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There are two leading ASX growth shares revealed in this article that have been sold off.

Not only are there the terrible events in Ukraine affecting the market, but inflation and interest rates have also been a major feature in investors’ minds since the start of the year.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has fallen 8% from the start of the year. However, just yesterday the ASX 200 dropped 3% as Russia started its invasion of Ukraine.

With the above in mind, these two ASX growth shares are two that have seen a heavy sell-off:

Altium Limited (ASX: ALU)

Altium is a leading electronic PCB software design business. During this decade, it is looking to dominate the industry and influence the sector the way the Microsoft was able to with its office software.

The Altium share price fell by over 4% yesterday and has dropped almost 30% since the start of the year.

It’s making rapid progress in transitioning its subscriber base onto its cloud offering called Altium 365, which offers a high level of accessibility and collaboration for engineers. Altium 365 now has 19,700 monthly active users (up 54%) since August and over 7,700 monthly active accounts (up 29% since August).

The recent FY22 half-year result showed a return to strong double-digit growth. Revenue rose 28% to US$102 million. Octopart – an electrical part search engine – saw revenue growth of 105% to US$22 million. Octopart was helped by the tailwinds from the global electronic parts shortage.

Annual recurring revenue (ARR) is rising quickly. It rose 43% year on year and now represents 74% of total revenue.

Margins are rising again. The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased from 30.6% to 34.1% year on year. This helped operating cash flow rise 78% to US$33 million. Profit after tax grew by 38% to US$23 million.

Altium points to the growing growth of the internet of things (IoT) with a rapid rise in the number of connected devices. This is a helpful tailwind.

The ASX growth share is now expecting revenue to grow by between 18% to 20% in FY22, with ARR growth of 23% to 27%. The EBITDA margin is expected to be between 34% to 36%.

Xero Limited (ASX: XRO)

Xero is a leading cloud accounting software business.

The Xero share price dropped 5.5% yesterday. It has now fallen by 36% since the start of the 2022 year.

Some brokers, like Macquarie, are now seeing good long-term value in Xero after such a steep decline.

The business continues to grow at a fast pace. Global subscriber growth is driving the annualised monthly recurring revenue (AMRR) higher. In the first half of FY22, AMRR rose 29% to $1.13 billion thanks to a 23% rise of total subscribers to 3 million and a 5% rise of the average revenue per user (ARPU) to $31.32.

Australia saw 124,000 net subscribers to reach a total of 1.24 million subscribers at the end of the half, whilst UK subscribers saw 65,000 net additions taking the total to 785,000. The ‘rest of the world’ segment is quickly growing revenue too. South Africa is seeing “strong progress”, which is scaling from a large base of subscribers.

Xero’s gross profit margin is now 87.1%, after increasing from 85.7% in the prior corresponding period. The ASX growth share is focused on investing in product development and partnerships to help drive cloud-based software adoption. The digitisation of tax compliance is another tailwind for the business.

The post 2 top ASX growth shares that have been heavily sold off appeared first on The Motley Fool Australia.

More reading

• Analysts see huge upside potential for these beaten down ASX tech shares
• 5 things to watch on the ASX 200 on Friday
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• ASX wipes out $73 billion as Russia invades Ukraine

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and Xero. The Motley Fool Australia owns and has recommended Xero. 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 tech sector has come under significant pressure this year. While this is very disappointing, it could have created a buying opportunity for patient long-term focused investors.

Here are two beaten ASX tech shares that could be in the buy zone:

Life360 Inc (ASX: 360)

The first beaten down ASX growth share to look at is Life360. It is a location-based services provider based in San Francisco, United States with 33 million+ monthly active users. Its shares were sold off on Thursday following the release of its full year results, which means the Life360 share price is now down 50% in 2022.

In response to its results, this morning Bell Potter put a buy rating and $10.00 price target on its shares. This is more than double where its shares trade today. Its analysts remain very positive on the company’s future and continue to forecasts very strong growth in the coming years.

Bell Potter commented: “We have updated each valuation used in the determination of our price target for the forecast changes as well as market movements and time creep. We have also removed the premium in EV/Revenue valuation and increased the WACC in the DCF from 8.4% to 8.7% due to the uncertainty around any impact on Tile and also the potential US listing and any associated raising. The net result is a 26% decrease in our PT to $10.00 which is still a large premium to the share price so we keep the BUY.”

