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The Whitehaven Coal Ltd (ASX: WHC) share price is moving into uncharted territory on Friday.

While the company hasn’t released any price-sensitive announcements since its June quarterly report last month, investors remain buoyant.

The coal producer’s shares kicked off the day’s trading at $7.13 apiece and haven’t looked back. They soared 7.6% to an all-time high of $7.46 and, at the time of writing, are still flying high, up 6.64% at $7.39.

It surpasses the company’s previous peak of $7.35 that it reached in 2011.

Let’s take a look at what’s behind this latest ascent.

Whitehaven Coal steams ahead

Investors are bidding up the company’s shares as coal prices continue to elevate, nearing its record highs attained in early March 2022.

According to Trading Economics, Newcastle coal futures are fetching at US$413 a tonne.

China recently announced it is boosting domestic coal production as it grapples with power shortages following severe heat waves. This has led investors to close on long positions for the commodity as increased supplies will hit the market.

Nonetheless, coal prices are expected to remain higher due to persistent supply disruptions caused by the Russian war in Ukraine.

Also providing support is the recent IEA report which anticipates that global coal demand will return to its all-time high this year. This is being driven by higher natural gas prices, which have intensified gas-to-coal switching in many countries.

While it has been a terrific year for coal producers, Whitehaven Coal is projecting it will achieve its strongest ever full-year result.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for FY 2022 is forecast to reach $3 billion. In FY 2021, Whitehaven Coal recorded an EBITDA of $204.5 million, down 33% over the prior corresponding period (FY20).

You may want to keep an eye out on 25 August as the company is scheduled to release its results.

Whitehaven share price snapshot

As coal prices surge to near record highs, the Whitehaven share price has leapt by more than 180% in 2022.

In comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) has lifted by 35% over the period.

According to ANZ Share Investing, Shaw & Partners raised its 12-month price target by 20% to $7.50 per share. Based on where Whitehaven Coal trades today, this is almost in line with the market price.

Whitehaven commands a market capitalisation of approximately $5.80 billion.

The post Why is the Whitehaven Coal share price leaping 7% to a record high? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 coal shares having another cracker of a day?
• 3 ASX 200 shares inking new multi-year highs today
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 coal shares having such a top run on Thursday?
• These ASX 200 shares just cracked new highs today

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

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The Santos Ltd (ASX: STO) share price is surging today after oil and gas prices jumped ahead.

The Santos share price is rising 5.87% at the time of writing and is currently trading at $7.485. Meanwhile, the S&P ASX 200 Energy Index is also 3.89% in the green.

Let’s take a look at what could be impacting the Santos share price.

What’s going on?

Santos shares are rising today, but they are not alone. The Woodside Energy Group Ltd (ASX: WDS) share price is rising 4%, while Beach Energy Ltd (ASX: BPT) shares are lifting nearly 4%. The Carnarvon Energy Ltd (ASX: CVN) share price is rising 3% today.

This follows oil and gas prices lifting overnight. WTI futures jumped 2.7% to US$90.50 per barrel, while Brent Futures lifted 3.1% to US$96.59 a barrel in US markets.

Oil prices lifted amid prices strong economic data, Reuters reported.

OANDA senior market analyst Edward Moya said in comments cited by the publication:

Oil prices rallied after another round of impressive U.S. economic data boosted optimism for an improving crude demand outlook

Meanwhile, European natural gas futures also hit a record amid supply concerns, Bloomberg reported. Amid the European energy crisis, the benchmark contract lifted 6.7% to 241 euros per megawatt-hour.

Santos reported a 300% boost in underlying profit to US$1.27 billion in HY22. Statutory net profit also lifted 230%.

Meanwhile, in news today, Collins St Asset Management has become a substantial shareholder of Carnarvon Energy, with a 6.86% stake. Carnarvon is Santos’ joint venture partner for the Dorado oil and gas project in Western Australia. In half-year results this week, Santos revealed a final investment decision on the project will not be made in 2022 due to inflation pressures and supply chain challenges.

