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The RPMGlobal Holdings Ltd (ASX: RUL) finished the day 4.78% in the red at $1.495 following the release of its FY22 results.

Trading volume was more than 5x higher than the 4-week average today at 1.315 million shares, suggesting investors sold positions en masse during the session.

RPMGlobal grows revenue in all areas

Key takeouts from the company’s results include:

• Revenue grew 20% year on year to $84.1 million
• Advisory revenue saw a $9.1 million growth on FY21’s result
• Software Consulting revenue increased by $1.3 million over the 12 months
• Net operating revenue was stronger and grew 18% from the previous year
• FY22 EBITDA of $4.5 million, down from FY21’s result of $5.5 million
• Loss after tax of $4.1 million, down from a loss of $5.1 million the year prior

What else happened last period for RPMGlobal?

Growth was strong across all operating segments for the company in terms of revenue. Net operating revenue also grew 18% year on year.

This came down to a net loss after tax of $4.1 million, ahead of last year’s result of a $5.5 million loss.

The company also booked a $1.1 million loss from closure and one-off M&A costs associated with the conflict in Ukraine.

As at 30 June 2022, RPMGlobal also had $95.5 million in pre-contracted, non-cancellable software
subscription revenue.

This is up $29.8 million from the same time a year earlier from $65.7 million.

Management commentary

In his directors report to shareholders, RPMGlobal chairman, Stephen Baldwin said:

At a time when other software vendors to the mining industry were reducing their software investments due to the impacts of COVID, RPM once again increased its research and development spend by an additional $3.3 million to accelerate its transition towards being a “software as a service” company.

This investment continues to open new opportunities for the company, while enabling us to provide a more comprehensive service offering to our customers.

What’s next for RPMGlobal?

The company projects FY23 total revenue to be in the range of $101 million and EBITDA to be $14.2 million.

“For the fourth year in a row, RPM will set a new software sales record for the company,” RPMGlobal announced.

This is backed by a flattening of software expenditure in the coming 12 months. The company finalised:

With our transition from perpetual to subscription license sales completed, the operating leverage provided by the $95.5 million in precontracted software subscriptions will now start to flow through into the company’s financials.

RPMGlobal share price snapshot

Over the past 12 months, the RPMGlobal share price has fallen 22%.

The post RPMGlobal share price dips despite 20% revenue surge appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares tumbling lower following full-year results
• The BrainChip share price has dumped 30% in a month. What’s happening?
• This ASX All Ords share flew higher on a 230% profit boost
• Here are the top 10 ASX 200 shares today
• Why did the Lake Resources share price plunge 10% today?

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 RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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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Monday was not the start to the week that investors were probably hoping for. By the time the closing bell belted out its chime, the S&P/ASX All Ords Index (ASX: XAO) had taken a 2% beating to the downside.

Not even the release of earnings reports could stir up excitement for many ASX shares. In fact, in some cases, it had the opposite effect. For some companies, the results weren’t sufficiently up to scratch to prevent shareholders from hitting the ‘sell’ button.

Here are three ASX All Ords shares that fell into the negative following their FY22 results today.

These ASX All Ords shares failed to impress

Impedimed Limited (ASX: IPD)

The market shaved 4.2% off the Impedimed share price on Monday to finish at 6.8 cents per share. It seems a 26% increase in revenue to $10.6 million in FY22 wasn’t enough to satisfy shareholders. The medical device company derived $9.9 million of its total revenue from its SOZO platform.

Notably, Impedimed now has involvement with 16 of the top 25 integrated delivery networks. However, the focus might have been on the company’s continuing cash burn.

In FY22, Impediment chewed through $15.7 million operationally. Although, $42.5 million was added to the balance sheet through the issuing of new shares.

Objective Corporation Limited (ASX: OCL)

Another ASX All Ords share to suffer at the hands of the market today was Objective Corporation. The software company revealed a solid result for the 12-month period, posting gains across all key financial metrics. Yet, the Objective share price was sold down 4.24% to $15.80 apiece.

The company put up a respectable 12% increase in revenue, reaching $106.5 million in FY22. Meanwhile, net profit after tax (NPAT) grew at an even faster pace, up 31% to $21 million. In addition, dividends lifted 22% to 11 cents per share.

Race Oncology Ltd (ASX: RAC)

Finally, Race Oncology makes up the red trifecta of ASX All Ords shares in this list. The $335 million oncology treatment developer failed to attract buyers on Monday despite remarkable top-line growth.

According to its results, Race notched up revenue by a staggering 186% compared to the prior year. In turn, the company generated $53.9 million of revenue from ordinary activities. However, this was paired with widening losses on the bottom line. Total losses expanded to $11.2 million for the 12-month period compared to $6.3 million in FY21.

