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The Accent Group Ltd (ASX: AX1) share price is having a better day on Thursday.

At the time of writing, the footwear focused retailer’s shares are up 1.5% to $1.47.

Why is the Accent share price rising?

Investors have been bidding the Accent share price higher today after the retail conglomerate announced some major changes to its operations.

According to the release, the company has recently undertaken a review which examined the future investment requirements, ease of scalability, and return on investment (ROI) across all of its businesses and brands.

What are the changes?

The release advises that the company will continue to invest in new stores, with 140 stores expected to open in FY 2022. It will also close stores where sustainable renewal terms cannot be achieved.

Management intends to accelerate the growth plan for Glue Store, which it notes is continuing to perform strongly. This will include growing vertical apparel brands acquired with Glue Store.

The Stylerunner business will also continue its ambitious growth plan, with a strong focus on the Stylerunner The Label vertical apparel and further store rollouts.

Continuing with the theme, Accent will look to grow the Trybe business and pursue more buy backs of The Athlete’s Foot franchise.

It isn’t all good news for its brands, though. One brand that won’t be continuing its journey is Pivot. Management intends to transition 14 Pivot stores into other banners within the group. It made the decision after determining that it is still a long road to strong investment returns and that the resources utilised in this business can be better deployed by converting the stores into other high performing banners. This is expected to result in one-off, non-cash charges of approximately $5 million in FY 2022.

In addition, the company will not be renewing the Sperry distribution agreement which expires in December. It will also restructure the Reebok distribution agreement to move the distribution to a new Australian distributor. However, it will retain access to a full range of Reebok products at strong margins for the next 10 years.

To support these decisions, the company’s management structure has also been refocused and simplified. This will see its operations split into three divisions, each with its own CEO.

Management commentary

Accent’s CEO, Daniel Agostinelli, was disappointed with the Pivot situation but believes it is in the company’s best interests. He said:

“This review enabled us to have a clear view on those businesses which deliver, or which we believe will deliver, strong positive investment returns so that we may in turn continue to invest and drive growth in those businesses.

We are naturally disappointed to be transitioning the Pivot stores, but we have always taken a strict approach to value creation and if something isn’t meeting our return hurdles, then we look to redeploy our assets to other parts of the business or to new businesses that do so.

To that end, we are continuing our aggressive growth plan for Stylerunner and accelerating our growth plan for Glue Store.”

Trading update

Also potentially giving the Accent share price a lift today was an update on its current performance.

While its trading update was short on detail, it revealed that sales have improved from the 10% like for like sales decline reported for the first eight weeks of the second half. However, management concedes that sales are still subdued compared to expectations.

Nevertheless, thanks to its focus on a full price, full margin sales strategy, the company has seen an improved gross profit margin ahead of both expectations and last year. Furthermore, overall inventory levels are in line with plan, although it continues to experience some delays and cancelations from third party brand partners.

No guidance has been given for the remainder of the year due to ongoing uncertainty.

The post Accent share price lifts following key ROI decisions 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Many ASX investors will be rejoicing today after the market opened strongly higher this morning. The S&P/ASX 200 Index (ASX: XJO) is currently up by 0.99% at just over 7,330 points. This comes after the ASX 200 posted some big falls earlier this week. But one ASX 200 blue-chip share isn’t joining the party today. That would be the Woolworths Group Ltd (ASX: WOW) share price.

In stark contrast to the enthusiastic rise of the broader market, Woolworths shares are currently up by a rather paltry 0.21% so far today at $37.97 a share after spending most of the morning in the red.

So what’s going on with Woolies? Well, it’s nothing to do with anything Woolworths has put out itself. The company hasn’t made any ASX announcements for weeks now.

Why is the Woolworths share price being left out in the cold today?

But if we look at what’s happening across the market today, we can identify a trend that might explain this situation. Woolworths’ ASX sector – consumer staples – is one of the worst-performing sectors on the ASX today, and one of the few in the red. That’s why many of Woolworths’ peers, including Coles Group Ltd (ASX: COL), Metcash Limited (ASX: MTS) and Endeavour Group Ltd (ASX: EDV), are all underperforming the markets so far.

