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The IDP Education Ltd (ASX: IEL) share price is surging more than 11% into the green during early trade on Thursday.

The move comes after the company posted its FY22 annual results. At the time of writing, the IDP share price is resting at $29.81.

IDP share price surges on robust FY22 earnings

Key takeouts from the period include:

• Revenue of $793 million, up 50% year over year (yoy)
• Adjusted earnings before interest and tax (EBIT) of $163 million, up 127% from the previous year
• A record number of students placed into a total of 55,400 courses
• IELTS testing volumes also grew 67% yoy to a record 1.92 million tests approximately
• Reported net profit after tax (NPAT) of $106 million
• More than 101 new computer-delivered IELTS centres opened in FY22 along with 29 student placement offices
• Dividend of 13.5 cents per share (cps) declared for H2 FY22, bringing total FY22 dividend to 27 cps.

What else happened last period for IDP Education?

Notably, IELTS testing volumes were a standout, exhibiting a 67% gain over the previous year. The company conducted about 1.9 million tests, over a total of 55,400 courses.

This delivered a substantial jump in revenue to more than $790 million, which the company brought down to a record adjusted EBIT of $163 million.

Part of the upside was driven by IDP’s launch of IELTS Online. The platform gives test-takers greater choice and flexibility and opens the door for more tests to be conducted at one time.

Given the strength of its operations, the IDP Board declared a 13.5 cps dividend that brought the total FY22 dividend to 27 cps.

Analysts at UBS were quickly on to the result, noting the company beat consensus estimates of earnings per share (EPS) by 8%.

The broker values IDP at $26.80 per share with a buy rating following the company’s FY22 results.

Management commentary

Speaking on the results, IDP chief executive officer, Andrew Barkla said:

This year, as global mobility resumed, IDP customers reignited their international dreams. When they did, our teams were by their side with new innovations that helped them fast track their goals.

Importantly, we strengthened our relationships with our customers, evidenced by a fourpoint increase in our global Net Promoter Score across the year.

In addition to expanding our IELTS and student placement office network in key growth markets, we also delivered new data-driven study application services that will move our industry forward.

IDP Education share price snapshot

In the past 12 months, the IDP Education share price has climbed 5% into the green, after rallying off a 52-week low on 17 June. However, it is down 15% this year to date.

The post IDP Education share price leaps 11% as revenue surges in FY22 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 Idp Education Pty Ltd. 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.

Amazon (NASDAQ: AMZN) is the largest e-commerce company in the world with a market value of over $1.3 trillion. Its website generated 2.7 billion hits last month, making it a no-brainer platform for brands that want to elevate their online presence. 

Peloton (NASDAQ: PTON) is set to join that club, announcing this morning that a range of its products and merchandise items are now available on Amazon’s U.S. website. It’s the latest in a string of drastic moves by the maker of at-home exercise equipment, to arrest rapidly slowing sales and expanding financial losses.

The partnership is a win for Peloton, but it’s likely a bigger win for Amazon. Here’s why. 

Peloton is retooling for a world beyond pandemic restrictions

Peloton was one of the best-performing companies during the worst of the pandemic. Gyms were closed, workers were attending their jobs remotely, and society was enduring varying degrees of lockdowns. That left few opportunities for people to get their exercise fix, so a range of interactive at-home equipment that brought the workout – and the classes — into the home was a proverbial home run. 

But as pandemic restrictions eased thanks to widespread vaccinations, Peloton’s business quickly deteriorated. The company will report its financial results for the fiscal 2022 full year this week, and it’s expecting that revenue will come in at around $3.5 billion, which would be a sizable drop from the $4 billion it generated in fiscal 2021. 

The drop in sales is underscored by a steep drop in engagement, measured by the average number of monthly workouts in the most recent fiscal third quarter which fell 28% year over year. Put simply, gyms are open, people are free, and they’re using their Pelotons far less often. 

The company installed a new CEO at the beginning of 2022 and tasked him with righting the ship. So far, sweeping changes have been made which include staff layoffs and broad cost cutting, a trial of a new subscription-based sales model for its equipment, and moving production to external manufacturers. 

Now, for the first time in its history, Peloton will deviate from its direct-to-consumer sales model and offer the Peloton Bike, Peloton Guide, accessories, and apparel outside of its showrooms and its website, on Amazon.com. 

