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The A2 Milk Co Ltd (ASX: A2M) share price has slipped by 10% since the company reported its interim results in February.

Its full-year results are due next week. They’ll come at a time the infant formula and fresh milk company has been through a horrid year impacted by challenging market conditions.

At the time of writing, A2 Milk shares are down 0.62% to $4.78 apiece.

Below, we take a closer look to see if investors can learn anything from the company’s last earnings season.

What happened in the first half of FY 2022?

When the company delivered its half-year results on 21 February, investors sent up the A2 Milk share price by 11.1%.

The company recorded double-digit losses across key metrics except for group revenue, but the market shrugged off the poor performance.

Instead, it focused on the near-term future and what changes were being made to get the business back on track.

A2 Milk’s managing director and CEO David Bortolussi commented:

Despite challenging market conditions in China and COVID-19 volatility, we are making good progress stabilising the business. The growth strategy we announced in October last year to respond to a rapidly changing China market has been completed and implementation is underway with good early progress across a range of initiatives.

We remain confident in the long-term China infant milk formula market, and we are growing share in our China label business in-store and online with strong consumer offtake and share growth. The actions we took to address excess infant milk formula inventory last year are proving effective, and we are seeing improvements in English label channel inventory levels, market pricing and product freshness.

After the results were released, A2 Milk shares travelled sideways for the following month before heading south.

The share hit a multi-year low of $3.90 on 10 May on the back of extreme volatility impacting the ASX.

Nonetheless, A2 Milk shares rebounded to a four-month high of $5.22 on 4 August when a media report suggested the company was nearing Food and Drug Agency approval to supply infant formula to the United States.

Since then, the share is hovering just below the $5 mark as investors eagerly await the release of the company’s full-year results.

This is expected to occur on Monday 29 August.

A2 Milk share price snapshot

Throughout 2022, the A2 Milk share price has fallen 12% as the company navigates its way through changing market dynamics.

For context, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) is down 17% over the same period.

A2 Milk has a price-to-earnings (P/E) ratio of 204.08 and commands a market capitalisation of roughly $3.69 billion.

The post How did the A2 Milk share price respond last time the company reported? appeared first on The Motley Fool Australia.

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More reading

• The A2 Milk share price has climbed 10% so far this month. What’s going on?
• The A2 Milk share price has had a tough week. Could this other ASX dairy company cash in?
• Why A2 Milk, Appen, Boral, and REA shares are dropping today
• Why is the A2 Milk share price spilling 8% today?
• A2 Milk share price on watch amid FDA update

Motley Fool contributor Aaron Teboneras has positions in A2 Milk. 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 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 Reject Shop Ltd (ASX: TRS) share price is tumbling on Tuesday after the ASX retailer reported its full-year earnings for FY2022. Reject Shop shares are currently trading at $4.30 each after opening at $4.20 this morning, down a nasty 4.66% from the $4.51 the company closed at yesterday.

The Reject Shop share price tanks on lacklustre results

• Sales came in at $788.2 million, a rise of 1.2% over the prior corresponding period (pcp)
• Statutory net profit after tax (NPAT) of $7.9 million, down 5% from the pcp
• Normalised NPAT of $4.9 million, down 24.1% on pcp
• Normalised earnings before interest and tax (EBIT) of $6.9 million, down 26.7% on pcp
• Costs of doing business rose 1.3%
• No dividend declared for FY22.

Although sales officially came in at $788.2 million, a rise of 1.2% over the prior corresponding period, this metric includes a 53rd week of the year. Excluding this extra week, sales would have been $774.6 million, a slip of 0.5% over the pcp. Comparable store sales were down 2.2% over the prior period.

Meanwhile, The Reject Shop has announced an on-market share buyback scheme of “up to $10 million”. This is partly in lieu of a dividend for FY2022. The buyback will commence next month. It will represent the repurchase of “approximately 2.2 million shares or approximately 5.8% of issued capital”. 

What else happened in FY2022?

Reject Shop management noted that the Omicron outbreak “adversely impacted store foot traffic in the lead up to the key Christmas trading period” of FY2022, with the company noting that sales across December and January were negatively affected. 

