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The Dicker Data Ltd (ASX: DDR) share price is heading south after coming out of a trading halt today.

At the time of writing, the technology distributor’s shares are swapping hands at $10.76, down 6.27%.

What’s dragging Dicker Data shares down?

Investors are heading for the hills after Dicker Data announced it has completed its $50 million placement.

The company received strong interest from both existing institutional shareholders and new investors. However, the overwhelming demand resulted in an excess of the funds Dicker Data had sought to raise.

Approximately 4.9 million new fully paid ordinary shares will be issued at a price of $10.30 apiece. This represents a 10.3% discount to the last closing price of the company’s shares on 29 August of $11.48.

Proceeds from the placement will be used to fund the expansion of Dicker Data’s Kurnell warehouse, increasing warehouse capacity by over 70%.

The remaining monies will be allocated to the company’s working capital to increase balance sheet flexibility and support its long-term growth plans.

With the new shares expected to settle on 5 September, this will ultimately dilute shareholder value, which is why the share price is falling.

In addition, Dicker Data advised it has launched a share purchase plan (SPP) for retail investors.

The SPP aims to raise up to a further $10 million, and will be issued under the same price as the placement.

The offer is scheduled to open on 7 September and close on 20 September.

Dicker Data said that the SPP may be subject to scalebacks and is not underwritten.

Dicker Data share price review

It’s been a mixed year for Dicker Data shares, moving in circles for most of the 12 months.

Today, however, the company’s shares reached a 52-week low of $7.22 before treading higher as bargain hunters swooped in.

The Dicker Data share price is 15% lower since this time last year, and is down 27% year to date.

The post Why is the Dicker Data share price down 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Dicker Data share price placed on ice amid HY 2022 results and capital raise
• Analysts say these ASX dividend shares are buys now
• Experts name 2 ASX dividend shares to buy next week
• These ASX dividend shares have been named as buys for income investors

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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 Treasury Wine Estates Ltd (ASX: TWE) share price is spilling on Wednesday despite no announcements from the company.

At the time of writing, the wine giant’s shares are swapping hands at $13.22, down 0.83%.

Let’s take a look at what may be causing the share to fall today.

What’s happening with Treasury Wine shares?

On the back of the company’s full-year results, investors are selling off Treasury Wine shares as they go ex-dividend today.

This means if you purchased the company’s shares yesterday or before and owned them at today’s market open, you’ll be eligible for the latest dividend.

When a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. However, this can vary depending on how the market is tracking for the day as well as investor sentiment.

For those eligible for the Treasury Wine final dividend, you’ll receive a payment of 16 cents per share on 30 September. The dividend is also fully franked.

This brings the FY 2022 dividend to 31 cents per share, which is 10.7% higher than the prior corresponding period.

Furthermore, the full-year dividend represents 69% of the company’s net profit after tax (NPAT).

Treasury Wine’s long-term dividend policy is to target a payout ratio of 55% to 70% of NPAT.

Is Treasury Wine shares a buy?

Following the company’s 2022 financial scorecard, a number of brokers updated their outlook on Treasury shares.

As reported by ANZ Share Investing, Macquire upgraded its rating to outperform from neutral. In addition, the broker raised its price target by 20% to $15.00 per Treasury Wine share. Based on the current price, this implies an upside of 12%.

On the other hand, UBS and Morgans lifted their price targets by 9.3% to $14.75, and 13% to $15.71, respectively.

Treasury Wine share price snapshot

For the first half of 2022, the Treasury Wine share price travelled sideways before accelerating to a 52-week high of $13.62 on 19 August.

It appears investors are growing in confidence that the worst is behind the company following its improved outlook.

Treasury Wine has a price-to-earnings (P/E) ratio of 36.10 and commands a market capitalisation of approximately $9.55 billion.

The post Why is the Treasury Wine share price on the slide today? appeared first on The Motley Fool Australia.

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More reading

• Hoping to crack open the next Treasury Wine dividend? Read this
• 5 ASX 200 shares turning ex-dividend on Wednesday
• Brokers name 2 ASX growth shares to buy now
• Top brokers name 3 ASX shares to buy next week
• Treasury Wine share price celebrates Friday with a more than two-year high

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tesoro Gold Ltd (ASX: TSO) share price is storming higher on Wednesday following the release of a company announcement.