Why this partnership is a big win for Amazon

Earlier this year, Wall Street was abuzz with the news that Amazon was interested in buying Peloton. The move would have been well within Amazon’s wheelhouse because it’s no stranger to acquisitions — and Peloton would’ve been a relatively small one given the company is worth just $4 billion as of this writing, thanks to a 92% drop in its stock price from its all-time high.

It ultimately never happened, but with this new partnership in place, Amazon gets the benefit of selling Peloton’s products on its website and earning revenue without the baggage of absorbing a business that has lost a whopping $1.8 billion over the last four quarters. Additionally, Peloton’s financial situation is rather grim with just $879 million in cash on hand which is mostly a result of taking on $750 million in debt in May. 

Peloton’s Chief Financial Officer has commented that customers initiate 500,000 Peloton product searches every month on Amazon.com, reinforcing the positive impact this deal could have for his company. But it might be just as beneficial for Amazon, because every time a customer can’t find what they’re looking for on Amazon.com, it increases the likelihood that they will navigate to another website which costs the company more than just that one potential sale. 

When a customer can find what they’re looking for, Amazon not only wins the sale, but its artificial intelligence algorithms gain an opportunity to push other products into their view and potentially generate further revenue. It’s estimated that these recommendation engines are responsible for 35% of Amazon’s online sales, so being able to satisfy that monthly search volume for Peloton products will be a win for Amazon overall. 

Amazon stock is a buy now

Amazon is fresh off a strong, but mixed, second quarter of 2022. It suffered a net loss mainly as a result of its stake in electric vehicle maker Rivian Automotive (NASDAQ: RIVN), because shares in that company have fallen sharply recently. 

But that speaks to Amazon’s operational diversity. It offers investors a cross-section of the digital economy and it continues to drive innovation. Having multiple revenue streams insulates the company from external shocks like high inflation, which is currently putting pressure on consumers and, therefore, Amazon’s e-commerce segment. But its cloud segment, driven by Amazon Web Services, still managed to grow by 33% year over year during the quarter. 

Additionally, its relatively new advertising segment has delivered $33.9 billion in revenue over the last four quarters and remains an exciting opportunity going forward thanks to the company’s valuable media assets, like the rights to the NFL’s Thursday Night Football. 

While the Peloton deal is exciting, Amazon is more than just an e-commerce company now and there’s no shortage of reasons to own the stock. 

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

The post Does this make Amazon stock a buy? 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. Anthony Di Pizio 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 Amazon and Peloton Interactive. 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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The Qantas Airways Limited (ASX: QAN) share price is taking off today, up 7.9%.

Qantas shares closed yesterday trading for $4.54 each and are currently at $4.90.

Investors are bidding up shares of the flying kangaroo after the airline released its full-year results this morning for the 12 months ending 30 June (FY22).

While those results reflected another difficult year, with a statutory loss after tax of $860 million, that loss was down 49% from the prior year.

Also likely providing some tailwinds for the Qantas share price was its announcement of an on-market share buyback.

What share buyback did the airline announce?

Management stated they have approved an on-market share buyback of up to $400 million “as the benefits of the recovery materialise”.

“This is the first return to shareholders since 2019 and follows $1.4 billion of equity raised at the start of the pandemic,” the airline said

With today’s big leap in the Qantas share price factored in, the airline has a market capitalisation of $9.2 billion. That means the share buyback represents more than 4% of its market cap.

Investors may also have picked up on some bullish words by CEO Alan Joyce.

“We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional,” he said.

“We’re even more confident in the future than we were six months ago, so today we’re announcing more investment in our people and our customers, including a major boost to staff travel benefits, new routes and new lounges.”

There were no dividends again this year. Qantas last paid a dividend on 23 September 2019, when the world had yet to hear of COVID, let alone experience global lockdowns.

But Joyce addressed the $400 million share buyback, saying, “We’re also announcing the first capital return for shareholders since they provided us $1.4 billion at the start of the pandemic to support our Recovery Plan.”

Qantas share price snapshot

With today’s big lift factored in, the Qantas share price has again climbed into positive territory for the past 12 months, up a slender 1.4%.

Still, that handily beats the 6% full-year loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post The Qantas share price just flew 8% higher on $400 million share buyback appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 All Ordinaries Index (ASX: XAO) is edging higher this morning amidst a flurry of ASX reporting season activity. 

