Tag: Motley Fool

The NIB Holdings Limited (ASX: NHF) share price is down 2.2% at $8 in early trade after the ASX financial company reported its FY24 first-half result.

NIB share price falls after strong profit growth

• Total revenue increased 12.4% to $1.7 billion
• Underlying operating profit rose 21.7% to $144.4 million
• Net investment income up 50% to $33.3 million
• Net profit after tax (NPAT) up 19.4% to $104 million
• Interim dividend boosted by 15.4% to 15 cents per share

The private health insurer revealed its Australian residents health insurance (ARHI) business was “materially assisted” by the favourable release of the liability for incurred but not yet paid claims at the end of FY23. The net profit margin was “strong” even after allowing for that.

However, NIB also said profitability was not recovering in its international students and travel businesses as quickly as management would like, though the trend was positive.

The company achieved 3.7% policyholder growth during the period. The FY24 first quarter was better than the overall industry achievement, but the second quarter slowed due to a price increase. NIB expects the first half’s growth to be better as well.

Claims in the ARHI business were up 9.1%, driven by growth and the FY23 first-half COVID-19 savings being offset by favourable movement for liability for incurred claims from June 2023.

What else happened in the FY24 first half?

NIB’s new National Disability Insurance Scheme (NDIS) business, called nib Thrive, now supports around 39,000 participants after acquiring six plan management businesses. nib Thrive contributed $6.4 million to first-half earnings. The NIB share price dropped 2.8% in December on the day it responded to the NDIS review report.

The company’s joint venture Honeysuckle Health (with Cigna Corporation) has continued to see strong growth in the number of participants in its health and injury management programs and is reducing hospital admissions.

NIB majority-owned digital health business Midnight Health saw a 189.5% revenue increase year over year — NIB thinks this business can become a “very big enterprise.”

What did NIB management say?

NIB chief executive officer Mark Fitzgibbon said:

The membership and revenue growth across all of our private health insurance businesses are testimony to the competitiveness of nib’s products and pricing, especially at a time of growing cost-of-living pressures.

A few COVID-19 related factors continued to have some influence on profitability, but the underlying business is in great shape.

What’s next for NIB?

The business maintained its guidance for FY24 of ARHI net policyholder growth of between 3% to 4%, commenting that it was cautious but optimistic about the broader conditions.

NIB’s travel division launched a new white-label partnership with Woolworths Group Ltd (ASX: WOW) in December 2023.

NIB share price snapshot

Prior to today’s movement, NIB shares had risen 9% over the past year, compared to a 5.8% rise for the S&P/ASX 200 Index (ASX: XJO).

The post NIB share price falls despite 19% profit growth in FY24 first-half result appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Beyond ASX 200 bank shares: 3 insurance plays with nice dividends
• Brokers say these 3 ASX dividend shares are buys
• Top ASX dividend shares to buy in February 2024

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 positions in and has recommended NIB Holdings. 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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ASX tech shares with strong growth potential are exactly the sort of companies I want to own in my portfolio. Undervalued ASX software stocks have the ability to outperform.

Technology is a good sector because of the intangible nature of software – it’s very inexpensive to grow with another subscriber or client. Compare that to a piece of furniture – it must be made, shipped to Australia/the shop, stored, and then delivered to the customer.

With that in mind, here’s why I think these two ASX tech shares are appealing.

Frontier Digital Ventures Ltd (ASX: FDV)

This company describes itself as a leading owner and operator of online classifieds marketplaces in fast-growing emerging regions. The three regions are Latin America, the Middle East and North Africa, and Asia.

The ASX share works alongside local management teams across property, automotive and general classifieds.

Frontier Digital Ventures says there is an opportunity to generate “significant revenue from facilitating transactions”. It suggests there are lower levels of trust between buyers and sellers, so online marketplaces can formalise the local property and automotive industries.

In the fourth quarter of 2023, the ASX software stock reported group operating revenue of $21.7 million, earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.1 million and the fourth consecutive quarter of positive operating cash flow.

