Tag: Motley Fool

The PTB Group Ltd (ASX: PTB) share price is metaphorically on cloud nine today. Immense excitement has rallied around the aviation parts and services company after agreeing to a takeover offer.

At the time of writing, shares in PTB are fetching $1.56 apiece, up 35.65% from yesterday’s closing price. For comparison, the S&P/ASX 200 Index (ASX; XJO) is up a much more modest 0.18% at 7,126 points.

So, what are the details behind the deal?

PTB share price flies after landing a fitting suitor

It appears the PTB Group proposition was too enticing for one onlooker not to make an offer. According to the release, the Brisbane-based company has entered into a scheme implementation deed with fellow aviation products and repairs business PAG Holding Corp (PAG).

The price agreed upon is $1.595 per PTB share in cash. This represents a 38.7% premium to where the PTB share price finished up on Thursday afternoon. In total, the deal would value the ASX-listed small-cap at $202.9 million.

PAG, or Precision Aviation Group, operates through 10 companies across multiple countries. Notably, the potential acquirer has operations in the United States, Canada, Australia, and Singapore. The provider of aviation servicing carries out business through 16 repair stations, with more than 60,000sqm of sales and service facilities.

Commenting on the proposal, PTB managing director and CEO Stephen Smith said:

We are proud of what the PTB team has created, and the proposed transaction is an endorsement of the quality of our company and the exceptional people that built PTB over a number of years. It also reflects the recent strong trading performance and PTB’s growth prospects.

The board of PTB Group believes that PAG would make for a suitable acquirer, one that would be likely to continue to invest in the company’s future growth.

What else?

Shareholders are expected to receive a 3 cents per share dividend, adding to the positive for the PTB share price today. Furthermore, this payment is expected to be fully franked.

Additionally, preliminary results were provided for FY22 today. Pleasingly, earnings before interest, tax, depreciation, amortisation, and foreign exchange came in above guidance, at $23.3 million. However, the audited FY22 accounts are expected to land on 26 August 2022.

If all court approvals are received, and shareholders approve of the bid, the scheme is expected to be implemented on 2 December 2022.

The PTB share price is up more than 113% over the last 12 months.

The post Why is the PTB share price rocketing 35%? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Accent share price jumps despite 59% profit drop
• Everything you need to know about the latest Newcrest dividend
• Inghams share price tumbles 8% as FY22 dividends slashed
• AGL share price dips after 58% profit slash
• Stockland share price slips as statutory profit lifts 25% in FY22

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended PTB Group Limited. 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://ift.tt/Dstmz1L

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is struggling from the open on Friday following a company update.

At the time of writing, the Fisher & Paykel share price is trading 6% down at $17.98 after it announced its FY23 guidance.

Fisher & Paykel expects slow down in FY23

Detailing its forecasts for the coming 12 months, the healthcare giant said that it anticipates revenue of $670 million and net profit after tax (NPAT) of $85–$95 million.

This signifies an increase in revenue compared to 1H FY20’s $570.9 yet a decline in revenue compared to the prior comparable period, being 1H FY22 at $900 million.

CEO Lewis Gradon said the company had “sold approximately ten years’ worth of hardware in two years” creating a high comparison in FY22 as well.

“This does not change the fundamentals of our business or our strategy,” he added.

“Our Hospital sales teams are still focused on changing clinical practice and helping ensure the hardware our customers have purchased is used to benefit a broader range of patients requiring respiratory support.”

Gross margin for the first half is also expected to land at 60% – 500 basis points below the company’s long-term target of 65%.

Part of the contraction in gross profit is due to a shift in sales towards the lower margin consumables segment.

However, despite challenges, it expects that H2 FY23 revenue will be higher than the first half as hospitalisation rates normalize.

“The company is now targeting constant currency operating expense growth of approximately 10%
for the year,” it added.

Never before in our history have we changed clinical practice with such a significant advantage.
Our customers already have our hardware, they already have clinical experience with its use, and
they already have access to a huge amount of clinical evidence. This gives us confidence that we
can continue to build on our proven 50-year track record and reach more patients with our
respiratory therapies.