The Race Oncology share price finished at $2.03, down 2.9% for the day.

The post 3 ASX All Ords shares tumbling lower following full-year results appeared first on The Motley Fool Australia.

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More reading

• 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 Mitchell Lawler 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 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 BrainChip Holdings Ltd (ASX: BRN) share price closed the session down 6.38% on Monday on no news from the company.

Shares in the artificial intelligence technology developer finished at 88 cents each today.

Despite posting a nearly 530% increase in revenue in its H1 FY22 results last week, investors haven’t been keen to nibble at the company’s current share price.

In fact, as seen on the chart below, BrainChip has traded sideways for a good portion of 2022.

What’s up with the BrainChip share price?

Revenue for the six months to 30 June 2022 came in at A$7 million, up 529% year on year.

However, further down the balance sheet, it wasn’t so rosy. Operating losses were down just 1% to A$12.35 million whereas the company still printed a loss per share of 66 cents.

As reported by colleague Matthew Farley at the time, “[a]nother item that grew considerably [in H1 FY22] was its share-based payment expenses, swelling 128% to AU$5.27 million”.

The company attributed the rise to equity issued to directors and employees.

The recent drop for BrainChip has occurred in lockstep with a pullback in the S&P/ASX All Technology Index (ASX: XTX), down nearly 3% in the past month.

Zooming out, however, BrainChip shares remain buoyant, up 29% year to date and 81% higher over the past 12 months.

Also, when looking at the chart above, the downside for BrainChip is hardly out of sync with what the share has been displaying over the past eight or nine months.

Technology shares have caught a bid in recent months with more stable yields on government bonds, yet remain volatile.

With talks of a global recession resurfacing, what this means for the BrainChip share price looking ahead remains to be seen.

The post The BrainChip share price has dumped 30% in a month. What’s happening? appeared first on The Motley Fool Australia.

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More reading

• BrainChip share price up on 529% revenue surge
• Why did the BrainChip share price slump today?
• When is ASX tech share BrainChip expected to become profitable?
• Why is the BrainChip share price sinking today?
• Here are the top 10 ASX 200 shares today

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 Om Holdings Limited (ASX: OMH) share price lifted today amid a huge jump in profit.

The manganese and silicon smelting company’s share price lifted 7.46% to 72 cents. In contrast, the
All Ordinaries Index (ASX: XAO) dropped 2.07% today.

Let’s take a look at what this ASX All Ords share reported to the market.

Om Holdings net profit surges

Highlights of Om Holdings’ half-year results include:

• Net profit after tax (NPAT) exploded 231% on H121 to US$60 million
• Earnings per share lifted nearly 268% from 1.82 cents to 6.69 cents
• Revenue of US$466.7 million, up 35% on H121
• Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 114.8% to US$104.6 million
• Consolidated cash lifted to US$82.8 million

What else did this ASX All Ords share report?

Om Holdings achieved a gross profit margin of 27.7% in the first half of 2022, up from 19% in H121.

The company’s revenue and gross profit margins were higher despite fewer products being sold compared to H121.

Underpinning the strong financial result was stronger prices for manganese ores, ferrosilicon and silicomanganese alloys.

The company also reduced its debt to equity ratio from 0.67 times at 31 December last year to 0.54 at 30 June.

The company’s OM Sarawak smelter is forecast to produce between 340,000 to 360,000 tonnes of ferroalloys by the end of the year.

Management commentary

Commenting on the results, CEO and executive chairman Low Ngee Tong said:

I would like to commend and thank all staff, especially our team on the ground in Sarawak, on delivering an outstanding set of results for the first 6-months of 2022.

Despite pandemic related workforce challenges and the fluid working environment in a year of furnace conversion and major maintenance, we have delivered operationally and the Group has been able to post very robust financial results.

Om Holdings share price snapshot

The Om Holdings share price has surged more than 15% in the past 12 months, but it has lost 20% year to date.

For perspective, the All Ordinaries Index has fallen 7.3% in the past year and 7.53% year to date.

Om Holdings has a market capitalisation of about $531.8 million based on the current share price.

The post This ASX All Ords share flew higher on a 230% profit boost appeared first on The Motley Fool Australia.

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More reading

• The BrainChip share price has dumped 30% in a month. What’s happening?
• Here are the top 10 ASX 200 shares today
• Why did the Lake Resources share price plunge 10% today?
• Guess which ASX iron ore share leapt 6% on ‘outstanding returns for shareholders’. Hint: not Fortescue
• What’s going on with the Santos share price today?

