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The Harvey Norman Holdings Limited (ASX: HVN) share price is in the red after the company posted its earnings for financial year 2022.

Shares in the S&P/ASX 200 Index (ASX: XJO) electronics and homewares retailer opened at $4.33 each this morning and slipped to an intraday low of $4.23 a share.

At the time of writing, the Harvey Norman share price is $4.24, 2.08% lower than its previous close.

Harvey Norman share price falls on FY22 earnings

Here are the key takeaways from the ASX 200 giant’s full-year results:

• Sales came to $9.5 billion – a 1.7% fall on that of the prior corresponding period (pcp)
• Profit after tax slipped 3.6% to $811.5 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) slumped 1.4% to $1.4 billion
• Basic earnings per share (EPS) came to 65.13 cents
• Declared a 17.5 cent fully franked final dividend, bringing its full-year payout to 37.5 cents – a 7.1% improvement on that of FY21

Harvey Norman revealed 25% of its pre-tax profits, excluding property revaluations, last financial year came from its overseas retail stores.

In Australia, its franchisees were impacted by COVID-19-induced lockdowns in the first half. The segment’s pre-tax profit fell 12% year on year to $628.19 million despite it posting a record second half.

The company’s property segment closed the period with assets exceeding $3.7 billion and a $366.5 million pre-tax profit – a 25.7% improvement.

What else happened in FY22?

The retailer opened three new Australian company-owned stores in FY22, located in Murwillumbah, Port Pirie, and Charters Towers. It also opened a new company store in Malaysia and a commercial outlet in New Zealand.

The Harvey Norman share price tumbled 32% over the 12 months to 30 June.

What did management say?

Harvey Norman chair Gerry Harvey commented on the company’s results, saying:

Our omni channel strategy continues to deliver, our balance sheet is strong, our cash reserves are solid and we continue to maintain a low net debt to equity ratio of 10.31%. With experienced management, we have grown our integrated retail, franchise, property, and digital business across eight countries to nearly $10 billion in system sales.

Cash conversion in FY22 has significantly improved compared to FY21 predominantly due to a $53.43 million increase in net cashflows from operating activities, from $543.87 million in FY21 to $597.30 million for FY22. The solid cash flows generated from operating activities this year will enable us to further enhance and promote our brand locally and overseas to grow our businesses, refurbish our existing stores and invest in new property acquisitions and pay down external debt.

What’s next?

The company didn’t provide any new earnings guidance today. However, it outlined a number of expectations for the current financial year and provided a trading update.

It plans to open two new franchised complexes in Australia and relocate another to a freehold property in FY23. Overseas, it opened its 16th company-operated store in Ireland in July and expects to ramp up its offshore expansion plans with four more company-operated stores in New Zealand, Malaysia, and Croatia.

The period from 1 July to 29 August saw its sales grow in all regions except Ireland and Northern Ireland. They saw respective decreases of 1% and 10.2% on those of the pcp.

Australian sales, meanwhile, lifted 10.7%, while those of Malaysia and Slovenia and Croatia rose 108% and 12.2% respectively.

Harvey Norman share price snapshot

The Harvey Norman share price has had a rough trot of late.

It has fallen 14% since the start of the year. It’s also currently 21% lower than it was this time last year.

For comparison, the ASX 200 has sunk 8% year to date and 7% over the last 12 months.

The post Harvey Norman share price slips despite FY22 sales nearing $10b appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 retail shares having such a stellar run today?
• 2 ASX 200 dividend shares with ~7%+ yields that experts rate as buys
• What’s impacting ASX 200 retail shares today?
• 2 ASX 200 dividend shares analysts rate as buys

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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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 MoneyMe Ltd (ASX: MME) share price is on ice today following a company-requested trading halt on Tuesday.

Aside from this, the company also posted its FY22 full-year results before the open today as well.

The MoneyMe share price is resting at 69 cents, down more than 68% this year to date.

Why is the MoneyMe share price halted?

The company notes it requested the trading halt of its securities for a planned equity raise.

It is undertaking a fully underwritten placement to raise $20 million. To do this, it will issue 40 million new fully-paid ordinary shares.

MoneyMe will issue the placement shares at a fixed price of 50 cents apiece, representing a 28.1% discount to the last close price on Monday – just before the halt.