In the past 12 months, the Fisher & Paykel share price is down 44%, and down 41% this year to date.

The post Fisher & Paykel share price slides hard following FY23 guidance update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Accent share price jumps despite 59% profit drop
• Why is the PTB share price rocketing 35%?
• Everything you need to know about the latest Newcrest dividend
• Inghams share price tumbles 8% as FY22 dividends slashed
• AGL share price dips after 58% profit slash

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.

from The Motley Fool Australia https://ift.tt/wIpX9U7

The Newcrest Mining Ltd (ASX: NCM) share price is surging on Friday, gaining around 3% despite potentially disappointing dividend news.

As The Motley Fool Australia reported earlier, the company revealed it slashed its final dividend to just 20 US cents this morning – a 50% year-on-year drop.

The Newcrest share price is trading at $19.29% right now, representing a 3.3% gain.

Let’s take a squiz at the S&P/ASX 200 Index (ASX: XJO) company’s financial year 2022 earnings and dive into the need-to-know details of its latest dividend.

Newcrest share price up despite 50% cut to dividend

Newcrest shares are taking off today following the release of the company’s latest full-year earnings and the revelation of its final dividend.

It posted $972 million of profit for financial year 2022 – a 25% drop on that of financial year 2021. It also disclosed a 16% drop in earnings before interest, tax, depreciation, and amortisation (EBITDA), which came in at around $2 billion, and $4.2 billion of revenue, an 8% drop.

The company’s gold production was also down 7% year-on-year at around 1.9 billion ounces, while its copper production fell 15% to 120,650 tonnes.

On the back of those earnings, the company posted a fully franked 20 US cent final dividend for the six months ended 30 June.

That’s half of what the company offered investors at the end of financial year 2021. Though, it represents a 14% increase on that of financial year 2020, which came in at 17.5 US cents.

It also sees the company’s latest full-year payout come in at 27.5 US cents – down from 55 US cents in the prior corresponding period.

Newcrest’s stock will trade ex-dividend on 29 August and its final payout will begin to hit investors’ accounts on 29 September.

The actual amount investors will receive in Aussie currency will be revealed on 30 August. Right now, 20 US cents is worth 29 cents Australian.

The post Everything you need to know about the latest Newcrest dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Newcrest share price lifts despite profit falling 25%
• 5 things to watch on the ASX 200 on Friday
• The ASX 200 share Firetrail just bought after brutal sell-off
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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

from The Motley Fool Australia https://ift.tt/spBhwk2

The Inghams Group Ltd (ASX: ING) share price is down 8.08% in morning trade.

Inghams shares closed yesterday trading for $2.97 and are currently at $2.73.

This follows the release of the S&P/ASX 200 Index (ASX: XJO) integrated poultry producer’s financial results for the year ending 30 June (FY22).

Inghams share price tumbles on profit hit

• Core poultry sales volume increased 4.2% from FY21
• Statutory earnings before interest, taxes, depreciation and amortisation (EBITDA) of $370.4 million, down 16.6% year on year
• Statutory net profit after tax (NPAT) of $35.1 million, down 57.9% from the prior year
• Final fully franked dividend of 0.5 cents per share, down 94% from FY21.

What else happened during the year?

Inghams reported that significantly lower trading volumes resulted in a 17.5% drop in cash flow from operations, which came in at $372.5 million for the full year.

Meanwhile, costs of sales were up 5.7% during FY22. A big driver of the cost increase was feed, where costs leapt by $45.4 million year on year. Ingredients and transport costs also rose, with supply chain disruptions and Russia’s war in Ukraine adding to the woes of COVID-19 related costs. The company said COVID costs peaked in Q3 and have since come down significantly.

With profits taking a hit, the full year dividend comes to 7.0 cents, down 57.6% from FY21, likely pressuring the Inghams share price today.

The company reported making solid progress regarding price increases across all channels and customers, with much of those increases looking to contribute to its FY23 results.