The post Why is the Santos share price soaring 6% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Santos share price slips despite record profit and dividend boost
• Santos share price on watch after 300% first half profit growth
• 5 things to watch on the ASX 200 on Wednesday

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

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The Treasury Wine Estates Ltd (ASX: TWE) share price is making its sixth consecutive day of gains as it races to its highest level since early 2020.

What is probably helping today is a favourable report by Morgan Stanley following the winemaker’s full-year results, which was released yesterday.

While the broker noted that Treasury Wine’s FY22 report card was in line with market expectations, Morgan Stanley’s confidence in its outlook for the current year is improved.

Why the Treasury Wine share price is rallying to new highs

This was enough for the broker to reiterate its overweight (or buy) recommendation on the Treasury Wine share price.

Shares in the company jumped 3.3% to $13.57 during lunchtime trade when the S&P/ASX 200 Index (ASX: XJO) inched up a modest 0.1%. 

Getting high on the pleasing FY22 result

Treasury Wine posted a 3.6% decrease in net sales revenue to $2.5 billion. But its earnings before interest, tax, SGARA and material items (EBITS) was up 2.6% to $523.7 million. The EBITS was slightly ahead of consensus expectations of around $521 million.

What’s perhaps more pleasing was the company’s move to increase prices for some of its wine. The move comes as rising costs have been crimping the profit margins of many other ASX 200 companies.

The price increase will have a greater positive impact on Treasury Wine’s FY23 performance than FY22, noted Morgan Stanley.

Higher margins await the Treasury Wine share price

This is partly because costs of goods sold (COGS) is likely to be flat this financial year, before improving in FY24. Lower domestic grape prices and cost-cutting are expected to offset underlying inflation.

Morgan Stanley commented:

FY22 results were largely in line with consensus expectations. However, our confidence around the delivery of sales growth and margin expansion in FY23-24e has improved given incremental guidance on COGS and the outlook for NSR [net sales revenue] growth.

Capital return potential and valuation

Further, there is potential for Treasury Wine to consider capital management initiatives in FY23. This might be a share buyback or a special dividend.

The Treasury Wine share price has gained 8.5% over the past year. That’s better than the ASX 200, which is nursing a 4.6% loss. 

Morgan Stanley’s 12-month price target on Treasury Wine is $13.80 a share.

The post Treasury Wine share price celebrates Friday with a more than two-year high appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why CSL, IPH, Renascor, and Treasury Wine shares are pushing higher
• Treasury Wine share price defies market slump. Could it be the dividend boost?
• Treasury Wine share price on watch after FY22 earnings beat
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau 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 Treasury Wine Estates 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 PWR Holdings Ltd (ASX: PWH) share price is up 6.4% after the company reported record revenue and profit in its FY22 full-year results.

The auto parts design and production company released its annual report after the market close yesterday.

The PWR share price opened at $9.07 today, well up on its previous closing price of $8.80. The shares reached an intraday high of $9.44 this morning and are trading at $9.35 at the time of writing.

PWR share price spikes on record results

The key metrics of the FY22 report are as follows:

• Revenue of $101,072,000, up 27.6% on the prior corresponding period (pcp)
• EBITDA of $35,747,000, up 23.4% pcp
• Net profit after tax (NPAT) $20,843,000, up 24.1% pcp
• Operating cash flow $23,522,000, down 25% pcp
• Earnings per share (EPS) of 20.79 cents, up 24% pcp
• Final dividend of 8.5 cents full franked
• Total dividends for FY22 of 12 cents per share, up 36.4%
• Full-year dividend payout ratio of 58% of NPAT (dividend policy 40% to 60% of NPAT).

What else happened in FY22?

The company said its record profit was driven by revenue growth across all key markets and geographies. In particular, there was significant growth in third-party sales in the United Kingdom, Australia, and the United States at 35.9%, 34.1%, and 17.9%, respectively.

PWR said a 25.8% increase in organic growth and the favourable Aussie dollar also helped boost NPAT.