At the time of writing, shares are advancing 30.56% into the green having bounced from yesterday’s 52-week lows, and now rest at 4.7 cents apiece.

What did Tesoro announce?

The company advised that its new drill program at the El Zorro Gold Project has intersected gold. intercepts of 434.60m at 1.22g/t Au from 15.40m.

Resource was found at the company’s Ternera gold deposit that is located at El Zorro. The drill program has revealed multiple high-grade zones within the intercept.

These results could potentially increase the gold grade throughout the deposit as well.

Following the discovery, Tesoro says that it now has numerous potential gold-bearing targets that it intends to explore.

Speaking on the results, Tesoro Managing Director, Zeff Reeves said:

This is a phenomenal result demonstrating the consistency of gold mineralisation within the host El
Zorro Tonalite intrusions. Hole ZDDH0297 shows multiple high-grade zones within the broader
intercept, potentially increasing gold grade throughout the deposit.

This phase of drilling at Ternera is focussed on improving the classification and expanding the existing 1.1 Moz Resource. We believe Ternera will continue to grow with additional drilling with the Deposit remaining open in all directions.

Drilling continues at the Ternera site. To date, 7 holes for a total depth of 3,275m have been completed. The company is awaiting assays for 5 holes “which will be announced in due course”.

After racing to previous highs back in 2021, the Tesoro share price is down 55% in the past 12 months of trade.

The post Guess which ASX mining share just rocketed 31% on a new gold strike appeared first on The Motley Fool Australia.

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More reading

• Is Alphabet stock a buy after Q2 earnings?
• Could the Pilbara Minerals share price really offer more than 50% upside in FY23?
• Net loss doubles in FY22, so what’s with the Imugene share price today?
• Why is the 4DMedical share price rocketing 20% on Wednesday?
• Why is the Best & Less share price crashing 15% on Wednesday?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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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.

This has been a busy year for Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL). The company has acquired two companies in the cybersecurity space and most recently completed a stock split. Alphabet recently reported second-quarter 2022 earnings and the results were mixed. Though the search and cloud segments were big winners, some investors may be worrying about how the internet giant can sidestep its competition as well as combat macroeconomic factors such as lingering inflation. Let’s dig into the Q2 earnings and analyze if Alphabet appears to be a good buy, or if investors should look elsewhere.

Is the slowdown in revenue a cause for concern?

For the second quarter, which ended on June 30, Alphabet generated $69.7 billion in total revenue. This was an increase of 13% year over year. By comparison, Alphabet grew revenue by a staggering 62% year over year during the same period in 2021. Given the slowdown in top-line growth, investors may be quick to sell and search for new investment opportunities. However, the most prudent thing investors can do is look at where Alphabet may be experiencing levels of stagnation or even declining growth, and which areas are performing well. The table below illustrates Alphabet’s revenue streams during Q2 2022, and percentage changes year over year.

Revenue Segment	Q2 2021	Q2 2022	% Change
Google Search	$35,845	$40,689	14%
YouTube Ads	$7,002	$7,340	5%
Google Network	$7,597	$8,259	9%
Total Google Advertising	$50,444	$56,288	12%
Other	$6,623	$6,553	(1%)
Total Google Services	$57,067	$62,841	10%
Google Cloud	$4,628	$6,276	36%
Other Bets	$192	$193	1%
Hedging Gains (Losses)	($7)	$375	NM
Total Revenue	$61,880	69,685	13%

Data source: Alphabet Q2 2022 Earnings Press Release. The financial figures above are presented in millions of U.S. dollars. NM = non-material.

The table above shows that the search and cloud segments increased 14% and 36% respectively. Advertising from YouTube only increased only 5%. During Q2 2021, YouTube advertising revenue increased by 84%. The massive slowdown in growth is, in part, driven by competing applications such as TikTok. It is important to note that Alphabet has rolled out its own derivative of TikTok, YouTube Shorts. However, management noted during the earnings call that YouTube Shorts is in early development and not yet fully monetized. Additionally, investors learned that vendors have been slashing advertising budgets across different industries due to uncertainty around the broader economic environment, thereby posing a systemic risk to Alphabet’s ad revenue stream.