However, sales between March and June were reportedly far more positive following this period. 

What did management say?

Here’s some of what Paul Bishop, the CEO of The Reject Shop, had to say on these results:

FY22 has been a challenging year for our customers, our team and our business…

The discount variety sector has an important role to play in helping Australians navigate this difficult economic time and, as Australia’s largest discount variety retailer, I believe The Reject Shop can have a meaningful impact by offering our customers both branded consumables as well as exciting general merchandise at a low price.

I look forward to The Reject Shop delivering an improved and differentiated merchandise offer that strongly appeals to customers, which is expected to deliver comparable sales growth and create value for all shareholders.

What’s next?

The Reject Shop has declined to provide any guidance for the 2023 financial year today. However, the company highlighted its plans to open 25 new stores this financial year, as well as close between five and ten underperforming stores.

In addition to these plans, management stated that its focus in FY2023 will be “on generating comparable store sales growth, which is expected to be supported by an improved product offering with more great deals on branded consumables as well as new and exciting general merchandise”.

It is also focusing on “managing the impact of inflation on gross profit margin and operating costs”.

Reject Shop share price snapshot

The Reject Shop shares have been struggling in recent months. With today’s falls, the company remains down more than 40% year to date in 2022 so far. It’s also down 25% over the past 12 months.

At the current Reject Shop share price, the company has a market capitalisation of $163.3 million.

The post Reject Shop share price dips 5% despite share buyback appeared first on The Motley Fool Australia.

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More reading

• Ansell share price surges 10% as full-year revenue comes in at US$1.9b
• Guess which ASX mining share just exploded 48% on a major copper discovery
• Pilbara Minerals share price charges higher on strong FY22 result
• Why Tesla shares are falling ahead of its stock split
• Why Ethereum, Solana, and Dogecoin are falling today

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://www.fool.com.au/2022/08/23/reject-shop-share-price-dips-5-despite-share-buyback/

The Ansell Limited (ASX: ANN) share price is taking off following the release of the company’s full-year earnings.

The S&P/ASX 200 Index (ASX: XJO) stock has continued on an upwards trajectory after opening 1.5% higher at $25.52.

At the time of writing, the Ansell share price is $27.57, 9.67% higher than its previous close.

Let’s take a closer look at today’s news from the personal protection and safety solutions provider.

Ansell share price rockets 10% on earnings

As The Motley Fool Australia reported earlier, Ansell posted US$1.95 billion of revenue and US$158.7 million of operating profit for financial year 2022.

Those figures mark respective year-on-year declines of 3.7% and 35.7%, mainly due to waning demand born from COVID-19.

Its earnings per share (EPS), meanwhile, came in within guidance at US$1.252 per share. That’s bolstered to US$1.386 when adjusted for costs arising from the company’s exit of Russia. Its decision to abandon operations in the nation brought a 13.4 US cent impact to its EPS.

Such a result has seemingly impressed the market. It’s bid the Ansell share price to a multi-week high on the back of the company’s announcement. The results also appear to have pricked the ears of experts.

Macquarie’s David Bailey was quoted by The Australian as saying the company’s financial year 2022 earnings embody “solid underlying trends”.

The publication said the company’s statutory result was in line with expectations, while its adjusted earnings were ahead. The expert continued, courtesy of The Oz:

For [financial year 2023], we see commentary ex-Russia and [foreign exchange] as highlighting improved trends and a basis for growth into [financial year 2024].

Ansell posted guidance of between US$1.15 and US$1.35 of EPS for financial year 2023.

Today’s gains included, the Ansell share price is 16% lower than it was at the start of 2022. It has also fallen 31% since this time last year.

The post Ansell share price surges 10% as full-year revenue comes in at US$1.9b appeared first on The Motley Fool Australia.

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More reading

• Ansell share price in focus as FY22 profit tumbles 36%

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 Ansell Ltd. and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The market might be under pressure today but there’s one ASX mining share that’s surging ahead this morning on positive drill results.

