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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.55% to 7,647.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 13% to $3.75. Investors have been selling the poultry producer’s shares despite it doubling its half-year profits. They appear to have been spooked by management’s outlook commentary for the second half.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 3.5% to $6.09. Although the insurance giant reported strong profit growth during the first half, it appears to have fallen short of expectations. Goldman Sachs commented: “Overall result summary: 1) Insurance profits: 1H24 result was $614m vs. GSe of $628m. 2) Cash earnings for 1H24 was $415m vs. GSe of $442m. 3) Underlying margin in line: IAG’s definition of 1H24 underlying margin was 13.7% (however 15.1% ex reinsurance reinstatement) vs. GSe of 15.1%. 4) Reported margin: 1H24 reported margin was 13.7% vs. GSe of 13.9%.”

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price was down 13% to $20.04 before being paused from trade. Investors were hitting the sell button after a short seller targeted its US partner Acadia Pharmaceuticals. It alleges that the Daybue drug Neuren licensed to Acadia is a flop and that users are reporting “horror stories” from using it.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is down 6% to $88.00. This morning, Bell Potter downgraded the health imaging technology company’s shares to a sell rating with a $75.00 price target. It said: “PME remains a high quality technology group with price leadership, great margins and earnings growth through the economic cycle. Notwithstanding, the stock is overpriced relative to its peers and earnings growth and for these reasons we downgrade our recommendation to Sell.”

The post Why Inghams, IAG, Neuren Pharmaceuticals, and Pro Medicus shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 share is crashing 15% despite doubling its first-half profits
• This ASX 200 healthcare share is diving 13% as short sellers take aim
• IAG share price sinks 6% despite huge dividend boost and buyback
• 5 things to watch on the ASX 200 on Friday
• Why BHP, IDP Education, Pro Medicus, and Whitehaven Coal shares are dropping

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 Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form and pushing higher. The benchmark index is up 0.45% to 7,640.2 points.

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

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up almost 5% to $3.35. The building products company’s shares are rebounding today following a selloff on Thursday. The team at Ord Minnett believes the weakness created a buying opportunity. This morning, the broker retained its buy rating on the company’s shares with a lofty $5.70 price target.

GQG Partners Inc (ASX: GQG)

The GQG share price is up almost 5% to $2.23. Investors have been buying the fund manager’s shares following the release of its full year results. GQG reported an 18.5% increase in revenue to US$517.6 million and a 15.7% lift in net operating income to US$384.4 million. This allowed the company to lift its final dividend by 30% to 2.6 US cents per share.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up almost 6% to $3.66. Investors are buying ASX lithium shares on Friday amid reports that the Albanese government is considering a multibillion-dollar initiative to try to compete with the United States Inflation Reduction Act. According to the AFR, the aim is to drive the domestic development of clean energy technology.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 2.5% to $1.19. This has been driven by news that the payments company has settled its legal proceedings commenced against Kounta. These proceedings asserted that Kounta breached its obligations to Tyro by offering a competing product to Tyro merchants. Kounta will pay Tyro $10 million in damages and not solicit certain mutual merchants until September.

The post Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today appeared first on The Motley Fool Australia.

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More reading

• Up 55% in a year, GQG share price charging higher again on surging revenue results
• Own Pilbara Minerals shares? Here’s your first-half results preview
• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• 2 cheap and ‘attractive’ ASX shares to buy now that you’ve not thought of
• Why Fletcher Building, Graincorp, GUD, and Seek shares are sinking today

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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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Altium Limited (ASX: ALU) shares have had a very good week, rising by 28% after accepting a takeover offer. In fact, Altium shares are up 43% in the past month and 79% in six months.

Investors may be wondering about buying Altium shares and what happens next. So, let’s have a look at what may happen.

Offer accepted

Tokyo-based Renesas Electronics, a supplier of advanced semiconductor solutions, is the business that’s trying to buy Altium.