As at 30 June, Inghams had net debt of $267.3 million and leverage of 2.0 times. This at the top end of the company’s target range.

What did management say?

Commenting on the results pressuring the Ingham share price today, Inghams CEO Andrew Reeves said:

I am very proud of the resilience and commitment shown by our people and the way they have responded to the numerous challenges we have faced during the year…

We are greatly encouraged by the ongoing recovery taking place across the business, with our farming and plant operations continuing their recovery to normal operating levels, shifts, and product range.

Our core business is in good shape. Our diverse network and market leading integrated operating model provides a strong platform that has helped us navigate the significant disruptions over the past two years and positions us well for the future.

What’s next?

Looking ahead, Inghams said its core business was “well-positioned, with its geographically diverse network and integrated operating model underpinning its track record of strong cash generation”.

The company expects ongoing price pressures to throw up some headwinds in FY23, but said it was making significant progress on securing price increases to offset the inflationary pressures.

Inghams share price snapshot

The Inghams share price is down 30% over the past 12 months. That compares to a full year loss of 5% posted by the ASX 200.

The post Inghams share price tumbles 8% as FY22 dividends slashed appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares
• Winner winner chicken dinner: Expert names 2 ASX shares to buy now

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

from The Motley Fool Australia https://ift.tt/peu4fHD

The AGL Energy Limited (ASX: AGL) share price is in the red this morning after the company posted a largely negative earnings card for FY22.

The energy giant’s shares are currently down 3.19% at $7.90 each. Earlier, they had been as low as $7.77 and as high as $8.05.

Let’s go over the highlights of the report.

What did AGL report?

• Revenue up 20.8% year-on-year (YoY) to $13.22 billion
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) down 27% YoY to $1.21 billion
• Underlying profit after tax down 58% YoY to $225 million
• $150 million reduction in operating costs
• Final unfranked dividend of 10 cents per share

Earnings were said to be lower in FY22 due to cheaper wholesale customer prices and increased costs to meet peak energy demand. Other headwinds that battered the stock included plant outages, market volatility, customer churn, and increased competition from residential solar power generation.

Despite the company’s problems in FY22, AGL noted that its underlying profit of $225 million fell within previously posted guidance estimates.

Some relief for the company’s bottom line was found in the form of a $150 million reduction in the company’s operating costs and a stable total of services to customers provided at 4.2 million, which it achieved by maintaining market share amid churn and competitive forces.

A final unfranked dividend of 10 cents per share was announced, representing a payout ratio of 75% of the company’s underlying profit after tax. The dividend will be paid on 27 September.

What else happened in FY22?

On a broader macro scale, electricity prices increased in FY22 due to geopolitical events and a rise in commodity prices for coal and gas.

In May, AGL scrapped its demerger plans to divide the business into two separate entities. Plans were thrown out over concerns that it would lower the company’s valuation and hamper efforts to reduce carbon emissions. AGL incurred a $125 million cost from withdrawing from the plans in FY22.

AGL also made some progress with its plans for energy hubs. One project is a 250-megawatt battery that is being built and is expected to be operational in 2023. Another project is a feasibility study to assess the development of a green hydrogen production facility.

What did management say?

Commenting on the results, AGL managing director and CEO Graeme Hunt said:

AGL’s FY22 results delivered an underlying profit after tax within guidance, reflecting the resilience of AGL’s underlying business against a backdrop of challenging energy industry and market conditions that have intensified in the second half.

What’s next?

AGL said it is expected to post guidance for FY23 in September. As part of issuing guidance, it also expects to give investors an update on the company’s strategic direction following the scrapping of its demerger plans.

The company expects to benefit from higher wholesale electricity prices from FY24 onwards.

AGL also said the contracts of its coal and gas positions would help it shelter against the cost rises of the commodities.

AGL share price snapshot

The AGL share price is up 24% year to date. Over the same period, the S&P/ASX 200 Index (ASX: XJO) is down by 6%.

AGL has a market capitalisation is $5.49 billion.