Revenue in the emerging technologies segment grew by 123.8% and now represents 19% of company revenue. This includes growth in the aerospace and defence market of 56% to $7.1 million.

A 65% revenue increase in the automotive original equipment manufacturer (OEM) segment occurred as “planned programs commenced production and new programs were secured”.

The new programs included Aston Martin, Valkyrie, and Rimac Nevera, according to the report.

What did management say?

PWR chair Teresa Handicott said:

PWR has delivered a strong performance in FY22. During the year, PWR increased inventories of raw materials in response to global supply chain challenges to ensure continuity of supply, reducing the EBITDA to operating cash conversion ratio.

Despite this, PWR has maintained its strong balance sheet with $21.5 million in cash at 30 June 2022 …

Founding shareholder and managing director Kees Weel said:

The benefits of our investments made in FY21 and FY22 in people, capital equipment and factory
capacity have enabled us to capitalise on growth opportunities and together with our AS9100
aerospace and defence quality and NADCAP certifications, position us well for the future.

The continued growth in Automotive OEM and emerging technology programs, together with
motorsports returning to normal racing schedules, has resulted in improved financial performance.

What’s next?

In its annual presentation, PWR notes its strategies for dealing with supply chain shortages and increasing inflation, including increasing its sale prices “where possible”.

The company said:

We have increased forward orders and inventory of raw materials to ensure continuity of supply, reducing cash from operating activities.

We have increased finished goods inventory for key programs and are warehousing these finished goods in the United Kingdom to reduce the shipping distance for the final delivery to the customer, reducing the risk of freight delays.

Increasing inflation as the global economies recover from COVID-19 and in response to the war in Ukraine will continue to put pressure on wage rates, raw material costs, supply chain costs, and other expenses.

PWR share price snapshot

Over the year to date, the PWR share price has declined by about 8%. This is a far better outcome than that recorded by the company’s home sector. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has fallen 15.7% in 2022 as investors worry about how rising inflation and interest rates will impact consumer spending.

Over the past month, the PWR share price has rebounded strongly by 25% as the broader market lifts.

The post PWR share price up 6% on record revenue and profit for FY22 appeared first on The Motley Fool Australia.

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More reading

• 2 under-the-radar ASX shares to pounce on right now: expert

Motley Fool contributor Bronwyn Allen 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 PWR Holdings Limited. The Motley Fool Australia has positions in and has recommended PWR Holdings 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 APA Group (ASX: APA) share price is in the red today after the company revealed newly identified payroll errors will leave a $32 million impact on its financial year 2022 earnings.

A review of the company’s payroll has found errors related to seven enterprise agreements over a seven-year period.

The APA share price is currently down 1.6% on the back of the news, trading at $11.65.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.11% right now.

Let’s take a closer look at today’s news from the energy infrastructure giant.

APA share price slumps as $32m provision incurred

The APA share price is slipping on news its upcoming earnings will take a hit from numerous payroll errors.

The company’s financial statements – set to be released on Wednesday – will include a $32 million provision resulting from the errors.

That represents an estimate of their impact over the seven years in which they occurred, including associated superannuation and interest payments to employee entitlements under all seven of the company’s enterprise agreements.

The company kicked off a review into its payroll in financial year 2021 after finding errors related to two enterprise agreements. It noted the issues were primarily due to mistaken interpretation of the enterprise agreements. Most of the provision relates to periods prior to the last financial year.

APA CEO and managing director Rob Wheals apologised for the mistake, saying:

[APA] will work expeditiously to remediate, with interest, all affected current and former employees.

The company has voluntary disclosed the initial payroll review to the Fair Work Ombudsman. It has vowed to continue to work with the ombudsman to finalise remediations and rectified errors as quickly as possible.

APA has also begun analysis of payroll data and records covering the period and enterprise agreements, engaging expert consultants to support the review.

It anticipates that will take around 12 months to complete.

The APA share price has lifted around 15% year to date and approximately 19% over the last 12 months.

The post APA share price falls as payroll errors leave $32m dint appeared first on The Motley Fool Australia.