Under the proposal, Altium shareholders will receive A$68.50 per share in cash. At the moment, the Altium share price is trading at around $66, which is around 3.8% below the takeover offer.

So, if shareholders want to exit now, they can get almost all of the potential value of this takeover deal without having to wait for many months.

Why is there a discount? I’d suggest it’s because of two main reasons. First, the takeover still has a number of steps to go through – it’s not guaranteed to happen.

There’s also a time cost. Investors recognise that money could get a safe return in a savings account or bond with an annual interest rate of 4% or 5%. As the takeover date approaches, I’d expect the discount to close up because there’s less time until the deal goes through (and less missed potential interest from a bond/savings account).

Unless there’s a bigger takeover offer, that approximately 4% return is the most investors will get from here.

What next for the Altium takeover?

The offer has a very good chance of going ahead because of how large it is.

Renesas’ offer gives Altium an equity value of A$9.1 billion. The offer is a 31% premium to the all-time high closing Altium share price on 12 February 2024.

The Altium board has unanimously recommended that shareholders vote in favour of the takeover in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the offer is in the best interests of Altium shareholders. Assuming those qualifications are ticked off, Altium’s directors plan to vote their collective 13.8 million Altium shares in favour of the deal.

There are a few steps that still need to happen before the takeover can be completed.

It needs owners of Altium shares to vote to approve the deal at a meeting later this year. It requires regulatory approvals, the positive assessment of an independent expert, no Altium ‘material adverse change’ and no ‘prescribed events’. These are usual for a transaction like this.

Altium is planning to send a booklet to shareholders which will contain important information once the timing of all regulatory approvals is clear. The shareholder meeting will take place to vote after that. The takeover will then be submitted for final court approval.

At this stage, there are no dates, but Altium expects final court approval prior to the end of the year and “hopefully well before that time.” Owners of Altium shares will receive their cash around the time that the takeover is implemented and it’s de-listed from the ASX, if everything goes ahead.

Altium share price snapshot

Altium shares have gone up 90% in the past five years, giving shareholders plenty of reward.

The post Buying Altium shares amid blockbuster takeover deal? What you need to know appeared first on The Motley Fool Australia.

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More reading

• I’d invest $580 a month in ASX 200 shares to aim for a million!
• Here are the top 10 ASX 200 shares today
• Why Altium, Goodman, Magellan, and Wesfarmers shares are storming higher today
• Altium shares rocket on $9.1b takeover deal
• I’d grow my wealth by buying these so-called ‘expensive’ ASX stocks

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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 Inghams Group Ltd (ASX: ING) share price is having a difficult session on Friday.

At the time of writing, the ASX 200 share is down 16% to $3.61.

Investors have been hitting the sell button today despite the poultry producer releasing its half-year results and reporting the more than doubling of its profits.

ASX 200 share crashes on half-year results release

• Revenue increased 8.7% to $1.64 billion
• EBITDA up 28.8% to $253.7 million
• Net profit after tax up 268.6% to $63.4 million
• Underlying net profit up 107.5% to $69.3 million
• Fully franked interim dividend up 167% to 12 cents per share

What happened?

For the six months ended 31 December, the ASX 200 share reported an 8.7% increase in revenue to $1.64 billion. This was driven largely by growth in net selling prices across all channels, reflecting increases implemented in response to increased costs.

Inghams’ underlying costs grew by 6.9% due to higher internal feed costs and volume and inflationary factors. This was partially offset by efficiencies and an improvement in operational performance.

This ultimately led to Inghams reporting a 107.5% increase in underlying net profit after tax to $69.3 million, which allowed the company to lift its interim dividend by 167% to 12 cents per share.

Outlook

It may be the company’s outlook commentary that is weighing on the Inghams share price today. Management said:

Inghams delivered a strong set of interim results for 1H24, in‐line with the trading update provided in October 2023. However, market conditions for consumers over 2H24 are expected to remain challenging, underpinning the shift already being seen toward in‐home dining (Retail) from out‐of‐home (QSR and Food Service) channels.