The outperformer is the American West Metals Ltd (ASX: AW1) share price. It jumped 48% to a high of 18.5 cents this morning, its highest since May, before retreating to trade at 15.5 cents at the time of writing. That’s still a 24% gain on yesterday’s closing price.

In contrast, the All Ordinaries Index (ASX: XAO) is 0.52% lower as the August reporting season rolls on.

The small ASX mining share in the spotlight

American West is stealing some of the spotlight today after it announced a major copper discovery at its Storm Project in Canada.

Its drill hole (ST22-10) intersected over 68 metres of stratiform copper sulphide mineralisation from a 277-metre downhole.

This is significant, according to the small cap ASX mining share. It noted that the discovery is associated with an 800m by 300m electromagnetic (EM) plate, with six other similar large EM plates yet to be tested.

Details of the drilling result from this ASX mining share

The mineralisation is interpreted to be stratiform and is hosted within a vuggy, bituminous, and fossiliferous carbonate unit.

This is consistent with the typical mineralisation model for sedimentary copper systems. This style of permeable host rocks could form chemical traps for the deposition of copper-rich fluids.

The ASX mineral explorer was quick to point out that many other large copper systems have similar geology.

What American West is saying

The managing director of American West Dave O’Neill said:

This is a game changing discovery at the Storm Copper Project. Exploration drilling has intersected stratiform copper sulphide mineralisation at depth which supports our geological assumptions that there is a major copper system lying below the high-grade near surface mineralisation.

The new copper mineralisation is associated with a large EM plate that is one of six untested plates, most of which are located in highly prospective positions – below or adjacent to the known high-grade copper prospects and fault system

The American West share price snapshot

The surge in the American West share price today pushes the ASX mining share to a gain of more than 10% for the year.

That’s well above the All Ordinaries, which has shed around 7% over the same period, and the S&P/ASX 300 Metal & Mining index, which inched up 2.1%.

Other ASX copper miners have turned in mixed performances. The Sandfire Resources Ltd (ASX: SFR) share price has fallen 15%, while the OZ Minerals Limited (ASX: OZL) share price is up 21% in the past 12 months.

American West is a junior explorer with projects in Canada and in Utah, USA.

The post Guess which ASX mining share just exploded 48% on a major copper discovery appeared first on The Motley Fool Australia.

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More reading

• Ansell share price surges 10% as full-year revenue comes in at US$1.9b
• Pilbara Minerals share price charges higher on strong FY22 result
• Why Tesla shares are falling ahead of its stock split
• Why Ethereum, Solana, and Dogecoin are falling today
• Why is the South32 share price tanking on Tuesday?

Motley Fool contributor Brendon Lau has positions in OZ Minerals Limited and Sandfire Resources NL. 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 Pilbara Minerals Ltd (ASX: PLS) share price is currently being charged up. At the time of writing, it is climbing 3.31% to $3.275 after the company released its FY22 result this morning.

This comes at a time when the S&P/ASX 200 Index (ASX: XJO) is down by 0.58%, so the ASX lithium share is materially outperforming the index today.

Firstly, let’s have a look at what the company said about FY23 because investors often like to look forward to what could happen in the next 12 months and beyond.

Pilbara Minerals FY23 guidance

In terms of production, Pilbara Minerals said that its spodumene concentrate for the 2023 financial year is expected to be between 540,000 and 580,000 dry metric tonnes (dmt). The Pilgan plant capacity is 360,000 tonnes to 380,000 tonnes per annum and the Ngungaju plant capacity is between 180,000 tonnes to 200,000 tonnes after a ramp-up in the quarter for the three months to September 2022.

The ASX lithium share also gave guidance about its unit operating costs, which are expected to be between A$635 per dmt and A$700 per dmt.

Pilbara Minerals said that costs are expected to be higher during FY23 due to elevated strip ratios and the ramp-up of the Ngungaju plant. It came to the projected cost range because of the uncertain environment, including the impact of COVID-19, labour shortages in the WA mining sector, supply chain disruptions and general inflationary cost pressures.