This investment may not perform as strongly as established competitors such as REA Group Limited (ASX: REA), SEEK Limited (ASX: SEK) and CAR Group Limited (ASX: CAR), but it’s playing on the same sort of themes and digitising tailwinds.

2023 has been the best year for its EBITDA and cash flow, yet the Frontier Digital Ventures share price is 40% lower than where it was a year ago and 15% lower than at the start of 2024. I think it’s looking very good value.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that’s focused on the IT sector. It usually invests between $5 million to $20 million in unlisted businesses that the investment team think have a lot of growth potential.

The team typically selects holdings with a number of characteristics: they are run by the founders, have been in operation between two to six years, have a proven business model with attractive unit economics, have international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

Bailador’s investments include Siteminder Ltd (ASX: SDR), RC TopCo (which owns Rezdy, Checkfront and Regiondo), Access Telehealth, Rosterfy, Nosto, Mosh and Straker Ltd (ASX: STG).

Over the three years to 31 January 2024, its portfolio return averaged 13% per annum.

The business also pays an attractive dividend yield, which is a way for shareholders to receive returns without having to sell their shares.

The Bailador share price is trading at an 18% discount to its stated January 2024 post-tax net tangible assets (NTA).

The post Tech treasures: 2 undervalued ASX software stocks to watch in 2024 appeared first on The Motley Fool Australia.

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More reading

• Forget Tesla, I think this ASX tech stock is poised for an incredible run
• Got $1,000? 2 ASX shares to buy right now
• Why Boss Energy, Calix, Frontier Digital, and Gold Road shares are falling today
• 2 ASX shares I’d buy for my child for long-term growth

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments, Frontier Digital Ventures, REA Group, and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Bailador Technology Investments, Car Group, Frontier Digital Ventures, REA Group, and Seek. 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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Owning Westpac Banking Corp (ASX: WBC) shares has been rewarding for dividend income for a number of years. The ASX bank share may be attracting ASX income investors, so is it a good option?

Westpac is one of the largest businesses in Australia, with a market capitalisation of $90 billion according to the ASX. The Westpac share price has climbed more than 20% in the past three months. Despite the much higher valuation, it still offers a good dividend yield.

Westpac dividend forecast

The forecast on Commsec suggests Westpac could pay an annual dividend per share of $1.44 in both FY24 and FY25.

At the current Westpac share price, it means the cash dividend yield could be 5.5%, or a grossed-up dividend yield of 7.9%. That’s a lot more than what someone can get from a Westpac term deposit.

In FY26, the ASX bank share is forecast to pay an annual dividend per share of $1.46, which would amount to a cash yield of 5.6%, or 8%, when grossed up.

Should ASX income investors buy it?

It appears the bank is likely to pay a fairly consistent dividend over the next few years. Of course, a dividend payment is not guaranteed – that’s up to the board of directors to decide based on the level of profit.

Banks are currently facing a difficult environment with strong competition, rising arrears (amid higher cost of living) and lower demand for new credit.

The Westpac first quarter update showed it made $1.5 billion of net profit, which was down 6% on the FY23 second half quarterly average. Earnings per share (EPS) is expected to fall in FY24 and then fall again slightly in FY25.

Earnings usually drive a share price over the longer term, so the recent rally seems to be related to an increase in investor confidence rather than a positive outlook for profit in the medium term.

According to the prediction on Commsec, the Westpac share price is valued at 14x FY24’s estimated earnings.

To me, it now seems a bit pricey for the weak growth it’s expected to see in the next few years. I think there are other ASX dividend shares that can deliver stronger dividends and more growth in the next three years than Westpac.

The post Should ASX income investors buy Westpac shares for dividends? appeared first on The Motley Fool Australia.

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More reading

• How these 4 ASX 200 shares just gained major broker upgrades
• Are Westpac shares a buy following the bank’s results?
• High rates, falling profits: Why are ASX bank shares losing out this reporting season?
• Why are Westpac shares leaping ahead of rival ASX 200 bank stocks on Monday?
• Westpac share price on watch following $1.8 billion quarterly profit

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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The Siteminder Ltd (ASX: SDR) share price has climbed 20% over the past six months. I think it’s one ASX small-cap share to watch for the long term, and there are good reasons why 2024 could be an exciting year.