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More reading

• Why I think this boring ASX 200 share is anything but
• 3 ASX shares for ‘predictability’ through tough times: expert

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 positions in and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a decent, if uninspiring, day of trading so far this Friday. At the time of writing, the ASX 200 has gained a tentative 0.1% at around 7,120 points. But it’s the Woodside Energy Group Ltd (ASX: WDS) share price that is really showing the ASX 200 how it’s done this Friday. 

Woodside shares are having a stellar end to the week. The ASX 200 oil share is currently up a very pleasing 4.91% at $33.74.

So how is it that Woodside shares are enjoying such a stellar end to the trading week?

Well, there’s been no new news out of Woodside itself today, or indeed this month so far. But most ASX 200 energy shares seem to have been invited to the same party.

Take the Santos Ltd (ASX: STO) share price. It’s enjoying an even better day today, currently up 6.36% at $7.52 a share. Or Beach Energy Ltd (ASX: BPT), presently up a robust 3.96% at $1.70.

This tells us that Woodside’s gains are a sector-wide trend.

Thus, we can probably conclude that these moves can be placed at the feet of the single-largest factor that influences an ASX 200 oil share like Woodside – the price of crude oil itself.

Rising oil boosts the Woodside share price

As my Fool colleague James reported this morning, oil prices are indeed enjoying some sunshine today. As we covered this morning:

WTI crude oil price is up 2% to US$89.91 a barrel and the Brent crude oil price is up 2.3% to US$95.83 a barrel. Traders were bidding oil higher after data showed that US crude stocks fell materially more than expected last week.

So it’s perhaps no surprise that energy and oil shares are booming today. Rising oil prices instantly makes oil drillers like Woodside more profitable, which, of course, is great news for investors.

This latest rise means that the Woodside share price is now up a pleasing 49% in 2022 thus far.

At the current Woodside share price, this ASX 200 energy share has a market capitalisation of $61.16 billion, with a dividend yield of 5.54%.

The post Why is the Woodside share price whizzing 5% higher on Friday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Woodside share price dips as oil slumps to 6-month lows
• Why is the Woodside share price sliding today?
• Why did the Woodside share price lag the ASX 200 on Monday?

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 Lake Resources N.L. (ASX: LKE) share price climbed as much as 8% before giving back much of its gains on Friday.

In the minutes after market open, shares in the clean lithium developer hit an intraday high of $1.285. However, as the day progressed, they dropped back and are now trading at $1.22 apiece, up 2.10%.

Let’s take a look at what news is surrounding the company today.

What happened to Lake Resources?

The broader S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also enjoying gains today.

The benchmark index representing a number of companies that produce gold, steel and/or precious metals is currently up 1.18%.

While the Lake Resources share price may be outperforming its sector today, it appears investors have been taking a breather on the company this week.

Lake Resources shares have gained 94% over the past month, but have ended the last three sessions before today in the red.

However, one positive development is providing support across the sector.

As reported by The Age, the federal government is looking at ways to remove barriers that could see car manufacturers supply more electric vehicles to Australia.

Volkswagen Australia managing director Paul Sansom was “struggling to convince his parent company to supply more vehicles under the existing regime”, according to the report.

Climate Change and Energy Minister Chris Bowen will be discussing fuel efficiency standards at a national electric vehicle summit on Friday.

He will talk about how “existing fuel efficiency standards are limiting freedom of choice in the market because they create a barrier to the wider adoption of vehicles that do not need petrol or diesel”.

Lake Resources has an aspirational target of developing a production capacity of 100,000 tonnes of lithium carbonate annually by 2030.

If Australia overhauls the current fuel efficiency standards, this could bode well for the lithium industry.

It would mean that consumers would get greater access to popular new electric vehicle models.

As part of its bid to reach this production target, Lake Resources today announced the appointment of experienced mining company commercial executive Sean Miller to the new position of corporate development officer. It will be his aim to fast-track development activity across Lake’s three brine projects in the Jujuy Province of Argentina.

