grew to $429.4 million, up by 23% on the prior year. That included a 20% jump for its CargoWise core platform with revenue from newly acquired businesses up 29% to $166.4 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 17% to $126.7 million on an EBITDA margin of 30%. 

Impressively, WiseTech’s net profit after tax surged 197% to $160.8 million including a fair value gain of $111.0 million.

The software group also reported a 1.60 cents per share fully franked dividend for shareholders.

That saw investors scramble to buy in with the WiseTech share price rocketing higher in yesterday’s trade.

Is the Aussie WAAAX share overvalued?

Valuing ASX tech shares is difficult at the best of times. However, if the coronavirus pandemic has taught us anything, it’s that tech and gold shares are in high demand.

I think a 35% jump in one day indicates that the WiseTech share price may be overvalued.

It’s rare to see any share surge that much higher and stay at that valuation in the long term. Determining intrinsic value is a tough game and I think we’ll see investors continue to trade WiseTech shares heavily in the coming days.

The WiseTech share price currently trades at a price-to-earnings (P/E) ratio of 96.9. That means you’re paying a lot today for expected growth tomorrow.

Yesterday’s revenue and EBITDA figures suggest that maybe it is worth that much. However, I think I’d rather err on the side of caution and think longer term than get trapped in the current tech mania.

Foolish takeaway

In a difficult earnings season, WiseTech has certainly delivered for its investors. I think the strong WiseTech share price gains indicate that there is still serious growth potential on offer. 

However, given the lofty valuations tech shares are attracting, I think I’ll look elsewhere in the market for undervalued buys.

More reading

• ASX 200 rises 0.7%, CSL soars 6.4%
• 4 ASX tech shares surging higher today on strong FY 2020 earnings
• 4 market experts’ opinions as US shares hit record and WiseTech share price soars 33%
• Why the WiseTech Global share price rocketed 37% higher today
• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. 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.

The post After a 35% jump, is the WiseTech share price overvalued? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EkRqto

The Wesfarmers Ltd (ASX: WES) share price will be on watch on Thursday following the release of its full year results.

How did Wesfarmers perform in FY 2020?

For the 12 months ended 30 June 2020, the conglomerate reported a 10.5% increase in revenue from continuing operations to $30,846 million. This reflects strong sales growth from Bunnings, Kmart, Officeworks, and Catch.

The Bunnings business was the star of the show and delivered a 13.9% increase in sales to $14,996 million. This was driven by demand for products during the pandemic as customers spent more time doing projects at home.

Supporting its growth were its Kmart and Officeworks businesses. Kmart recorded a 5.4% lift in sales to $6,068 million and Officeworks delivered a sizeable 20.4% lift in sales to $2,775 million.

The company also reported strong growth in online sales in FY 2020. They grew 60% for the year to $1.5 billion excluding the Catch business. This lifts to $2.1 billion including the ecommerce business. Management notes that this reflects continued shifts in customer shopping preferences and its enhanced digital offering.

On the bottom line, Wesfarmers reported an 8.2% increase in net profit after tax from continuing operations (excluding significant items) to $2,099 million. This represents earnings per share of 185.6 cents.

This profit excludes $3,570 million of significant items and discontinued operations. This is primarily relating to the Coles demerger, but also includes the writing down of the value of the Target business by $525 million, $110 million in restructuring costs, and a $310 million impairment against the value of its industrial and safety businesses.

Final and Special Dividend.

Wesfarmers has declared a fully franked final dividend of $0.77 per share, bringing its full year dividends to $1.52 per share. This is down from $1.78 per share in FY 2019.

However, the Wesfarmers board has declared a special fully franked dividend of 18 cents per share. This reflects the after-tax profits realised from the sale of some of its Coles Group Ltd (ASX: COL) stake.

Outlook.

Management warned that the outlook for its key Bunnings business remains highly uncertain because of the pandemic.

It commented: “Trading performance likely to moderate as extraordinary growth in the second half likely to have pulled sales forward from FY21 in some categories. Weaker economic conditions expected in Australia and New Zealand with gradual removal of financial support measures from government, banks and landlords likely to impact housing and renovation activity.”