But while the ASX All Ords index rises, some shares are struggling to keep up.

For some, lacklustre reports are driving this underperformance.

But for others, it’s because their shares are turning ex-dividend. This means they’re no longer trading with the upcoming dividend payment attached to it.

When a company’s shares turn ex-dividend, they typically drop. After all, these dividends are being paid out of the company’s cash reserves.

While the extent of the fall is usually in proportion to the size of the dividend, it varies based on market sentiment.

So, here are three ASX All Ords shares trading ex-dividend today. Unsurprisingly, their share prices are in the red.

Codan Limited (ASX: CDA)

This ASX tech share is trading without its final dividend today. At the time of writing, the Codan share price is sliding 4.1% to $6.97.

Last week, Codan declared a fully franked final dividend of 15 cents. 

Investors who held Codan shares when the market closed yesterday should see the payment land in their accounts on 7 September.

Codan’s total FY22 dividends come in at 28 cents, up slightly from 27 cents in FY21.

This puts Codan shares on a trailing dividend yield of 4.0%, which amps up to 5.7%, including franking credits.

Baby Bunting Group Ltd (ASX: BBN)

ASX retailer Baby Bunting is another ASX All Ords share going ex-dividend today.

Baby Bunting shares are now trading without the company’s fully franked final dividend of 9 cents. 

This is likely contributing to the 3% fall in the Baby Bunting share price at the time of writing.

Investors who were on the company’s share register by the time the market closed yesterday should pencil in a payment date of 9 September.

Baby Bunting achieved another year of dividend growth, with total FY22 dividends coming in at 22.3 cents. 

This means Baby Bunting shares are currently flaunting a trailing dividend of 4.9%. Throwing franking credits into the mix bumps up this yield to 7%.

HT&E Ltd (ASX: HT1)

Rounding out this trio of ASX All Ords shares going ex-dividend today is media and entertainment business HT&E.

The company recently announced its first-half FY22 results, declaring a fully franked interim dividend of 5 cents per share. 

This is up 43% compared to HT&E’s interim dividend in FY21. 

At the time of writing, the HT&E share price is down 4.58%, trading at $1.355.

If you owned HT&E shares when the market closed on Wednesday, you should be entitled to this dividend. Keep your eyes peeled for the funds to land in your account on 15 September.

HT&E shares are currently trading on a trailing 12-month dividend yield of 6.5%, or 9.3% grossed up.

The post 3 ASX All Ordinaries shares going ex-dividend today 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 recommended Baby Bunting. 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 Nine Entertainment Co Holdings Ltd (ASX: NEC) shares have surged higher in early trade Thursday after the company announced a “record” result and dividend payout, as well as a $341 million buyback.

At the time of writing the stock is up 5.5% to go for $2.11.

What did the company report?

• Revenue up 15% to $2.7 billion
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 24% to $700.7 million
• Statutory net profit including specific items up 71% to $315.3 million
• Dividend per share up from 10.5 cents to 14 cents
• On-market buyback of up to 10% of shares, which is about $341 million. 

What else happened in FY22?

With Australia’s two largest cities in lockdown for much of the first half of the financial year, Nine Entertainment’s television business thrived with a captured audience.

That arm was also boosted in December with a new broadcast deal with the NRL worth $650 million for the 2023 to 2027 seasons.

What did management say?

Nine chair Peter Costello said: 

2022 has been a record year for Nine, on many levels. From a profit perspective, we have reported the highest ever group EBITDA as well as total TV and publishing EBITDA and margin. At the same time, our ambition to accelerate profitable growth from our digital businesses is being realised, with more than 50% of EBITDA now attributed to our digital expansion, tracking ahead of the long-term targets we have previously communicated.

For our shareholders, from our FY22 profit, we have also paid or announced a record, fully franked dividend of 14 cents per share.

Chief executive Mike Sneesby said:

Whilst broader economic factors are beginning to impact some areas of the market, Nine’s strong competitive position and balance sheet stands us in good stead. We have successfully diversified our earnings base, with more than 30% of our revenue now from subscription and licensing.

What’s next?

Nine Entertainment forecasts EBITDA between $380 million and $400 million for the first half of financial year 2023.