Siteminder describes its software as “the only platform that unlocks the full revenue potential of hotels” and an “all-in-one hotel management software that makes the lives of small accommodation providers easier”.

It has offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London and Manila and generates more than 115 million reservations worth over $70 billion in revenue for its hotel customers annually, according to the company.

Strong growth

The company is seeing growth in a number of different metrics, which are all contributing to its overall growth. Proof of its success is coming out with the numbers.

It recently reported its FY24 first-half numbers which showed total revenue growth of 27.9% to $91.7 million, with subscription revenue rising 23.8% to $60.3 million and transaction revenue jumped 36.5% to $31.4 million.

Annualised recurring revenue (ARR) rose 27.2% to $182.5 million in the half-year update.

Siteminder advised the number of customer properties increased 13.7% to 41,600. More hotels boost the number of potential transactions that can occur.

But it will take a full 12 months for the business to display its 12-month revenue potential, so the next year already has more growth baked in for the ASX small-cap share.

The ASX small-cap share’s profitability is rapidly improving

Siteminder is still making negative cash flow, but the ratio to sales is rapidly improving and looks very promising. In the second quarter of FY24, it saw negative underlying free cash flow of 7% of revenue (being negative $3.1 million), which was an improvement from 28.4% in the same period last year.

The company expects to be profitable in the second half of FY24 for both underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and underlying free cash flow.

Siteminder pointed out that its growing margins reflected the scalability of the business and disciplined cost management.

The company’s rapidly growing revenue should help its profit margins in the coming years.

I think reaching breakeven could be a strong catalyst for the company.

Strong outlook

The business is steadily investing in creating new offerings for subscribers, which can help increase loyalty, deliver more growth for subscribers and create revenue for itself.

It’s targeting organic revenue growth of 30% in the medium term. Any business compounding at that rate for a number of years will naturally grow into a bigger company.

With an annual recurring revenue (ARR) of $182.5 million already, it appears to have a good growth outlook for at least the next 12 months.

While I wouldn’t call the ASX small-cap share cheap, I think it has lots of growth potential with its own financials and for shareholders.

The post I think this ASX small-cap share can soar in 2024 appeared first on The Motley Fool Australia.

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More reading

• Here are Warren Buffett’s tips to becoming rich with ASX shares
• Here’s the BHP dividend forecast through to 2026
• 3 ASX dividend shares to buy before it’s too late
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

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 positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. 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 latest Berkshire Hathaway (NYSE: BRK.B) letter to shareholders was released at the weekend and contains more words of wisdom from Warren Buffett.

The good news for investors is that a lot of what the Oracle of Omaha said in his letter can be used to build wealth with ASX shares.

What did Warren Buffett say?

In his first letter since the passing of Charlie Munger, Buffett recounted one of the most important things he was told by his long-term business partner. He said:

Warren, forget about ever buying another company like Berkshire. But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices. In other words, abandon everything you learned from your hero, Ben Graham.

Buffett ultimately followed Munger’s advice and the rest is history. Since 1965, Berkshire Hathaway has grown its book value by an average of 19.8% per annum.

To put that into context, a single $100 investment in ASX shares 58 years ago would have grown into approximately $3.5 million today if it generated that level of return.

Anything else?

Buffett also spoke about picking winners when investing. This could be used by local investors when looking for ASX shares to buy.

Our goal at Berkshire is simple: We want to own either all or a portion of businesses that enjoy good economics that are fundamental and enduring. Within capitalism, some businesses will flourish for a very long time while others will prove to be sinkholes. It’s harder than you would think to predict which will be the winners and losers. And those who tell you they know the answer are usually either self-delusional or snake-oil salesmen.

As Buffett says, it is impossible to know which ASX shares will flourish over the long-term and which will flounder. But if investors build a balanced portfolio filled with high-quality companies with sustainable competitive advantages, they certainly put the odds more in their favour of success.