In addition to this, management notes that the outlook for the Officeworks business remains uncertain, with changing customer shopping patterns and COVID-19 measures expected to impact trading conditions in FY 2021.

Things may be a little more positive for the Kmart Group, which management believes is well-positioned to deliver sustainable long-term returns even in an uncertain environment.

It concluded: “The Group will continue to develop and enhance its portfolio, building on its unique capabilities and platforms to take advantage of growth opportunities within existing businesses, recently acquired investments and to pursue transactions that create value for shareholders over the long term.”

More reading

• Why it may not be too late to chase ASX reporting season record breakers
• Low interest rates the new normal? 3 ASX dividend shares to buy today
• Is the Coles share price a post-earnings buy for ASX dividend income?
• Rates on hold until 2023? Buy these ASX dividend shares
• 2 blue chip ASX dividend shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. 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.

The post Wesfarmers share price on watch after cautious outlook overshadows strong FY 2020 result appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3l3EEQS

The Afterpay Ltd (ASX: APT) share price has been on a tear lately. It has rocketed from $8.90 in late March to a high of $77 yesterday before closing at $74.90. That’s an increase of more than 700%!

This growth is being fueled by strong domestic activity and an aggressive overseas expansion strategy.

In light of such a rapid recent rise in the Afterpay share price, is the buy now, pay later (BNPL) provider still in the buy zone?

Impressive fourth quarter growth

Afterpay has continued to perform strongly in recent months. This is despite growing competition from other BNPL providers such as Openpay Group Ltd (ASX: OPY) and Zip Co Ltd (ASX: Z1P).

The company revealed impressive performance across its entire business in a trading update in July.

Underlying sales came in at $11.1 billion during FY 2020. This was up 112% – more than double the sales – on the prior corresponding period (pcp). Underlying sales during the fourth quarter were particularly high at $3.8 billion, more than 127% higher than in FY 2019.

 Growth in recent months has been fueled by the rapid rise of online shopping during the coronavirus pandemic. Afterpay’s BNPL platform is becoming increasingly popular with online shoppers as an alternative to traditional credit card online payments.

Active customer base continues to soar

Afterpay’s active customer base reached 9.9 million during FY 2020. That’s a 116% increase on the prior year.

Growth is being driven by Afterpay’s growing presence in overseas markets. Afterpay’s US customer base reached 5.6 million in June, while the 1 million customer milestone was reached in the UK. During the first quarter of 2021, Afterpay’s expansion into Canada is scheduled to begin, along with the in-store rollout within the huge US market.

Afterpay has flagged FY 2021 as a year of increased investment as it looks for additional overseas investment opportunities to achieve further global scale. This growth will be partly fueled by a fully underwritten institutional placement to raise $650 million. In addition, a share purchase plan is anticipated to raise approximately $150 million.

Afterpay is yet to achieve the breakeven point in terms of profitability. However the BNPL provider is anticipating that its net transaction loss (NTL) will to be up to 38 basis points for FY 2020.

Foolish Takeaway

Despite a strong recent surge in the Afterpay share price, I believe there is potential for still more strong share price growth in the next few years, fueled by the company’s aggressive overseas growth strategy.

Afterpay’s potential to make strong inroads into the large US market in particular is massive. However, with such a strong  share price rise recently, be ready for some potential share price volatility during the short term.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Afterpay share price on watch after upgrading FY 2020 guidance
• This ASX fund manager is going back to value in a post-COVID world. Here’s why.
• Afterpay share price hits new, all time high
• Afterpay and Mesoblast were among the most traded shares on the ASX last week

Phil Harpur owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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.

The post The Afterpay share price is up a massive 700% since March. Is it still a buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iW7xN5

One of the worst performers on the S&P/ASX 200 Index (ASX: XJO) yesterday was McMillan Shakespeare Limited (ASX: MMS). The McMillan share price closed 6.14% lower at $8.72 on Wednesday, after earlier falling as low a $8.25 per share. This came after the salary packaging, novated leasing, and fleet management company released its FY20 results.

