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The Woolworths Group Ltd (ASX: WOW) share price is avoiding the market selloff on Thursday.

In afternoon trade, the retail giant’s shares are up 0.5% to $35.88.

This means the Woolworths share price is now up over 5% since the start of the week.

Why is the Woolworths share price rising today?

Investors have been bidding the Woolworths share price higher today following a largely positive response to the retailer’s half year results from brokers.

In case you missed its results, on Wednesday the company reported an 8% increase in group sales to $31,894 million and a 6.5% decline in net profit to $795 million.

While a profit decline is not often celebrated, it is worth noting that this profit was ahead of the market’s expectations. Furthermore, it includes $239 million of COVID-related costs.

Management also revealed that the second half has started very positively for its supermarkets, with sales up strongly during the first seven weeks. While the same cannot be said for the Big W business, investors appear more focused on the core business.

What was the response?

Overall, Woolworths’ half year results went down well with the market. In fact, the result even managed to coax a couple of fence-sitting brokers into more positive ratings.

One of those is Citi. This morning the broker upgraded the company’s shares to a buy rating from neutral and lifted the price target on them by 3.3% to $40.30.

Citi was pleased with its first half performance and believes underlying momentum in the key Australian Foods business has improved since its mid-December trading update.

Combined with food inflation, easing restrictions, falling COVID rates (and therefore likely COVID costs), and margin benefits from customers returning to stores instead of online, Citi feels Woolworths’ outlook is improving.

Based on the current Woolworths share price, Citi’s price target implies potential upside of 12% over the next 12 months. It is also forecasting a fully franked full year dividend yield of 2.6%, bringing the total potential return on offer to almost 15%.

The post Woolworths (ASX:WOW) share price defies selloff and pushes higher on broker upgrade appeared first on The Motley Fool Australia.

More reading

• These are some of the only ASX shares in the green today. Here’s why
• Woolworths (ASX:WOW) faces fresh probe as wage scandal balloons to $500m
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• Profit drop: Woolworths (ASX:WOW) share price pushes higher despite ‘challenging’ first-half results
• 5 things to watch on the ASX 200 on Wednesday

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 S&P/ASX 200 Index (ASX: XJO) is having a pretty dreadful day so far this Thursday, no two ways about it. At the time of writing, the ASX 200 has lost a nasty 2.7% and is sitting at 7,008 points.

With a fall of this magnitude, you would reasonably expect falls across the board for most ASX shares. And that is mostly true. All ASX sectors are deep in the red as it presently stands. With one glaring exception.

Despite the market’s woes today, the S&P/ASX All Ordinaries Gold (ASX: XGD) is firming, rising by 1.7% at the time of writing. Consumer Staples shares are also faring arguably well, all things considered. This sector is down by 0.78%, far better than any other ASX sectors in the red today. In earlier trade, the consumer staples sector was in the green.

Gold often shines when there is fear or panic in the market. Not to mention global geopolitical tensions. So that one isn’t too much of a mystery. But consumer staples?

Consumer staples companies are the businesses that manufacture and sell life’s essentials. Think food, drinks, hygiene products, and household necessities. Vices like tobacco and alcohol are also classed as consumer staples.

Looking at individual ASX shares, we can see many in the green today.

Why are ASX gold and consumer staples shares defying the bloodbath?

Take the Woolworths Group Ltd (ASX: WOW) share price. It’s currently up 0.43%. Coles Group Ltd (ASX: COL) is only slightly down by 0.5%. Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are in the green so far today. So what’s going on?

Well, it’s not entirely clear. Perhaps investors are just looking for safety on a day like today. Because of their needs-based nature, consumer staples are often viewed as something of a safe harbour. We all need to eat and drink, after all. And that doesn’t change in times of economic hardship, or in the event of a Russian invasion in Ukraine. Thus, consumer staples, together with gold, look like safer ASX shares when there is fear in the market.

The fact that both Coles and Woolworths, the poster children of ASX consumer staples, reported what appear to be well-received half-year earnings this week might also be helping.

The Woolworths share price edged 1.3% higher yesterday despite the company revealing weaker results. Coles went 3% higher on Tuesday after beating some analysts’ expectations with their results.