Sneesby said:

Across all of our advertising-based businesses, we are confident that we will continue to grow our share, reflecting our content and distribution capabilities, as well as our focused approach to sales and the associated use of our extensive data pool. We expect any market softness will create opportunities for Nine to further strengthen its position as Australia’s media company.

Nine Entertainment share price snapshot

Nine shares have lost about one-third of their value since April as fears about the economy repelled investors from advertising-driven businesses.

The stock has recovered somewhat in recent weeks, with a 10.5% gain since mid-June.

The dividend yield, after the 14 cent payout was announced, is now at a juicy 7%.

The post Nine Entertainment share price takes off after 71% profit boost and ‘record’ dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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There are plenty of ASX bank shares in the S&P/ASX 200 Index (ASX: XJO). At the moment, National Australia Bank Ltd (ASX: NAB) shares would be my pick out of that sector.

It can be hard to choose because there are so many different names including Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

But there are a few key reasons for my preference for NAB over the other big four ASX 200 bank shares, so I will outline them below.

Growth

Banks are not known for being growth shares. But, I believe that it’s important that the investments we choose offer a bit of growth, even if it’s only a relatively small amount.

I think that NAB is demonstrating an impressive amount of growth (for a big bank) and it’s doing it profitably.

The bank and its management have been working hard at improving the business and “getting the basics right”. NAB has also been working on improving “customer and colleague outcomes to deliver sustainable growth and improved shareholder returns.”

In the FY22 third quarter, NAB reported cash earnings of $1.8 billion and statutory net profit after tax (NPAT) of $1.85 billion. The cash earnings represented a year-over-year growth of 6%. Before tax and credit impairment charges, cash earnings increased 10%.

Excluding the Citi acquisition, and before credit impairment charges and tax, NAB’s third quarter cash earnings grew by 2% compared to the FY22 first half quarterly average.

While there are plenty of other ASX shares that will have reported much stronger growth this reporting season, I think NAB is looking good, particularly as the benefits of higher interest rates will start to show on its profit margins. However, it will be worthwhile keeping an eye on the level of loans arrears in 2023 and beyond.

Valuation

Based on estimates on Commsec, NAB is projected to generate $2.39 of earnings per share (EPS) in FY23. That puts the current NAB share price at under 13 times FY23’s estimated earnings.

Compare that to CBA, which is valued at over 17 times FY23’s estimated earnings, according to CommSec. The price/earnings (p/e) ratio isn’t the only way to compare banks, but I think it can show how much cheaper NAB is compared to CBA. It’s the better value ASX 200 bank share out of the two.

It’s true that ANZ is valued at under 11 times FY23’s estimated earnings and Westpac is valued at just over 11x FY23’s estimated earnings. But, I like the quality that NAB is demonstrating and how it’s delivering profit growth.

Dividend yield

I am also attracted to the dividend income that NAB is paying and could pay.

In FY23, NAB is predicted to pay an annual dividend per share of $1.63 per share, according to Commsec. That would represent a grossed-up dividend yield of 7.8% at the current NAB share price.

Then, in FY24, the ASX 200 bank share could grow its annual dividend by 4.4% to $1.70 per share. This would be a grossed-up dividend yield of 8.1%.

I think the combination of rising earnings, a strong starting dividend yield and a growing dividend will lead to solid total returns in the coming years.

The post NAB is the ASX 200 bank share I’d buy today appeared first on The Motley Fool Australia.

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• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
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Motley Fool contributor Tristan Harrison 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 Westpac Banking Corporation. 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 Whitehaven Coal Ltd (ASX: WHC) share price is in the red this morning after the company posted its results for FY22.

Shares of the company are currently trading for $7.54 each, down 4.56% on Wednesday’s closing price.

Let’s go over the highlights of the report.

Whitehaven Coal share price dips despite record earnings

• Revenue up 216% year-over-year (YoY) to $4.92 billion
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 1,396% YoY to $3.06 billion
• Record net profit after tax (NPAT) of $1.95 billion, up from a $543.9 million loss in FY21
• Net cash of $1.03 billion, up from net debt of $808.5 million in FY21
• Fully franked dividend of 40 cents per share

The total cash generated from Whitehaven’s operations for FY22 stood at $2.6 billion.

Due to the company’s robust operating cash flows in FY21, it is returning value back to investors through the issuance of a fully-franked dividend and completing its share buyback program that commenced in February last year.

