Tag: Motley Fool

The Australian share market is mimicking last night’s muted display from Wall Street, with the S&P/ASX 200 Index (ASX: XJO) down 0.6% to 7,610.5 points at lunchtime. However, one ASX 200 stock is dodging the carnage today, being completely motionless.

Escaping the judgemental glance of investors, Orica Ltd (ASX: ORI) hit the pause button on its shares before the market sprung to life this morning. As a result, shares in the commercial explosives and blasting systems manufacturer are stationary at $16.85 apiece.

The intervening move is not without reason. Orica was granted a trading halt before an announcement relating to a corporate transaction and an associated equity raising, the details of which have now been released.

What’s being acquired?

According to the release, Orica has entered into a binding agreement to acquire 100% of Cyanco Intermediate 4 Corp.

Cyanco makes and distributes sodium cyanide for silver and gold extraction. The United States-based company was founded in 1990 and supplies its extraction products to customers in the mining industry across the US, Canada, Mexico, Latin America, and Africa.

Orica will pay US$640 million — equivalent to A$976.4 million — to Cerberus Capital Management to acquire the company on a cash-free, debt-free enterprise value basis. The purchase price equals an implied multiple of 7.5 times 2023 earnings before interest, taxes, depreciation, and amortisation (EBITDA) before synergies.

To fund the deal, the ASX 200 stock will tap its existing cash and debt facilities for the majority of the required payment. It will raise an additional A$400 million through an underwritten institutional placement (capital raise).

Finally, Orica will offer A$65 million as a non-underwritten share purchase plan for eligible shareholders.

How is it expected to benefit Orica?

Orica is already a substantial producer of sodium cyanide. The acquisition of Cyanco is slated to double the company’s production of the mining chemical to around 240,000 tonnes per annum. Moreover, the deal will expand Orica’s presence in North America through Cyanco’s existing clients.

On this, Orica managing director and CEO Sanjeev Gandhi said:

Cyanco is a highly complementary business, and by combining it with our established sodium cyanide business, Orica will create a leading integrated global sodium cyanide producer with world-class supply capabilities in mining.

The Acquisition will more than double Orica’s existing sodium cyanide production capacity and provide us with the ability to cater to the highly attractive US and Canadian gold mining industries.

Gaining access to Cyanco’s Nevada and Texas manufacturing plants is also attractive from a cost perspective. The region benefits from low-cost natural gas, allowing the company to be more competitive in price.

Lastly, ongoing cost synergies are anticipated to be US$10 million per annum after three years of ownership.

What’s next for the ASX 200 stock?

The next step is for Orica to undertake the capital raising activities, the first of which is the placement.

As per the announcement, the company aims to raise A$400 million through the placement at A$15.84 per share. This would represent a 6% discount to the last traded Orica share price of A$16.85.

Meanwhile, the company expects to send the share purchase plan on 29 February. This will allow shareholders to apply for up to $30,000 worth of new shares as part of the $65 million raising, closing on 18 March 2024.

Finally, FY2024 earnings remain unchanged from those previously shared.

The post Guess which ASX 200 stock is frozen on a $976 million acquisition 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

• Everything you need to know about the Woolworths dividend
• Why Codan, Domino’s, Lottery Corp, and Wisetech shares are storming higher today
• 4 All Ords ASX dividend shares going gangbusters on results
• Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing
• Is the Vanguard Australian Shares Index ETF (VAS) a good buy for beginners?

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 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/Zxga47m

The S&P/ASX 200 Index (ASX: XJO) is have a difficult session. In afternoon trade, the benchmark index is down 7% to 7,607.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Codan Ltd (ASX: CDA)

The Codan share price is up almost 14% to $9.55. This morning, the electronic products company released its half-year results and reported a 26% increase in group revenue to $265.9 million and a 24% lift in net profit after tax to $38.1 million. This was underpinned by strong growth across both its Communications and Metal detection businesses.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 2.5% to $40.53. This follows the release of the pizza chain operator’s half-year results. Although Domino’s reported a 13% decline in net profit after tax to $62.3 million, investors were pleased to see that the second half has started positively. For example, ANZ same store sales were up 8.39% during the first seven weeks of the half.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is up over 2% to $5.16. Investors have been buying this lotteries company’s shares after it posted a 1.8% decline in revenue to $1,738.3 million but a 25.7% increase in  net profit after tax (including significant items) to $217.4 million.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up 11% to $88.72. This follows the release of the logistics solutions company’s half-year results. Wisetech reported a 32% increase in revenue to $500 million and 23% lift in EBITDA to $230 million. The main driver of its growth was the key CargoWise business, which reported a 40% increase in revenue to $421 million.