The ASX 200 share remains up 35% on a 12-month basis despite today’s weakness.

The post Guess which ASX 200 share is crashing 15% despite doubling its first-half profits appeared first on The Motley Fool Australia.

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More reading

• Up 53% and 10.5% yield: 2 ASX 200 shares with signs of ‘high potential growth’
• Here are the top 10 ASX 200 shares today
• Why Inghams, Janison, Myer, and Nick Scali shares are rising today
• These 3 ASX 200 shares just got some big broker upgrades!

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.

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When you’re running your slide rule over S&P/ASX 200 Index (ASX: XJO) stocks to add to your portfolio, one metric to watch closely is the works it has in its pipeline.

A strong pool of promising projects or products on the horizon should deliver ongoing revenue growth. And hopefully boost profits and the company’s share price as well.

With that said we turn to ASX 200 healthcare share Telix Pharmaceuticals Ltd (ASX: TLX).

According to the analysts at Monash Investors Small Companies Fund, “Telix continues to its seemingly inexorable progress and share price rerating. Telix is strongly growing its radiopharmaceutical sales and has a pipeline of new drugs to come.”

What’s been happening with the ASX 200 healthcare stock recently?

Management at Telix certainly hasn’t been resting on their laurels.

On 5 January the ASX 200 company reported that it’s mulling over an initial public offering (IPO) in the United States. Telix is looking at listing on the tech-heavy Nasdaq Composite Index (INDEXNASDAQ: .IXIC).

No final decision on the dual listing has been made, with a number of regulatory and other customary corporate approvals pending.

A month later, on 8 February, Telix announced it had inked an agreement to acquire QSAM Biosciences and its bone cancer targeting platform.

The ASX 200 stock agreed to acquire the United States-based therapeutic radiopharmaceuticals company for US$33 million upfront via Telix share issues. The agreement also stipulates contingent payments of up to US$90 million (payable in cash or shares) on achievement of certain clinical and commercial milestones.

Commenting on the acquisition, Telix CEO Christian Behrenbruch said, “The acquisition of QSAM provides Telix with an additional near-term therapeutic pipeline asset.”

Behrenbruch added the acquisition will further differentiate the company’s “innovation position in radiopharmaceuticals and building depth in Telix’s key disease focus areas of urological and musculoskeletal oncology”.

Speaking of building Telix’s near-term therapeutic pipeline, here’s what the analysts at Monash Investors said about this ASX 200 stock:

We can easily justify the current pricing of Telix based on its two existing commercial products (the kidney imaging product will commercialise this calendar year). Therefore, the market is placing zero value on its highly prospective pipeline.

Telix share price snapshot

The Telix share price has been on a tear over the past 12 months, up 79%.

Investors who bought the ASX 200 stock five years ago will be sitting on eye-watering gains of 1,397%.

The post The market is placing ‘zero value’ on this ASX 200 stock’s booming pipeline appeared first on The Motley Fool Australia.

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More reading

• 2 ASX stock picks with explosive potential
• 2 top ASX growth shares to buy right now and hold for the long term
• How I’d invest $300 a month in ASX shares to target $22,000 annual passive income!
• Here are the top 10 ASX 200 shares today

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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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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Neuren Pharmaceuticals Ltd (ASX: NEU) shares are ending the week deep in the red.

The ASX 200 healthcare share was down 13% to $20.04 before being paused from trade.

What’s going on with this ASX 200 healthcare share?

Investors have been heading to the exits today after a short seller targeted its US partner Acadia Pharmaceuticals Inc (NASDAQ: ACAD).

According to a note out of Culper Research, it is shorting Acadia due to concerns over the Daybue product which is licenced to it from Neuren Pharmaceuticals.

Culper Research believes that key stakeholders have turned “sour” on Daybue, which could be bad news for the ASX 200 healthcare share.

It has been generating significant revenue from royalties and milestone payments over the last 12 months amid strong demand for the only approved treatment for Rett Syndrome.