Specifically, it hopes to raise approximately $17.84 million through the issue of approximately 35.7 million shares in an unconditional offer.

Then, it wants to raise the additional $2.16 million through a conditional placement that will require shareholder approval.

“The proceeds from the equity raising will be utilised for equity subordination requirements in MoneyMe’s warehouse facilities to support continued loan book growth, and payment of associated upfront commissions to brokers,” the company said.

“In its normal course of business, MoneyMe will continue to explore opportunities to expand new and existing debt capital facilities to support its balance sheet and loan receivables growth,” it added.

The MoneyMe share price is expected to remain in a trading halt until Thursday, whilst the equity raise is being completed.

MoneyMe shares remain down more than 66% in the past 12 months of trade.

The post MoneyMe share price halted amid results and cap raise appeared first on The Motley Fool Australia.

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More reading

• Why the Amazon share price slumped on Tuesday
• Here’s why analysts have slapped buy ratings on these ASX shares
• Praemium share price spikes hard as profit soars in FY22
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Webjet share price ascends 11% amid profitable start to FY23

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.

What happened

A broad cross section of stocks stumbled on Tuesday, as market watchers focused on deteriorating macroeconomic conditions and the potential that things could get worse before they get better.

E-commerce platform Amazon (NASDAQ: AMZN) stock was down as much as 2.3% on Tuesday morning, mobile games platform Skillz (NYSE: SKLZ) slipped as much as 5.1% and online used car retailer Carvana (NYSE: CVNA) was off by as much as 6.7%. As of 2:34 p.m. ET, the trio were still trading lower, down 1.5%, 2.9%, and 3%, respectively. These stocks followed the broader market lower, as the S&P 500 gave up 1.2%, while the Nasdaq Composite declined more than 1.4%.

There was very little in the way of company-specific news behind the sell-off, but fears regarding the faltering economy intensified as investors weighed the possibility that they could be facing higher inflation and the potential for a prolonged recession.

So what

A report released Tuesday by the Bureau of Labor Statistics added to the growing mountain of evidence that the economy could be worse off than originally expected. The Job Openings and Labor Turnover Summary for July found that there were almost 1 million more job openings than market watchers expected. The total number of available positions rose to 11.24 million, far exceeding the 10.3 million predicted.

Economists have been keeping a close eye on the growing shortage of candidates to fill the available positions, a situation that seems to be getting worse instead of better. There are now nearly two jobs openings for each available candidate. As a result, prospective employers are forced to offer higher wages in order to entice potential employees, which in turn increases inflationary pressures.

In another sign of the tightening job market, the number of job openings increased in July compared to June, with an additional 200,000 positions going unfilled.

The news come on the heels of remarks by Federal Reserve Bank chair Jerome Powell late last week that suggested the Fed would continue its aggressive campaign to combat inflation. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said. “These are the unfortunate costs of reducing inflation.”

The Fed has been working to reduce the number of unfilled positions without sparking higher unemployment. Unfortunately, the red-hot job market increases the likelihood that the central bank will be forced into another 0.75% rate increase when policymakers meet again in September, which would mark the third successive rate hike of this magnitude in four months.

Now what

So what does this all have to do with this trio of companies? The continuing prospect of an economic slowdown will weigh on a great many consumer discretionary stocks.

The potential for even higher interest rates will likely result in “pain” for consumers, according to Powell. Indeed, the average household is already making difficult decisions caused by higher costs for food and fuel. If the faltering economy further reduces consumer spending, it’s conceivable that consumers will cut back on e-commerce purchases, forgo the purchase of a new car, or refuse to lay out hard-earned cash for competitive games of chance.

That said, for investors who are already sold on the prospects of Amazon, Carvana, and Skillz, the economic headwinds will eventually abate. That gives investors the opportunity to use temporary price slumps like these as an opportunity to get shares at a discount.

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

The post Why the Amazon share price slumped on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why Amazon’s latest green hydrogen partnership is a big deal
• 2 genius reasons to buy Amazon stock today
• Does this make Amazon stock a buy?
• Why Amazon stock was slipping today
• Better buy stock: Alphabet vs. Amazon

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon and Carvana Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Skillz Inc. The Motley Fool Australia has recommended 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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With a new month approaching, what better time to look at making some new additions to your portfolio.