Whatever the reasons for the comparative strength in gold and consumer staples ASX shares, it’s likely providing at least some comfort to those shareholders today.

The post These are some of the only ASX shares in the green today. Here’s why appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
• Will 2022 be the year of the cash or the crash for ASX shares?
• Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
• 5 things to watch on the ASX 200 on Thursday
• Woolworths (ASX:WOW) faces fresh probe as wage scandal balloons to $500m

Motley Fool contributor Sebastian Bowen owns Newcrest Mining 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 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 Link Administration Holdings Ltd (ASX: LNK) share price is down 0.2% in afternoon trading.

Link shares closed yesterday trading at $5.30 and are currently trading for $5.29.

While that’s dipped into the red, the Link share price is handily beating the 2.8% loss posted by S&P/ASX 200 Index (ASX: XJO) at this same time.

The technology focused company provides outsourced administration services for superannuation fund administration and corporate markets, among others.

Below we look Link’s financial results for the half year ending 31 December (1H FY22).

Link share price outperforms on guidance lift

• Revenue of $593.6 million, down 0.6% year-on-year
• Operating earnings before interest and tax (EBIT) slipped 11% from 1H FY22 to $70.2 million
• Statutory net profit after tax (NPAT) came in at a loss of $81.7 million compared to a profit of $29.4 million in the prior corresponding period
• Dividend of 3 cents declared, fully franked, down from 4.5 cents in 1H FY21

What else happened during the half year?

The company reported that its Global Transformation Program (GTP) delivered $63 million of gross annual cost savings. It now expects gross annualised benefits to reach $75 million by the end of the 2022 financial year.

The first half also saw Link enter into exclusive talks with LC Financial Holding in relation to its Banking & Credit Management business.

Another big event for Link shareholders during the half was Link’s $101.7 million on-market share buyback.

Overall, the company reported a “strong level of client retention” across all of its business units, along with “healthy levels of uptake of new solutions” as it managed to boost its cross sell to clients.

As at 31 December, Link had a net debt of $656 million. The company’s leverage ratio stood at 2.6 times. That’s within the guidance range of 2 to 3 times.

What did management say?

Commenting on the results, Link’s CEO Vivek Bhatia said:

Link Group continues to deliver in a challenging operating environment. 1H FY22 Operating EBIT of $70.2 million was ahead of our guidance and net operating cash flow conversion continues to remain very healthy at 106%. Our RSS and CM businesses have delivered good underlying revenue growth and our global business remains in sound shape…

Our strong balance sheet and cash flow conversion has allowed us to invest further in technology and our people to cement our leadership positions in RSS and CM, and drive revenue and profit growth in FY23 and beyond.

What’s next?

The Link share price could be getting some extra support today after the company reaffirmed its revenue growth guidance of low single digit growth in FY22.

With year-to-date trading exceeding management’s expectations, Link lifted its FY22 EBIT guidance, saying it now expects this to come “at least” 5% higher than the prior year.

“Underpinned by the strength of our scale, expertise of our people and proprietary technology platforms we are confident that all the factors are in place for a stronger medium-term outlook,” Bhatia said.

Link share price snapshot

The Link share price is down 5.1% so far in 2022. That compares to a year-to-date loss of 7.7% posted by the ASX 200.

The post Link (ASX:LNK) share price outperforms today as guidance boosted appeared first on The Motley Fool Australia.

More reading

• Nitro (ASX:NTO) share price sinks 14% despite record result
• Bega Cheese (ASX:BGA) share price sinks 7% despite high half-year revenues
• ASX tech shares have been smashed today as market hits 3-week low
• Dividend ditched: City Chic (ASX:CCX) share price plummets 30% on half-year earnings
• Profit plunge: TPG Telecom (ASX:TPG) share price slides 7% on full-year results

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Link Administration Holdings Ltd. 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 Nitro Software Ltd (ASX: NTO) share price has been a poor performer on Thursday.

In afternoon trade, the document productivity software company’s shares are down 14% to $1.47 following the release of its full year results.