But this revenue generation may not last, with the short seller describing Daybue as a “flop”. It said:

We believe ACADIA’s April 2023 launch of Daybue – the Company’s highly-anticipated “first and only” drug to treat Ret Syndrome – has been a total flop. Despite an initial outburst of interest in the drug, our research reveals that patients, caregivers, physicians, and insurers have all soured on the drug.

The sell-side sell calls for over $800 million in peak Daybue revenues, but our research suggests that Daybue new patient starts already topped this past summer, peak revenues will be a mere fraction of sell-side estimates, and Daybue’s flop will have knock-on effects as ACADIA remains a cash-burning machine. Insiders see the writing on the wall: ACADIA’s Head of R&D, its Chief Science Officer, and its General Counsel have all left in the past 3 months. We think shares are headed much lower.

‘Horror stories’

Culper Research also alleges that Acadia has misrepresented Daybue’s safety profile and that there are “horror stories” being reported by users. It adds:

We think ACADIA has misrepresented Daybue’s safety profile, and in turn, patient retention rates. The Company has constantly characterized Daybue’s side effects as mild and manageable, but our analysis of FAERS data suggests that roughly 1 of every 10 to 11 Daybue patients end up hospitalized. These horror stories have now made their way through the Ret community. Multiple high-prescribing physicians collectively told us that collectively, close to half of their patients are now no longer even interested in trying Daybue.

Neuren hasn’t revealed why its shares are paused from trade. But it’s quite likely the ASX 200 healthcare share is preparing a response to these allegations.

The post This ASX 200 healthcare share is diving 13% as short sellers take aim appeared first on The Motley Fool Australia.

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More reading

• If you’d put $20,000 in this ASX healthcare stock in December 2021, you’d have $257,000 now
• Top ASX shares to buy in February 2024
• Is now the right time to buy this ASX 200 stock? Here’s my take

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.

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The GQG Partners Inc (ASX: GQG) share price is leaping higher today.

Shares in the United States-based fund manager closed yesterday trading for $2.13. In morning trade on Friday, shares are swapping hands for $2.25 apiece, up 5.6%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.9% at this same time.

Investor interest has been roused again today following the release of the company’s full 2023 calendar year results.

Read on for the highlights.

GQG share price leaps on 2023 funds growth

• Net flows of US$10.0 billion
• Funds under management as at 31 December of US$120.6 billion, up 37.0% year on year
• Net revenue of US$517.6 million, up 18.5% from 2022
• Net operating income of US$384.4 million, up 15.7% year on year
• Final unfranked dividend of 2.6 US cents per share, up from 2.0 US cents per share in 2022

What else happened with GQG during the year?

The GQG share price is getting some tailwinds today from the strong growth in funds under management, which reached $120.6 billion as at 31 December. That’s up 37.0% from the prior year. Management attributed the growth to both net flows and investment performance.

Diluted earnings per share increased 19.0% from 2022 to 9.55 US cents per share.

And the final dividend payout of 2.6 US cents per share represents a 90% payout ratio of GQG’s distributable earnings. If you’re looking to bank that dividend, you’ll need to own shares at market close next Tuesday. The stock trades ex-dividend on Wednesday, 21 February.

GQG pays quarterly dividends. Across 2023 the company paid out 9.1 cents per share, up 17.3% from the 2022 dividend payments.

What did management say?

Commenting on the results sending the GQG share price higher today, CEO Tim Carver said:

Our financial result is driven in large part by our investment performance over the long-term. As at the end of December 2023, our strategies continued to provide solid long-term performance as compared to their benchmarks … which we believe provides the underpinnings for continued business success…

As at 31 January, our FUM totalled US$127.0 billion, which is a record high for our business, and we have experienced estimated net flows of US$2.9 billion for the 2024 year to date period through 14 February.

What’s next?

Looking at what could impact the GQG share price in the months ahead, Carver said the company’s relatively low fees could set it up well for more strong performance.