Given that advertising budgets and lingering inflation do not have a clear path to subside, investors may want to focus on other areas of Alphabet, namely cloud computing.

Are the acquisitions paying off?

Earlier this year Alphabet acquired two cybersecurity companies, Mandiant and Siemplify The strategic rationale behind these transactions was that Alphabet would integrate the new products and services into its Google Cloud Platform. This was a direct effort to combat cloud behemoth Amazon.com, Inc. (NASDAQ: AMZN), as well as cloud and cybersecurity competitor Microsoft Corporation (NASDAQ: MSFT). 

For the quarter that ended June 30, Alphabet reported $6.3 billion in cloud revenue, up 36% year over year. To put this into context, during Q2 2021 Google Cloud was operating at roughly $18.5 billion in annual run-rate revenue. Only one year later, Google Cloud is now a $25.1 billion annual run-rate-revenue business. While this revenue growth is impressive, it certainly has come at a cost. Google Cloud’s operating loss was $858 million for Q2 2022, compared to a loss of $591 million during Q2 2021. Despite robust top-line growth, Alphabet has yet to turn a profit on its cloud platform. By comparison, Amazon’s cloud business operates at a profit, with margins expanding from 28% in Q2 2021 to 29% in Q2 2022.

Keep an eye on valuation

From its stock split in early July, Alphabet stock is up roughly 5%. With cash on hand of $17.9 billion and free cash flow of $12.6 billion, it’s difficult to make a case that Alphabet is in financial trouble. However, Alphabet is at a critical juncture where it is seeing competition from much smaller players, as well as big tech peers.

Perhaps investors should be looking at Alphabet as a growth company. Given its cloud business has a lot of room to grow, and that economic pain points like inflation will not last forever, it could be argued that Alphabet will generate meaningful growth in the years ahead. While the stock has been somewhat muted since the split, now may be a decent time to dollar-cost average or initiate a long-term position while keeping a keen eye on upcoming earnings reports. While Alphabet is not yet out of the woods, there are several reasons to believe that now is a good time to buy the stock.

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

The post Is Alphabet stock a buy after Q2 earnings? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet (A shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has suffered through plenty of volatility in 2022 so far, but the stock could be set to outperform over the coming 12 months.

The S&P/ASX 200 Index (ASX: XJO) lithium stock reached a high of $3.89 in January before hitting a low of $1.975 in June, marking a 49% tumble between its year-to-date high and low.

Fortunately, it has since recovered most of its losses. The Pilbara Minerals share price is trading at $3.66 right now. That’s 4% higher than it was at the start of this year.  

For context, the ASX 200 has dumped 8% year to date.

And there are plenty more signs pointing to the company being a financial year 2023 winner.

Keep reading to find out what might be in store for the company and why some experts are bullish on its stock.

Could the Pilbara Minerals share price take off in FY23?

Could financial year 2023 (FY23) be the year in which the Pilbara Minerals share price takes off once again? Well, we can’t predict the future, but there are plenty of signs the company could outperform over the near term.

For one, it just reported its maiden profit, bringing in a net profit after tax (NPAT) of $561.8 million for FY22. And it has big expectations for the future.

It believes it will up its production of spodumene concentrate to between 540,000 and 580,000 dry metric tonnes in FY23 – marking a potential 53% year-on-year increase.

However, it also expects its unit operating costs to lift from $555 per dry metric tonne to between $635 and $700 per dry metric tonne.

To top it off, the company believes the lithium deficit could surge to around 1.8 million tonnes by 2040 on a base case basis, likely causing the material’s value to soar.

The company’s not alone in expecting big things from lithium prices. Broker Macquarie believes rising lithium prices will drive the Pilbara Minerals share price higher over the next year.

It has slapped the stock with a $5.60 price target, implying a 54.3% upside, as my Fool colleague Tristan reports.  

However, Credit Suisse is reportedly wary that the company’s costs could surge.

It’s placed a $2.30 price target on Pilbara Minerals shares, representing a potential 36.6% downside.

The post Could the Pilbara Minerals share price really offer more than 50% upside in FY23? appeared first on The Motley Fool Australia.

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More reading

• Could this new piece of legislation be a boost for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the Novonix share price tumbling 6% on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Are Pilbara Minerals shares better value than Allkem right now?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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 Imugene Limited (ASX: IMU) share price is on mute after the ASX-listed biotech company reported its results for FY22.