The post Why Codan, Domino’s, Lottery Corp, and Wisetech shares are storming higher today 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

• 4 All Ords ASX dividend shares going gangbusters on results
• 2 ASX 300 tech shares making huge moves on earnings updates
• WiseTech share price leaps 8% today as revenues surge
• Domino’s share price charges higher on improving outlook
• 1 ASX dividend stock down 55% to buy right now

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Lottery, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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/lqJcnR0

Four All Ords ASX dividend shares are doing their share of the heavy lifting today.

During the Wednesday lunch hour, the All Ordinaries Index (ASX: XAO) is down 0.6%.

That’s despite these four ASX dividend shares posting gains of up to 9% at the time of writing following their earnings results.

Here’s what’s spurring investor interest in these All Ords stocks.

Why these ASX dividend shares are rocketing today

The first All Ords stock going gangbusters on the heels of its half-year results is engineering and project management consultancy company Lycopodium Ltd (ASX: LYL).

The Lycopodium share price is up 8.9% in intraday trade at $13.29 a share. That sees the share price up a whopping 76% in 12 months.

Highlights for the six months include an 11% year on year increase in revenue to $178 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 35% from 1H FY 2023 to $44 million. And net profit after tax (NPAT) leapt 50% to $30 million. The company’s cash holding went the other direction, down 27% to $69 million.

The ASX dividend share pleased passive income investors with a fully franked interim dividend of 37 cents per share.

If you want to bank that dividend, you’ll need to own shares at market close on 22 March. Lycopodium trades ex-dividend on 25 March. Eligible investors can expect that payout on 4 April.

Which brings us to the second All Ords ASX dividend share soaring on its full-year 2023 results, Ventia Services Group Ltd (ASX: VNT).

Shares in the infrastructure maintenance services provider are up 8.5% today, trading for $3.65 apiece.

Among the FY 2023 highlights, the company reported a 9.8% year on year increase in revenue to $5.68 billion. EBITDA of $465 million was up 10.8% with an EBITDA margin of 8.2%.

Net profit after tax and amortisation (NPATA) increased 12.5% to $202 million.

And the ASX dividend share looks to have spurred All Ords investor interest with FY 2024 guidance forecasting 7% to 10% growth in NPATA.

As for that passive income, Venetia Services declared a final dividend of 9.41 cents per share, franked at 80%. The total dividend for FY 2023 of 17.72 cents per share is up 12.5% from FY 2022.

Venetia shares trade on a partly franked yield of 4.7%.

Two more All Ords dividend stocks soaring on results

Also soaring following the release of its half-year results is Lottery Corp Ltd (ASX: TLC), the company responsible for the OZ Lotto, Powerball, and Keno brands.

The Lottery Corp share price is up 3.4% on the back of those results, trading for $5.22 a share.

Among the highlights of the half year, the ASX dividend share reported “resilient” revenue of $1.89 billion, down about 2% year on year. EBITDA came in at $399 million, also down just over 2% from 1H FY 2023.

Commenting on the results sending the Lottery Corp share price higher today, CEO Sue van der Merwe said:

During the half, we reaped the benefits of the change we made to Oz Lotto in 2022 to increase the probability of bigger jackpots. The $90 million draw on Boxing Day was the biggest Oz Lotto jackpot in more than a decade.

The company also flagged ongoing initiatives to drive future growth, including its newly evolved Weekday Windfall game and a digitally enhanced retail membership program.

Lottery Coro declared a fully franked interim dividend of 8.0 cents per share. The stock trades on a fully franked yield of 2.7%.

Which brings us to the fourth ASX dividend share being rewarded on the back of its full-year results for 2023.

Namely employee management services provider Smartgroup Corporation Ltd (ASX: SIQ).

The Smartgroup share price is up 2.9% today at $9.88 a share.

Highlights from the full-year results that look to be spurring All Ords investor interest include a 12% year on year increase in revenue to $252 million.

Operating EBITDA of $100 million was up 7% from 2022, while NPATA increased by 3% to $63 million.