According to Carver:

Our weighted average management fee for … 2023 was 48.8 bps [0.488%], which we believe to be very competitive. As a result, we may be less likely to face margin pressure in the future relative to peers with higher average management fees.

In addition, more than 96% of our revenues last year were derived from asset-based fees, which we expect to exhibit more stability in periods of market volatility. Less than 4% of our revenues were derived from performance fees.

GQG share price snapshot

With today’s big intraday boost factored in, the GQG share price is up an impressive 55% in 12 months.

And that’s not including the four dividends GQG paid out in 2023!

The post Up 55% in a year, GQG share price charging higher again on surging revenue results appeared first on The Motley Fool Australia.

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More reading

• 2 cheap and ‘attractive’ ASX shares to buy now that you’ve not thought of
• What can owners of GQG shares expect in the upcoming FY23 result?
• Why the GQG share price is up 7% to a 52-week high and could keep rising
• Morgans names the ASX cyclical shares to buy for earnings season
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023

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.

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The QBE Insurance Group Ltd (ASX: QBE) share price is under pressure on Friday.

In morning trade, the insurance giant’s shares are down almost 5% to $15.61.

This follows the release of QBE’s FY 2023 results before the market open.

QBE share price drops on results

• Gross written premium (GWP) up 10% to US$21,748 million
• Insurance operating result up 30% to US$796 million
• Adjusted cash net profit after tax up 105% to US$1,362 million
• Final dividend up 60% to 48 Australian cents per share

What happened in FY 2023?

For the 12 months ended 31 December, QBE more than doubled its adjusted cash net profit after tax to US$1,362 million.

This was underpinned by strong premium growth, with GWP rising 10% thanks to group-wide renewal rate increases of 9.7% and targeted new business growth.

QBE’s combined operating ratio improved to 95.2% due to supportive market conditions and favourable current year catastrophe experience, partially offset by the impact of short-tail prior year development.

This allowed the insurer to increase its final dividend by 60% to 48 cents per share, which brought its full-year dividend to 62 cents per share. This represents a 59% increase year on year and a dividend payout ratio of 45% of adjusted cash profit. Based on the current QBE share price, this equates to a 4% dividend yield.

How does this compare to expectations?

This result appears to have fallen a touch short of expectations, which may be why the QBE share price is falling today.

For example, Goldman Sachs was forecasting a profit of US$1,424.73 million for FY 2023. This compares to its adjusted cash profit of US$1,362 million.

Management commentary

QBE’s Group CEO, Andrew Horton, was happy with the result. He said:

Over the last two years, QBE has been focused on delivering greater resilience and consistency. I see meaningful progress across the business, and I am confident that we can drive further progress against our strategic priorities in 2024.

Our strategy to improve performance in North America remains a key focus for the Board and management, and we are tasked to build a business which delivers performance that is consistent with our Group targets. We have renewed our focus on building and strengthening relationships with our major trading partners, and are confident we can successfully manage our priorities for the division.

Outlook

QBE has provided guidance for FY 2024.

It is expecting 2024 constant currency GWP growth in the mid‑single digits and a combined operating ratio of ~93.5%.

The post QBE share price tumbles despite 105% FY23 profit jump appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Morgans names the best ASX 200 dividend shares to buy in February
• 3 ASX dividend shares with 5%+ yields to buy now
• Morgans names more of the best ASX 200 shares to buy in February

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.

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The Insurance Australia Group Ltd (ASX: IAG) share price is on the slide on Friday morning.

At the time of writing, the insurance giant’s shares are down 6% to $5.96.

This follows the release of the company’s half-year results.

IAG share price falls on half-year results

• Gross written premium (GWP) up 12.5% to $7,947 million
• Insurance profit up 75.4% to $614 million
• Net profit after tax down 13% to $407 million
• Interim dividend up 67% to 10 cents per share
• $200 million on-market share buyback
• Guidance reaffirmed for FY 2024

What happened during the half?