Xero Limited (ASX: XRO)

Another beaten down ASX growth share to look at is Xero. On Thursday, this cloud accounting platform provider’s shares dropped to a 52-week low of $91.81. When the Xero share price hit this level, it meant it was down over 40% from its highs.

One broker that is likely to see this as a buying opportunity is Goldman Sachs. Its analysts currently have a buy rating and $158.00 price target on its shares. This implies potential upside of ~70% for investors over the next 12 months.

Based on its forecasts, Goldman believes Xero will almost double its revenue and operating earnings from FY 2021 to FY 2024.

The post Analysts see huge upside potential for these beaten down ASX tech shares appeared first on The Motley Fool Australia.

More reading

• 2 top ASX growth shares that have been heavily sold off
• ASX wipes out $73 billion as Russia invades Ukraine
• 5 ASX 200 shares tumbling to 52-week lows today
• Why Appen, City Chic, Flight Centre, and Life360 shares are sinking
• ASX tech shares have been smashed today as market hits 3-week low

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Xero. The Motley Fool Australia owns and has recommended Xero. 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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If you’re an income investor on the lookout for some new additions, then you may want to check out the two ASX 200 dividend shares listed below.

Here’s why these giants could be in the buy zone:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share to consider is Commonwealth Bank. Australia’s largest bank could be a top option due to its leadership position in the sector, the economic rebound from COVID, and the improving outlook for interest rates.

While some analysts believe Commonwealth Bank’s shares are expensive, the team at Bell Potter appear to believe they deserve to trade at a premium and continue to see value in them at the current level. So much so, the broker recently upgraded its shares to a buy rating with a $108.00 price target.

Bell Potter is positive on its outlook, it commented: “Despite the misgivings of the market and especially COVID-19’s Omicron strain, CBA sees FY22 as a strong year. The unemployment (and underemployment rate) are the lowest since 2008 and Australian household accumulated savings are stronger than ever (likewise the rate at which wage growth in anticipated). Inflation is likely to increase in due course (and that’s a good thing for all banks) while non-mining investment including infrastructure continue to hold up reasonably well. The bank has again bounced back from its lows and is on its way back to its usual top line growth potential.”

As for dividends, the broker is forecasting fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $94.71, this will mean yields of 4.1% and 4.3% respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share to look at is Wesfarmers. This conglomerate has one of the highest quality retail portfolios in Australia, which is supported by a range of industrial businesses and even a lithium mining operation.

The team at Morgans is positive on Wesfarmers. In response to its recent half year update, the broker retained its add rating but trimmed its price target slightly to $58.50.

It said: “Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors.”

In respect to dividends, the broker is forecasting fully franked dividends of $1.62 per share in FY 2022 and then $1.81 per share in FY 2023. Based on the current Wesfarmers share price of $47.75, this will mean yields of 3.4% and 3.8%, respectively.

The post Analysts name 2 ASX dividend giants to buy appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares tumbling to 52-week lows today
• ‘Rapidly evolving’: CBA (ASX:CBA) boss warns of continued volatility amid Russia fears
• Own CBA (ASX: CBA) shares? Here’s how the bank is pushing its ‘green’ and ESG investment products
• Should you be buying ASX 200 bank shares in February?
• Opportunity? 5 ASX 200 shares that traded at 52-week lows 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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has fallen heavily this week.

Since the start of the period, the pizza chain operator’s shares have lost over 20% of their value.

Why is the Domino’s share price sinking this week?

The main driver of the Domino’s share price weakness has been the release of a half year result that fell short of expectations.

In case you missed it, Domino’s reported an 11.1% increase in network sales but a 5.3% decline in underlying net profit after tax to $91.3 million. This earnings miss was driven largely by its underperformance in Asia.

Is this a buying opportunity?

The team at Morgans believe the weakness in the Domino’s share price is a buying opportunity for investors.

According to a note, the broker has upgraded the company’s shares to an add rating, albeit with a reduced price target of $115.00.

Based on the current Domino’s share price, this implies potential upside of 43% for investors over the next 12 months.

What did the broker say?

While the broker was disappointed with Domino’s performance during the first half, it remains positive on the future.

Morgans is forecasting “an 18.0% 5-year cumulative average growth rate of EPS between FY20 and FY25F.” This is expected to be underpinned by a combination of steady same store sales growth, its ongoing store rollout, and the inclusion of the new market of Taiwan.

The broker also highlights that Domino’s has the balance sheet capacity to make acquisitions that could bolster its growth.