Consumer staples shares are companies that sell food, drinks and household essentials. They are often viewed as a ‘safe harbour’ of sorts when there is fear and selling pressure in the markets. That might explain why Woolworths shares, as well as some of the others listed above, were some of the ASX 200’s best performers when we were seeing those nasty market-wide falls earlier this week, as we covered at the time.

But this trend seems to be cutting both ways today. As the markets recover from the week’s earlier losses, consumer staples shares are being left behind. Perhaps a prescient reminder that safety doesn’t come free on the share market.

At the current Woolworths share price, this ASX 200 blue-chip share has a market capitalisation of $45.99 billion, with a dividend yield of 2.48%. 

The post Why is the Woolworths share price missing out on the ASX party today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, says experts
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• These ASX 200 shares are up more than 10% in the last month

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Adore Beauty Group Ltd (ASX: ABY) share price is charging full steam ahead on Thursday after the company posted its third-quarter update.

In the early hours of trading, shares in the online cosmetics retailer are getting a positive reception. ASX investors have pushed the Adore Beauty share price up 2.1% to $1.70. In earlier trading, it stretched higher to $1.74 — a gain of 4.8% on yesterday’s closing price.

For context, the S&P/ASX 200 Index (ASX: XJO) is enjoying a bounceback of 0.99% today.

Adore Beauty share price sparkles on glamorous quarter

• Revenue up 9% on prior corresponding period (pcp) to $42.7 million
• Active customers increased 7% to 880,000
• Returning customers up 47% compared to pcp
• On track for private label launch in fourth-quarter FY22
• Loyalty members contributed more than 60% of total revenue.

What else happened during the quarter?

Adore Beauty shareholders have endured a disastrous past month, with the share price down 20%. A shot of good news from the cosmetics company today is just what they needed, it seems.

Today, Adore revealed a relatively strong quarter as the economy continues to reopen. Booking $42.7 million during the three-month period, the online retailer has now taken its compound annual growth rate (CAGR) to 26%.

Notably, the company witnessed promising signs from its strategic initiatives during the quarter. For example, Adore Beauty’s native app accounted for more than 10% of revenue — strengthening engagement and conversion.

What did management say?

On the back of the solid result, Adore Beauty CEO Tennealle O’Shannessy said:

Adore Beauty has delivered a strong quarterly performance in a reopening environment, a very pleasing outcome given the 47% revenue growth recorded in the PCP, and having to navigate some supply chain pressures during the period. Importantly, our loyalty-focused strategic initiatives are enabling us to convert new customers to loyal, valuable returning customers.

What’s next?

For investors looking to get a clue on what the next quarter might look like, the update provided little insight. However, the company did note it plans to launch its first private label products in the upcoming quarter.

Adore Beauty share price snapshot

As investors have rotated out of consumer discretionary investments, the Adore Beauty share price has suffered. Since the beginning of the year, the shares have lost 59% in value. They hit new all-time lows along the way.

The poor performance has coincided with a reduction in earnings. At the end of 2021, Adore delivered $4.489 million in 12-month trailing profits. A year on and that same metric has reduced to $276,000.

The post Adore Beauty share price glows following ‘strong quarterly performance’ appeared first on The Motley Fool Australia.

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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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price is taking off as the company confirmed it’s found a buyer for the last piece of its Collimate Capital business.

International digital infrastructure firm, DigitalBridge, has agreed to buy Collimate’s international infrastructure equity business. The transaction’s set to be worth up to $699 million.

At the time of writing, the AMP share price is $1.14, 10.73% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is back in the green today, gaining 0.97%. Meanwhile, AMP’s home sector – the S&P/ASX 200 Financials Index (ASX: XFJ) – is up 0.61%.

Let’s take a closer look at AMP’s latest sale agreement.

AMP share price rockets on final Collimate sale

The AMP share price is roaring higher as the company confirms the final sale of its multifaceted divestment of Collimate Capital – a business previously earmarked to be demerged.

The international infrastructure equity business boasts $9 million of assets under management.

And what a divestment it is. The final piece of the puzzle could see DigitalBridge forking out $699 million.

DigitalBridge will hand AMP an upfront cash payment of $462 million for the business.

It might also be liable to pay an estimated $57 million of retained future carry and performance fees and up to $180 million of fees contingent on future fundraisings.