For the six months ended 31 December, IAG reported a solid 12.5% increase in GWP to $7,947 million. This reflects premium increases across Direct Insurance Australia, Intermediated Insurance Australia, and the New Zealand business in response to inflation pressures, higher perils, and reinsurance costs.

This offset lower volumes driven by the Intermediated Insurance Australia business focusing on improved underwriting and pricing.

IAG’s reported insurance profit came in at $614 million for the half, which is an increase of 75.4% year on year. This equates to a reported insurance margin of 13.7%, up significantly from 8.5% a year earlier.

And while the company’s net profit after tax was down 13% to $407 million, this was due to the prior corresponding period benefitting from a $360 million pre-tax business interruption (BI) claim provision release.

As a result, the IAG board was able to overlook the profit decline and increase its interim dividend by 67% to 10 cents per share.

But the returns won’t stop there. Thanks to its strong capital position, the company has announced an on-market share buyback of up to $200 million.

How does this compare to expectations?

While this is certainly a strong result on paper, it appears to have fallen a touch short of expectations. This explains why the IAG share price is falling today.

Commenting on the result, Goldman Sachs highlights that IAG slightly missed on a few key metrics. It said:

Overall result summary: 1) Insurance profits: 1H24 result was $614m vs. GSe of $628m. 2) Cash earnings for 1H24 was $415m vs. GSe of $442m. 3) Underlying margin in line: IAG’s definition of 1H24 underlying margin was 13.7% (however 15.1% ex reinsurance reinstatement) vs. GSe of 15.1%. 4) Reported margin: 1H24 reported margin was 13.7% vs. GSe of 13.9%.

Management commentary

IAG’s CEO, Nick Hawkins, was very pleased with the half. He said:

Today’s results show the progress we’ve made against our strategic priorities. We’ve added new direct insurance customers and our IIA business is on track to deliver its FY24 insurance profit target of at least $250m, after a solid first half performance.

Hawkins also revealed that IAG is on course to deliver on its guidance for FY 2024. He adds:

We’re on track to deliver theFY24 guidance we outlined at the beginning of the financial year. Our strategy is clear, and our leadership team is focused on delivering against our goals.

This will mean GWP growth of “low double digits” and a reported insurance margin of 13.5% to 15.5%.

The IAG share price remains up 26% over the last 12 months.

The post IAG share price sinks 6% despite huge dividend boost and buyback appeared first on The Motley Fool Australia.

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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.

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Pilbara Minerals Ltd (ASX: PLS) shares will be in focus next week.

That’s because the lithium miner is scheduled to release its eagerly anticipated half-year results.

Investors will no doubt be keen to see how much the crash in lithium prices has impacted the miner’s profitability.

Let’s now see what the market is expecting from the company when it reports its earnings on Thursday 22 February.

Pilbara Minerals half-year results preview

According to a note out of Goldman Sachs, its analysts are expecting a result well short of consensus estimates.

Its analysts are forecasting revenue of $774 million for the half, which will be down 64% year on year. This compares to the consensus estimate of $926 million.

It is a similar story for earnings, with Goldman pencilling in underlying EBITDA of $469 million. This represents a 74% year on year decline and is meaningfully below the consensus estimate of $597 million.

On the bottom line, the broker expects underlying net profit after tax to fall 74% to $324 million. As a comparison, the consensus estimate is for a half-year profit of $421 million.

Finally, Goldman believes that there will be no interim dividend from Pilbara Minerals next week. Though, the market remains a little more hopeful and is expecting a modest 5.4 cents per share payout to be announced.

Are Pilbara Minerals shares a buy?

As you might have guessed from its estimates, Goldman is feeling quite bearish about the company at present.

Its analysts currently have a sell rating and $2.95 price target on Pilbara Minerals’ shares, which implies potential downside of almost 15% for investors over the next 12 months.

The post Own Pilbara Minerals shares? Here’s your first-half results preview appeared first on The Motley Fool Australia.

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• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
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• Own BHP shares? Here’s your first-half results preview
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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.

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