Beyond FY23, costs are “likely to decrease” once strip ratios moderate, production capacity is achieved at Ngungaju, plant throughput increases, better utilisation rates are achieved and synergies are won from the combined Pilgangoora operations.

Strong market conditions

One of the key factors that could influence the Pilbara Minerals share price is the performance of the lithium price, because it’s a commodity business.

Pilbara Minerals said lithium pricing remains “strong”, which places the company in “prime position to capitalise on current market conditions, including through the sale of spodumene concentrate” from the Ngungaju plant.

Despite projections of a big increase in supply of lithium over the next two decades, the deficit between supply and demand is expected to rise to 2040, which is likely to have “pricing implications”. The deficit is predicted to be equivalent to around 18 Pilgangooras.

FY22 result announcement

In terms of the 2022 financial year, Pilbara Minerals said its shipments of spodumene concentrate grew 28%, revenue soared 577% to approximately $1.2 billion and it generated a statutory net profit after tax (NPAT) of $561.8 million.

Pilbara Minerals’ managing director and CEO Dale Henderson said:

Having recently approved the expansion to grow production by a further 100,000 tonnes per annum, to a combined 640,000 tonnes to 680,000 tonnes per annum, and with the company now progressing towards a final investment decision to expand production to 1 million tonnes per annum, Pilbara Minerals commences FY23 in an exceptionally strong position.

The business is in an enviable position, supplying product into a burgeoning growth market with a clear pathway for further production growth off a performing operating base. Further, chemicals participation with our downstream JV with POSCO and our midstream project provides another extension of value creation for our shareholders.

Pilbara Minerals share price snapshot

Over the last month, Pilbara Minerals shares have risen almost 30%. They are up 46% over the past year but are down 7% this year to date.

The post Pilbara Minerals share price charges higher on strong FY22 result appeared first on The Motley Fool Australia.

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More reading

• Nanosonics share price lifts despite FY22 profit tumbling 57%
• Hub24 share price slumps despite dividend doubling on record growth
• Pilbara Minerals share price on watch following maiden $560m profit
• Earnings preview: Here’s which ASX shares are reporting today
• 5 things to watch on the ASX 200 on Tuesday

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 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.

The stock market had tough day on Monday, and the Nasdaq Composite (NASDAQ: .IXIC) led the way lower. At Monday’s close, the Nasdaq was down 2.55%, to 12,381. The S&P 500 Index (SP: .INX) was down 2.1% while the Dow Jones Industrial Average Index (DJX: .DJI) lost 1.9%.

Tesla (NASDAQ: TSLA) has been a strong performer in the Nasdaq over the past several years, but it didn’t help the index’s cause on Monday, closing down more than 2%. The electric vehicle pioneer announced some mixed news over the weekend, and that has investors thinking twice about the stock even as the company plans to move forward with its stock split later this week. You’ll find all the details below.

Higher prices for access to self-driving capabilities

Over the weekend, Tesla announced that it would boost the amount it charges to give auto buyers prospective access to full self-driving capability on its vehicles. Currently, customers pay $12,000 when they order a vehicle to have the ability to receive full self-driving updates. Beginning on Sept. 5, according to a tweet from CEO Elon Musk, that price will rise to $15,000. The move marks the second time this year that Tesla has raised the price of the service, which began 2022 at $10,000.

The move is consistent with Tesla’s long-term plan to raise the price of full self-driving as its features become broader. In the long run, Tesla hopes that if it can get regulatory approval for a system that will actually handle driving the car on its own without any operator supervision, it will be able to charge as much as $100,000 or more to would-be vehicle purchasers. The discounted price now reflects the fact that the system doesn’t have regulatory approval and lacks the features that would allow Tesla vehicles to drive themselves in a fully autonomous manner.

A big win from recent legislation

Tesla is also shaping up to be a big winner from the passage of the Inflation Reduction Act. The new law included many different incentives for renewable energy initiatives, but most importantly for Tesla, it essentially reset the clock for tax credits related to EV purchases. With the original tax credit provisions having set limits on the number of vehicles that could qualify, Tesla buyers were no longer eligible to receive the same credits that earlier purchasers had received under the old law.