FY20 performance

McMillan reported for the full year ending 30 June, a 10.1% decline in revenue to $494 million and a massive 25.1% fall in earnings before interest, tax and amortisation (EBITA) to $99.5 million.

Underlying net profit after tax and acquisition amortisation (UNPATA) dropped 22.2% to $69 million. Underlying earnings per share (EPS) of 87.4 cents was down 18.5%. The company has declared no final dividend to be paid as it takes a cautious approach due to the uncertainty of COVID-19.  McMillan plans to resume dividends in FY21.

The FY20 results appear to have spooked investors as the McMillan share price has been heavily sold off.

COVID-19 impact

McMillan advised that the coronavirus pandemic caused a sharp and severe hit to Q4 earnings. The company renegotiated contract extensions for 21 customers and granted interest only repayments and payment deferrals for a further 62 customers.

The uncertainty surrounding the pandemic is expected to result in further restrictions and, subsequently, associated impacts on the company’s near-term future performance.

Proactive measures have been taken to reduce costs and extend McMillan’s senior debt maturity to see the company through the current climate. McMillan recorded its net cash position of $66.7 million excluding fleet funded debt. 

FY21 outlook

McMillan advised there have been some encouraging early indications for Q1 FY21 as activity levels start to improve. However, this of course is reliant on the Australian and the United Kingdom economies returning back to normal sooner rather than later.

The company’s Group Remuneration Services segment, Plan Partners, was not affected by COVID-19 and is well positioned for customer and earnings growth in FY21. $669 million of client funds were under administration in FY20.

McMillan’s rapid digital program expansion has been gaining traction as a way to service customers remotely. The program’s digital roadmap is expected to enhance overall customer experience and support growth opportunities.

Should you invest in today’s McMillan share price?

Whilst these results are disappointing, I believe they should have been expected due to the impact the pandemic has had on McMillan’s businesses. I am also confident the company will bounce back for FY21. Furthermore, McMillan has initiated cost-saving measures to help see it through the challenging conditions.

Particularly after yesterday’s falls, I believe the McMillan share price could be a good option for investors with a long-term horizon.

More reading

• Why it may not be too late to chase ASX reporting season record breakers
• Mirvac share price on watch as profit slumps 45%
• Why the Carsales share price is still a buy at an all time high
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 0.7%, CSL soars 6.4%

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. 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.

The post Where to next for the McMillan share price following Wednesday’s results? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Qc9sAI

The Vicinity Centres (ASX: VCX) FY20 annual report released yesterday disclosed a blowout statutory loss of $1.8 billion. The announcement saw the Vicinity Centres share price fall by more than 4%. The major contributor to the loss was property valuation decline of $1,718 million and an impairment of goodwill of $427 million. In July, Vicinity Centres disclosed an 11.4% decline in valuation. Accordingly, the company has cancelled its June distribution. 

The Vicinity Centres report goes on to point out that net property income (NPI) had reduced by $204 million, or 22.96%. $169 million of this was due to the impact from the coronavirus. $109 million due to rent waivers, and $60 million due to rent deferrals. The latter part reflects a heightened collection risk in these times. The company is continuing to negotiate short term lease variations.

Moreover, the company has seen a slide in occupancy rates from 99.5% down to 98.6%. In addition, the real estate investment trust (REIT) finds itself in the firing line again as Victoria has re-imposed restrictions due to the pandemic second wave. 

Vicinity Centres report – the good news

The good news is that most of the country has opened up again, this has provided some positive results. For example, in June the portfolio’s store visitation, as a percentage of FY19, stood at 51%. While 90% of stores were trading as compared with FY19. Moreover, the company has moved from 33.7% gearing to 25.5% after a $1.2 billion institutional placement. And much of this debt is not due until at least 2022. 

To understand the financial performance of a company such as this, you need to know how REITs report, and how it all hangs together. For example, statutory profit, or loss in this case, are derived from following accounting standards. This means inclusion of things like devaluation and the loss of goodwill. However, neither of these issues have anything to do with the level of cash the company has. And in this case it has little to do with the company’s ability to generate revenues. 

