Tag: Motley Fool

The Rio Tinto Limited (ASX: RIO) share price is in focus today after it submitted an improved proposal to the board of Turquoise Hill Resources (NYSE: TRQ) in its pursuit to acquire the company.

The terms of the new proposal value Turquoise Hill at approximately US$3.1 billion, 56% higher than Rio’s original proposal from 11 March 2022.

Rio Tinto share price on watch after updated bid

There’s been an ongoing saga with Turquoise Hill and Rio Tinto. Firstly, Rio is already the 51% majority shareholder in Turquoise.

Should it successfully acquire all the share capital in Turquoise it doesn’t already own, Rio would also be the 66% owner of the Oyu Tolgoi copper-gold project, located in Mongolia.

However last week, the Canadian miner rejected Rio’s all-cash offer for US$2.7 billion that was first made in March.

Rio was notably “disappointed” by the decision, and has therefore sweetened the terms of the deal to compensate.

Not only that, when examining the deal’s particulars in closer inspection, the odds may be stacked in Rio’s favour.

Since Rio’s first proposal, “the average share price performance of Turquoise Hill’s peers has declined 35%” the release noted.

“Furthermore, Turquoise Hill has disclosed in its latest earnings results that it needs to raise equity proceeds of more than US$1 billion to address its current estimate of funding requirements,” it added.

Speaking on the announcement, Rio Tinto CEO, Jakob Stausholm said the offer “provides full and fair value for Turquoise Hill shareholders” whilst offering the certainty of cash at a premium.

[The deal] is in the best interests of all stakeholders as we work to move the Oyu Tolgoi project forward. We will continue to take a disciplined approach to capital allocation and strongly encourage the Board of Turquoise Hill to engage constructively, and to support and recommend in favour of Rio Tinto’s Improved Proposal.

Jakob Stausholm, Rio Tinto Chief Executive

The deal still requires majority support of Turquoise Hill shareholders.

Meanwhile, the Rio Tinto share price is down more than 12% in the past 12 months, or 3% down this year to date.

The post Why is the Rio Tinto share price in the spotlight on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here’s why analysts say these blue chip ASX 200 shares are buys
• How have ASX dividend shares been performing this earnings season?
• Here’s the Rio Tinto dividend forecast through to 2026
• Could this be set to boost ASX 200 iron ore shares?
• Could ASX battery minerals shares be in for a boost next month?

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

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The Qantas Airways Limited (ASX: QAN) share price will be closely monitored Thursday after the airline revealed a mixed set of results for an action-packed 2022 financial year.

What did the company report?

• Revenue up 53.5% to $9.1 billion
• Underlying loss before tax up 4.8% to $1.86 billion
• Statutory loss after tax 49.2% down to $860 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 31.5% to $281 million.

The airline announced that no dividend will be paid. However, it will execute an on-market buyback of shares worth up to $400 million.

What else happened in FY22?

Understandably for an airline, the biggest events for Qantas over the financial year were not necessarily within the business itself.

The year saw both the Delta and Omicron variants of COVID-19, as well as vaccinations, have a massive impact on the travel industry. The period started with heavy restrictions on movement between states and internationally, but ended with all of those measures removed as Australia transitioned to a post-pandemic life.

However, Qantas and the airports were left short-staffed as travel made a huge comeback in 2022. Both the April and July school holidays saw queues snaking out of the terminal at places like Sydney Airport.

The congestion, lack of staffing, and poor weather also meant many delayed and cancelled flights. The Motley Fool reported previously that more than 54% of Qantas flights took off late last month, to go with a cancellation rate of 5.6%.

The damage to the Qantas brand has been so substantial that earlier this week CEO Alan Joyce apologised to frequent flyers and offered remediation such as $50 vouchers, extended status, and lounge access.

The airline also proposed to buy regional carrier and wet lease provider Alliance Aviation Services Ltd (ASX: AQZ) but the ACCC has recently expressed its concerns over the deal.

What did management say?