Overall, its analysts believe the risk/reward on offer now is attractive, particularly for a company of its quality.

Morgans concluded: “DMP has de-rated substantially from a high of $165 in September last year to close at $86 today [$80.52 now]. Even after the de-rating, it remains a premium multiple stock, but in our opinion the growth potential of the business warrants this status. ROIC is set to accelerate in the years ahead. We think investors should take their opportunity to build a position in this high quality business at the current attractive entry point. We upgrade to ADD.”

The post ‘Attractive entry point’: Broker upgrades Domino’s (ASX:DMP) shares appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares tumbling to 52-week lows today
• Why Australian Ethical, Domino’s, Scentre, and St Barbara shares are falling
• Slow down: Why the Domino’s (ASX:DMP) share price is sinking 16%
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• Domino’s Pizza (ASX:DMP) profit nosedives: how will market digest result?

Fetching Disclosure…

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The green division of Fortescue Metals Group Limited (ASX: FMG), called Fortescue Future Industries (FFI), may soon be launching a new green initiative.

Fortescue’s founder and Chair Andrew Forrest is scheduled to speak at the Queensland Media Club in Brisbane later today. According to reporting by The Australian, it is possible that a new investment in renewable energy in Queensland may be announced.

What is Fortescue Future Industries?

Fortescue says that FFI is taking a global leadership position in green energy and green technology, leading the effort to decarbonise hard-to-abate sectors.

FFI is investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.

The green division is working on a number of initiatives to help Fortescue decarbonise as well as helping the world decarbonise in various other ways.

For example, it has recently successfully completed the first phase of studies with Incitec Pivot Ltd (ASX: IPL) to convert the Gibson Island ammonia production facility to be powered by green hydrogen. The next phase is to progress the project to a front end engineering design study to refine cost, schedule, permitting and commercial agreements.

In terms of decarbonising its operations, it has recently progressed rail decarbonisation initiatives with the arrival of two additional ‘four stroke’ locomotives for testing on a blended ammonia fuel system, and in January 2022 announced the purchase of two battery electric locomotives for delivery in 2023.

In January 2022, Fortescue announced that it had entered into an agreement to acquire Williams Advanced Engineering (WAE). WAE will be vertically integrated into Fortescue and will be managed via FFI which will utilise WAE’s critical technology and expertise in high-performance battery systems and electrification to accelerate the decarbonisation of Fortescue’s iron ore operations.

How does Queensland factor into FFI’s plans?

Queensland was the location of the first announced Fortescue Future Industries global green energy manufacturing (GEM) centre in Gladstone, Queensland. The first stage of development is an electrolyser manufacturing facility with an initial capacity of two gigawatts per annum with an investment of up to US$83 million by FFI.

The GEM will be the first in a series of centres that will “transform regional Australia through the manufacture of equipment that is critical to the generation of renewable energy and green hydrogen”. Not only will there be electrolyser manufacturing, but also wind turbines, solar photovoltaic cells, long-range electric cabling, electrification systems and associated infrastructure.

Subject to customer demand, as orders firm for both electrolysers and the associated green industry, the investment could be up to US$650 million.

The Australian reported that the theme of the media lunch in Brisbane is “Queensland’s green energy future” which will be about ways to make the state a green energy powerhouse.

The post Could Fortescue (ASX:FMG) be about to announce its next major green initiative? appeared first on The Motley Fool Australia.

More reading

• The iron ore price outlook could be darkening amid China’s latest plans
• Why new iron projects could drive the Fortescue (ASX:FMG) share price higher
• Top brokers name 3 ASX shares to sell next week
• These were the worst performers on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was sold off after Russia invaded the Ukraine. The benchmark index fell 3% to 6,990.6 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week with a small gain after US markets reversed their declines. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.65%, the S&P 500 is up 0.35%, and the Nasdaq is up 1.9%.

Medibank half year results

The Medibank Private Ltd (ASX: MPL) share price will be one to watch on Friday. This morning the private health insurer is scheduled to release its half year results. According to CommSec, the consensus estimate is for a net profit of $218 million. This will be down slightly from $226.4 million a year earlier. The market is also forecasting a 5.9 cents per share interim dividend.

Oil prices higher

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a decent day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$92.92 a barrel and the Brent crude oil price is up 2.4% to US$99.20 a barrel. The latter hit US$100 at one point for the first time since 2014 amid developments in Ukraine.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower. According to CNBC, the spot gold price is down 0.75% to US$1,896.30 an ounce. Gold was up as much as 3% at one stage before paring its gains.