Two ASX shares that could be worth considering are listed below. Here’s what analysts are saying about them:

Lovisa Holdings Ltd (ASX: LOV)

The first ASX share to look at is fashion jewellery retailer Lovisa.

It could be a top option for investors due to its enormous long term growth potential thanks to its global expansion plans.

It is for this reason that the team at Morgans is so bullish on the company and has an add rating and $24.50 price target on its shares. The broker commented:

What was clear to us from LOV’s FY22 result was that this is a global growth story that is really only just getting started. FY22 earnings were certainly impressive, with sales beating our forecasts rising 59% and statutory EBIT before LTI more than double that of the prior year. Even the dividend, at 74c for the year, was a very positive surprise. But all this could be just a taste of things to come.

What was even more remarkable than the result itself was the phenomenal scale of LOV’s ambition. In its own words, LOV is ‘building a global brand’, which will involve the development of a global presence that we believe will far out scale the 651 stores in the portfolio today.

Objective Corporation Limited (ASX: OCL)

Another ASX share that could be in the buy zone is software company Objective Corp.

It recently released its full year results and delivered a 15% increase in annualised recurring revenue (ARR).

The team at Goldman Sachs expects this strong form to continue and is forecasting ARR growth of 18% in both FY 2023 and FY 2024.

As a result of this strong growth outlook, the broker has put a buy rating and $18.40 price target on its shares. Goldman commented:

Objective Corp is a leading provider of software solutions to the public sector in ANZ and the UK, with a growing presence in the US. Objective has a long history of organic product development and accretive M&A which has helped support growth as its core Enterprise Content Management (ECM) product matures.

We are attracted to management’s track record of growth and margin expansion and see upside being driven from 1) new products including Build and RegWorks; and 2) expansion in the US over time. When adjusting for OCL’s conservative accounting (100% of R&D expensed), robust growth outlook, defensive end markets and high franchise quality, we see valuation appeal compared to SaaS peers and believe the shares can outperform in a more challenging macro environment.

The post Here’s why analysts have slapped buy ratings on these ASX shares appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares tumbling lower following full-year results
• Why A2 Milk, Lovisa, McMillan Shakespeare, and Tyro are storming higher
• Lovisa share price lifts as full-year profit surges 116%
• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs just slapped a buy rating on this ASX tech share

Motley Fool contributor James Mickleboro 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 Objective Corporation Limited. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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 Praemium Ltd (ASX: PPS) share price is on the move in early trade today following the release of its FY22 earnings results.

At the time of writing the Praemium share price is trading more than 5% higher at 61.5 cents apiece.

Profit soars in FY22 for Praemium

Key takeouts from the company’s results include:

• Group revenue of $79.9 million, up 22% for the 12 months
• A 21% year-on-year gain to underlying EBITDA, coming in at $16.6 million
• $4.8 million in synergies (annualised) from the September 2020 acquisition of Powerwrap
• Divested its International operations for $62 million to realise a gain on sale of $45.7 million
• 5 cents per share fully franked special dividend announced, alongside $25 million buyback
• Funds under administration (FUA) up 10% year on year to $45.9 million
• Statutory net profit after tax (NPAT) of $43.6 million, an enormous jump from FY21’s $1.342 million

What else happened this year for Praemium?

It was a mixed result for the company in FY22. It saw record net inflows grow 92% year on year to $2.9 billion. Meanwhile, revenue grew 22% to around $80 million.

The company also grew its NPAT substantially to $43.6 million, well up from the previous year’s result of $1.3 million.

The gain in profit was underscored by the sale of its international operations versus an organic jump in profitability to that level.

Without the sale, NPAT in its Australian business was $6.2 million.

Still, investors recognised $8.60 in earnings per share (EPS) when factoring in all income received for the 12 months, well up from 30 cents per share the year prior.

Management commentary

Speaking on the announcement, Praemium CEO, Anthony Wamsteker said:

The 2022 financial year has seen a continuation of the significant change initiated by the Praemium Board during the previous financial year. This change resulted from a determination to put the Group on a clear path to recurring profitability and shareholder returns. This result, and the continuing flows performance of our flagship SMA, show that this is now well and truly under way.