The new law will once again give Tesla buyers the chance to get up to $7,500 as of the beginning of 2023. That could give the automaker an incremental boost, and even though demand for the vehicles has remained strong, every incentive could be valuable for Tesla in its efforts to keep its steep growth trajectory going forward.

The split is coming

Meanwhile, this week will bring the completion of the long-awaited Tesla stock split. The company’s 3-for-1 split will take effect after the close of trading on Wednesday, Aug. 24. Investors will be able to buy and sell shares on a post-split basis for the first time on the morning of Thursday, Aug. 25.

Stock splits don’t have a fundamental impact on a company’s business, but investors nevertheless often see them as a positive sign of optimism. Lower share prices can make it easier for small investors to buy whole shares, although many brokerage companies offer fractional share purchasing capabilities that have allowed those with less than $800 to $900 to buy Tesla stock in amounts less than one full share.

In the long run, the significance of business moves like full self-driving, as well as financial effects from government incentives, will have a bigger impact on Tesla stock than a split. When the split finally gets done, investors will likely turn their attention back to more important matters.

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

The post Why Tesla shares are falling ahead of its stock split appeared first on The Motley Fool Australia.

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More reading

• Why Tesla stock dropped Monday
• Why Tesla stock was up again today
• Investors should wait for these 2 signals before buying Tesla
• Why today’s jump in Tesla shares surprised investors
• Elon Musk just sold US$7 billion worth of Tesla shares. What’s going on?

Dan Caplinger 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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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

Along with stocks, several cryptocurrencies fell out of the gate today as investors continue to weigh the macro outlook and look ahead to a critical Federal Reserve meeting later this week.

The price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), is only slightly down over the last 24 hours but is down nearly 13% over the last week and trades at about $21,300 as of this writing.

Over the last 24 hours, the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), had traded 3% lower at 10:46 a.m. ET today. The price of Solana (CRYPTO: SOL) traded 4.3% lower, and the price of the meme token Dogecoin (CRYPTO: DOGE) was down 3.7%.

So what

After rallying in July and part of August, stocks and cryptocurrencies have taken a breather, as investors are still in the dark when it comes to where the economy could be headed over the next six to 12 months and how aggressively the Fed will raise interest rates.

After new data showed inflation may have peaked in July, the market seemed to think that the Fed might be able to start to slow the pace of rate hikes. That sparked a rally in tech stocks and many cryptocurrencies, which have traded a lot like tech stocks this year.

But now the market thinks it may have gotten ahead of itself and the Fed could still be aggressive. The market is penciling in another 50-basis-point (0.50%) hike for the Fed’s next meeting in September, but a 75-basis-point hike is not out of the question. The market will be looking for more clues on Friday when Fed chairman Jerome Powell speaks at the Fed’s annual Jackson Hole economic symposium.

Last Friday, the crypto market declined suddenly for no obvious reason, although some analysts now believe the sell-off was caused by the bankruptcy of the Celsius Network, which may have led the network to sell thousands of Bitcoin tokens into the market last week. Most cryptocurrencies and crypto stocks trade with a heavy correlation to Bitcoin. This upcoming Friday, however, could be a chance for the Fed to reset the market’s expectations.

“Bitcoin’s outlook for the week is quite unclear and the price will likely fluctuate within a narrow range until Powell’s speech,” Yuya Hasegawa of Bitbank said in a recent research note. “The $20,000 psychological level could be a reliable support for the price and $22,000 will likely be a resistance until then.”

Now what

It’s been a tough year for the crypto market, and there is still a lot of uncertainty when it comes to the macro outlook, with traders still wondering where inflation and rates are heading, as well as what will happen with the labor market.

The Fed is also in the process of pulling liquidity out of the economy in a process known as quantitative tightening. That process is beginning to ramp up and could lead to fewer funds flowing into risky assets.