Let’s end now with one final quote from the letter. Buffett said:

One investment rule at Berkshire has not and will not change: Never risk permanent loss of capital. Thanks to the American tailwind and the power of compound interest, the arena in which we operate has been – and will be – rewarding if you make a couple of good decisions during a lifetime and avoid serious mistakes.

The post Here are Warren Buffett’s tips to becoming rich with ASX shares appeared first on The Motley Fool Australia.

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More reading

• No savings in 2024? I’d follow Warren Buffett and start building wealth
• What can ASX investors learn from Warren Buffett’s latest buys and sells?
• No passive income at 50? I’d use Warren Buffett’s methods to get rich
• How Charlie Munger used $1,500 to make a $107k-a-year passive income
• Lessons from a $600,000 share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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 BHP Group Ltd (ASX: BHP) dividend has rewarded investors for many years, but can the mining giant maintain and increase its payouts over the next few?

BHP is one of the world’s largest diversified miners and Australia’s biggest ASX-listed company, with a market capitalisation of $224.5 billion. A significant dividend payer in Australia, not necessarily in dividend yield terms, BHP returns billions of dollars to shareholders in dividends each year.

The miner has decided on a minimum 50% dividend payout ratio, which means it typically pays a fairly generous amount.

But, it’s not a business that can rely on growing profit year after year. Let’s have a look at how big the dividend payouts could be in the next few years.

BHP dividend forecast for 2024

BHP recently reported its FY24 first-half result, which included a dividend payout ratio of 56%. Its dividend was US 72 cents per share. This represented a double-digit cut in percentage terms, though it still meant a payout of US$3.6 billion.

The reduced payout came after profit from operations was down 56% to US$4.8 billion, with weakness in nickel and Samarco.

But this is just half of what the 2024 annual payout will be, with the final dividend payout for FY24 landing in September.

The forecast on Commsec suggests the business could pay an annual dividend per share of A$2.40, which would be a grossed-up dividend yield of 7.7%.

Forecast for 2025

The further into the future forecasts go, the broader the range of potential outcomes, particularly with mining shares affected by the changing price of commodities. The iron ore price, for example, could be stronger or much weaker than it is right now.

On Commsec, the prediction is that BHP’s profit and dividend could be a bit lower than FY24. The miner is forecast to pay an annual dividend per share of A$2.21 in FY25. This would be a grossed-up dividend yield of 7.1%.

And for 2026?

The Commsec projection expects BHP profit and dividends to decrease again by a small amount in FY26.  

The company is forecast to pay an annual dividend per share of A$2.15 in the 2026 financial year. This would be a grossed-up dividend yield of 6.9%.

Foolish takeaway

BHP is expected to keep paying a solid dividend for the foreseeable future, but forecasts can change as quickly as commodity prices, so we’ll have to see how much the future aligns with those predictions.

The post Here’s the BHP dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Better buy: Fortescue or BHP shares?
• 3 ASX 100 and ASX 200 shares I’d buy now for a $1,820 passive income in 2024!
• Top brokers name 3 ASX shares to buy today
• Should you buy BHP shares following the miner’s half-year results?

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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If you’re on the lookout for some new ASX dividend shares to buy, then it could be worth considering the three listed below.

Here’s what analysts are saying about them:

Rio Tinto Ltd (ASX: RIO)

Rio Tinto could be an ASX dividend share to buy this week.

It is of course one of the world’s largest miners and the owner of a portfolio of world class operations across multiples commodities.

Goldman Sachs is very positive on the company and has a buy rating and $140.50 price target on its shares.

As for dividends, the broker is expected fully franked dividends per share of US$4.61 (A$7.03) in FY 2024 and then US$4.62 (A$7.05) in FY 2025. Based on the latest Rio Tinto share price of $124.40, this will mean yields of approximately 5.65% in both years.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs also believes that investors should be snapping up Telstra’s shares while they’re cheap.