Motley Fool contributor Monica O’Shea 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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It was a rough start to the week for the S&P/ASX 200 Index (ASX: XJO), with the index recording its worst session since June. Indeed only four ASX 200 shares finished in the green today. The index closed 2.06% lower at 6,957.60 points.

It followed a disastrous Friday on Wall Street that saw the S&P 500 Index (SP: .INX) slip 3.4% and the Dow Jones Industrial Average Index (DJX: .DJI) dump 3%. Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fell 3.9%.

Perhaps unsurprisingly then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) was today’s worst performing sector. It fell 4.4%.

The S&P/ASX 200 Materials Index (ASX: XMJ) came in as the second worst performing sector, with a 2.4% drop. That’s despite iron ore futures lifting 0.4% to US$105.38 a tonne on Friday while gold futures slumped 1.2% to US$1,749.80 an ounce. However, Singapore iron ore futures fell as much as 4.4% today to US$101.15, The Australian reports.

And new data from the Australian Bureau of Statistics finding retail turnover lifted 1.3% in July wasn’t enough to boost consumer shares today. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) fell 0.9% while the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slumped 2.1%.

Indeed, all of the ASX 200’s 11 sectors closed lower today. Nonetheless, four shares managed to record gains, while plenty of others outperformed the broader market.

Top 10 ASX 200 shares countdown

Today’s best performing ASX 200 share was none other than A2 Milk Company Ltd (ASX: A2M). It gained 10% as the company posted a 42.3% year-on-year net profit after tax (NPAT) gain for financial year 2022 and announced an on-market buyback.

While the market can’t boast 10 gainers, today’s top performances were put on by these ASX shares:

ASX-listed company	Share price	Price change
A2 Milk Company Ltd (ASX: A2M)	$5.40	9.98%
Adbri Ltd (ASX: ABC)	$2.23	2.76%
APA Group (ASX: APA)	$11.28	0.71%
Atlas Arteria Group (ASX: ALX)	$7.93	0.13%
Cromwell Property Group (ASX: CMW)	$0.79	0%
Nanosonics Ltd (ASX: NAN)	$4.13	0%
Transurban Group (ASX: TCL)	$13.89	0%
Viva Energy Group Ltd (ASX: VEA)	$2.95	0%
Whitehaven Coal Ltd (ASX: WHC)	$7.96	-0.13%
Insurance Australia Group Ltd (ASX: IAG)	$4.59	-0.22%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Lovisa, McMillan Shakespeare, and Tyro are storming higher
• Everything you need to know about the latest A2 Milk share buyback
• A2 Milk share price soars 8% as company regains money-making mojo
• These are the 10 most shorted ASX shares
• 2 excellent ASX dividend shares with big yields that 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 Nanosonics Limited. The Motley Fool Australia has positions in and has recommended APA Group, Insurance Australia Group Limited, and Nanosonics Limited. The Motley Fool Australia has recommended A2 Milk. 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 Lake Resources NL (ASX: LKE) share price slipped deep into the red in afternoon trade on Monday.

At the close of trade, Lake Resources shares finished 10.13% down at $1.07 apiece on no news.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) also finished the day down, 2.42% lower.

What’s up with the Lake Resources share price?

Lake shareholders have been on a rollercoaster journey these past three months, as seen in the chart below.

Prices have swung from highs of $1.66 in June to lows of 60.5 cents by 15 July, back up to highs of $1.59 on 11 August.

Now, investors have pushed the Lake Resources share price back down to its current ranges. And just last week, we noted the share had surged 75% in the past month of trade.

As to reasons for the downside today, lithium pricing certainly wasn’t to blame. Lithium carbonate remains up 336% year on year and is up nearly 3.5% over the past month.

The metals and mining industry caught a sell today, however. As mentioned above, the benchmark metals and mining index is down 2.42%, signalling a heavy sell-off in the basket today.

Moreover, recent earnings posted by fellow lithium player Pilbara Minerals Ltd (ASX: PLS) also pointed to pricing strengths within the lithium market.

Not to mention, that the United States Congress’ recent Inflation Reduction Act effectively “extends tax breaks for new electric vehicle purchases,” per Trading Economics.

“On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term,” it added.

Alas, the Lake Resources share price continues its decline of recent weeks.

Despite this, it remains up more than 94% over the past 12 months of trade.

The post Why did the Lake Resources share price plunge 10% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price tumbling 6% on Monday?
• These are the 10 most shorted ASX shares
• Guess which little-known ASX lithium share has surged 75% in the past month
• Could Pilbara’s inaugural profit signal good times ahead for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 S&P/ASX 200 Index (ASX: XJO) slid 1.95% today, but one ASX iron ore share jumped ahead on the release of its FY22 results.