Nitro share price sinks despite record results

• Annual recurring revenue (ARR) excluding Connective up 41% to US$40.1 million
• ARR including the Connective acquisition up 62% to US$46.2 million
• Revenue up 26% to US$50.7 million
• Operating earnings before interest, tax, depreciation and amortisation (EBITDA) loss of US$7.6 million
• Cash and cash equivalents of US$48.2 million

What happened in FY 2021?

For the 12 months ended 31 December, Nitro delivered further strong ARR growth and reported a result in line with its guidance. Its ARR for the period, before the Connective acquisition, came in at US$40.1 million. This compares to its guidance of US$39 million to US$42 million and means that 66% of its revenue is now subscription-based.

Key drivers of its growth during the 12 months were the doubling of Nitro Sign eSignature requests to 2.2 million, and a substantial increase to 22 million eSignatures in total including Connective.

Furthermore, over 3 billion documents were opened in Nitro PDF Pro in FY 2021, and Nitro surpassed the milestone of 1 million PDF subscription licences, ending the year at 1.1 million.

Also coming in line with its revised guidance was its EBITDA loss of US$7.4 million excluding Connective. This was a big improvement on its original guidance of a loss of US$11 million to US$13 million.

Management commentary

Nitro’s Co-Founder and Chief Executive Officer, Sam Chandler, was pleased with the company’s performance in FY 2021.

He said: “FY2021 was the most dynamic year in Nitro’s history, with the achievement of a number of major strategic milestones, including a successful capital raising and our biggest and most important acquisition to date – Connective. The addition of Connective’s market-leading capabilities and the earlier acquisition of PDFpen – delivering native Mac and iOS capabilities – means Nitro can now serve virtually any customer need in PDF productivity and eSigning. With these acquisitions, Nitro has cemented its status as a global document productivity and eSign SaaS platform.”

“FY2021 was the year in which we exceeded US$50 million of revenue, with a strong sales trajectory in the final quarter and the momentum continuing into the new year. Nitro’s mission for the coming year is to continue this momentum and to build on the strategic milestones and successes of FY2021 by scaling the Nitro Productivity Platform.”

“This will involve fully integrating Connective’s best-of-breed technologies – a process now well underway – and using Nitro’s proven go-to-market network to upsell and cross-sell Nitro and Connective products to a combined 13,000+ Business Customer base. We will remain focused on customer acquisition, retention and expansion, as well as responding to competition at a time when customers are signaling their dissatisfaction with legacy providers and increasingly demanding one vendor who, like Nitro today, can offer multiple solutions.”

Outlook

Management appears confident that it will continue to grow into its US$28 billion total addressable market in FY 2022. Though, it expects this to come at a cost and is forecasting a much larger loss.

It has provided the following guidance:

• FY 2022 ARR between US$64 million and US$68 million (38.5% to 47.2% growth)
• Revenue between US$65 million and US$69 million
• Operating EBITDA loss between US$18 million and US$21 million.

Management concluded: “Given the scale of the market opportunity and the Company’s multiple growth levers, Nitro will continue to make strategic investments in FY2022, primarily focused on the scaling and integration of Connective into Nitro’s business, developing features relevant to its customers and scaling its go-to-market engine. Nitro will also continue to explore other targeted investments, including potential acquisitions, to build capability and scale, and further cement its position as a global leader in eSigning and document productivity.”

The post Nitro (ASX:NTO) share price sinks 14% despite record result 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 Nitro Software 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 Bega Cheese Ltd (ASX: BGA) share price is dropping following the release of the company’s half-year earnings. Bega revealed a large increase in company revenue and a 10% boost to the interim dividend as a result.

So, why has the Bega share price dropped 7.75% to $4.88 (at the time of writing)? Let’s dive in…

What did Bega Cheese report?

For the first half of the 2022 financial year (ending 26 December 2021), Bega Cheese reported the following financials:

• Revenue up 113% to $1.5 billion against the prior corresponding period (pcp)
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) up 48% to $97.2 million
• Profit after tax up 29% at $28 million
• Earnings per share (EPS) down 3% at 9.3 cents per share.

Bega Cheese is continuing to reap the benefits from its Lion Dairy & Drinks acquisition announced back in November 2020. This accounted for $787 million of revenue for the half, with the integration of the business progressing well.