Joyce said:

This result takes the statutory loss before tax impact of COVID on the Qantas Group to nearly $7 billion and our total revenue losses to $25 billion. These figures are staggering and getting through to the other side has obviously been tough. 

We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional. Our teams have done an amazing job through the restart and our customers have been extremely patient as the whole industry has dealt with sick leave and labour shortages in the past few months.

Safety remains number one, but our service isn’t at the level expected of the national carrier. There is a lot of work happening to bring us back to our best, including hiring more people, rolling out new technology and reducing domestic flying so we have more sick leave cover. 

What’s next?

Qantas stated that going into the current financial year its balance sheet repair process is “effectively complete”.

While it made no group-wide revenue or profit/loss forecasts for 2023, it predicted:

• Lower international flights revenue, averaging 75% of pre-pandemic levels
• Recovery plan to complete to meet $1 billion cost reduction target
• Underlying depreciation and amortisation expected to be $1.8 billion.

Qantas share price snapshot

The share price for Qantas has fallen 11.8% year to date. Most of that was attributable to mid-June when it fell 19.7% over just 10 days on the back of recession fears out of the United States.

The post Qantas share price on watch after $1.9b loss, $400m buyback appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• The Qantas factor: Rex shares hold steady despite deepening loss
• Looking to buy Qantas shares? Here’s what to watch when the airline reports tomorrow
• Qantas share price sinks upon call for CEO resignation
• Qantas share price dips as ACCC raises acquisition concerns

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 recommended Alliance Aviation Services 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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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

Shares of Tesla (NASDAQ: TSLA) jumped Wednesday on the final day of trading before the company’s latest stock split takes effect. The stock rose as much as 2.5% today, and still traded up 0.22% as of market close.

Investors might be looking back on the stock’s returns since its last stock split in August 2020. Since that 5-for-1 split, Tesla shares have returned more than 80%, compared to under 20% for the S&P 500 index.

So what

Although there is no fundamental change in a business or its valuation from stock splits, investors usually view them as a positive sign from the company. Tesla’s upcoming split is no exception, with the resulting lower price per share potentially attracting new retail investors. Although shares are down about 15% year to date, those investors still see plenty to like in the company’s future.

Now what

Tesla and its investors expect to see the company increase vehicle production at an annual rate of about 50% for the next several years. Its two new factories in Austin, Texas, and near Berlin will help that in the near term. CEO Elon Musk said earlier this month at the company’s annual shareholder meeting that he believes a total of 10 to 12 plants will eventually help it produce 20 million EVs annually.

The recently passed Inflation Reduction Act should also help by giving consumers tax credits to purchase EVs, with some limitations. While not all of Tesla vehicles will qualify, any new incentives will be an additional tailwind for the company.

Investors might be focused on the upcoming stock split today, but the business itself still looks to have a long runway for growth. You just need to realize that with the stock up more than 2,000% in the last three years, some of that growth is already built into the share price.

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

The post Why Tesla shares rose today ahead of the stock split appeared first on The Motley Fool Australia.

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More reading

• Tesla stock is rising ahead of its stock split
• 3 things you should know about the Tesla stock split
• Why Tesla shares are falling ahead of its stock split
• Why Tesla stock dropped Monday
• Why Tesla stock was up again today

Howard Smith 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 Tesla. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is on watch after the company released its full-year earnings this morning.

Shares in the travel agency group closed Wednesday’s session at $17.34.

Flight Centre share price on watch as TTV lifts 160%

Here are the key takeaways from the travel giant’s financial year 2022 (FY22) results:

• Revenue reached $1 billion ­– a 154% improvement on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $200 million loss ­– 53.7% higher than pcp
• Statutory loss before tax of $377.8 million – a 37% improvement
• Underlying loss after tax, meanwhile, was $272.6 million – a 25% improvement
• Total transaction value (TTV) reached $10.3 billion – a 162% lift
• The company hasn’t returned to paying dividends yet.

Flight Centre’s corporate and leisure travel businesses both returned to profit in the second half after a strong fourth quarter, driven by higher TTV.