In what management noted was a “competitive environment” the ASX dividend share managed to increase its novated leasing and salary packaging customer numbers while securing “significant” new clients and renewing many existing ones.

On the passive income front, Smartgroup declared a final dividend of 16.0 cents per share and a special dividend of 16.0 cents per share, both fully franked. That brings total dividends for the year to 47.5 cents per share.

Smartgroup shares trade on a fully franked yield of 4.8%.

The post 4 All Ords ASX dividend shares going gangbusters on results 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

• Why Codan, Domino’s, Lottery Corp, and Wisetech shares are storming higher today
• 3 ASX All Ords shares crashing as much as 24% on results
• 3 ASX All Ords stocks surging 10% to 46% on earnings results
• 5 ASX shares to buy and hold forever in your investment portfolio
• History suggests this under-the-radar ASX 200 stock could be a dark horse this reporting season

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 positions in and has recommended Lottery. The Motley Fool Australia has positions in and has recommended Smartgroup. 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/AEL6Ojt

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 7,612.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price is down 18% to $16.20. This follows the release of the corporate travel specialist’s half-year results. Although the company posted a 162% increase in underlying net profit after tax to $57.9 million, this has been overshadowed by softer than expected guidance for the full year.

Iress Ltd (ASX: IRE)

The Iress share price is down 6% to $8.20. This morning, this financial technology company released its full-year results and reported a 2% increase in operating revenue to $625.7 million but a 12% decline in underlying EBITDA to $128.3 million.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down almost 3% to $124.55. Investors have been selling this mining giant’s shares after a sharp decline in iron ore prices offset the release of an announcement this morning. The latter reveals that Rio Tinto has signed Australia’s largest renewable power purchase agreement (PPA) to date to supply its Gladstone operations in Queensland.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down over 8% to $32.87. This has been driven by the release of the supermarket giant’s half-year results and the announcement of the resignation of its CEO, Brad Banducci. Woolworths reported a loss after significant items of $781 million. Profit before significant items was up 2.5% to $929 million. Banducci will exit on 1 September after eight and a half years at the helm.

The post Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing 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

• 2 ASX 300 tech shares making huge moves on earnings updates
• Woolworths share price dives 7% following Banducci bombshell
• Corporate Travel share price plunges 18% despite tripling net profits
• Rio Tinto shares tumble despite massive renewable power agreement
• Woolworths shares on watch after CEO exit and $781 million loss

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 Corporate Travel Management. The Motley Fool Australia has recommended Corporate Travel Management. 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/CqWec2S

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular ASX-listed exchange-traded fund (ETF). Is it the right choice for beginners?

The ETF is $14.6 billion in size, there are a lot of people who have some money allocated to this investment fund.

As a reminder, an ETF is a fund that allows people to buy a basket of shares in a single investment. This means we don’t need to go and buy hundreds of businesses ourselves. Fewer transactions save on a lot of brokerage fees, which is a great benefit. We also don’t need to worry about all the buying and selling of the companies in the portfolio.

If you’re a beginner looking for more information about money, investing and the ASX share market, then don’t miss The Motley Fool Australia’s free Financial Literacy Week coming up soon.

The reasons why the VAS ETF is so popular also explain why it could be a good choice for beginner investors.

Very low management fees

Not everyone wants to spend a lot of time looking at the share market, so delegating the investing could be a good idea.

Investment fees can make a big difference to our wealth over time. The VAS ETF has an annual management fee of 0.07%, whereas plenty of fund managers charge a fee of at least 1%.

A 10% gross return would become a 9.93% net return after a 0.07% fee. If we assume the same gross return of 10%, the net return would be 9% after a 1% fee. The difference of less than 1% may not seem that much in one year, but it can cause a large difference in dollar terms over a number of years.

$10,000 growing at an average of 9.93% per year would become $25,773 after ten years.

$10,000 growing at an average of 9% per year would become $23,674 after ten years.

That’s a difference of more than $2,000!

Diversification

Owning the Vanguard Australian Shares Index ETF comes with underlying exposure to a lot of different businesses, which is good for beginner investors.

It tracks the return of the S&P/ASX 300 Index (ASX: XKO), which represents 300 of the largest businesses on the ASX.

Owners of VAS ETF units get exposure to the 300 holdings, with holdings like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES) and Woodside Energy Group Ltd (ASX: WDS).