The sale follows the $430 million sale of Collimate’s domestic infrastructure equity and real estate business – announced yesterday – and the $578 million sale of its infrastructure debt platform – completed in February.

The transactions suggest Collimate Capital has a value of $2.04 billion, including the value of retained assets. That figure jumps to $2.52 billion when including the maximum earnouts.

Though, AMP doesn’t expect to receive the full earnout for either of the sales announced this week.

AMP plans to give most of the funds raised through the sales to shareholders through a capital return. It will also use some of the cash to pay down some of its debt.

The sale of Collimate’s international infrastructure debt and equity platforms and its real estate and domestic infrastructure equity business is expected to bring AMP a combined net capital increase of approximately $1.1 billion.

The company expects that the incremental transaction and separation costs to sell the 2 Collimate Capital businesses will be approximately $20 million, post-tax.

What did management say?

AMP CEO, Alexis George commented on the news driving the company’s share price higher today, saying:

These sales realise significant value for shareholders and deliver certainty for clients and for our people.

In DigitalBridge and Dexus Property Group (ASX: DXS) we are confident we have found the right owners for both businesses … We expect both will add significant value through their scale, capability, and depth of talent, which our teams will complement.

Post completion of the two sales, AMP Limited will be a more focused entity, concentrated on driving our core banking and retail wealth businesses in Australia and New Zealand, with a core objective of accelerating our strategy and increasing our competitiveness.

AMP share price snapshot

Today’s gains have helped boost the AMP share price further into the long-term green.

Right now, the financial services company’s stock is trading 14% higher than it was at the start of 2022.

It has also gained 3% since this time last year.

The post AMP share price surges 11% as $699m Collimate deal confirmed appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• AMP share price sinks amid latest Collimate deal news
• AMP share price sinks amid asset sale complications 
• Why is the AMP share price having such a top run on Thursday?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has returned to form and is charging higher. The benchmark index is currently up 1% to 7,333.8 points.

Here’s what is happening on the ASX 200 today:

Coles third quarter update

The Coles Group Ltd (ASX: COL) share price is edging higher today. This follows a positive response to the supermarket giant’s third quarter update. According to the release, for the 12 weeks ended 27 March, Coles reported a 3.9% increase in sales to $9.3 billion. This was driven by solid growth across its supermarkets and liquor businesses, offsetting softer sales from the express business. Coles also revealed that the fourth quarter has started positively.

Fortescue shares storm higher

The Fortescue Metals Group Limited (ASX: FMG) share price is storming higher today following the release of the mining giant’s third quarter update. During the quarter, Fortescue’s iron ore shipments were up 10% year on year to 46.5 million tonnes (mt). This meant the company’s shipments reached a record of 139.5mt for the first three quarters of the financial year. And Fortescue has revised its cost guidance higher, investors are looking beyond this due to improving iron ore prices and an upgrade to its shipments guidance.

Pilbara Minerals shares charge higher

The Pilbara Minerals Ltd (ASX: PLS) share price is having a strong day thanks to the release of the lithium miner’s quarterly update. While Pilbara Minerals reported a 2% quarter on quarter decline in production to 81,431 dry metric tonnes (dmt) of spodumene concentrate, it recorded another big increase in the price of its lithium. The average spodumene price for the period was US$2,650 per dmt. Furthermore, management has retained its FY 2022 production guidance of 340,000–380,000 dmt.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the AMP Ltd (ASX: AMP) share price with a 14% gain. This follows the announcement of an agreement to sell its international infrastructure equity business. Going the other way, the Sandfire Resources Ltd (ASX: SFR) share price is down 13% following the release of the copper’s producer’s quarterly update.

The post ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals share price climbs as lithium prices surge
• Fortescue share price charges higher on Q3 update and shipments guidance upgrade
• Coles share price in focus amid solid Q3 sales growth
• Cash generation among ASX 200 iron ore shares will ‘be significant’ in 2022: expert
• ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, says experts

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Tesserent Ltd (ASX: TNT) are falling lower during trade on Wednesday, down 2.78% at 17.5 cents.

Earlier, the Tesserent share price was in the green, trading as high as 19 cents. But it has since backtracked and fallen into the red.