A fully franked dividend of 40 cents per share will be paid on 16 September. This takes the full-year dividend to 48 cents per share.

Whitehaven bought back 76.37 million shares in FY22, or around 7% of its shares outstanding, for a total value of $362.6 million. In FY23, the company seeks to complete its commitment to buy back 10% of its shares within the cap of $550 million.

What else happened in FY22?

Whitehaven’s CEO and managing director Paul Flynn said results were buoyed in FY22 due to an asymmetry in supply and demand for coal. This was said to be caused by energy shortages and sanctions against Russia for their initiation of the war in Ukraine.

The result of these tailwinds was the price of coal reached “record levels”, with an average price of $325 per tonne in FY22, up from $95 per tonne in FY21, or a 242.10% increase.

Whitehaven said its strong performance was delivered in the face of numerous headwinds throughout the year; these included “COVID-related absences, labour constraints, and weather interruptions”.

The influx of cash Whitehaven reported was used to pay down its debt on its balance sheet. Net cash ended at $1.03 billion, up from net debt of $808.5 million in FY21.

The company also spent $34 million on development projects during this period. The company spent money on land and engineering its existing sites throughout Australia.

What did management say?

Commenting on the results, Flynn said:

Coal prices are at record levels and customers are focused on energy security now more than ever before.

We have worked hard to position ourselves to maximise the opportunity arising from historically high prices. We achieved a record realised average price of A$325 per tonne in FY22, compared with A$95 per tonne in the prior year.

Demand for high-quality seaborne thermal coal is expected to remain strong throughout FY23 and high-CV coal prices should continue to be well supported.

What’s next?

The company notes that high demand for coal is expected throughout FY23 and that it is positioned to keep up with its production rate. Guidance total run-of-mine coal is expected to be between 20 and 22 metric tonnes. In FY22, this figure stood at 20 metric tonnes.

Managed and equity coal sales are also expected to fall in line with numbers seen in FY22. Managed coal sales are expected to be between 17.5 and 18.85 metric tonnes, and equity coal sales between 14.1 and 14.9 metric tonnes.

Whitehaven expects its capital expenditures to just about double in FY23, as it posted guidance of $287 to $360 million for this period, up from $154 million in FY22. Funds will be used to grow and maintain its development projects.

Whitehaven Coal share price snapshot

The Whitehaven Coal share price is up 177% year to date and 245% over the past 12 months. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 37% and 49%, respectively, over those same timeframes.

Whitehaven Coal has a market capitalisation of $7.41 billion.

The post Whitehaven Coal share price slips despite record $1.95 billion profit appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Here are the top 10 ASX 200 shares today
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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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The Perpetual Limited (ASX: PPT) share price is slipping after the company dropped its full-year earnings and announced a previously speculated takeover plan.

The S&P/ASX 200 Index (ASX: XJO) financial services company has proposed to acquire fellow ASX 200 constituent Pendal Group Ltd (ASX: PDL) in a part-scrip deal worth around $2.3 billion as of Wednesday’s close.

The Perpetual share price opened Thursday’s session 0.5% higher at $30.44  before tumbling into the red.

Right now, the financial services provider’s stock is swapping hands for $28.99, representing a 4.39% fall.

Perpetual share price falls on FY22 results and takeover plan

Here are the key takeaways from the company’s financial year 2022 earnings:

• Revenue of $767.7 million – a 20% improvement on that of the prior corresponding period (pcp)
• Net profit after tax (NPAT) lifted 39% to $101.2 million
• Average assets under management (AUM) lifted 41% to $107.2 billion
• Delivered earnings growth in all four of its divisions
• Declared a 97-cent fully franked final dividend, bringing full-year dividends to $2.09 per share – a 16% improvement

Looking to the company’s individual segments, Perpetual Asset Management International, encompassing the Trillium and Barrow Hanley businesses, brought in $218.8 million of revenue in FY22 – a 57% increase.

Perpetual Asset Management Australia saw revenue lift 2% to $169 million, while Perpetual Private delivered $211.2 million of revenue – a 15% increase.

Finally, Perpetual Corporate Trust saw $158.5 million of revenue – an 18% improvement.

Perpetual proposes acquisition of Pendal

In other news driving the Perpetual share price today, the company has announced its plan to snap up ASX 200 investment management services provider Pendal.