Flight Centre given neutral rating

The Flight Centre Travel Group Ltd (ASX: FLT) share price doesn’t offer enough value for money according to the team at Goldman Sachs. This morning the broker retained its neutral rating and cut its price target to $19.50. Goldman notes that Flight Centre’s cash burn was higher than expected and has concerns that emerging geopolitical risks could dampen the recovery profile.

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

More reading

• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• ASX wipes out $73 billion as Russia invades Ukraine
• Here are the top 10 ASX shares today
• 5 ASX 200 shares tumbling to 52-week lows 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Looking for some exchange traded funds (ETFs) to boost your portfolio? If you are, you might want to look at the ones below.

Here’s why they could be worth researching further:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for investors that are interested in investing in the cryptocurrency industry rather than coins.

BetaShares notes that the ETF is designed to capture the full breadth of the crypto ecosystem. This is achieved by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), companies with balance sheets that hold at least 75% in crypto-assets, and diversified companies with crypto-focused business lines.

Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Afterpay-owner, Block. Given the nature of the industry, it is not likely to be one for the fainthearted.

VanEck Australian Resources ETF (ASX: MVR)

If you’re more interested in the traditional type of mining, then you may want to look at the VanEck Australian Resources ETF.

This ETF gives investors exposure to a diversified portfolio of ASX-listed shares with the aim of providing investment returns before fees and other costs of the MVIS Australia Resources Index.

This index is a pure-play rules-based Australian sector index that tracks the performance of the largest and most liquid ASX-listed companies that generate at least 50% of their revenues or assets from the Australian resources sector.

Among the ETF’s holdings are many of the most well-known miners on the Australian share market. This includes the likes of BHP Group Ltd (ASX: BHP), Newcrest Mining Ltd (ASX: NCM), Rio Tinto Limited (ASX: RIO), and Woodside Petroleum Limited (ASX: WPL).

The post 2 intriguing ETFs for ASX investors to watch appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors to watch in 2022
• 3 popular ETFs for ASX investors today
• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• 3 exciting ETFs for ASX investors next week

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. owns and has recommended Betashares Crypto Innovators ETF. 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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Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below.

Here’s what you need to know about these buy-rated growth shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. While the pandemic hit Aristocrat hard, it has bounced back very strongly and even appears to be winning market share from rivals.

Furthermore, its digital business continues to grow strongly and generate significant recurring revenues thanks to the ongoing popularity of its portfolio. And while the company has just missed out on a major real money gaming acquisition, management appears intent on increasing its exposure to this growing market and certainly has the balance sheet strength to do so.

Morgans is very positive on Aristocrat and has an add rating and $48.00 price target on its shares. Based on the current Aristocrat share price of $36.70, this implies potential upside of approximately 31% for investors.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Thanks to the popularity of these brands and management’s ongoing investment in R&D, Breville has been growing at a solid rate for years. This has continued in FY 2022, with the company delivering 23.6% increase in half year revenue to $878.7 million and a 25.1% lift in net profit after tax to $77.7 million.

Morgans is also a fan of Breville and has recently put an add rating and $32.00 price target on its shares. With the Breville share price currently fetching $27.18, this suggests potential upside of approximately 18% for investors over the next 12 months.

The post 2 top growth shares analysts rate as buys after the market meltdown appeared first on The Motley Fool Australia.

More reading

• Breville (ASX:BRG) share price pops after 25% profit surge
• 3 excellent ASX growth shares to buy before it’s too late
• 3 fantastic ASX 200 growth shares to buy
• Here are 3 excellent ASX growth shares for investors in February
• Could Aristocrat (ASX:ALL) still be eyeing a Playtech deal of sorts?

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 Bruce Jackson.

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The oil price has reached an 8-year high. What could this mean for ASX shares?

Oil prices have risen above US$100 and have hit a price that hasn’t been seen for almost a decade.

It has been a very volatile day for the ASX share market. The S&P/ASX 200 Index (ASX: XJO) fell by 3% today to 6,991 points.

What’s happening?

Russia has started a full-scale invasion of Ukraine, as reported by various media and Ukrainian officials.

Before today, geopolitical concerns had sent the oil price higher. It’s possible that there could be major economic sanctions against Russia, which was the second biggest oil producer in 2020 according to reporting by Forbes.

Sanctions on Russian oil could hurt the available global oil supply, when prices were already rising.