After a wobbly start this morning, the Imugene share price has now stalled at yesterday’s closing price of 24 cents despite a significant jump in the company’s net loss for FY22.

Imugene is a clinical-stage immuno-oncology company developing new treatments that seek to activate the immune system of cancer patients to identify and eradicate tumours.

Let’s take a look at the Imugene results for FY22.

What did Imugene report for FY22?

As mentioned, Imugene is still at a clinical stage, so it’s yet to produce any revenue. Imugene currently receives income from Australian government incentives, which increased from $7.2 million in FY21 to $12.6 million in FY22.

Research and development (R&D) expenses more than doubled from $15.4 million in FY21 to $36.6 million in FY22. General and administrative expenses also lifted, from $10.3 million in FY21 to $14 million in FY22.

Overall, Imugene recorded a net loss of $37.9 million in FY22 compared to a net loss of $18.5 million in FY21.

The current cash balance stands at $99.9 million, so there is ample capital for Imugene to continue with its clinical trials.

What else happened in FY22?

Earlier this month, Imugene provided a positive update as the first patient from the third cohort of the Checkvacc Phase 1 clinical trial had been dosed. The Imugene share price shot up 11% on this news.

Since the update, Checkvacc has progressed to dosing for cohort 3 in triple-negative breast cancer patients. Management plans to disclose the results of these studies later.

Imugene also completed phase 2 in HER-2/Neu overexpressing advanced gastric cancer.

The biotech company also presented new PD1-Vaxx data from non-small cell lung cancer patients at the IASLC 2022 World Conference on Lung Cancer in Vienna, Austria. This data shows early positive signs as the company progresses towards a phase 1b combination study.

What did management say?

Commenting on the FY22 results, Imugene executive chair Paul Hopper said:

As our deep pipeline has continued to advance and strengthen, it provides a wide range of possibilities and opportunities for Imugene moving forward. Financially, the company remains in an enviable position with a long cash runway that allows us to continue our clinical programs unimpeded.

This was reinforced by the $90 million placement conducted early in the financial year alongside a further $5 million raise via a Share Purchase Plan. Both received overwhelming support and we thank those investors that participated.

It appears management is confident in its current financial position, and now it’s a matter of delivering the results. Patience is required in these types of businesses because it could take years for a commercial solution to develop.

What’s next for Imugene?

The plan is for PD1-Vaxx to be tested in combination with atezolizumab (Tecentriq) in patients with non-small cell lung cancer. Imugene locked in a second clinical supply agreement with Roche. The testing will be completed at sites in Australia and the United States.

As for Imugene’s latest technology onCARlytics, the company advised of collaborations with two US-based partners, Celularity and Eureka Therapeutics. This partnership involves investigating the combination of Imugene’s CD19 oncolytic virus technology with T cell therapies being developed by each partner.

Imugene share price snapshot

The Imugene share price has suffered a big fall of 43% in the last 12 months but is looking to make amends with a 4% jump over the last month. The S&P/ASX 200 Index (ASX: XJO) has fallen 7% in the past year and is down 0.3% in the past month.

Imugene has a market capitalisation of around $1.4 billion.

The post Net loss doubles in FY22, so what’s with the Imugene share price today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Graincorp, Imugene, iSelect, and Mayne Pharma shares are racing higher

Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The 4DMedical Ltd (ASX: 4DX) share price is trading 23% into the green on Wednesday following a company update.

Investors are rallying the share after it announced a “major success” in the ‘burn pit’ clinical trial. The trial is being conducted by Vanderbilt University Medical Centre, in Nashville in the United States.

What did 4DMedical announce?

Preliminary results indicate that 4DMedical’s XV Technology can detect constrictive bronchiolitis in military veterans, where pulmonary function tests (PFTs) and CT scans have failed to do so.

The XV Technology is a medical imaging platform that uses image-processing methods taken from aerospace engineering to perform deeper respiratory analysis.

Curiously, the background for the trial stems from a pattern of “disabling” respiratory symptoms observed in US military personnel. The symptoms include shortness of breath and coughing, but are severe enough to significantly impact daily function.

It is understood that exposure to toxic chemical fumes when disposing of and burning hazardous/non-hazardous waste was a factor for the personnel during their time serving in the Middle East.