Particularly given its low risk earnings and dividend growth over FY 2023 to FY 2025. Goldman has a buy rating and $4.65 price target on Telstra’s shares.

In respect to income, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025. Based on the current Telstra share price of $3.88, this equates to yields of 4.6% and 4.8%, respectively.

Transurban Group (ASX: TCL)

Finally, the team at Citi believes that Transurban could be an ASX dividend share to buy now. It is the toll road operator behind roads such as CityLink and Cross City Tunnel.

Citi currently has a buy rating and $15.90 price target on Transurban’s shares.

As for dividends, it is expecting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.38, this will mean yields of 4.7% and 4.85%, respectively.

The post 3 ASX dividend shares to buy before it’s too late appeared first on The Motley Fool Australia.

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More reading

• 3 of the safest ASX 200 dividend shares in Australia right now
• 3 ASX shares to buy and hold forever
• 25 ASX 200 shares with ex-dividend dates next week
• 5 reasons to buy Rio Tinto shares now
• These super-strong ASX 200 blue chip shares could deliver 20% returns

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) is still the most shorted ASX share after its short interest rose to 21%. Weak lithium prices have been weighing heavily on sentiment (and profits).
• Syrah Resources Ltd (ASX: SYR) has short interest of 17.6%, which is up week on week. Short sellers don’t appear to believe that graphite prices will improve any time soon. This could mean that Syrah’s cash burn continues for some time to come.
• Core Lithium Ltd (ASX: CXO) has short interest of 12.1%, which is down since last week. This lithium miner has been struggling with falling lithium prices. So much so, it has announced plans to restrict production to reduce costs.
• IDP Education Ltd (ASX: IEL) has 11.1% of its shares held short, which is up sharply week on week. Short sellers have been loading up on the language testing and student placement company’s shares following its half-year results.
• Sayona Mining Ltd (ASX: SYA) has 10.2% of its shares held short, which is down week on week. This lithium miner’s shares were sold off (again) last week after a large shareholder sold its entire stake at a big discount.
• Deep Yellow Limited (ASX: DYL) has seen its short interest ease to 9.8%. Short sellers appear to believe that the market is being too bullish on uranium prices.
• Genesis Minerals Ltd (ASX: GMD) has seen its short interest rise slightly to 9.2%. This appears to have been driven by integration risks from a recent acquisition spree.
• Chalice Mining Ltd (ASX: CHN) has short interest of 9%, which is up week on week. Short sellers have been targeting this mineral exploration company since it revealed that its production is still years away.
• Weebit Nano Ltd (ASX: WBT) has short interest of 8.4%, which is down week on week. Valuation concerns appear to be behind this.
• Flight Centre Travel Group Ltd (ASX: FLT) has 8.4% of its shares held short, which is up week on week. Short sellers appear to be expecting a soft result from the travel agent this week.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 3 things ASX investors should watch this week
• Top brokers name 3 ASX shares to buy next week
• Why ASX 200 investors remain upbeat on Pilbara Minerals shares
• 1 ASX growth stock down 40% to buy right now
• Here’s why I’m steering clear of Core Lithium shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week on a positive note. The benchmark index rose 0.4% to 7,643.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Monday following a mixed finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher. On Friday in the United States, the Dow Jones was up 0.15%, but the S&P 500 rose slightly, and the Nasdaq dropped 0.3%.

Oil prices fall

It could be a relatively tough start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.7% to US$76.49 a barrel and the Brent crude oil price was down 2.45% to US$81.62 a barrel. Easing rate cut hopes weighed on oil prices.

ASX 200 result releases

There are plenty of ASX 200 releasing their results today. This includes drinks giant Endeavour Group Ltd (ASX: EDV), telco TPG Telecom Ltd (ASX: TPG), and insurers NIB Holdings Limited (ASX: NHF) and Suncorp Group Ltd (ASX: SUN). Goldman Sachs expects the latter to post cash earnings of $678 million for the first half.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday. According to CNBC, the spot gold price was up 0.75% to US$2,045.8 an ounce. Safe haven demand drove the precious metal higher.