Lake Resources share price snapshot

After hitting a year-to-date low of 58.5 cents on 15 July, the Lake Resources share price has zipped 105% higher.

Based on today’s price, Lake Resources presides a market capitalisation of roughly $1.76 billion.

The post Why did the Lake Resources share price pop and then stop on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why Blackmores, Codan, Lake Resources, and Xero shares are falling today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Down 16% in 3 days: Why is the Lake Resources share price still sliding?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Lake Resources share price sinking 8% on Wednesday?

Motley Fool contributor Aaron Teboneras 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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Aristocrat Leisure Limited (ASX: ALL) is an S&P/ASX 200 Index (ASX: XJO) share that might divide some opinions.

Ethical, social and corporate governance (ESG) investing is certainly one of the most potent trends to emerge in the investing world in recent years.

Investors are ever more conscious of where their hard-earned money is going and what it is funding. And increasingly, investors want to invest their capital (inside super or out) into companies that align with their values.

And for many investors, this doesn’t include gaming companies like Aristocrat, given the company is a well-known manufacturer of poker machines.

But many other investors love the types of companies that dwell on the fringes of the ESG arena. Gambling, drinking and smoking, for example, may be considered morally grey industries by some.

But they also provide what other investors might describe as a ‘recession-proof’ earnings base, considering the ‘fondness’ many customers have for them.

So is Aristocrat Leisure a morally questionable company, or could it be a recession-proof buy today (or both?

Well, loath of being a moral arbiter in this arena, let’s outsource this question to Ben Clark of TMS Capital, and Henry Jennings from Marcus Today. Both recently sat down for an interview at Livewire.

A guilty buy today?

When asked if Aristocrat was a buy right now, both experts agreed. Here’s what Jennings had to say first up:

Apart from the moral aspect of pokie machines which I struggle with, I think Aristocrat is a buy. At the end of the day, no matter what happens in the economy, people like to hope and they like to put money into pokie machines and online gaming because it’s a distraction.

A distraction from everyday woes and there’s that hope that you’re going to hit the jackpot. And even in a recessionary environment, it is relatively safer than some of the other stocks that are out there.

Clark agreed, here’s what he added on the matter:

I’m going to go a buy as well. Look, I think it’s interesting because the ‘crown jewel’ is now the US land-based business. And that continues to trade very strong despite all these concerns about a recession going to what Henry’s talking about there.

A very strong result in May, well ahead of every analyst’s expectations. There’s earnings momentum. The big issue for this company is it’s got too much cash on its balance sheet. It did a big raising to fund an acquisition that never played out, but to me, that’s a pretty good problem to have. It’s not the biggest problem. I’ll go buy.

So that’s fairly unequivocal for Aristocrat. Of course, if gaming and gambling are anathemas to any investor, no one is forcing anyone to buy Aristocrat. But for other investors that perhaps do not consider ESG considerations important or effective, these opinions might be worth considering.

Aristocrat share price snapshot

The Aristocrat Leisure share price has had a pleasing end to the week so far this Friday. The ASX 200 gaming company has gained 0.52% at the time of writing to $36.44 a share.

At this share price, Aristocrat Leisure has a market capitalisation of $24.23 billion, with a dividend yield of 1.43%.

The post Is this ASX 200 share ESG-challenged or a recession-proof buy? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares set to soar if we manage to avoid a recession: experts
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 200 shares inking new multi-year highs today
• Why did the Coles share price just smash its all-time high?
• Here are the top 10 ASX 200 shares 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.

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The S&P/ASX 200 Index (ASX: XJO) is climbing 0.13% today, but ASX 200 coal shares are outperforming the index.

The Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC) share prices are both lifting today.

Let’s take a look at what is going on with ASX coal shares today.

Coal prices lift

Whitehaven shares are rising 7.36% today, while New Hope shares are lifting 6.12%. Meanwhile, ASX All Ordinaries share Yancoal Australia (ASX: YAL) is lifting 5.41%.

The thermal coal price held steady overnight at US$413.90 a tonne, according to ANZ research. Meanwhile, the coking coal futures lifted 2% to US$250 per tonne.