This comes on the back of Tesserent releasing its quarterly update today, reporting a jump in turnover and earnings before interest, tax, depreciation and amortization (EBITDA).

Tesserent grows revenue, EBITDA year on year

Key highlights from the company’s unaudited earnings this quarter include:

• “Continuing growth for first three quarters of FY22”, with an 82% gain in turnover and 148% jump in EBITDA this Financial Year to date (FYTD)
• For Q3 FY22, the company says it recognised $41.5 million in revenue, up 97% year on year (YoY)
• Organic growth (excluding acquisitions) recorded at 36% for both the third quarter and YTD
• Annual Recurring revenue (ARR) reaches 45% of annual turnover
• Further innovation investment of $1.1 million made in strategic partner Daltrey focusing on biometric security
• The Group’s reported cash position is $10.0 million as at 31 March 2022

What else happened this quarter for Tesserent?

Third quarter revenue grew 97% YoY for Tesserent, made up of both organic sales growth and the impact of acquisitions.

Tesserent also recorded a net operating cash outflow during the period of $1.1 million. It puts this down to “an increase in debtors and unbilled WIP balance – driven by growth in the Group’s workforce coupled with a seasonal step up in the level of consulting activity in Q3”.

Aside from that, the group had grown its headcount to 404 by the end of the quarter, adding another 24 employees last quarter, and 96 employees this FYTD.

“The business is focused on recruiting and retaining key talent to continue to provide an
outstanding level of customer service to our clients, whilst continuing to grow our coverage in all
aspects of the Cyber 360 delivery to the market,” Tesserent said.

Tesserent has also recently appointed Samantha Riddle to the role of Director of People and Culture (P&C) and Samantha has taken on leadership of the P&C corporate team as well as developing the P&C plan for implementation in FY23 across all the operating businesses.

What’s next?

The company expects its earnings to be lumpy due to the seasonality of its business. Specifically, it says:

As highlighted in previous releases, earnings within the business are highly seasonal, and the profile of earnings is exhibiting a similar seasonality within the current year. This is expected to continue into the last quarter of FY22.

Aside from that, no specific earnings or sales guidance was provided for the coming periods in Tesserent’s release today.

Tesserent share price snapshot

The Tesserent share price has fallen 22% in the last 12 months, however, it has held a 3% gain this year to date. Shares have also spiked more than 13% in the past month of trade.

The post Tesserent share price falls despite quarter of ‘continued strong growth’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Bitcoin, Ethereum, and Cardano are turning it around today. Here’s why
• Pilbara Minerals share price climbs as lithium prices surge
• Down over 10% in 10 days: Is the BHP share price a bargain buy now?
• Why Alphabet stock slumped on Wednesday

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

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

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

What happened

Today’s been a rather rocky one in the world of cryptocurrencies. Despite a significant sell-off yesterday in most top tokens, there’s been a solid rebound across all 10 of the largest tokens by market capitalization this afternoon.

As of 4:20 p.m. ET, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cardano (CRYPTO: ADA) erased all of this morning’s losses and then some, increasing 2.9%, 1.9%, and 1%, respectively, over the past 24 hours. 

There were a number of catalysts responsible for this move. 

Perhaps the most important catalyst for all three of these top-10 tokens is being provided via a bullish macro environment. Bitcoin and its large-cap peers have surged in this afternoon’s session, following their equity counterparts higher as risk-on sentiment builds in today’s market. Generally strong earnings from key companies reporting this week have provided the view that the economic outlook may have grown too bearish in April. Being among the riskiest assets on the market, cryptocurrencies are following tech stocks and other risk assets higher today.

Positive derivatives action, an airdrop and DAO announcement from an Ethereum Layer-2 network, and an upgrade to Cardano’s block size (by 10%) also helped these tokens surge higher this afternoon.

So what

There’s certainly a lot going on with each of these projects at a token-specific level. The ecosystems behind Bitcoin, Ethereum, and Cardano are each massive. And as these ecosystems grow and evolve, investors can find new and exciting reasons to invest in these long-term growth assets.

That said, this macro environment appears to be driving most of the market-related swings in the crypto world. While today’s late price action has provided a reprieve for investors, it’s unclear if this rally can be maintained. Accordingly, investors are likely to remain on edge for some time, until signs of a true bull market materialize again.