A lot of different sectors are represented in the portfolio, including ASX financial shares, ASX mining shares, ASX healthcare shares, ASX retail shares and so on. However, more than half is invested in financials and miners, which is less diversified than other share markets (such as the global share market).

Decent returns

The Vanguard Australian Shares Index ETF isn’t full of large, fast-growing technology companies, so its long-term return hasn’t been as strong as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or the iShares S&P 500 ETF (ASX: IVV).

Having said that, the rate of returns and compounding is still good enough to enable good growth.

Over the past decade, the VAS ETF has achieved total returns per annum of 8.29%, which saw average passive income returns of 4.54% per year and average capital growth returns of 3.75%. These numbers don’t include the benefit of franking credits.

I think Vanguard Australian Shares Index ETF is a good option for beginner investors, but I’d suggest it play just a part in a portfolio, with a substantial portion invested in global shares as well. The ASX only makes up around 2% of the global share market.

The post Is the Vanguard Australian Shares Index ETF (VAS) a good buy for beginners? 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

• Retirees: Here’s how to boost your pension in 2024
• Thinking about buying the Vanguard Australian Shares ETF (VAS)? Here’s what you’re really buying
• Transform $50 into monthly income: The best ASX dividend stocks under $50
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• 5 ASX shares to buy and hold forever in your investment portfolio

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 CSL, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended CSL, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. 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/AD8fCIJ

There have been some big moves on the ASX 300 index on Wednesday following the release of results.

Two ASX 300 tech shares which are heading in very different directions are listed below. Here’s what they reported:

Codan Ltd (ASX: CDA)

The Codan share price is up 10% to $9.30. This follows the release of the electronic products company’s half-year results.

The ASX 300 tech share reported a 26% increase in group revenue to $265.9 million and a 24% lift in net profit after tax to $38.1 million.

This was driven by strong growth across its Communications and Metal detection businesses. Communications revenues increased 12.5% to $153.6 million whereas Metal detection revenues were up 49% on the prior corresponding period.

And with its Communications order book sitting pretty at $183 million (+12% versus 30 June), the second half is looking promising.

Iress Ltd (ASX: IRE)

The Iress share price is heading the other way and was down as much as 11% to $7.75 at one stage.

The financial technology company’s shares have recovered somewhat since then but remain down 6% at the time of writing.

Investors were selling the ASX 300 tech share following the release of its full year results for FY 2023. The company reported a 2% increase in operating revenue to $625.7 million but a 12% decline in underlying EBITDA to $128.3 million.

One positive is that the company’s underlying EBITDA margin improved during the second half. It went from 18.9% in the first to 22.2% in the second. This sets up the company nicely going into FY 2024.

In fact, management advised that its exit run-rate implies underlying EBITDA of $160 million to $180 million in FY 2024. This would be an increase of 24.8% to 40% on FY 2023’s result.

The post 2 ASX 300 tech shares making huge moves on earnings updates 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

• Should you buy BHP shares following the miner’s half-year results?
• Woolworths share price dives 7% following Banducci bombshell
• Corporate Travel share price plunges 18% despite tripling net profits
• NAB shares hit 52-week high on first-quarter earnings beat
• Santos share price slips on 42% profit drop in FY23 result

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

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

BHP Group Ltd (ASX: BHP) shares are under pressure on Wednesday.

At the time of writing, the mining giant’s shares are down over 3% to $44.04.

Why are BHP shares falling?

Investors have been hitting the sell button today after the price of iron ore tumbled during overnight trade.

As we covered here, the spot benchmark iron ore price fell 5% overnight to US$120.85 a tonne in response to concerns over weak economic growth in China.

Is this a buying opportunity?

The team at Goldman Sachs is likely to see this as a buying opportunity for investors.

This morning, the broker responded to BHP’s half-year results release by retaining its buy rating and $49.40 price target on its shares.

Based on the current BHP share price, this implies potential upside of approximately 12% over the next 12 months.

In addition, the broker is forecasting fully franked dividends of US$1.45 per share (A$2.21 per share) in FY 2024. This equates to a 5% dividend yield based on where its shares trade at present.