On an underlying basis, the company posted an EBITDA loss of $183.1 million – a 45.8% improvement and within guidance.

It also recorded a $35 million underlying profit for the three months ended 30 June. However, its Asia geographical segment lagged, recording a loss for the quarter.

Its corporate segment outperformed in FY22, recording a $13.5 million profit for the year, with gross TTV exceeding pre-COVID levels six months earlier than anticipated. The company’s leisure business also pulled through late in the year, bringing in a $10 million profit for the June quarter.

Flight Centre’s costs averaged $120 million in FY22, compared to pre-pandemic levels of around $230 million.

Finally, it boasts $700 million of liquidity.

What else happened in FY22?

The market kept a close eye on Flight Centre last financial year as Australia’s borders reopened and the Omicron variant swept the nation.

The company worked on its ‘Grow to Win’ strategy over the period, aiming to enhance its capabilities, retain customers, and win new accounts. It boasts a $2.5 billion pipeline of FY22 account wins.

In September, the Flight Centre share price lifted 0.5% when the company revealed plans to launch its travel management business in Japan in September. The stock dumped 10% over two days in October when the company dropped a trading update and issued $400 million of convertible debt.

What did management say?

Flight Centre CEO Graham ‘Skroo’ Turner commented on the company’s earnings, saying:

After two years of unprecedented disruption to normal global travel patterns and other everyday activities, we are pleased to start FY23 with a considerably brighter outlook.

Travel demand has recovered rapidly since most governments globally removed or relaxed border restrictions and we have started the new fiscal year with strong momentum.

It is, of course, early days in the recovery and there is still considerable upside potential. For example, Australian outbound passenger departures tracked at just 35% of pre-COVID levels over the FY22 [second half], peaking at 60% in June.

What’s next?

Flight Centre did not provide earnings guidance despite a strong start to FY23.

It blames its lack of outlook on the industry’s ongoing rebound, continued travel restrictions in parts of the world including China, and unstable airline capacity and pricing.

It expects to be tracking close to its monthly pre-COVID TTV levels by the end of the period.

The company aims to translate between 40% and 50% of incremental revenue to EBITDA during its recovery phase. It will also target bottom-line improvements in FY23. Finally, it expects its full-year earnings to be weighted to the second half once more.

Flight Centre share price snapshot

The Flight Centre share price has delivered a turbulent performance lately.

The stock has slumped 7% since the start of 2022. Though, it has gained 6% since this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 8% year to date. It is down 7% over the past 12 months.

The post Flight Centre share price in focus as full-year revenue surpasses $1 billion appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Is the Flight Centre share price a buy ahead of Thursday’s FY 2022 earnings report?
• Looking to buy Webjet shares? Here’s what we’ve learned about the travel sector in August
• These are the 10 most shorted ASX shares
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As the effects of soaring inflation and rising interest rates reach far and wide, the S&P/ASX All Ordinaries Index (ASX: XAO) has been left in a tizzy.

The ASX All Ords index has shed nearly 9% this year. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has slid 28%.

Amidst the volatility, I’m on the hunt for high-quality ASX shares to add to my portfolio.

In my eyes, a high-quality company is a proven performer with sustainable competitive advantages, a healthy balance sheet, and the ability to generate large amounts of free cash flow.

Competitive advantages come in different shapes and sizes. But it’s likely that a high-quality company benefits from a combination of the following traits:

• Market leader
• Brand power
• Pricing power
• Network effects
• Scale
• High barriers to entry
• Mission-critical products/services

These advantages allow businesses to form a competitive moat to not only shield themselves from competition but also continue to grow.

With that in mind, here are two ASX All Ords shares I think fit the quality bill. 

PEXA Group Ltd (ASX: PXA)

PEXA is a cloud-based system that digitally facilitates a range of essential functions in the conveyancing process. Think documents, the transfer of funds and dealings with the relevant land titles office.