According to reporting by Forbes, Russia produced 10.1 million barrels of oil per day of crude oil and natural gas condensate in 2020.

How could the higher oil price affect ASX shares?

There are a few key oil producers on the ASX. Two of the biggest are Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

Another major ASX-listed oil producer is BHP Group Ltd (ASX: BHP), though it’s planning to divest its oil business to Woodside in the next few months.

However, there are a number of wider impacts that higher oil prices could have.

There are plenty of ASX shares where they use a lot of oil products in their main operations, or the supply chain does, like Qantas Airways Limited (ASX: QAN), Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

There are plenty of other ASX shares that use oil in some way.

In a bid to try to control oil prices, Australia is considering using its 1.7 million barrels of fuel reserves held in the United States as part of a joint effort with like-minded nations according to reporting by the Australian Financial Review.

The newspaper said that Energy Minister Angus Taylor said Australia was working with the US and the International Energy Agency “to monitor global energy markets, ensure ongoing supplies and plan for appropriate measures to ensure energy security.” Mr Taylor continued:

Australia is prepared to join other IEA member countries to contribute to a global collective action, if one is called, through using our oil stocks held in the United States’ Strategic Petroleum Reserve (SPR) and will continue to monitor global gas markets.

Inflation concerns

Inflation was already a big concern for ASX shares, economists and central bankers before this difficult situation, as well as the climbing oil price.

The Guardian quoted Melbourne-based Kyle Rodda from IG Markets that said that the increase in fuel prices could lead to further inflation, making central banks have to react strongly to inflation:

… the supply disruptions in commodity prices would drive costs higher, and exacerbate the inflation central banks are already struggling to contain.

That means despite, this the Fed – and others – would be unable to buffet the shock, and would potentially have to tighten policy – a very negative scenario for risk assets.

Rising interest rates can have a downward impact on asset prices like ASX shares.

Warren Buffett said at the 1994 Berkshire Hathaway annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The post The oil price has just hit an 8-year high. What might this mean for ASX shares? appeared first on The Motley Fool Australia.

More reading

• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• Why Russia was not the only thing that dragged the BHP (ASX:BHP) share price lower today
• ASX wipes out $73 billion as Russia invades Ukraine
• Here are the top 10 ASX shares today
• 5 ASX 200 shares tumbling to 52-week lows today

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 owns 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 Medical Developments International Ltd (ASX: MVP) share price will be on watch on Friday.

This follows the release of the healthcare company’s half year results after the market close.

Medical Developments International share price on watch after big loss

• Revenue down 23% to $9.865 million
• Net loss after tax widened from $1.1 million to $7.4 million
• Cash and cash equivalents of $28.3 million

What happened during the first half?

For the six months ended 31 December, Medical Developments International reported a 23% decline in revenue to $9.865 million. This decline was entirely due to $6.4 million in non-recurring contract income recorded during the prior corresponding period. This overshadowed a 55% increase in core sales, supported by a 131% jump in Australian Penthrox sales.

On the bottom line, Medical Developments International generated a net loss after tax of $7.4 million, compared to a loss of $1.1 million a year earlier. Though, after adjusting for non-operating items, the company’s loss was comparable to the prior period.

No dividend was declared for the half once again.

Management commentary

Medical Developments International’s Chair, Gordon Naylor, was pleased with the progress the company made during the half.

He said: “I continue to be pleased with the progress being made by Brent and his leadership team to reshape and focus MVP. It is especially encouraging to see early signs that the approach is working. Despite the pandemic challenges, Penthrox sales growth is strong in Europe, our primary growth corridor over the next few years. We’re also seeing solid underlying growth in Australian sales and our US respiratory franchise.”

“Our renewed focus has meant that we have taken formal decisions to cease further development of continuous flow processes for third parties and to exit the Veterinary segment, allowing our skilled resources to be applied to the core pain segment.”

“In another positive development, our next generation Penthrox delivery device (‘Selfie’) has reached the milestone of formal project approval. Our aim is for Selfie to propel further future business growth. I thank Brent and the MVP team who have been through a challenging time. The challenges aren’t over, but I am confident that the company is heading in the right direction,” Mr Naylor added.

No guidance has been provided for the remainder of FY 2022.

The post Medical Developments International (ASX:MVP) share price on watch as losses widen appeared first on The Motley Fool Australia.

More reading

• Australian Clinical Labs (ASX:ACL) share price falls despite tripling profits and beating guidance
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny
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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. owns and has recommended Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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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