Commenting on the results, the broker said:

BHP reported a broadly in-line 1H FY24 result with underlying EBITDA/NPAT of US$13.9bn/US$6.6bn, -3%/-3% vs. our estimates but broadly in-line with Visible Alpha consensus. The interim div of US72c (56% payout) was broadly in line with GSe at US74c (55% payout). Net debt of US$12.6bn was pre-guided and was in-line with our US$12.7bn estimate. FY24 production & cost guidance is unchanged and medium-term capex guidance of US$11bn was reaffirmed.

And while the miner’s capex spending for the Jansen Potash project was higher than expected, Goldman highlights that management is being disciplined with its spending. This includes deferring its spending on the new concentrator at Escondida by one to two years. It adds:

BHP provided the capex profile for both stages at Jansen, with capex front end loaded vs expectations over the medium term at US$2-2.5bn pa in FY25-27 vs GSe/Cons at c.US$1.5bn pa. So whilst the Escondida concentrator deferral is a surprise, it shows BHP remains disciplined within its US$11bn pa capex target. Deferral may also alleviate the execution risk that may emerge with trying to deliver a major project at a time when peers have seen major challenges.

All in all, the broker believes that BHP shares have an “attractive valuation” and retains its buy rating.

The post Should you buy BHP shares following the miner’s half-year results? 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

• 5 things to watch on the ASX 200 on Wednesday
• Here’s everything you need to know about the latest BHP dividend
• BHP shares fall after disappointing first-half earnings miss
• BHP share price on watch amid 86% profit decline and dividend cut
• 5 things to watch on the ASX 200 on Tuesday

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. 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/6YoKFvu

The Woolworths Group Ltd (ASX: WOW) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $35.87. In late morning trade on Wednesday, shares are swapping hands for $33.48 apiece, down 6.7%.

For some context, the ASX 200 is down 0.4% at this same time.

Here’s what’s spooking investors today.

ASX 200 investors hitting the sell button

ASX 200 investors are pressuring the Woolworths share price today following the release of the company’s half-year results (1H FY 2024) and the unexpected departure of CEO Brad Banducci.

First, a look at those financials.

On the plus side, revenue increased by 4.4% from 1H FY 2023 to $34.64 billion.

And the fully franked interim dividend of 47 cents per share was up 2% from last year’s interim dividend.

On the negative side of the ledger, losses after significant items came in at $781 million. That compares to a profit of $845 million in 1H FY 2023. Most of those losses relate to the $1.5 billion non-cash write-down of the supermarket’s New Zealand business.

Woolies alerted the market to that write-down last month, though the half-year losses are larger than consensus expectations.

Also likely spooking investors today was the company’s warning that sales over the first seven weeks of 2024 (2H FY 2024) have continued to moderate. Management noted that consumers are becoming more cautious, which could see ongoing pressure on the company’s sales.

Woolies says goodbye to Banducci

In a bombshell announcement that’s also likely throwing up headwinds for the Woolworths share price today, CEO Brad Banducci will step down from his role after more than 13 years with the company and more than eight years at its helm.

Banducci will stay on until 1 September. Amanda Bardwell, who’s been leading WooliesX will replace Banducci as the new CEO of Woolies.

“Amanda is a proven leader, business builder and modern retailer. Most recently, under her leadership, WooliesX has gone from infancy in 2015 to a $7bn market leading business,” Woolworths chair Scott Perkins said.

As for Banducci’s departure, Perkins added:

The test of any CEO is to leave the business in much better shape than when they started. On that simple metric, history will judge Brad to have been one of Woolworths Group’s finest leaders.

Woolworths share price snapshot

With today’s big intraday fall factored in, the Woolworths share price is down 11% in 2024.

Longer-term, shares are up 38% over five years, not including the company’s dividend payouts.

The post Woolworths share price dives 7% following Banducci bombshell 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

• Woolworths shares on watch after CEO exit and $781 million loss
• If I invest $10,000 in Woolworths shares, how much dividend income will I receive in 2024?
• ASX blue chip shares: The best of the best for February 2024
• Buy these top ASX 200 stocks for 18%+ returns
• Will these ASX 200 shares help you retire rich?

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/zlLdJH2

The Corporate Travel Management Ltd (ASX: CTD) share price is falling off a cliff on Wednesday amid its FY24 first-half results.

Shares in the travel management solutions company are down 18.5% to $16.18 this morning. At one point the share price reached $15.82 soon after opening, equating to a 20% fall.