Through its roots in government, PEXA has a monopoly in the Australian market. More than 80% of all property transfers in Australia are completed on the PEXA platform, with the balance still going through the traditional, paper-based process. 

PEXA’s competitive moat lies in its first-mover advantage along with various integrations, strategic relationships, and licences, which have taken many years to develop. 

Support from governments, regulatory bodies, and unique founding partners has gotten PEXA to where it is today: a supremely dominant position in the Australian market. 

With the local market all but gobbled up, PEXA is turning its attention abroad to the UK, a country with more than double the population of Australia. 

It’s secured key agreements with the Bank of England and Her Majesty’s Land Royalty. And after successfully completing testing with several lenders, the platform is preparing to go live at the end of the year. 

PEXA’s UK efforts will first start with refinancing transactions. The company hopes this will serve as a springboard into the lucrative property transfer segment.

As was the case in Australia, PEXA will be breaking new ground in the nascent UK digital property landscape.

According to our Foolish ASX reporting season calendar, PEXA will reveal its FY22 results tomorrow. 

Some of the things I’ll be watching are the company’s topline growth, market penetration, gross margins, and cost base.

Going forward, I think it’s also worth keeping an eye on interoperability and competition in Australia, as well as movements from regulators both here and in the UK.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a global leader in radiology imaging software through its Visage technology.

The company’s flagship Visage 7 solution lets radiologists and other doctors send and receive medical images (with very large file sizes) to a variety of devices.

Legacy systems would store these images locally in the hospital and the images would take seemingly forever to send from one place to the next.

Instead, Pro Medicus streams the pixels rather than moving the file. What was formerly a clunky, time-consuming and inefficient process can be done in seconds. Radiologists can then view and manipulate these files with ease, helping them make a diagnosis.

Pro Medicus’ software is great for patients. But it could be even better for doctors. Hospitals have reported spending less on IT overheads, increased radiologist productivity, increased accuracy, and the benefit of being able to scale their services.

Pro Medicus’ impressive results

The ASX 200 healthcare share released its FY22 report last week, and its quality was on full display.

Yet again, net profit after tax (NPAT) grew faster than revenue as the company’s tremendous operating leverage continues to shine.

As a software-only business, Pro Medicus reaps the benefits of ultra-high gross margins. But even better is how this gross profit flows through to the bottom line. 

Pro Medicus boasts extremely wide profit margins, with two-thirds of every sales dollar turning into profit before tax. What’s more, these margins have only been heading higher over time.

The company continues to sign marquee customers on long-term contracts and bring new products to market.

Yet it estimates it has just a 5% market share of exam volume in the US. In other words, there’s still a long runway for growth ahead.

The company also boasts extremely high customer retention rates and a strong base of forward revenue. 

For me, the sticking point with Pro Medicus shares is valuation. The company currently trades on a price-to-earnings (P/E) ratio of 121x, implying very high growth expectations going forward. 

As the great Charlie Munger says, no matter how wonderful a business is, it’s not worth an infinite price. So despite its quality, I’ll continue to watch Pro Medicus shares from the sidelines for now.

The post Why I’m watching these ASX All Ordinaries shares like a hawk appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX share is soaring 11% after dividends doubled?
• 3 ASX All Ordinaries shares trading ex-dividend today
• Here are 2 All Ords ASX dividend shares with yields above 6%
• Pro Medicus share price tipped to rise amid ‘strong long-term growth story’
• Brokers name 3 ASX shares to buy today

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 positions in and has recommended PEXA Group Limited and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus 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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If you’re a shareholder of biotherapeutics giant CSL Limited (ASX: CSL), you may be wondering where its dividend is heading in the coming years.

Especially now that its outlook has improved greatly following a recovery in plasma collections, strong demand for immunoglobulins, and its acquisition of Vifor Pharma.

Let’s take a look to see what analysts are forecasting for the CSL dividend.

Where is the CSL dividend heading through to 2025?

Firstly, let’s start with the current CSL dividend. Last week the company released its full year results and declared a partially franked US$1.18 (A$1.68) per share final dividend.