Perpetual has proposed to provide Pendal investors with 1 Perpetual share and $1.976 in cash for each stock they hold in the takeover target.

That implies an offer price of $6.02 per share based on Perpetual’s previous close. It also represents an offer price of $6.545 based on Perpetual’s last undisturbed close. That’s a 46.0% premium on Pendal’s previous close.

The takeover would see Perpetual boast more than $201 billion of AUM. It could also realise $60 million of annual pre-tax synergies within the first two years and deliver double-digit earning per share (EPS) accretion for Perpetual shareholders in the first 12 months after implementation.

Pendal’s board has recommended the offer to shareholders.

What did management say?

Perpetual CEO and managing director Rob Adams commented on today’s news from the company, saying:

Perpetual has delivered a robust financial result in FY22, driven by strong earnings growth across all four of our business units.

The group has maintained a strong balance sheet position, enabling us to drive organic growth and pursue inorganic opportunities with conviction, when they are in line with our strategic ambitions and future growth potential such as our announcement today of the proposed acquisition of Pendal Group.

This defining acquisition is strategically and financially compelling, allowing us to realise our strategic ambitions significantly sooner than would otherwise occur individually, bringing forward years of growth potential.

What’s next?

If all goes to plan, Perpetual will implement its Pendal acquisition by late 2022 or early 2023.

Meanwhile, Perpetual hasn’t provided new earnings guidance today. Adams commented on the company’s outlook:

While the macroeconomic and geopolitical conditions pose challenges for the global financial services industry, the outlook for Perpetual remains positive.

Perpetual’s unique combination of businesses provides the group with diversification of earnings and growth opportunities, and a level of downside protection in times of market volatility through our nonmarket linked revenues in PCT and PP.

In addition, the strength of the Perpetual brand, built over generations as a leading provider of fiduciary services, has created a confidence and trust that gives the group a strong foundation for future growth.

Perpetual share price snapshot

This year has been a rough one for the Perpetual share price.

Today’s plunge included, it’s fallen 22% since the start of 2022. It has also dumped almost 30% since this time last year.

For comparison, the ASX 200 is currently down 7% year to date and 6% over the last 12 months.

The post Perpetual share price tumbles on full-year earnings and takeover news appeared first on The Motley Fool Australia.

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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 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 Regis Resources Limited (ASX: RRL) share price is up 4.1% in early trade.

Regis Resources shares closed yesterday trading for $1.59 and are currently trading for $1.67.

This comes following the release of the ASX gold miner’s full-year results for the 12 months ending 30 June (FY22).

Highlights below.

Regis Resources share price leaps higher on gold sales

• Record gold sales of $1.02 billion, up 24% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA), after adjustments, of $336 million, down from $403 million in FY2021
• Statutory net profit after tax (NPAT) $14 million, down from $146 million the prior year
• Final fully franked dividend of 2 cents per share declared
• Cash and bullion of $231 million as at 30 June

What else happened during the year?

Regis Resources recorded 439,310 ounces of gold sales fetched at an average price of $2,312 per ounce.

The miner reduced its hedging by 100,000 ounces over FY22 to 220,000 ounces as at 30 June. Approximately 75% of gold sold is exposed to the spot gold price.

Atop record sales, the Regis Resources share price also could be getting a lift as the miner reported achieving record gold production over the 12 months of 437,000 ounces at an all-in sustaining cost (AISC) of $1,556 per ounce.

The company said the decline in EBITDA and the EBITDA margin of 33% was partly due to $74 million of non-cash cost adjustments relating to its stockpile inventory.

Statutory NPAT, meanwhile, was hit by $60 million of non-cash post tax cost adjustments relating to stockpile inventory and surrendered exploration leases.

Regis had a net debt position of $69 million as at 30 June.

Investors wanting to grab the final dividend have until 12 October, when the stock trades ex-dividend.

What did management say?

Commenting on the FY22 results sending the Regis Resources share price higher today, managing director, Jim Beyer said:

FY22 was a year of consolidation for Regis. We invested heavily at both Tropicana and Duketon to set the company up for its growing production and cash flow profile. The financial performance was significantly impacted by a combination of the ongoing impacts of COVID and inflationary cost pressures in particular during the second half of the financial year.