The post AGL share price dips after 58% profit slash appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Earnings preview: Here’s which ASX shares are reporting today
• Hoping to pounce on AGL shares? Here’s what to watch when the energy giant reports this week
• Guess how much AGL has paid in dividends over the past 5 years?
• AGL share price down amid Fortescue Future Industries hydrogen hub news
• Why was the AGL share price undercooked in July?

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

from The Motley Fool Australia https://ift.tt/M6NHfsP

The Stockland Corporation Ltd (ASX: SGP) share price is on the move today following the release of the company’s FY22 results.

At the time of writing, the Stockland share price is trading 1.5% in the red at $3.75 apiece straight from the open.

Stockland continues asset, profit growth in FY22

Key takeouts from the period include:

• Booked statutory profit of $1.38 billion, a 25% gain on the same period for FY21
• Funds from operations (FFO) recorded at $851 million, up 8% year on year
• FFO per security of 35.7 cents, up around 8% on the same time in FY21
• Full-year total distribution per security (dps) of 26.6 cents, signifying an 8.1% growth on FY21
• Net tangible assets (NTA) of $4.31 per security, again up around 8% from 30 June 2021

What else happened last period for Stockland?

Stockland again achieved a return on invested capital (ROIC) above the target 6-9%, securing a 10% recurring ROIC.

It delivered a statutory profit of $1.38 billion, up 25% on the same time last year. Its commercial property business came in with a FFO of $5.53 million, whereas it saw a valuation uplift to $725 million.

In particular, the workplace portfolio delivered a FFO of $110 million, itself flat on the year. Meanwhile, logistics FFO grew 37% year on year to $155 million. 

Management commentary

Speaking on the announcement, Stockland CEO, Commercial Property, Louise Mason said:

Our Logistics development pipeline continues to offer attractive returns on a risk-adjusted basis and significant future earnings growth, notwithstanding the impact of elevated construction costs.

Our development pipeline is located in prime Eastern Seaboard markets that continue to benefit from constrained supply and elevated occupier demand and comprises land holdings that have been acquired at attractive points in the real estate cycle.

What’s next for Stockland?

In FY23 Stockland forecasts FFO per security in the range of 36.4 to 37.4 cents before tax, with a 5-10% estimated tax bill.

Meanwhile, distribution per security is expected to be within the targeted payout ratio of 75-85% of after-tax FFO.

In the past 12 months, the Stockland share price has slipped 10%.

The post Stockland share price slips as statutory profit lifts 25% in FY22 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers name 2 ASX dividend shares to buy now
• Can ASX dividend shares deliver during earnings season?

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.

from The Motley Fool Australia https://ift.tt/6VUxf4S

The Pentanet Ltd (ASX:5GG) share price is blasting into the green today following the release of the company’s FY22 earnings results.

At the time of writing, shares in the internet, gaming and telecommunications provider are trading 10.29% higher at 37.5 cents apiece.

Double-digit revenue and profit growth

Key takeouts for the quarter include:

• Revenue of $16.8 million, a gain of 54% on the previous ear FY21
• Gross profit of $7.4 million, another 55% improvement on FY21
• Gross margin increased by 100 basis points to 44%
• Net loss after tax of $7.9 million, an improvement from the FY21 reported net loss of $13.7 million
• Balance sheet well positioned with $13.4 million in net cash at 30 June 2022
• Recurring revenue increased by 59% to $15.2 million – now 90% of total revenue in FY22

What else happened for Pentanet?

Telco subscribers were up 34% from the previous year to 16,674, with low churn of around 0.95%. Fixed wireless customers now comprise 40% of total subscribers at the end of FY22.

As a result, revenue grew 54% and gross profit also expanded by 55% year on year to approximately $7.5 million.

The bolus of this revenue – 90% to be exact – is now derived from recurring revenue sources.

As a result, Pentanet came in with a net loss of around $8 million, an improvement from last year’s after-tax loss of $13 million.

Moreover, average recurring revenue per user (APRU) also increased from $80 to $82 in FY22, whilst fixed wireless APRU remained steady year on year at $87.