This meant the company’s full year dividend was flat year over year at US$2.22 (A$3.11) per share.

Looking ahead, according to a note out of Goldman Sachs, its analysts are expecting the company’s dividend to return to growth again in FY 2023. Its analysts have pencilled in a US$2.52 (A$3.66) per share dividend. This represents a 13.5% increase over FY 2022’s payout. And with the CSL share price currently fetching $288.63, this will mean a modest yield of 1.3%.

In FY 2024, Goldman expects another increase to the CSL dividend. It is forecasting a dividend of US$3.21 (A$4.66) per share for this financial year. This will be a 27% increase and represents a 1.6% yield at today’s prices.

Finally, the following year in FY 2025, the broker is expecting another increase. It is estimating a US$3.47 (A$5.04) per share dividend that year. This is an increase of 8.1% and equates to a yield of 1.75%.

While these are admittedly not the biggest yields you’ll find today, if CSL carries on this trend over the next decade and beyond, they could grow to be very attractive for income investors in the future.

The post Here’s the CSL dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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More reading

• How have ASX dividend shares been performing this earnings season?
• The ASX had its worst day in 6 weeks, but the CSL share price gained. Why?
• Is the CSL share price in the buy zone?
• Why I would invest $10,000 into these ASX shares for 10 years
• Brokers name 3 ASX shares to buy today

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 CSL 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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When investing in times of economic uncertainty like now, it can help to think of the brands you use on a day-to-day basis.

If you and millions of Australians are already regularly using the products and services, that demand may well remain resilient even as consumers have less to spend.

Spotee chief executive Chris Batchelor this week nominated two ASX shares he would buy that fit this description:

You’ve likely watched, read or listened to this company 

Yes, we know many people don’t watch linear television anymore.

But Nine Entertainment Co Holdings Ltd (ASX: NEC) has so many tentacles, the chances are most Australians have run into their services each day in some way or another.

“Nine’s diversified media business comprises television, newspapers, radio and streaming services,” Batchelor told The Bull.

“It also owns 55% of real estate advertising business Domain Holdings Australia Ltd (ASX: DHG).”

Those non-TV assets include big names like The Sydney Morning Herald, The Age, 2GB and 3AW.

Any company that relies on advertising for revenue is exposed to the whims of the economic cycle. However, Batchelor feels like Nine is partially insured against that.

“The company’s diversity leaves it cushioned to the volatile advertising industry,” he said.

“The company appeals, as it’s trading on an undemanding price-earnings ratio and an attractive dividend yield.”

Indeed Nine Entertainment shares are currently paying out a yield of 6.27% while trading at a PE multiple of 17.

The stock has fallen by about one-third so far this year, although it is up 10% since mid-June.

You’ve likely submitted a throat swab to this company

While Australian Clinical Labs Ltd (ASX: ACL) may not be a name that rolls off the tongue for every Australian, its services have been keenly used in the background in recent years.

“The pathology services provider benefited from providing testing services during the pandemic,” said Batchelor.

“COVID-19 revenue grew by 205% in fiscal year 2022, while non-COVID-19 revenue grew by 8%.”

The analyst admitted the coronavirus boom would not last, but that didn’t affect his positive view on the stock.

“The forward price/earnings ratio and dividend yield paint a bright outlook,” he said.

“COVID-19 revenue is expected to decline from here, but this has been factored into expectations.”

Similar to Nine, ACL shares have also dropped by about a third year-to-date. It’s paying out a stunning dividend yield of 12.56%, while trading at a 4.77 PE ratio.

The wider professional community is somewhat polarised on Australian Clinical labs.

According to CMC Markets, six analysts are divided into three groups of two rating the stock as strong buy, hold and strong sell respectively.

The post ‘Bright outlook’: Expert picks 2 ASX shares that touch Aussies everyday appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares trading ex-dividend today

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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The Endeavour Group Ltd (ASX: EDV) share price has taken a tumble this week.

Since this time last week, the drinks company’s shares have lost 10% of their value.