We are also pleased with continued discipline on costs and recognition of our award-winning technology innovations. Looking forward, we have clear objectives as part of our growth strategy, including continuing to deliver customer value, attract and retain market-leading people, grow market share by being Australia’s HNW platform of choice and drive innovation to support the advice community.

Praemium share price snapshot

In the last 12 months, the Praemium share price has slipped more than 51% into the red, or 60% this year to date.

The post Praemium share price spikes hard as profit soars in FY22 appeared first on The Motley Fool Australia.

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More reading

• ‘Cult following’: Expert names 2 ASX shares worth buying in August

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 Praemium Limited. The Motley Fool Australia has recommended Praemium 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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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.

What happened

Many cryptocurrencies fell along with stocks today, as investors continued to weigh the macro outlook and how hawkish the Federal Reserve will continue to be this year and into 2023.

Over the past 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), had fallen 0.7% as of 3:23 p.m. ET today. The price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), traded 1% lower, and the price of the meme token Dogecoin (CRYPTO: DOGE) was down 1.6%.

So what

Markets have been struggling since Federal Reserve Chairman Jerome Powell took center stage on Friday at the Fed’s annual Jackson Hole Economic Symposium and essentially told the market that the Fed had more work to do to rein in high levels of inflation. Investors took the information to mean that the Fed would continue to raise interest rates until it saw further evidence that inflation was on the decline.

John Williams, president of the Federal Reserve Bank of New York, continued this sentiment today with his comments in a Wall Street Journal article.

“I do think with demand far exceeding supply, we do need to get real interest rates … above zero. We need to have somewhat restrictive policy to slow demand, and we’re not there yet,” he said, adding, “We’re still quite a ways from that.”

The longer the Fed raises rates, the tougher it could be for growth stocks and other risk assets such as cryptocurrencies, because rising rates tend to make safer assets more appealing and bring down the valuations of growth and risk assets. Given that Bitcoin and the crypto market went on a huge run in 2021 and that they are pretty hard to truly value, high rates have crushed the crypto market and the price of Bitcoin is down more than 58% this year.

The other issue crypto investors may want to consider is that the Fed will also ramp up quantitative tightening (QT) in September, in which the Fed allows its massive balance sheet to start winding down, which effectively pulls liquidity from the economy. This may reduce the amount of funds flowing into riskier assets like crypto.

After starting gradually over the past few months, the Fed in September will allow roughly $60 billion of U.S. Treasury bills and $35 billion of mortgage-backed securities to mature each month without reinvesting, which will gradually reduce its balance sheet.

“I don’t think there is appreciation for QT, by markets or the Fed,” said Solomon Tadesse, head of North American quantitative equities strategy at Societe Generale. “In the end, if QE [quantitative easing] mattered, so will QT. It might not be totally symmetrical, but there will be a meaningful impact.”

Now what

Crypto is taking a hit along with stocks today, as the market continues to try and find clarity regarding inflation, which will influence the Fed’s road map for rate hikes. Unfortunately, it’s a bit of a wait-and-see game right now until there is more evidence that inflation has peaked and started to decline.

The next bit of data that could provide evidence of this is the Consumer Price Index reading in early September.

Ultimately, I still like Bitcoin and Ethereum long term, given their growing adoption and real-world use cases. I would avoid Dogecoin as I don’t think it has a technical advantage or any real-world utility.

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

The post Why Bitcoin, Ethereum, and Dogecoin are falling today appeared first on The Motley Fool Australia.

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More reading

• 1 cryptocurrency to buy and hold forever
• Here’s why the Bitcoin price just dipped back below US$20,000
• Why Ethereum, Polkadot, and Dogecoin are rallying nicely today
• Why Ethereum, Solana, and Dogecoin are falling today
• Why Bitcoin, Ethereum, and Dogecoin are slumping today

Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. 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.

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

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The Webjet Limited (ASX: WEB) share price is gripping the attention of the market on Wednesday.

Shares in the online travel booking company are rallying 10.96% into the green this morning, hitting $5.67 a share. The move follows the company’s annual general meeting, held this morning.

Bouncing back despite challenges

ASX travel shares represent one corner of the market that has been especially crippled by the impacts of the pandemic in recent years.