Corporate Travel share price craters on mirky results

• Revenue up 25% from the prior corresponding period to $363.7 million
• Underlying EBITDA up 96% to $100.7 million
• Underlying net profit after tax (NPAT) up 162% to $57.9 million
• Statutory NPAT up 222% to $50.4 million
• Interim unfranked dividend of 17 cents per share, up from 6 cents

What happened in the first half?

For the six months ended 31 December 2023, Corporate Travel Management enjoyed a self-described record half.

Despite a minimal recovery in the global travel market, the company notched up its revenue by 25%, mainly from market share gains. For example, $630 million worth of new clients were won, outpacing the industry.

The outsized growth in earnings relative to revenue was achieved through ‘improving efficiency and controlling costs’.

Looking at the performances of the different regions that Corporate Travel Management operates in, it quickly becomes apparent there were some mixed results.

Revenue growth was subdued in North America and Australia and New Zealand (ANZ). Meanwhile, Europe and Asia experienced exceptional increases, with both regions posting record EBITDA. According to the report, Europe operations benefit from the company’s proprietary technology in over 90% of online transactions.

Outlook for the company

Corporate Travel Management laid out a couple of items that are expected to impact its previous forecasts. With a combination of ‘macro issues’ and material underperformance of its United Kingdom Bridging contract, the company is eyeing a $40 million EBITDA headwind in FY24, as shown below.

As a result, FY24 guidance has been updated to the following:

• Revenue between $730 million to $760 million, suggesting a 15% increase at the midpoint
• Underlying EBITDA between $210 million to $230 million, suggesting a 31.7% increase at the midpoint
• Underlying NPAT between $125 million to $140 million

Importantly, it was noted the above detracting factors are out of the company’s control.

What else?

Lastly, a five-year growth plan was unveiled in today’s results. The newly devised strategy aims to double FY24 profits organically by FY29. To do this, Corporate Travel Management plans to apply the following five priorities:

• Revenue growth of more than 10% per annum over five years
• Client retention of 97% per annum
• Further improvements to productivity and innovation
• EBITDA growth above revenue growth, converting 50% of new revenue into EBITDA
• Acquisitions to provide growth in addition to organic goals

The Corporate Travel Management share price is down 9% compared to a year ago.

The post Corporate Travel share price plunges 18% despite tripling net profits 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

• 3 exciting ASX growth shares Bell Potter rates as buys

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 positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Corporate Travel Management. 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/Q235klE

National Australia Bank Ltd (ASX: NAB) shares are pushing higher on Wednesday morning.

At the time of writing, the banking giant’s shares are up 1% to a 52-week high of $33.85

Why are NAB shares rising?

Investors have been buying the bank’s shares this morning after responding positively to its first-quarter update.

For the first quarter, NAB reported cash earnings of $1.8 billion, which represents a 16.9% decline compared to the prior corresponding period.

However, this was better than the market was expecting, which explains why its shares are rising today.

Goldman Sachs was pleased with the update, noting that NAB is on course to at least deliver on its estimates during the first half of FY 2024. It said:

NAB has released its 1Q24 trading update, with unaudited cash earnings from continuing operations of A$1.8 bn, down -3% on the 2H23 quarterly average, but run-rating in-line with what was implied by our prior 1H24E forecasts. PPOP was 1% ahead of what was implied by our prior 1H24E forecasts, driven by lower expenses, and while BDDs were also lower, this was offset by a higher tax rate.

In response to the update, the broker has reiterated its buy rating with an improved price target of $33.73 (from $31.17). Though, it is worth noting that NAB shares have just pushed beyond this price target.

Goldman concludes:

We reiterate our Buy on NAB given: i) while lending competition remains, it has been skewed more heavily towards housing as opposed to business, which should benefit NAB’s relative earnings mix, ii) NAB has delivered the highest levels of productivity over the last three years and its investments continue to yield benefits (A$400 mn of productivity expected in FY24E), which we think leaves it well positioned for an environment of elevated inflationary pressure, which was evidenced in 1Q24, and iii) despite being overweight SME lending, which is inherently riskier than housing, NAB remains well provisioned (CP/RWA ratio above peer levels) and asset quality remains strong, which management attributed to the quality of its book and its security.

The post NAB shares hit 52-week high on first-quarter earnings beat 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

• NAB share price on watch following Q1 update
• 5 things to watch on the ASX 200 on Wednesday
• Own NAB shares? Here’s how much profit to expect in Q1
• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday

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. 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/RdKpELB