Investors have been selling down the Endeavour share price after the company’s full year results disappointed.

Is the weakness in the Endeavour share price a buying opportunity?

According to a note out of Goldman Sachs, its analysts believe investors should take advantage of this weakness to pick up shares.

In response to its results, the broker has reiterated its buy rating with a trimmed price target of $8.10. This implies potential upside of 9% for investors over the next 12 months.

And with Goldman forecasting a 21 cents per share dividend in FY 2023, which equates to a 2.8% yield, the total potential return on offer stretches to approximately 12%.

What did the broker say?

Goldman acknowledges that Endeavour’s result was a bit of a mixed bag. It said:

EDV reported 2H22/FY22 results largely in-line with market expectations at the group level, but missed Retail EBIT margin (2H22 4.6%, in line with GSe, -1pt vs Factset Consensus) and FY23 first 7 weeks comp sales trend was weaker than expected (Retail: -6.7% YoY vs GSe -0.6%). On the other hand, Hotels was above expectations with EBIT margin (2H22 23.3% vs GSe 18.5%) and first 7 weeks comp trend was strong at +75% YoY.

This has led to the broker downgrading its earnings estimates slightly for the coming years.

‘Value entry point’

Nevertheless, it remains positive on the long term and sees the Endeavour share price pullback as a “value entry point.”

Despite the stock sell down on the back of results, our longer-term investment thesis for EDV does not change. We continue to see that EDV has one of the most loyal consumer bases in Retail (unique annual active users +15% YoY to 4.5mn in FY22) and improving VOC NPS. As the company continues to invest in consumer loyalty and digitalization, we expect that this will continue to drive mid-single digit sales growth in mix improvement together with cost efficiencies for margin expansion. We hence view the pull back in share price as a value entry point into a high quality and defensive player in AU Consumer.

The post Broker says Endeavour share price weakness is a ‘value entry point’ appeared first on The Motley Fool Australia.

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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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We are almost at the official end of the August earnings season. However, today is slated to be massive, with some of the most popular names on the ASX releasing their results.

Here’s a quick summary of what to expect today so you have a jump on the market.

ASX shares set to report today (smallest to largest)

Appen Ltd (ASX: APX), $514.8 million

Zip Co Ltd (ASX: ZIP), $667.3 million

Nine Entertainment Co Holdings Ltd (ASX: NEC), $3.41 billion

Eagers Automotive Ltd (ASX: APE), $3.42 billion

Flight Centre Travel Group Ltd (ASX: FLT), $3.47 billion

Whitehaven Coal Ltd (ASX: WHC), $7.55 billion

Qantas Airways Limited (ASX: QAN), $8.56 billion

Allkem Ltd (ASX: AKE), $8.85 billion

South32 Ltd (ASX: S32), $19.58 billion

Woolworths Group Ltd (ASX: WOW), $45.4 billion

(Market capitalisations as of 22 August 2022)

To see the complete list of ASX shares, visit our reporting season calendar here.

What to expect

Will it be a day of redemption or damnation for ASX tech share, Appen? Earlier this month, a time some refer to as confession season, Appen informed shareholders of further weakening in its expectations for the first half.

Furthermore, management guided for a grim US$9.5 million after tax loss, cratering from a US$6.7 million profit in the prior corresponding period. The important questions for shareholders will be: is the pain set to continue, and for how long?

On a more positive note, ASX lithium share Allkem is set to release its full-year results for FY22 today. Keen commodity investors will be hopeful of an impressive bottom-line number after seeing what Pilbara Minerals Ltd (ASX: PLS) produced for FY22. According to Citi analysts, Allkem is expected to post a net profit after tax (NPAT) of $311 million.

Finally, the elephant in the room — buy now, pay later provider Zip. This high-flying ASX share has more than doubled from where it was at the beginning of July. So, will it deliver on the high hopes of investors today? My colleague, Cathryn Goh, put together a list of items she will be looking at in the company’s FY22 results today — unit economics is one of them.