Fortunately, Webjet shareholders have been provided further reassurance this morning that profitability is still on track for recovery. In the company’s AGM presentation, Webjet touted its improving financial and operational metrics.

Investors had already been informed earlier in the year that a return to profitability had been achieved during the second half ending March 2022. However, today’s presentation solidified this trajectory by highlighting continued profitability so far in FY23. In turn, the Webjet share price is taking off today.

Webjet’s management is expecting positive cash flow from operations to exceed $100 million in the first half of FY23. There are several positive indicators that have fed into this forecast across the various segments of the business, these include:

• Bookings through WebBeds above pre-pandemic levels since May this year
• August total transaction volume through WebBeds expected to surpass the record high
• Webjet total flights market share increasing 57% since the start of the pandemic
• Tourism returning to Australia and New Zealand to boost GoSee earnings

Despite the positives, the company’s management remains privy to the headwinds. Webjet’s chair Roger Sharp discussed the operating environment in his address, stating:

We continue to watch cash, cash flow, and debtor risk very closely, and are obviously tuned in to the global forces threatening prosperity — war in the Ukraine, high inflation driven by rapid increases in energy and food prices, a still-broken supply chain, and an on-again, off-again pandemic.

Flight path of the Webjet share price

The Webjet share price has been coasting through a prolonged patch of turbulence. Since the year kicked off, shares in the online travel agent have bounced between $4.60 and $6.15. However, the general trajectory has been downward since June.

Compared to a year ago, Webjet shares are down 2.6%. Meanwhile, fellow ASX travel share Flight Centre Travel Group Ltd (ASX: FLT) has gained 5.1% over the rocky period.

The post Webjet share price ascends 11% amid profitable start to FY23 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Looking to buy Webjet shares? Here’s what we’ve learned about the travel sector in August
• Here are 3 top ASX growth shares that experts are tipping as buys
• Here are the top 10 ASX 200 shares today
• Better ASX travel buy: Flight Centre or Webjet?

Motley Fool contributor Mitchell Lawler 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 Flight Centre Travel Group Limited and Webjet Ltd. 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 St Barbara Ltd (ASX: SBM) share price is in the red this morning, down 2.46% in early trade after the company posted a largely negative earnings card for FY22.

Shares in the gold exploration company are trading for 89.3 cents each at the time of writing. Yesterday, they closed for 91.5 cents each.

Let’s go over the report’s highlights.

What did St Barbara report?

• Revenue and other income down 8% year-over-year (yoy) to $680.93 million
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) down 94.28% yoy to a $32.42 million loss
• Underlying net profit after tax (NPAT) down 70.11% yoy to $24.09 million
• No dividend for FY22 was announced

The company advised its net profit after tax was lower due to lower volumes realised from its Simberi and Atlantic gold mines and higher operating costs. A significant after-tax impairment was also recorded for its Atlantic gold unit with a value of $158,715.000.

Group gold production fell overall for FY22 to 280,746 ounces of gold, down 14.31% yoy.

St Barbara also said it was materially affected by COVID-19, which caused labour shortages and operational disruptions. A particular outbreak in Papua New Guinea impacted its Simberi mine operations in Q2FY22, which the company said severely affected its production in Q3FY22.

What else happened in FY22?

Throughout FY22, St Barbara made several acquisitions. The company bought Bardoc Gold Limited near Kalgoorlie in Western Australia to access the Zoroastrian and Aphrodite underground gold deposits, which is planned to increase its total group production of gold by 3 million ounces.

St Barbara also purchased NS Gold Corporation to access high-yielding gold prospecting locations in Nova Scotia, Canada.

Cash on the company’s balance sheet also shrank during the reported period to $98,512,000, down 26.13% from the prior year. The cash burn was primarily attributed to the halt of production of its Simberi mine and through the acquisitions of NS Gold Corporation.

What’s next?

St Barbara provided its outlook for FY23.

It expects gold production to fall between 280,000 to 315,000 ounces, with all-in-sustaining cost per ounce to be between $2,050 per ounce to $2,150 per ounce.

The company also predicted capital expenditure to be between $75 million and $95 million, with growth capital anticipated between $95 million to $120 million.

Finally, its exploration expenditure is tracked to be between $19 million and $28 million.

St Barbara share price snapshot

The St Barbara share price is down 36.8% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 7.79% over the same period.