What else did Bega tell the market?

COVID-19 remained a challenge for Bega Cheese throughout the first half, creating a financial impact of $20 million.

It wasn’t only the workforce affected but supply chains, too. In a statement, Bega said this impacted “prices for direct and indirect internationally sourced materials such as fuel, packaging, resin and coffee”.

“Many suppliers of these products were unable to meet delivery windows creating interrupting to manufacturing schedules resulting in increased operational costs,” it said.

Net debt increased by $3.7 million (against the previous half ending 30 June 2021) to a total of $328.6 million.

The company declared a fully-franked dividend today of 5.5 cents per share to be paid on 24 March. This is a 10% increase on the FY21 interim dividend of 5 cents and represents a distribution of $16.7 million.

Bega said the boosted dividend “reflects the growth in total earnings…which has strengthened following the acquisition of Bega Dairy and Drinks”.

Why is the Bega share price falling when profits are up?

The broader market sell-off today might be part of the reason why the Bega share price has fallen despite the company reporting increased profits. The S&P/ASX 200 Index (ASX: XJO) is down 2.5% at the time of writing.

Looking forward, Bega is focused on managing COVID-19 challenges. It also intends to further capitalise on the opportunities created through its acquisition of Lion Dairy & Drinks.

It also has more products to focus on in the next financial year, including “yoghurt, nutritionals and white milk”.

Bega Cheese share price snapshot

Over the past 12 months, the Bega share price has dropped by 20%. It sunk to a 52-week low of $4.84 on 23 December following a performance update for FY22.

A week later, the share price jumped when Andrew Forrest bought a 6.61% interest in Bega for $108 million.

The company has a market capitalisation of $1.6 billion.

The post Bega Cheese (ASX:BGA) share price sinks 7% despite high half-year revenues appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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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As most ASX investors would be aware of by now, the S&P/ASX 200 Index (ASX: XJO) is currently enduring a pretty nasty sell-off so far this Thursday. At the time of writing, the ASX 200 has lost a sobering 2.94%, putting it at a 3-week low. But it’s ASX tech shares that have arguably taken the brunt of the fear that has entered the market.

ASX 200 mining, energy, and materials shares are also in the firing line. But the S&P/ASX 200 Information Technology Index (ASX: XIJ) is leading the ASX 200’s losses, with the index down almost 5%.

So let’s dig a little deeper and see which ASX tech shares are getting the royal treatment from investors.

Tech shares take the brunt of ASX 200’s losses

ASX buy now, pay later (BNPL) leader Zip Co Ltd (ASX: Z1P) is currently down 8.6%. The new owner of Zip’s old rival Afterpay, Block Inc (ASX: SQ2), is faring even worse. Its shares are down 10.3% at $19.52. Block is now down more than 32% since its ASX debut only last month.

Life360 Inc (ASX: 360) reported its earnings this morning. Investors have clearly been spooked by what they saw as the company is down a devastating 30% at $4.60 a share.

Likewise with Appen Ltd (ASX: APX). Appen also reported this morning, and investors have arguably given its report card another decisive ‘F’, seeing as this company is down 25.7% at $6.36 a share. Appen hasn’t seen that kind of share price since at least 2017. Ouch.

Even beloved ASX 200 tech shares WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO) haven’t escaped the onslaught. Both are down 5.5%.

You get the idea.

So why are ASX tech shares getting such a hammering from investors today? Well, in many cases, it appears to be a combination of the broader market sell-off together with poorly received earnings. But due to their ‘growth’ nature, ASX tech shares are often the companies that are hardest hit in times of market turmoil and fear.

This is due to a number of potential reasons, including the higher valuations investors often allow these companies, together with their perceived longer growth runways.

But no doubt that will be of cold comfort to many ASX tech investors today. Such is the way of ASX life sometimes.

The post ASX tech shares have been smashed today as market hits 3-week low appeared first on The Motley Fool Australia.

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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. owns and has recommended Appen Ltd, Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Block, Inc., WiseTech Global, and 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 City Chick Collective Ltd (ASX: CCX) share price is tumbling after the release of the company’s earnings for the first half of financial year 2022.