The Fenix Resources Ltd (ASX: FEX) share price gained 5.88% today to trade at 36 cents.

Let’s take a look at what this ASX iron ore share reported to the market.

Fenix Resources revenue lifts 118%

Highlights of Fenix Resources FY22 full-year results include:

• Net profit after tax (NPAT) lifted 3% to $50.7 million
• Net operating cash flow of $62.3 million, down from $65.3 million in FY21
• Total sales revenue lifted 118% on the previous financial year to $249.2 million
• Fully franked final dividend of 5.25 cents per share
• $101.9 million cash at hand as of 30 June

What else did the company report?

Fenix shipped and sold about 1.335 million wet metric tonnes (wmt) of high-quality iron ore from its 100%-owned Iron Ridge Project.

This included about 627,00 wmt of lump iron ore with an average grade of 63.9% Fe and 708,000 wmt of fines at an average grade of 61.9% Fe.

Revenue lifted 118% on the back of the company ramping up operations.

Despite “volatility in the iron ore price” and higher fuel and freight costs, Fenix reported a slightly higher net profit than the FY21 result of $49 million.

This year’s dividend was on par with the dividend paid out in FY21.

Management comment

Commenting on the results, Fenix chairman John Welborn said:

Fenix continues to deliver outstanding returns for shareholders based on the excellent operational focus of our team and the application of disciplined corporate strategy.

We are exceptionally well placed to maintain the strength of our existing operations and advance exciting opportunities for further growth.

What’s ahead?

Fenix said it is in a “strong hedging position” for FY23. The company has iron ore swap arrangements for 50,000 dry metric tonnes (dmt) per month up to September this year at a price equivalent of $230.30 per dmt in Australian dollars. From October to June next year, Fenix has hedging arrangements for 35,000 dmt per month at $180.65 per dmt. The total value of these arrangements is about $12.65 million as of 30 June.

The company is predicting it will ship about 1.3 million wmt of iron ore in FY23.

Share price snapshot

The Fenix Resources share price has soared 26% in a year, while it’s lifted 33% year to date.

In the past month alone, Fenix Resources shares have surged 29%.

For perspective, the benchmark ASX 200 Index has fallen 7% in a year.

The post Guess which ASX iron ore share leapt 6% on ‘outstanding returns for shareholders’. Hint: not Fortescue appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Santos share price today?
• Why are the VAS ETF’s dividends so erratic?
• Why did the Polynovo share price plunge 17% today?
• Why did the Sayona share price tumble 5% on Monday?
• Why did the Appen share price just hit a 5-year low?

Motley Fool contributor Monica O’Shea 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 Santos Ltd (ASX: STO) share price fared better than most on Monday.

Although the energy producer’s shares ended the day 0.75% lower at $7.85, this compares favourably to a 1.95% decline by the ASX 200 index.

Why did the Santos share price outperform?

The Santos share price avoided the worst of the selloff today thanks to the release of a positive announcement relating to the Barossa joint venture.

According to the release, a final investment decision (FID) has been taken to proceed with the Darwin Pipeline Duplication Project, located offshore the Northern Territory.

This will extend the Barossa Gas Export Pipeline to the Santos-operated Darwin LNG (DLNG) facility and allow for the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate carbon capture and storage (CCS) options.

The release highlights that gas from the Barossa field, located 300 kilometres north of Darwin, is intended to replace the current supply from the Bayu-Undan facility located in Timor-Leste. The first gas production at DLNG using Barossa gas is targeted for the first half of 2025.

Santos’ managing director and CEO, Kevin Gallagher, spoke very positively about the project. He said:

Taking FID on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready. The Bayu-Undan CCS project has the potential to capture and store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent of Australia’s carbon emissions each year from other projects, customers and other hard to abate industries and has the potential to be the largest CCS project in the world.

This will come at a cost, though. Adding the Darwin Pipeline Duplication project is estimated to increase Santos’ share of capital expenditure for the Barossa project by approximately US$311 million.

Work is scheduled to commence on the Darwin Pipeline Duplication project in 2023, subject to Commonwealth and other regulatory approvals.

The post What’s going on with the Santos share price today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Up 13% in a month, is the Santos share price still attractive?
• Earnings highs and lows, and energy policy in focus. Scott Phillips on Nine’s Late News
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 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 Vanguard Australian Shares Index ETF (ASX: VAS) is a popular exchange-traded fund (ETF) on the ASX. In fact, it happens to be the most popular ETF on the ASX right now.