Now what

Cryptocurrencies have been a great place to stay invested over the past decade. That said, these assets have been historically much more volatile than any other asset since inception. Accordingly, investors looking to play the long game in this sector may want to take some time away from reading daily charts and following the price action on these tokens too closely. Mental health is important.

Today’s price action is indicative of the kinds of dramatic moves to the upside and downside that can happen within the span of a given trading day. While these tokens sank deep into the red this morning, investors did appear ready to buy the dip in the afternoon session, giving hope to investors worried about a lack of buyers in this difficult market.

Moving forward, I’m expecting much more of the same, in terms of volatility. 

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

The post Bitcoin, Ethereum, and Cardano are turning it around today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Bitcoin price leaps 4% but is the leading crypto due for a big retrace?
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• Ethereum uses same energy as the Netherlands. Here’s how it’ll change

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Pilbara Minerals Ltd (ASX: PLS) share price is in the green today on the back of the company’s quarterly results.

The ASX lithium producer’s share price is currently $2.70, a 3.65% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) is up 1% today.

Let’s take a look at what Pilbara Minerals has told the market.

Pilbara Minerals share price jumps on quarterly results

Highlights included:

• Cash balance of $284.9 million, a 16% increase on the previous quarter
• Production of 81,431 dry metric tonnes of spodumene concentrate (dmt), down 2%
• Spodumene concentrate shipments of 58,383 dmt, down 25.8%
• Average spodumene price of US$2,650/dmt.

What else happened during the quarter?

The Pilgan operations contributed to an operating cash flow of $113.9 million due to “positive pricing dynamics”. The company received $169.2 million in customer sales from production at the Pilgan plant with $37.9 million spent on capital activities and $25.1 million repaying a syndicated finance facility.

Pilbara reported lithium prices surged in the March quarter, reaching new record highs. Battery grade lithium carbonate averaged US$76,700 a tonne in March, a 95% increase year to date. In fact, in March 2021, lithium carbonate was trading at just US$13,400 a tonne.

Production volumes were slightly down on the previous quarter due to COVID-19 impacting staff, as well as the tight labour market in general.

A port delay loading a 20,000 dmt cargo had a negative impact on shipments.

The cash balance was also impacted by a debt repayment of $25.1 million and the shipment delay.

The spodumene price is in line with the company’s prior guidance of US$2,600–$3,000 per dmt.

Pilbara also advised it completed its fourth Battery Material Exchange (BMX) auction after the market close yesterday. The company said it will accept the highest bid of US$5,650 per dmt for a 5,000 dmt cargo.

What’s next?

Company managing director and CEO Ken Brinsden will step down by the end of the year. Recruitment agency Derwent is conducting an extensive search for a new CEO. An announcement might be made in the third quarter.

Pilbara has maintained an FY22 production guidance of 340,000–380,000 dmt. However, the company warns that production could be in the lower half of the guidance due to potentially ongoing COVID-19 impacts.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has surged 134% in the past 12 months. It has lost 23% year to date. Over the past five trading days, the company’s shares have fallen 6%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Pilbara Minerals has a market capitalisation of about $8 billion based on the current share price.

The post Pilbara Minerals share price climbs as lithium prices surge appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 2 rapidly growing ASX shares that are on sale: experts
• Why is it such a mixed day of trade for ASX lithium stocks?
• Macquarie is tipping another 40% upside for the Pilbara Minerals share price. Here’s why

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 Bruce Jackson.

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The BHP Group Ltd (ASX: BHP) share price has fallen by more than 10% in the last ten days.

As the biggest business on the ASX, the movement of the BHP share price has the most influence on the S&P/ASX 200 Index (ASX: XJO).

After a double-digit fall in a short period of time, is this a chance to buy the dip?

What happened to the BHP share price?

Last week, BHP released its operational update.

BHP told ASX investors that it was reducing its full-year total copper production guidance to between 1,570kt to 1,620kt, reflecting lowered production guidance for Escondida.

BHP also reduced its full-year nickel production guidance to between 80kt to 85k due to COVID-related labour constraints.