Management commentary

Speaking on the announcement, Pentanet managing director Stephen Cornish said:

The last 12 months have seen Pentanet secure its place as a leader in both telecommunications, cloud gaming and esport in Australia. We seized the opportunity to bring new products and technology to market, and now the foundations have been laid for accelerated sustainable growth across our complementary business sectors.

At the same time the business continued to deliver substantial growth in subscriber numbers, which generated a strong uplift in revenue and gross profit. Earnings quality remained high with recurring earnings making up 90% of revenue and the churn rate remaining below 1%.

I’ve said it before and I want to reiterate for you today – Pentanet is so much more than just another telco. With our ongoing focus on impactful innovation, we are not only contributing to the development of Australia’s digital future but also improving and increasing the ways we connect digitally and IRL.

Pentanet share price snapshot

In the past 12 months, the Pentanet share price has slipped more than 43% into the red, but has climbed 17% higher in the past month of trade.

The post Pentanet share price rips 10% higher on double-digit profit growth appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could these devastated ASX shares make a roaring comeback?
• Newcrest share price lifts despite profit falling 25%
• This company profited $2.6 billion from crypto. What is it investing in now?
• TPG share price tumbles 9% on first half results
• Cleanaway share price halted amid results, $400m cap raise and acquisition

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 recommended Pentanet Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uTFSvLs

With interest rates rising and investors anxious about an economic downturn, ASX shares in the retail sector have been hammered for most of this year.

While the devaluation has affected the entire industry, it’s hit online retailers especially hard.

Technology shares have also plunged in 2022, so it’s little wonder businesses that intersect between the two sectors would struggle to maintain their valuations.

Analysts at Firetrail, in a memo to clients, took US giant Shopify Inc (NYSE: SHOP) as an example of what’s happened globally.

“Shares in US e-commerce platform Shopify fell over 14% in late July after the company announced it was cutting 10% of its workforce,” read the memo.

“Shopify, like many other online retailers, had bet that COVID would permanently shift the channel mix away from physical retail. However, now that the US economy has reopened, e-commerce adoption has fallen back to the pre-COVID trend line.”

Locally, the Firetrail team cited how Temple & Webster Group Ltd (ASX: TPW) and Kogan.com Ltd (ASX: KGN) have seen their share prices halve so far this year. Redbubble Ltd (ASX: RBL) has lost a painful 70%.

A golden buying opportunity for online retail shares?

But, perhaps in a contrarian view, Firetrail questioned whether this presents a buying opportunity for online retail stocks.

“Assuming a reversion to e-commerce adoption growth in 2023/2024, could value be emerging in the online retailers?”

The Motley Fool chief investment officer Scott Phillips agreed with this proposition.

“It seems to me that the market has decided that, because the economy might slow (maybe even dramatically) many – most – retail stocks are worth nearly nothing,” he said.

“But let’s say you have a 5, 7 or 10 year time horizon. As long as these businesses aren’t significantly or permanently damaged by a recession, they’ll come out the other side. They’ll probably go on to deliver even higher sales and profits in the years ahead.”

Already some investors are waking up to this opportunity, sending some ASX shares to the moon in a hurry over the past few weeks.

Temple & Webster has enjoyed a 57% rocket upwards over the past month, Kogan has travelled 39% up, and Cettire Ltd (ASX: CTT) shares are a crazy 132.5% higher.

What are the chances that business is lost forever?

According to Phillips, the devaluation seen this year assumes a permanent loss of business.

But the probability is that that’s not true over a long period, even if a recession rudely interrupts for a brief time.

“If you could buy an asset that might struggle for a short time, then go back to its successful past… well, a share price that suggests relative Armageddon is likely to be, in hindsight, cheap.”

The Firetrail team noted how Woolworths Group Ltd (ASX: WOW) took this attitude when it recently decided to buy online retailer Mydeal.Com Au Ltd (ASX: MYD).

“The company offered a 61% premium to market [price] to acquire listed marketplace Mydeal.com.au in May.”