Don’t forget to check back in throughout the day to see all the latest results from your favourite ASX shares.

The post Earnings preview: Here are the ASX shares reporting today appeared first on The Motley Fool Australia.

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More reading

• Why is the Allkem share price charging 6% higher?
• How did the Zip share price respond last time the company reported?
• Looking to buy Zip shares? Here’s what to look for in tomorrow’s results
• Here are the top 10 ASX 200 shares today
• Why is the Allkem share price acing it on Tuesday?

Motley Fool contributor Mitchell Lawler has positions in Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As we continue to wade through ASX reporting season, companies in the S&P/ASX 200 Index (ASX: XJO) are giving investors plenty to think about.

Tomorrow promises to be busy with the likes of Wesfarmers Ltd (ASX: WES) and Ramsay Health Care Limited (ASX: RHC) expected to pull back the curtain on their FY22 results.

But for ASX 200 companies that have already unveiled their reports, their shares are starting to turn ex-dividend.

This is the date that a company’s shares no longer trade with the upcoming dividend payment attached to them.

Shares typically drop in value the day they turn ex-dividend. After all, these dividends are being paid out of the company’s coffers. 

With the money being taken out of the company’s cash reserves to line the pockets of shareholders, the value of the company decreases. 

What’s more, some one-eyed investors focused on dividends may look to offload shares once they trade ex-dividend. This puts further downwards pressure on the share price.

Without further ado, here are the ASX 200 shares going ex-dividend tomorrow.

Newcrest Mining Ltd (ASX: NCM)

As its shares turn ex-dividend, this ASX 200 gold miner could end the week on a negative note.

Newcrest recently declared a fully franked final dividend of 20 US cents.

Today is the last day investors will be able to lock in this final dividend. 

Shareholders on the company’s registry by the time the market closes today should see this payment arrive on 29 September. 

Alternatively, investors could elect to participate in the company’s dividend reinvestment plan (DRP).

Newcrest’s total FY22 dividends come in at 27.5 US cents, down from 55 US cents in the prior year.

Newcrest shares are currently trading on a trailing dividend yield of 2.2%. This dials up to 3.1% including franking credits.

Lendlease Group (ASX: LLC)

Lendlease is another ASX 200 share turning ex-dividend tomorrow.

The construction and infrastructure company recently announced a partially franked final distribution of 11 cents.

The payment date for this final distribution has been pencilled in for 21 September.

Combined with its interim distribution, Lendlease’s total distributions for FY22 come to 16 cents. 

This represents a dividend payout ratio of 40% of earnings, which is at the lower end of the company’s target range.

Lendlease shares are currently stamped with a trailing dividend yield of 1.6%.

GUD Holdings Limited (ASX: GUD)

Last but not least, ASX 200 share GUD will also be going ex-dividend on Friday.

For those unfamiliar, GUD owns a portfolio of companies in the automotive aftermarket and water products sectors. The company’s stable of brands includes Ryco, Narva, Projecta, and Davey.

GUD recently declared a fully franked final dividend of 22 cents per share. This represents a dividend payout ratio of 62% of underlying net profit after tax (NPAT).

Investors who own GUD shares by the time the market closes today should see this dividend payment land in their accounts on 13 September.

Although GUD achieved underlying NPAT growth of 39% in FY22, its total dividends were down 32%. This is because the company had a higher payout ratio in FY21, returning 84% of underlying NPAT to shareholders in the form of dividends.

The company previously flagged this reduction in its payout ratio, deciding to prioritise reducing its gearing levels following the acquisition of AutoPacific Group.

Even still, GUD shares are currently sporting a trailing dividend yield of 4.6%. Throwing in franking credits boosts this yield to 6.5%.

The post These ASX 200 shares will trade ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• The Qantas factor: Rex shares hold steady despite deepening loss
• Could ASX 200 tech share Altium be in for another takeover approach?
• What’s been happening with the Nuix share price of late?
• Which 3 ASX mining shares are soaring more than 15% today?

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 positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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