REITs also use a method called funds from operations or FFO. For the benefit of the Vicinity Centres report, this is the equivalent of earnings, or earnings per share for a standard company. The company’s FFO for FY20 was $520.3 million. This was a reduction of 24.5% compared with FY19. While this is not a great result, it takes into account the real-world impacts of coronavirus, and is far more informative than a $1.8 billion statutory loss.

Where to now for the Vicinity Centres share price?

The Vicinity Centres report also disclosed the company’s thinking on the move to online shopping. While we are seeing a phenomena of the rapid move to online shopping, we are also seeing many stores become omni channel. That is, to use a multitude of sales and delivery channels. For instance, Michael Hill International Ltd (ASX: MHJ) yesterday announced a move to a range of new sales channels. These have included click and collect, click and reserve, as well as a drop shipping model.

In all of these cases, there is a need for a physical store, both for sales and for the delivery options. The REIT has also been able to review the tenancy mix and will be evolving over time to reflect both non-discretionary stores, as well as in-demand retail. 

Foolish takeaway

I believe the Vicinity Centres report showed a very good company wrapped in a poor FY20 performance due to coronavirus. However, by the REIT’s own admission, recovery of these stores and centres will take a long time. Moreover, while I agree with the omni channel focus, there is still likely to be less retail outlets for any given chain. Moreover, the Victorian experience shows us how rapidly this coronavirus can take off. Until we either learn to live with it, or finally get a working vaccine, then there is a chance for intermittent lockdowns to occur. 

Personally, I feel there is far too much uncertainty around the sector of large format, largely non-discretionary retail centres. In fact, anything requiring regular gatherings of large crowds is hard to foresee happening anytime soon. As such, it’s likely the Vicinity Centres share price will continue to face significant headwinds over the near term.

More reading

• Michael Hill share price falls but targets growth
• Is the Charter Hall share price a buy, post-earnings?
• 3 dirt cheap ASX real estate shares
• What to look for in the Vicinity Centres FY20 report
• Reliable ASX dividend shares still exist

Motley Fool contributor Daryl Mather 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.

The post FY20 results hide a great company. What’s next for the Vicinity Centres share price? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ghe0Ay

On Wednesday the Kogan.com Ltd (ASX: KGN) share price came under pressure after the ecommerce company revealed that both its chief executive officer (CEO) and chief financial officer (CFO) were selling down their holdings.

Between the both of them, the executives offloaded just under $158 million worth of shares.

This comprises the sale of 2,025,214 shares at $21.60 by CFO David Shafer and 5,284,441 shares at $21.60 by CEO Ruslan Kogan.

But they’re not the only CEOs that have been selling shares this month.

Which other CEO has been selling shares?

According to a change of director’s interest notice, the CEO of REA Group Limited (ASX: REA) has been selling shares since the release of its full year results.

The notice reveals that CEO Owen Wilson has offloaded a total of 1,682 shares through on market trades on 13 August and 18 August.

Mr Wilson received a total consideration of $195,399.39 for the shares. This equates to an average of $116.17 per share.

Following these sales, the chief executive is left with a holding of 12,000 shares and 15,677 performance rights.

Should you be concerned?

Insider selling rarely goes down well with investors. This is because many believe it is a sign that a share price has hit its ceiling, at least in the short term. After all, if you felt a share price was going notably higher, you wouldn’t be inclined to sell.

No explanation was given for the sale, which is a little unhelpful. But it is worth noting that the chief executive still has a decent holding worth approximately $1.4 million at today’s prices.

You could, therefore, argue that his interests remain aligned with the rest of the property listings company’s shareholders. But whether that will be enough to stop its shares from dropping lower today, only time will tell.

More reading

• The REA Group share price is closing in on its record high
• 2 ASX dividend shares with yields over 6% today
• Why I would buy CSL and these ASX 200 blue chip ASX shares
• 4 quality ASX shares to buy in August
• Results: News Corp share price on watch as net income drops 919%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended REA Group Limited. 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.