Xero shares are a buy

Xero Ltd (ASX: XRO) shares are great value according to analysts at Goldman Sachs. The broker has reiterated its buy rating and $141.00 price target on the cloud accounting company’s shares ahead of its investor day event later this week. While the broker isn’t expecting any medium-term guidance to be provided, if it does, it is forecasting “FY28 Revenue of NZ$3.0bn (VAe $3.1bn), a 16% CAGR (14% sub, +2% ARPU).”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• Morgans says these ASX shares are buys (with special dividends to come)
• 3 of the safest ASX 200 dividend shares in Australia right now
• How to generate $50,000 of passive income from ASX shares each year
• Why these 4 ASX 200 shares grabbed the Motley Fool’s headlines this week
• Here’s how the ASX 200 market sectors stacked up this week

Motley Fool contributor James Mickleboro has positions in Endeavour Group, Woodside Energy Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended NIB Holdings and Xero. The Motley Fool Australia has recommended Tpg Telecom. 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 final days of the ASX reporting season are now upon us, so there is plenty of data for investors to digest.

Amid the information overload, don’t forget to monitor these events that could impact your ASX shares:

1. Australia monthly inflation

The January consumer price index statistics will be released on Wednesday, which will have a big impact on what the Reserve Bank will do with interest rates.

“Expectations are for inflation to rise 3.5% year-over-year, stalling slightly from January’s 3.4% and snapping a streak of continuous easing,” said eToro market analyst Josh Gilbert.

“Market pricing has shifted in recent weeks, but June is still the first meeting where the expectation is a cut.”

The great news for consumers, mortgage holders, and ASX shares is that economic data has recently been coming in as the RBA predicted.

Gilbert reckons this provides “the potential for three cuts” this year.

“This week, the ABS also reported that Australians experienced the highest recorded rise in wages in almost 14 years, and the first significant pay increase in nearly three years,” he said. 

“This marked the first time since March 2021 that wage growth outpaced inflation — a welcome figure that many Australians will be hoping continues in 2024. “

2. Coles results

One of the big S&P/ASX 200 Index (ASX: XJO) reporting season events will take place Tuesday morning when Coles Group Ltd (ASX: COL) reveals its numbers.

The market will be especially interested after its supermarket rival Woolworths Group Ltd (ASX: WOW) last week copped a $781 million loss.

“Similar to Woolworths, Coles is also expected to report declining profits, but revenue is set to grow at the fastest pace for almost three years, which may prove to be a silver lining.”

With the social contracts of big business under political scrutiny, the grocery giant will walk the tightrope.

“Coles has experienced intensifying scrutiny over the past couple of months, with an influx of media interest and the Australian government directing the ACCC to review prices and competition in the supermarket sector following accusations of price gouging,” said Gilbert.

“Balancing profitability alongside customer relations is no easy task, and this will be an ongoing challenge for Coles,” 

3. Flight Centre results

Wednesday will see travel agent Flight Centre Travel Group Ltd (ASX: FLT) make its contribution to reporting season.

Gilbert pointed out how the COVID-19 pandemic forced the company to slim down, which ended up a blessing in disguise.

“Around 15,000 staff were laid off in a bid to greatly reduce costs. 

“This appeared to be a good move for the company, with Flight Centre announcing solid results for FY23, reporting revenue that was up 126% to $2.28 billion, and EBITDA rising by 260% to $300 million.”

Travel demand remains high, according to Gilbert, but the wind has been taken out of sky-high airfares from 2023.

“Investors will be focused on future guidance given that the market expects solid profits for the full year that have not been since the pandemic.

“Any shift away from current guidance will put shares under pressure, but reaffirming guidance will put shares on the front foot.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• 3 of the safest ASX 200 dividend shares in Australia right now
• Own Flight Centre shares? Here’s what you need to know ahead of its results
• ASX earnings: What can we expect from Coles shares next week?
• Analysts say these ASX dividend shares are top buys
• These are the 10 most shorted ASX shares

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Flight Centre Travel 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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