With the uncertainty, expect near-term volatility in the crypto market. I like Ethereum for the long term and think the upcoming completion of the network upgrades will be a catalyst. Solana looks interesting as well, given its technical capabilities. I’m not a fan of the meme token Dogecoin, which doesn’t seem to have any unique capabilities or use cases.

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

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

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More reading

• Cryptos retreat. Is the Bitcoin price rally over?
• 3 cryptos I would regret not buying on the dip
• The Aussie-born crypto platform taking on Ethereum
• This company profited $2.6 billion from crypto. What is it investing in now?
• 2 cryptos that could lead the market recovery

Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. 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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It’s been another horror morning for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has given up another 0.48% and is back to around 7,015 points. But let’s check out what the South32 Ltd (ASX: S32) share price is doing.

South32 shares have had a rather strange day of trading thus far. The diversified miner has spent time in both positive and negative territory this morning. That comes after it closed at $4.18 a share yesterday and opened at the same this morning. At present, South32 has dropped into red territory again, down 0.48% at $4.16 a share.

Coal project to wither on the vine

We did see South32 release some non-price-sensitive news this morning. The company announced that “we will not proceed with an investment in the Dendrobium Next Domain (DND) project at Illawarra Metallurgical Coal following our consideration of recently completed study work and extensive analysis of alternatives”.

Here’s some of what South32 CEO Graham Kerr said on this decision:

Our decision today follows an extensive analysis of the alternatives for Dendrobium together with the anticipated returns from the up-front capital investment which would be required. Over the past 18 months we have made significant progress actively reshaping our portfolio and this decision increases our capacity to direct capital towards other opportunities.

This includes our world class development options in North America that have the potential to underpin a significant growth profile to produce metals critical to a low carbon future, servicing strategically important supply chains.

In terms of the future of the Dendrobium project, South32 said that “we will now focus on continuing to optimise Dendrobium and the broader Illawarra Metallurgical Coal complex to extend the mine life within approved domains”.

So it’s out with coal for South32, and in with “other opportunities”, it seems.

South32 share price takes a hit on Tuesday

But apparently, this announcement isn’t enough to save South32 from the market’s bad mood this Tuesday. That stands in contrast to some other ASX mining shares. Take BHP Group Ltd (ASX: BHP). BHP shares have risen by a healthy 1.44% so far today. Fortescue Metals Group Limited (ASX: FMG) shares are also in the green. But Rio Tinto Limited (ASX: RIO) has gone the same way as South32.

But no doubt some investors are still eyeing off the miner. As my Fool colleague Tony covered this morning, Sequoia senior wealth manager Peter Day is one expert investor that is bullish on South32 right now. He stated that:

We’re expecting solid full year results to be driven by a strong performance from its coal division [when the company reports on Thursday this week]… On our forecasts, South32 is expected to generate strong cash flows in the near term, supporting additional shareholder returns and growth.

At the current South32 share price, this ASX 200 mining share has a market capitalisation of $19.39 billion. That gives the company a dividend yield of 4.01%.

The post Why is the South32 share price tanking on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Nanosonics Ltd (ASX: NAN) share price has rebounded from its earlier fall after the company released its full-year earnings.

The S&P/ASX 200 Index (ASX: XJO) healthcare stock opened at $4.53 this morning, marking a 4.8% tumble.

It has since recovered to trade at $4.88, 2.52% higher than its previous close.

Nanosonics share price lifts on FY22 earnings

Here are the key takeaways from the disinfection technology-focused company’s financial year 2022 (FY22) results:

• Revenue came to $120.3 million – a 17% improvement on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 51% to $7.5 million
• Operating profit after tax fell 57% to $3.7 million
• Gross profit lifted 14% to $91.9 million
• Gross profit margin fell slightly to 76.4% – ahead of guidance – on higher freight costs
• Ended the period with $94.5 million of cash and equivalents and no debt

The company’s revenue lifted on continued growth in its new installed base, upgrades, and consumables and service.

Its operating expenses also rose to $90.5 million as the company continued to invest in its growth strategy, research and development, and its revised North American sales model, as well as geographical expansion and its capabilities and capacities.

Finally, supply chain issues saw it increasing its inventory holding by 91%.