The post REA Group share price on watch after CEO sells shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EmE3cw

Is the Westpac Banking Corp (ASX: WBC) share price a buy today for the prospect of future dividend income after COVID-19?

Westpac may not be popular among income investors right now after the major ASX bank decided not to pay a dividend for the FY20 first half. Westpac’s board wants to retain a strong balance sheet amid the ongoing uncertainty in the current operating environment. Westpac said that it will next consider dividends as part of finalising its full year 2020 result.

What happened in the FY20 third quarter

COVID-19 has definitely hurt the Australian banking sector. Indeed, banks around the world have been affected by the pandemic.

The Westpac share price is down more than 32% over the past six months.

Westpac had already recognised an impairment charge of $2.24 billion in its FY20 half year result which included $1.9 billion of potential impacts of COVID-19. In the FY20 third quarter it recognised another impairment charge of $826 million.

The lower impairment charge helped the bank deliver decent earnings for the quarter. Statutory earnings was $1.12 billion. It generated cash earnings of $1.32 billion compared to the first half’s quarterly average of $497 million, or $1.14 billion excluding notable items.

The charge for extra provisioning wasn’t great news for investors. It also reported a lower net interest margin (NIM) of 2.05% which was down 8 basis points, due to low interest rates. The NIM is an important measure of profitability for the banking sector.

The big ASX bank said that at 31 July 2020, 78,000 mortgages were still being deferred. Westpac said that the percentage of its Australian mortgages that are now more than 90 days past due (including hardship mortgages) was 1.49%, up 55 basis points from March 2020. Currently there is government stimulus and other elements of support for borrowers in hardship, but that won’t last forever.

Despite these various troubling statistics, Westpac had a common equity tier 1 (CET1) capital ratio of 10.8% at 30 June 2020. The Westpac share price would have fallen even further if it wasn’t well capitalised. The ASX bank is currently reviewing its businesses, so that could lead to more divestments.

Is Westpac a buy for future dividends?

ASX banks have been favourites for income investors for many years. So the current environment is unnerving.

But what about the future? COVID-19 won’t be around forever. Will Westpac’s net profit bounce back to above $5 billion or $6 billion in a year or two? If profit can bounce back then perhaps the Westpac share price and the dividend can rebound too?

Will the 2019 Westpac dividend of $1.74 per share be a pretty close payout to the 2022 dividend payout? If that were to be the case then Westpac’s 2022 grossed-up dividend yield would be 14.3%. That sounds like a good yield!

But there’s a good chance that it will take longer for Westpac’s earnings to recover. The board may want to hold onto capital for the longer-term. The dividend payout ratio may never be as high as it was before COVID-19. This recession may take a while for all of the elevated bad debts to go through Westpac’s results. Just look how long it is taking for the royal commission remediation to be finalised.

There’s also the upcoming AUSTRAC penalty. Westpac has provisioned $1 billion (after tax) for AUSTRAC matters, with $900 million for the potential penalty.

Westpac is the only major ASX bank that hasn’t paid a dividend this year. Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) have all paid a dividend, even if it was heavily reduced.

I think Westpac is making the right capital management calls to ensure the business stability. There’s not much point paying a dividend and then needing to do a capital raising at highly discounted Westpac share price. But it’s facing the biggest difficulties. 

Westpac’s dividend will hopefully bounce back in the future. But I think there are other ASX dividend shares that offer big yields that perhaps aren’t as risky like listed investment companies (LICs) WAM Leaders Ltd (ASX: WLE) or NAOS Small Cap Opportunities Company Ltd (ASX: NSC).

More reading

• Top brokers name 3 ASX 200 shares to buy today
• What you need to know about the ANZ share price and profit result today
• ASX 200 rises 0.8%, Treasury Wine Estate shares turn sour
• Westpac share price slides 4% after third quarter result
• ASX 200 up 0.2%: Westpac cancels dividend, Treasury Wine hammered, Coles impresses

Motley Fool contributor Tristan Harrison owns shares of NAO SMLCAP FPO. 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.

The post Is the Westpac share price a buy for future dividends? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hd8LTR

On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed notably higher. The benchmark index rose 0.7% to 6,167.6 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower.