The post Could these devastated ASX shares make a roaring comeback? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are the stores themselves on sale?
• Adore Beauty share price slips 12% following ASX speeding ticket
• Redbubble share price tumbles 40% as profit turns to loss
• Why BHP, Life360, Tassal, and Temple & Webster shares are charging higher
• The BHP share price now trades on a fully franked dividend yield of 11%

Motley Fool contributor Tony Yoo has positions in Cettire Limited, REDBUBBLE FPO, Shopify, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cettire Limited, Kogan.com ltd, REDBUBBLE FPO, Shopify, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group Ltd. 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://ift.tt/quLdxHI

The Newcrest Mining Ltd (ASX: NCM) share price is climbing today after the company announced its FY22 results.

The gold miner’s shares are currently up 4.02% to $19.42 apiece. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is climbing 0.08% today.

Let’s take a look at what Newcrest reported to the market.

Newcrest reports

Highlights of Newcrest’s FY22 results include:

• Statutory and underlying profit fell 25% on FY21 to US$872 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 16% to US$2.054 billion
• Gold production fell 7% to 1.956 million ounces
• Copper production dropped 15% to 120,650 tonnes
• Earnings per share (EPS) fell 27%
• Fully franked final dividend of US 20 cents per share compared to a 40 cents per share final dividend in FY21

What else did Newcrest report?

Newcrest’s underlying profit fell by $292 million compared to the prior corresponding period (pcp) due to lower production at the Cadia mine in NSW. This was due to a planned replacement and upgrade of the SAG mill motor in November 2021.

Production at the Lihir mine was also lower, due to maintenance, downtime and less autoclave availability.

Gold and copper sales fell due to lower production. Operating costs also suffered due to inflation pressure on oil, gas, steel and labour. Shipping costs were also higher.

The realised copper price leapt 19% on FY21 to US$4.36 a pound, partly offsetting these costs.

Realised gold price jumped by just one dollar to US$1,787 per ounce.

Despite this profit result, analyst consensus had been pointing to a lower underlying profit of US$845 million, the Australian Financial Review reported. Analyst Dan Morgan also labelled today’s results “positive versus market fears”, according to The Australian.

The Newcrest final dividend of 20 cents per share is half of that declared at the same time last year. However, it is higher than the final dividend declared in FY20.

Management commentary

Commenting on the results, CEO Sandeep Biswas said:

Newcrest has delivered a strong performance in FY22 with our operations producing just under two million ounces of gold at an All-In Sustaining Cost of $1,043 per ounce.

We were particularly pleased with our costs trending lower in the second half of the year, with Cadia achieving its lowest ever annual All-In Sustaining Cost of negative $124 per ounce.

Our balance sheet has also remained extremely robust with significant liquidity available to support our growth aspirations.

What’s ahead?

Newcrest is forecasting it will produce between 2.1 and 2.4 million ounces of gold in FY23, and 135 to 155,000 tonnes of copper.

The company is predicting a total all-in sustaining cost (AISC) of $2.1 to $2.4 billion.

Newcrest share price snapshot

The Newcrest share price has dropped around 24% over the past year, while it has lost around 20% year to date.

However, in the past month, Newcrest shares have leapt 4%.

For perspective, the ASX 200 index has lost nearly 6% in the past year.

The post Newcrest share price lifts despite profit falling 25% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• The ASX 200 share Firetrail just bought after brutal sell-off
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Down 20% so far in 2022, is the Newcrest share price a bargain buy or a falling knife?

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.

from The Motley Fool Australia https://ift.tt/3WhcHbJ

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.

New York Stock Exchange operator Intercontinental Exchange (NYSE: ICE) knows a few things about investing. The company has booked monster profits from two crypto investments and is now investing in another area of its business. This time, the company could change the game in the giant mortgage industry. Here’s what happened.

What’s next after crypto?

In December 2014, before anyone had ever heard of Bitcoin, Intercontinental Exchange invested $10 million for 1.4% ownership of a little-known crypto exchange called Coinbase Global (NASDAQ: COIN). The exchange was firmly entrenched in the crypto frenzy years later. Though it was almost unnoticeable at the time of its investment, it eventually sold its stake when Coinbase IPO‘d in April 2021 for a mind-numbing sum of $1.24 billion.