In a report compiled by ANZ senior commodity strategist Daniel Hynes and commodity strategist Soni Kumari, the authors noted coal prices “face upward pressure” due to European demand. Analysts said:

An impending energy crisis in Europe is likely to switch power utilities from gas to coal, this could increase competition for seaborne coal.

Overnight, European natural gas hit a record high amid supply shortages.

Thermal coal has lifted nearly 4% in the past month, while it has surged 142% in the past year. Coal prices are forecast to remain high amid the Eastern European war, according to trading economics. Europe is turning to seaborne coal from South Africa, Indonesia and Australia.

Yancoal reported record revenue and earnings in FY22 results released yesterday. The company noted this result was driven by the higher coal prices. Yancoal predicted thermal coal prices will “remain high” in 2023. The company said:

Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.

ASX coal share recap

The Whitehaven share price has exploded 237% in a year, while New Hope has surged 156%.

Meanwhile, the Yancoal share price has exploded 130% in a year.

In comparison, the ASX 200 has lost about 5% in the past year.

The post Why are ASX 200 coal shares having another cracker of a day? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares inking new multi-year highs today
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 coal shares having such a top run on Thursday?
• Yancoal share price lifts on 677% earnings boost
• Here are the top 10 ASX 200 shares today

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

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The Cochlear Limited (ASX: COH) share price is in the green on Friday following the release of the company’s financial year 2022 earnings.

The implantable hearing devices giant’s stock opened today’s session at $214.65, representing a 0.2% gain before slipping to its intraday low of $213 – a 0.5% dip. Fortunately, it pushed past early uncertainty to lift to a high of $223.48 – a 4.33% increase.

Since then, it’s settled slightly to trade at $222.85. That represents a 4.04% improvement.

Let’s take a closer look at how the company performed in financial year 2022.

Cochlear share price lifts as profit and dividends rise

The Cochlear share price is on a roll after the company revealed $277 million of underlying profit and even stronger guidance.

As The Motley Fool Australia reported this morning, it also announced a $1.45 final dividend, bringing its total financial year 2022 dividends to $3. That marks an 18% year-on-year improvement.

Finally, the company expects its profit to lift up to $305 million – the high-end of its guidance – this financial year. That would represent a 10% year-on-year increase.

But that hasn’t been enough to please brokers.

How have brokers responded?

Macquarie’s David Bailey said the company’s profit missed the consensus estimate by 3% while its outlook missed by 2%, The Australian reports. Bailey was quoted as saying:

Overall, a slight miss to consensus expectations and our forecasts for FY23 … However, we see the launch of the Nucleus 8 to be a key focus – we are looking for details in relation to differences relative to the N7 functionality and size.

Wilsons is also disappointed by the company’s guidance. It said the market expected a top line of $310 million, the Australian Financial Review (AFR) reports. The broker said, courtesy of the publication:

The guidance reflects higher expenses related to cloud computing upgrades and market preparation for a new sound processor launch. The long-awaited launch of Nucleus 8 Processor is an important leading indicator for Cochlear implant volumes.

The Cochlear Nucleus 8 Sound Processor (N8) achieved CE Mark approval this month. Commercial availability of the technology will kick off in Europe over the coming months. It’s expected to launch in other markets later this year, subject to regulatory approvals. Wilsons was quoted as saying:

We assess N8 cycle will commence … with [around] 30% larger recipient base than the N7 cycle and can support 13% to 15% Services revenue [compound annual growth rate (CAGR)] over the next four years.

On that note, the broker is said to remain positive on the stock. It previously had a $235 price target and an overweight rating on Cochlear shares.

The post Cochlear share price takes off despite guidance miss appeared first on The Motley Fool Australia.

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More reading

• Cochlear share price in focus as sales revenue surges to record $1.6b
• Earnings preview: Here’s which ASX shares are reporting today
• 5 things to watch on the ASX 200 on Friday
• 2 blue chip ASX 200 shares tipped as buys by experts
• Experts name 3 ASX 200 shares to buy now

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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