The benchmark ASX 200 looks set to end its winning streak on Thursday. According to the latest SPI futures, the benchmark index is poised to open the day 14 points or 0.23% lower. This follows a disappointing night of trade on Wall Street which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.45%, and the Nasdaq tumble 0.6% lower.

Afterpay upgrades guidance.

The Afterpay Ltd (ASX: APT) share price will be on watch on Thursday following a surprise after-market update on its FY 2020 performance. Since the end of the financial year, the company’s collections have been stronger than expected. This led to a better than expected Net Transaction Loss (NTL) as a percentage of underlying sales. In light of this, it has upgraded its EBITDA guidance to approximately $44 million. This compares very favourably to its previous EBITDA guidance of $20 million to $25 million.

Webjet posts major loss.

The Webjet Limited (ASX: WEB) share price will be in focus today after the release of its full year results. The online travel agent posted a 27% decline in revenue to $266.1 million for FY 2020. This comprises first half revenue of $217.8 million and second half revenue of just $48.3 million. On the bottom line, Webjet recorded a statutory net loss after tax of $143.6 million and an underlying net loss after tax of $42.3 million.

Oil prices soften.

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 0.15% to US$42.82 a barrel and the Brent crude oil price is down 0.4% to US$45.27 a barrel. Demand concerns were weighing on energy prices overnight.

Gold price sinks.

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could come under pressure today after the gold price sank lower. According to CNBC, the spot gold price is down 4% to US$1,933 an ounce. This follows the release of minutes from the latest U.S. Federal Reserve meeting.

More reading

• Afterpay share price on watch after upgrading FY 2020 guidance
• ASX 200 rises 0.7%, CSL soars 6.4%
• Webjet share price on watch after reporting $143.6 million loss
• This ASX fund manager is going back to value in a post-COVID world. Here’s why.
• 4 market experts’ opinions as US shares hit record and WiseTech share price soars 33%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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.

The post 5 things to watch on the ASX 200 on Thursday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kXEsTj

It certainly was a busy day of results releases on Wednesday.

The likes of A2 Milk Company Ltd (ASX: A2M) and CSL Limited (ASX: CSL) were just two of a large number of companies handing in their report cards.

Given how many releases were made, a few results will inevitably have slipped under the radar.

Three that you might have missed are summarised below. Here’s how they performed:

McPherson’s Ltd (ASX: MCP)

The McPherson’s share price rose almost 4% on Wednesday after the beauty products company delivered a solid FY 2020 result. For the 12 months ended 30 June, McPherson’s reported a 6% increase in total sales revenue to $222.2 million. On the bottom line the company posted an underlying profit after tax of $15.5 million, up 13% on the previous year. On statutory basis, profit after tax fell 56% to $6.1 million. This includes a $10.7 million pre-tax non-cash impairment in its A’kin and Moosehead brands and its investment in the Kotia joint venture.

Moelis Australia Ltd (ASX: MOE)

The Moelis share price jumped over 9% higher yesterday following the release its half year results. Investors were very pleased to see the company deliver a result 6.5% ahead of the guidance it provided at its annual general meeting in May. Moelis reported a slight reduction in revenue to $67.4 million and a 19.4% increase in statutory net profit to $8.9 million. And although no guidance was given for the full year, management revealed that the second half has started positively.

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen share price tumbled lower on Wednesday following the release of its full year results. Though, this decline had more to do with a pullback in the gold price than its profits. In fact, had the gold price remained stable the Saracen share price would likely have risen. For the 12 months ended 30 June, Saracen reported a whopping 173% increase in underlying net profit after tax to $257.5 million. This was driven by a 47% jump in production, steady costs, and a stronger gold price.

More reading

• The latest ASX stocks upgraded by brokers to “buy” today
• Why the Saracen share price is shooting higher today
• Evolution Mining and 1 other ASX gold share in the buy zone
• 5 things to watch on the ASX 200 on Friday
• Northern Star share price falls 1.6% on trading update

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 CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. 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.

The post 3 ASX results you might have missed on Wednesday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3aCGrrB