What else happened in FY22?

The major news from the company last financial year was the decision by Nanosonic and GE Healthcare to revise the ASX 200 company’s North American sales model to one that is mostly direct. The Nanosonic share price fell 5% on the back of the news.

Under the new agreement, GE transferred all its trophon customers to Nanosonics for the provision of all consumables. In addition, Nanosonics was made responsible for the majority of capital sales while GE still has access to capital equipment as a non-stocking capital reseller.

It also established partnerships to allow it to sell directly to US federal government accounts.

What did management say?

Nanosonics CEO and president Michael Kavanagh commented on the company’s earnings, saying:

The 2022 financial year was an important year in the ongoing growth of the organisation through the successful implementation of a number of key strategic priorities.

Central to these was the successful evolution of our sales model in North America to an expanded and largely direct model. Nanosonics now manages all trophon customers directly for the ongoing provision of consumables. This largely direct sales model aims to capture the full market opportunity for trophon in North America as well as prepare for future product expansion plans.

What’s next?

Nanosonics is targeting revenue growth of between 20% and 25% in FY23.

It also believes its gross margin will come in at between 75% to 76%. That’s expected to be driven by an increase in the proportion of capital revenue resulting from growth in the sales of both new installed base units and unit upgrades, continued higher freight costs, and increased component costs.

Its operating expenses have also been tipped to grow between 15% and 18%, mostly due to market development activities and product innovation.

Nanosonics share price snapshot

This year has been tough on the Nanosonic share price.

It has fallen 26% since the start of 2022. It’s also 19% lower than it was this time last year.

For comparison, the ASX 200 has fallen around 8% year to date and 6% over the last 12 months.

The post Nanosonics share price lifts despite FY22 profit tumbling 57% 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 positions in and has recommended Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

What happened

Amazon (NASDAQ: AMZN) stock pulled back overnight as a combination of reports that the company planned to make a bid for home healthcare specialist Signify Health (NYSE: SGFY) and a broader market sell-off on fears of rising interest rates weighed on the stock.

At Monday’s close, Amazon stock was down 3.6%.

So what

Over the weekend, The Wall Street Journal reported that Amazon was among the bidders angling to take over Signify Health, which said in early August that it was open to an acquisition.

That news sent shares of Signify, which provides technology to help in-home care providers, up nearly 40%, but Amazon was moving in the opposite direction.

The tech giant is up against CVS Health and UnitedHealth in what is shaping up to be a bidding war that could value the home healthcare company at more than $8 billion. Bids are due around Labor Day, according to the Journal.

Amazon’s interest in Signify comes just weeks after it acquired 1Life Healthcare, which operates the One Medical primary care practice, and its purchase of iRobot, best known for its Roomba robotic vacuum. 

Amazon has a long history of acquisitions, but a new takeover every few weeks could complicate the company’s operations, as absorbing a separate company takes time and attention.

New CEO Andy Jassy has been at the helm for only a year, and investors may be concerned that he’ll dilute the company’s strategy with too many acquisitions. Investors are also mindful that botched deals have felled past tech heavyweights.

Additionally, the stock seems to be down at least partly on broad market sentiment, as the NASDAQ was off 2% today. Among the concerns is a new survey showing it will take two years or longer for the Fed to bring inflation down to its 2% target, implying ongoing rate hikes and an increasing likelihood of a recession.

Now what

Amazon is big enough that it can afford to make a mistake with a pricey acquisition, but investors should keep an eye on the Signify takeover, as its market cap ballooned to $8.4 billion on the reports of Amazon’s interest. That could make it the company’s priciest acquisition to date after its $13.7 billion buyout of Whole Foods. Amazon also bought Hollywood studio MGM for $8.5 billion earlier this year.

Signify is profitable, making it less risky than other deals, but the move is primarily a bet on Amazon’s growth potential in the healthcare industry.

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

The post Why Amazon stock was slipping today 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. Jeremy Bowman has positions in Amazon and CVS Health. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and iRobot. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended CVS Health, CVS Health Corporation and UnitedHealth Group. 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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