Investors seem drawn to VAS for a number of reasons. But it’s probably a safe bet that most VAS investors appreciate the simplicity of the exposure to an index of ASX shares that this ETF provides.

Now, ASX shares, and by extension the S&P/ASX 300 Index (ASX: XKO) that VAS tracks are well-known for dividend prowess. Most ASX shares that are at the top of the ASX 300 Index by weighting are formidable dividend payers.

There are the big four banks like Commonwealth Bank of Australia (ASX: CBA), of course. As well as other income heavyweights like BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS) and Woodside Energy Group Ltd (ASX: WDS).

As an ETF, VAS has to pay out all dividends that it receives from its portfolio to investors within the same year of receipt in the form of distributions.

As an investor might expect from an index ETF holding so many dividend heavyweights, VAS’s 12-month trailing dividend distribution yield currently stands at a healthy 7.2%.

This comes from the total of $6.26 in dividend distributions VAS has paid out over the past 12 months.

So why are VAS’s dividend distributions so erratic?

But here’s where things get interesting. VAS may have paid out $6.26 in distributions over the past year, covering FY22. But over FY21, the ETF doled out a far less impressive total of $2.33 per unit. For the 12 months covering FY20, it was $2.67. For FY19, it was $3.58.

So what’s going on here? How come VAS’s distributions are so erratic from year to year?

Well, the answer relates to VAS’s structure. As we touched on earlier, as a trust, VAS has to pay out whatever dividends come into its unitholders. As such, it can’t hoard cash in a way that a company can to smooth out dividends over time.

So if ASX shares as a whole have a great year and fork out plenty of dividends, like in FY22, this will flow through to VAS’ unitholders.

But if there is a dividend drought, such as the COVID-induced drought of FY21, there is less dividend income that VAS can pass through.

So the dividend distributions that VAS’ investors enjoy are entirely dependent on the dividends that ASX shares themselves payout. Especially those at the top of the market like the banks and BHP.

So that’s why the Vanguard Australian Shares Index ETF’s dividend distributions appear so erratic. At the end of the day, VAS can only give income to its shareholders that ASX shares themselves give VAS.

The post Why are the VAS ETF’s dividends so erratic? appeared first on The Motley Fool Australia.

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More reading

• How does VGS stack up against other ASX index funds?
• 2 ETFs I think would make good additions to most portfolios
• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years
• Top ASX dividend shares to buy in August 2022
• Is the VAS ETF providing a bigger dividend yield than other ASX 200 index funds?

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation 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 Polynovo Ltd (ASX: PNV) share price closed well in the red on Monday today despite no announcements from the company.

Shares of the ASX medical devices company finished the day at $1.36 each, down 17.07%. It comes after the Polynovo share price shed 15% on Friday.

The S&P/ASX 200 Health Care Index (ASX: XHJ) also had a tough time today, recording a 1.45% loss. However, it performed marginally better than the S&P/ASX 200 Index (ASX: XJO) which closed 2.08% lower.

It seems momentum from last week’s largely negative news from the company carried over to today’s price action. Let’s recap what’s been happening with Polynovo.

What’s going on with the Polynovo share price?

Polynovo’s shares plummeted on Friday amid the company posting its full-year earnings card for FY22. As my Fool colleague Brooke Cooper observed, the slide was despite company revenue growing 42.8% from the prior corresponding period (pcp). Polynovo also reduced its net losses to $1.2 million (down from $4.6 million).

Of note is that Polynovo did not provide material guidance on its earnings or revenues for FY23 or beyond. Instead, it opted to give investors operational and product forecasts and leave investors to extrapolate the outlook for themselves. Although the information provided was useful, the absence of hard numbers did nothing to abate the violent market sell-off.

Moving forward to FY23, the company is working on its European distribution model and has submitted its BTM licence in Canada. It also has interests in Oceania, with eyes set on expanding into Australia and New Zealand.

Polynovo share price snapshot

The Polynovo share price is down 10.5% year to date. At the same time, ASX 200 Health Care Index and the ASX 200 Index are down 5.58% and 8.27% respectively.

The company’s current market capitalisation is roughly $903 million.

The post Why did the Polynovo share price plunge 17% today? appeared first on The Motley Fool Australia.

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More reading

• Why Aussie Broadband, Grange, NextDC, and PolyNovo shares are being hammered
• Polynovo share price plummets 15% despite surging full-year revenue
• Why City Chic, Macquarie Telecom, Polynovo, and Smartgroup shares are sinking
• Earnings preview: Here are the ASX shares reporting today
• How did the Polynovo share price respond last time the company reported?

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 positions in and has recommended POLYNOVO FPO. 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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