The company’s market capitalisation is around $726.20 million based on the current price.

The post St Barbara share price slides on 70% profit slash appeared first on The Motley Fool Australia.

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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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Tuesday night to discuss the bounce back for the ASX, high hopes for the jobs summit later in the week, good news for housing, but not for units, and a mixed night expected in the US.

[youtube https://www.youtube.com/watch?v=78bptpTzqYI?feature=oembed&w=500&h=281]

The post The ASX bounces back, but construction data is mixed. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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• Webjet share price ascends 11% amid profitable start to FY23
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Motley Fool contributor Scott Phillips 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 Perseus Mining Limited (ASX: PRU) share price is falling today, even after posting record earnings for FY22 and delivering a dividend surprise.

The big jump in revenue and earnings from the African gold miner is driven by steady output from its three gold mines. The favourable gold price achieved during the period also helped.

However, the news couldn’t save the Perseus share price from today’s broader market sell-off. It’s dropped 2.6% to $1.52 in early trade, while the All Ordinaries (ASX: XAO) lost 0.5%.

Perseus FY22 results summary

• Revenue of $1,126 million, up 66% on FY21
• Record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $564.1 million, up 86% on FY21
• Record net profit after tax (NPAT) from ordinary activities of $279.9 million, up 101% on FY21, after exploration write-down of $43.4 million
• Basic earnings per share (EPS) of 18.8 cents per share, up 96% year on year
• Net cash inflows from operating activities of $522.9 million or 42.01 cents per share, up 73% on FY21
• Final dividend of 1.64 cents per share (cps) including a bonus dividend of 0.79 cps, bringing total dividends in FY2022 to 2.45 cps

Key details from Perseus’ FY22 results

The higher realised gold price and increased production output from Yaouré contributed to the top-line growth.

Costs also didn’t rise as much as some feared in this high inflationary environment. This is because of the increased proportion of sales from Yaouré, which has an all-in site cost of US$668 an ounce in FY22. The gold price is bouncing around US$1,700 to US$1,800 an ounce.

An income tax benefit of $200,000 further bolstered the Perseus NPAT. The miner had to pay income tax of $23.7 million in FY21.

But it wasn’t all good news in the Perseus results. Higher depreciation and amortisation costs, a big $43.4 million write-down, detracted. Higher financing and admin and corporate costs also hurt its bottom line.

What the miner is saying

Perseus managing director Jeff Quartermaine said:

Our record financial results for FY22 reflect our continued strong operating performance at all levels of our business during the period. Our three gold mines are producing at our targeted rate of production with 494,014 ounces of gold produced in FY22, and our weighted average all-in site cost of US$952 per ounce is very competitive relative to most of our peers.

We are delivering excellent drill results from our organic growth programs targeting mineable Mineral Resources close to our existing operations and the acquisition of Orca Gold Inc. earlier this year has provided us with the opportunity to diversify away from West Africa and access the Nubian Shield precinct in North-East Africa.

Outlook

Announced alongside its results, Perseus is holding firm to its guidance in the December 2022 half and for the full calendar year.

Yaouré will continue to do more of the heavy lifting, with the mine tipped to produce 130k to 140k ounces of gold in the current half.

Perseus aims to produce 492,850 to 517,850 ounces of gold from its three mines in 2022. Its all-in site cost is forecast to range between US$980 and US$1,025 an ounce.

Perseus share price snapshot

The Perseus share price has largely been flat over the past year before today’s results. That’s not a bad outcome, given how its larger peers have been performing.

For instance, the Newcrest Mining Ltd (ASX: NCM) share price tanked 29%, while Evolution Mining Ltd (ASX: EVN) share price slumped 40% over the period.

In contrast, the All Ordinaries index has shed around 8% of its value in the past 12 months.

The post Perseus share price falls despite delivering a record year and dividend boost appeared first on The Motley Fool Australia.

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More reading

• Praemium share price spikes hard as profit soars in FY22
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Webjet share price ascends 11% amid profitable start to FY23
• St Barbara share price slides on 70% profit slash
• The ASX bounces back, but construction data is mixed. Scott Phillips on Nine’s Late News

Motley Fool contributor Brendon Lau has positions in Newcrest Mining Limited. 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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