Intercontinental Exchange’s Coinbase investment foreshadowed another crypto-related investment. Bakkt (NYSE: BKKT) was initially launched in 2018 with majority backing from Intercontinental Exchange. The company was formed to provide digital wallets to institutional and consumer users to buy, sell, and spend digital assets. Of course, digital assets include crypto but also extend to airline miles, hotel loyalty points, and credit card points.

In late 2021, Bakkt merged with VPC Impact Acquisition, a special purpose acquisition company (SPAC) sponsored by Victory Park Capital, and the shares went public in October. In its annual report a few months later, Intercontinental Exchange booked an astonishing $1.4 billion gain from the transaction. Unlike its Coinbase investment, though, the exchange still holds its stake in Bakkt because it sees a future in digital currency, even if it doesn’t include cryptocurrency.

More recently, however, the SPAC has made a more significant investment in the mortgage tech company Black Knight (NYSE: BKI). In May, Intercontinental Exchange announced it had agreed to acquire Black Knight for $85 per share, implying a market value of $13.1 billion. Prior to the acquisition, the exchange had a competing mortgage tech business.

Intercontinental Exchange’s mortgage tech business provides software for loan officers, mortgage origination, closing, funding, and compliance. Black Knight’s mortgage tech business overlaps in origination and expands the combined company’s capabilities to multiple listing service (MLS) solutions and loan servicing. In addition, Black Knight is a leading data analytics provider in the real estate market.

Before the agreed tie-up, Black Knight made a significant mortgage tech investment of its own. In February 2022, the company completed a deal to acquire the remaining shares of Optimal Blue that it did not already own. Optimal Blue’s mortgage tech business provides a software suite that aids its customers in carrying out secondary transactions in the mortgage market. Ironically, Black Knight funded part of the deal with 37 million shares of Dun & Bradstreet Holdings it owned from a previous investment.

Altogether, the complementary capabilities of the mortgage tech companies provide one of the first end-to-end software packages on the market. On top of that, the combined company will have a mountain of real estate and mortgage data it can use to bolster its data and analytics business.

Intercontinental Exchange points out that the average origination costs have ballooned from about $4,000 in 2009 to $9,000 in 2021. The company believes the new mortgage tech segment can shave off $2,600 — nearly 30% — of those costs. Savings at that level make hiring Intercontinental Exchange a very compelling proposition, especially considering the massive number of originations some banks and mortgage companies do.

Is Intercontinental Exchange a buy right now?

The Intercontinental Exchange/Black Knight mortgage tech portfolio is a compelling reason to get excited about the stock. The mortgage portfolio adds to the exchange’s existing exchange segment consisting of 13 regulated stock and commodity exchanges, including the New York Stock Exchange and six clearing houses.

The Black Knight deal is not expected to close until the first half of 2023, but Intercontinental Exchange expects the accretive to its earnings per share in the first year after the deal closes. In addition, the deal should cut expenses by $200 million and provide $125 million in revenue synergies.

The company’s stock is down about 19% this year because rising mortgage rates could potentially slow down the real estate market and crimp fees earned from mortgage originations.

If you’re worried about the same things, consider that Intercontinental Exchange projects recurring revenue in its mortgage tech segment will increase from 50% of its revenue mix to 70% after the Black Knight acquisition. The stock’s fall could represent an outstanding opportunity for long-term investors.

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

The post This company profited $2.6 billion from crypto. What is it investing in now? appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• 2 cryptos that could lead the market recovery
• Why Bitcoin, Ethereum, and Dogecoin are slumping today
• This is why Ethereum has been outpacing the Bitcoin price gains. Will it last?
• Big buying activity boosting Bitcoin, Cardano, and Polkadot today
• Will the next era of computing break the Bitcoin price or boost it?

BJ Cook 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 Bitcoin and Coinbase Global, Inc. 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.

from The Motley Fool Australia https://ift.tt/gTqeYk0