The U.S. military constructed burn pits near bases across the Middle East to dispose of hazardous
and non-hazardous waste.

A wide range of materials, including uniforms, chemicals, tyres, and even medical, animal and human waste, were burned in pits using jet fuel as an accelerant.

It is estimated that 3.5 million Veterans have been exposed to harmful toxins whilst deployed on operations since 2001.

The ‘burn pit’ trial looked at this symptomology and showed that XV Technology is accurate in identifying the constrictive bronchitis.

4DMedical also advised that it has a pre-agreed pricing structure with the Veteran Health Association (VHA). The agreement means the company can offer the procedure at US$171 per scan – without the need for reimbursement.

In the last 12 months, the 4DMedical share price is down more than 61%.

The post Why is the 4DMedical share price rocketing 20% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why has the 4D Medical share price popped 7% in a month?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Best & Less Group Holdings Ltd (ASX: BST) share price is plummeting in midday trade, currently down 15%.

Shares of the iconic clothing retailer are currently trading for $2.295 each after closing on Tuesday at $2.70 a share.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.32% while the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ), which Best & Less is a part of, is down just 0.14% at the time of writing

It seems Best & Less’s steep selloff isn’t in step with major market movements. So what’s going on? Let’s investigate.

What’s going on with the Best & Less share price?

There’s no news out of Best & Less today to help make sense of the company’s share price movement.

But yesterday, the retailer posted mixed results in its financial report for FY22. After enjoying an early rally on the back of its results, the company’s shares closed 3% higher on the day.

In its results, Best & Less noted considerable headwinds from COVID-19 that challenged the report’s top and bottom lines.

Both revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) shrank during the period. Revenue finished at $622 million, down 6.2% year over year, while EBITDA finished at $62.5 million, down 12.7% year over year.

The company announced a final dividend of 12 cents per share. It prompted my colleague Bruce Jackson to mention Best & Less in a roundup post yesterday, noting that the company’s dividend yield of 3.91% was “attractive”.

The company also provided an optimistic update on FY23 so far, reporting total sales were up 38% over the prior corresponding period in the first eight weeks of trading.

But it seems investors are reconsidering the company’s position today.

Best & Less share price snapshot

The Best & Less share price is currently down 44% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down around 8% over the same period.

The company’s market capitalisation is roughly $287 million.

The post Why is the Best & Less share price crashing 15% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• Best & Less share price surges 7% on sharp FY22 results

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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Australian markets are off to a poor start on Wednesday, with the S&P/All Ordinaries Index (ASX: XAO) down 32 basis points to 7,207 at the time of writing.

Meanwhile, the DGL Group Ltd (ASX: DGL) share price has faltered more than 23% in trade this Wednesday following the release of its FY22 results.

DGL Group shares slide in first year of listing

Key takeouts from the All Ords share’s results include:

• Sales revenue of $369.8 million, up 88% on pro-forma FY21 revenue and up 4% on guidance
• Underlying EBITDA of $65.6 million, a gain of 133% on pro-forma FY21, and 1% above prospectus guidance
• Underlying earnings before interest and tax (EBIT) of $48.4 million an increase of 188% on pro-forma FY21 results
• Underlying net profit after tax (NPAT) of $33.6 million, up 197% on pro-forma FY21 profit
• $25.4 million in cash on the balance sheet with $66 million in net bank debt
• Nil dividends paid

What else happened last period for DGL Group?

Growth was observed across all operating segments and throughout the income statement for FY22.

This included chemical manufacturing, warehousing and distribution and environmental solutions, up 141%, 54% and 39% year on year respectively.

Performance was underlined by higher demand for DGL’s services, higher selling prices, and sales revenue contributions from acquired businesses.

In addition, and “following inappropriate public comments expressed by a senior company representative”, the board “engaged culture expert Rhonda Brighton-Hall and her firm MWAH to conduct the independent review”.

“The review found DGL has a diverse workforce and a positive and inclusive culture that is both hard-working and ambitious. Trust and respect were found to be consistent across the business.”

Management commentary

Speaking on the performance, DGL Founder and CEO, Simon Henry said:

Building on our strong momentum in the first half of 2022, we have delivered exceptional results for the 2022 financial year with growth across all earnings metrics. This is a testament to our ability to grow sustainably by offering a fullservice solution for our customers, achieving further economies of scale, and identifying appropriate acquisitions.