Its iron ore production for the three months to 31 March 2022 was 10% lower quarter on quarter to 59.7mt. The company explained that the reduction was due to temporary labour constraints due to COVID-19, train driver shortages, and planned maintenance activities.

The Queensland metallurgical coal business delivered “strong underlying performance” amid record-high prices.

BHP also revealed that its Jansen potash project is “on track, with good progress on the shafts, in the underground mining systems and at the port.”

Inflation may be pushing commodity prices higher, but BHP said it’s working on mitigating increases in its own costs. It noted that market volatility and inflationary pressures have “further increased” because of the Russian invasion of Ukraine. BHP is working on the cost pressures “through a sharp focus on operational reliability and cost discipline”.

It’s expecting conditions to improve during the 2023 calendar year. But the skills shortages and overall labour market tightness in Australia and Chile is likely “to continue in the period ahead.”

Is the BHP share price a bargain buy?

Some brokers think it is. Macquarie is still very positive with an outperform rating and a price target of $60. This is because elevated resource prices should help the ASX 200 mining share keep generating profit. That implies a potential upside of around 30%.

Citi is another broker positive on BHP, with a buy rating. While it recognises that the quarter BHP just reported wasn’t as good as hoped, the resources giant is still making a lot of profit. It increased its price expectations for iron in the shorter term. Citi has a price target of $56 on BHP shares.

But not every expert is convinced. The broker Credit Suisse is neutral on BHP with a price target of $48. UBS is also neutral with a price target of $43. That suggests a possible single-digit decline over the next year. UBS is expecting less profit due to headwinds relating to costs and production. Plus, resource prices could ease in the medium term.

At the time of writing, the BHP share price is $47.68, up 3.65% so far today.

Dividend expectations

Using Credit Suisse’s projections, the Big Australian could pay a 14.5% grossed-up dividend yield in FY22 and 8.6% in FY23.

The post Down over 10% in 10 days: Is the BHP share price a bargain buy now? appeared first on The Motley Fool Australia.

More reading

• Cash generation among ASX 200 iron ore shares will ‘be significant’ in 2022: expert
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• 3 ASX 200 mining shares defying today’s sell-off to surge higher
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

What happened

Shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) turned sharply lower on Wednesday, falling as much as 5%. As of 1:10 p.m., the stock was still down 2.1%.

The catalyst that sent the tech giant lower was its first-quarter earnings report, which held a few unhappy surprises for investors. 

So what

Alphabet generated revenue of $68 billion, up 23% year over year (up 26% in constant currency). Its operating margin of 30% was consistent with the prior-year period. The search leader delivered net income of $16.44 billion, which resulted in earnings per share (EPS) of $24.62, up just 7%. 

To give some context to that performance, analysts’ consensus estimates were calling for revenue of $68.1 billion and EPS of $25.74, so Alphabet’s revenue was in line with expectations, but profits were lacking. CFO Ruth Porat cited headcount as the primary driver of higher operating expenses. 

Both of Alphabet’s major segments experienced slowing growth, as the Google services segment grew 30%, while the Google Cloud segment climbed 44%, bringing its run rate to more than $23 billion. 

Investors seemed to focus on the tepid results of YouTube advertising, which grew 14% year over year, a far cry from the 49% growth in the prior-year quarter. At $6.87 billion, its ad revenue fell shy of expectations of $6.9 billion, dragged lower by the war in Europe, a suspension of services in Russia, and the increasing draw of TikTok. 

Management announced that the board of directors had authorized an additional $70 billion share buyback, suggesting it believes the share price has fallen too low.

Now what

Investors’ “what have you done for me lately” attitude is a bit perplexing, particularly given the love affair Wall Street was having with Alphabet just three months ago. Its upcoming stock split notwithstanding, there is plenty of growth ahead for the Google parent, as digital advertising takes a growing percentage of overall ad revenue. This reaction also helps illustrate the short attention span of some investors.

Those with a longer-term mindset will no doubt focus on the broad secular trend and the massive opportunity that remains, rather than a single quarter of results, which makes Alphabet an unqualified buy. 

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

The post Why Alphabet stock slumped on Wednesday appeared first on The Motley Fool Australia.

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Danny Vena has positions in Alphabet (A shares). Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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