The considerable investments made in FY22 across both mining and processing, positions the company to further increase production and operating cash flow going forward.

What’s next?

Regis Resources provided guidance for FY23 of 450-500,000 ounces of gold at an AISC of $1,525 to $1,625 per ounce.

Looking ahead, Beyer said, “In FY23, underground production at Duketon will increase with commissioning of the Garden Well South underground operation, while at Tropicana, completion of the Havana cutback will expose higher grade open pit ore.”

Regis Resources share price snapshot

The Regis Resources share price is down 13% in 2022, compared to a year-to-date loss of 8% posted by the All Ordinaries Index (ASX: XAO).

Comparing apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 21% this calendar year.

The post Regis Resources share price charges higher on record gold sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 City Chic Collective Ltd (ASX: CCX) share price took a deep dive this morning on the back of a challenging set of full-year results for FY22.

The City Chic share price closed at $2.46 per share yesterday and plummeted 13.4% to a low of $2.13 at the open today. After regaining some ground this morning, shares in the company are now trading 11.3% lower at $2.18.

Let’s dive into the FY22 results for the ASX-listed plus-sized apparel global retailer.

What did City Chic report for FY22?

Here are the key highlights from the City Chic FY22 results.

• Revenue grew 39% to $369.2 million relative to FY21
• Net profit after tax increased slightly from $21.6 million to $22.3 million
• The inventory balance nearly tripled from $67 million to $196 million
• Operating cash flow plummeted from $15.2 million to negative $51.9 million

In Australia and New Zealand, revenue rose by 11% despite the adverse impact of mandated COVID-19 store closures. Online growth sales of 27.5% helped with offsetting the store closures.

Americas contributed a significant 53.9% jump in revenue, mainly due to solid website traffic growth of 31% and 42% growth in customer numbers.

Europe, the Middle East and Africa regions recorded $45.1 million in sales but reeled in lower gross margin and earnings before interest, taxation and amortisation (EBITDA) margin. This was down to supply chain and logistics issues, in particular across the second half of FY22.

City Chic ramped up its inventory levels heavily to mitigate the impact of supply chain issues in FY23. As a result, the current inventory balance sits at $195.9 million.

This would appear the biggest reason why operating cash flow reversed dramatically as management anticipates greater macroeconomic and consumer spending uncertainty. Given the challenging environment ahead, management decided not to declare a dividend for FY22.

City Chic’s balance sheet appears stable, with a net debt position of $4 million.

FY23 update

Management advises the first seven weeks of trading in FY23 have been consistent with FY22, with some positive momentum in August.

Both physical stores and online are performing above expectations in Australia. In the United States, the City Chic website outperforms last year, while the Avenue website is trading below over the same period. However, there are signs of week-on-week improvement.

Cyclical issues are still present in the UK, but the region continues to signs of growth.

Management commentary

City Chic CEO and managing director Phil Ryan said management was focused on delivering free cash flow in FY23. He said:

To support this growth and ensure sustained growth into the future, we established a
sophisticated global distribution network through our own websites and a global partner
network. This included diversifying our global supply chain into new sourcing regions and
investing in inventory ahead of the curve.

This investment will unwind in FY23 as accelerated inbounding reduces and we leverage new supply chain relationships. This will deliver strong free cash flows into FY23 which, along with our expanded debt facility, provides good funding flexibility to execute on our growth plans.

City Chic outlook

Management appears confident in producing another year of profitable growth. However, this is dependent on the level of geopolitical uncertainty.

To counter the risk of margin reductions, management has flagged it will raise retail prices where appropriate and aim to grow market share simultaneously.

The plus-size retailer also indicated inventory levels will return to a more normal level, targeting $125 million to $135 million in FY23. Management hopes to generate a positive net cash position in the second half.

City Chic share price snapshot

The ASX hasn’t been kind to the City Chic share price in the last year, plummeting by 60%, but there are signs of recovery as it rallied 3% higher in the past month.

The S&P/ASX 200 Index (ASX: XJO) suffered a drop of 7% and is rebounding in tandem with the City Chic share price, lifting by 3% in the last month.

Based on the current share price, City Chic has a market capitalisation of around $535 million.

In terms of valuation, City Chic is trading at a price-to-earnings multiple of 27x.

The post City Chic share price plummets 13% as cash flow blows out in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang has no positions 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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