All three of our operating divisions performed exceedingly well, benefitting from our deep customer relationships and robust demand as customers continue to onshore their chemical supply chain and hold onto more inventory.

Our deep supplier relationships, capabilities across the supply chain and robust balance sheet mean we are well positioned for another successful year in FY23.

What’s next for DGL Group?

DGL noted many uncertainties in its operations and operating environment looking ahead. With that in mind, it did not provide further guidance for FY23.

Instead, the All Ords share will provide a trading update at its annual general meeting.

The post Why did this ASX All Ords share just crater 23%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL Group Limited. 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 Atlas Arteria Group (ASX: ALX) share price is on the move today after the ASX 200 toll road group handed in its first-half 1H22 results.

While the S&P/ASX 200 Index (ASX: XJO) reverses by 0.4% in late morning trade, the Atlas Arteria share price has climbed 0.9% to $8.04.

Atlas Arteria share price rallies as COVID recovery continues 

Here’s a summary of the headline results from Atlas’ first-half report:

• Weighted average traffic was 22.7% above 1H21 and just 1.3% below 1H19
• Toll revenue came in at $53.8 million, up 25% on the prior corresponding period (pcp) of 1H21
• APRR toll revenue grew by 20% on the pcp to €1,290 million
• Statutory net profit after tax (NPAT) soared 184% on the pcp to $117.1 million
• Distribution guidance of 20 cents for 1H22 and a further 20 cents for 2H22

A record full-year distribution of 40 cents would represent an 11% increase over FY21. It puts Atlas shares on a prospective forward dividend yield of 5%.

However, for now, this is simply guidance. Atlas expects to announce its first-half distribution in September. 

On the whole, Atlas’ first-half growth was driven by increased traffic across the APRR network and the easing of COVID restrictions.

APRR is the second-largest toll road network in France and the fourth-largest motorway group in Europe. 

Atlas holds a 31.14% indirect interest in APRR, which brings in the lion’s share of the group’s revenue. In the first half, APRR contributed to 90% of Atlas Arteria’s revenue.

What else happened in 1H22?

APRR traffic was the highlight, increasing by 23.4% on the pcp on the back of a busy winter holiday period, strong domestic tourism, and reduced COVID restrictions across Europe. Notably, these traffic levels were 2.3% higher than pre-COVID levels of 1H19.

During the half, APPR expanded its network with the addition of the A79 motorway in southern France. Construction of the 88km road upgrade is expected to finish in late 2022, with tolling to commence on opening.

The roll-out of electric vehicle charging stations across the APRR network continues. Around 70% of motorway service areas are now equipped with high or very high power terminals. 

At Dulles Greenway in the United States, Atlas’ second-largest contributor of revenue, traffic increased by 12.3% on the pcp. However, traffic remained 34% lower than 1H19 due to the delayed return to office-based work.

What did management say?

Commenting on the results, Atlas Arteria CEO Graeme Bevans said:

Atlas Arteria delivered a strong result during the period, driven by improved operating conditions across France, Germany and the USA.

Atlas Arteria is well positioned in the current high inflationary environment. In 2022 we are absorbing some inflationary impacts in our costs given higher pricing, however with toll prices at APRR, ADELAC and Warnow Tunnel directly linked to inflation and a high proportion of fixed debt across the portfolio, securityholders stand to benefit from 2023 onwards.

What’s next?

Commenting on the outlook, Atlas noted that its financial performance was positively correlated to inflation. Thus, shareholders stand to benefit during a high inflationary environment.

This is because most of the toll prices across Atlas’ network are directly linked to inflation. In other words, it can hike up toll prices as inflation soars.

Rounding out its outlook statement, Atlas believes it has strong organic growth potential within the current portfolio and continues to focus on improving average concession life.

Atlas Arteria share price snapshot

Since Atlas benefits from rising inflation, the Atlas Arteria share price has bucked the broader ASX 200 this year to punch in strong gains.

In the last six months, the Atlas Arteria share price has jumped 24%. Zooming out further, Atlas shares are up 17% in the last year.

The post Atlas Arteria share price drives higher on record dividend guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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