At the time of writing, the City Chic share price is $3.49, 30.89% lower than its previous close.

City Chic share price plunges on new inventory approach

• Sales revenue of $178.3 million – 49% more than the first half of financial year 2021
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), adjusted for certain expenses of $23.5 million – 1% higher
• Statutory net profit after tax (NPAT) of $12.3 million – 6% lower
• Cost of doing business increased to $81.5 million – 45.7% more than the prior comparable period
• Operating cash flow came to a loss of $19.4 million – down from positive $21.3 million
• No dividend declared

Over the half year just been, the women’s clothing retailer’s global customer base increased 64% to 1.32 million active customers. Additionally, 55% of City Chic’s revenue came from outside the Australia and New Zealand region.

The Australia and New Zealand region brought in $80.7 million of sales ­– a 14% increase.

In the Americas, the company received $77.2 million of sales, 62% more than the prior comparable period.

Meanwhile, in Europe, the Middle East, and Africa, the company received $20.3 million of sales to breakeven at the EBITDA level.

Its website traffic grew 71% and its online comparable sales increased 52.5% with 83% online penetration.

Such growth came despite COVID-19 impacts including labour shortages, supply chain and logistics challenges, and store closures that saw 27% of trading days lost.

Store closures cost the company around $4 million last half while it strategically invested in its inventory to manage supply chain risks.

City Chic increased lead times for its existing factories and added additional lead times for new supply partners.

As a result, the company had higher inventory levels at the end of the half and will see a further build up over the rest of the financial year.

By doing so, it hopes to secure stock for the Northern Hemisphere’s summer and key sales periods, but it will need to use more cash.

Due to COVID-19 uncertainty, investment in inventory, a decline in operating cash flows, and acquisition opportunities, the company hasn’t paid a dividend this half.

It didn’t pay a dividend for financial year 2021 either.

It ended the period with $38.7 million of cash – down 45.9% – and no borrowings.

What else happened in the half?

Over the first half, City Chic acquired European plus-size online marketplace Navabi.

The company paid $4.3 million for the acquisition in July.

On the back of the news, the City Chic share price launched 6% higher.

Additionally, it opened 8 new stores, closed 3, and relocated 8 to larger sites.

It now has 7 larger format stores with an average footprint of 220 square metres and 21 stores in its ‘gold’ design with footprints of 150 square metres.

At the end of the half, City Chic operated 94 stores.

What did management say?

City Chic CEO and managing director, Phil Ryan commented on the company’s earnings for the first half, saying:

Our revenue growth of 49.8% is very pleasing as we stayed focused on our three strategic pillars of plus size, digital, and global customer acquisition. We did this through expanding the customer base both organically and inorganically while accelerating our digital growth.

The revenue growth demonstrates that our product range and lifestyle mix across all of our assortment has global appeal.

Michael Kay, City Chic chair, commented on the company’s outlook for financial year 2022 and financial year 2023:

The COVID-19 pandemic continues to have an impact both locally and globally. The directors continue to monitor COVID-19 related developments and are working closely with management to assess and navigate the potential implications for team members, suppliers, customers, and operations.

While the environment remains uncertain, the performance of the business to date demonstrates the management team’s ability to manage volatile market conditions. We are confident we are well positioned to continue to grow our business and to lead a world of curves.

What’s next?

City Chic hasn’t provided new guidance for the second half of financial year 2022.

However, it did put out a trading update on the first 8 weeks of 2022.

The company has continued to deliver growth, but online sales growth rates in key markets have been more subdued than the prior half.

In the United States, the company’s growth has continued with strong sales on both the City Chic and Avenue website.

Sales from CoEditon – acquired by the company in January – have started strong.

Sales in the United Kingdom and Europe look to be recovering and the company’s partner businesses are showing growth.

City Chic is looking to continue its partnership as it seeks new alliances in financial years 2022 and 2023.

In the second half, it will be focusing on managing its supply chain and inventory.

City Chic share price snapshot

The City Chic share price has fallen 36% year to date.

It’s also 16% lower than it was this time last year.

The post Dividend ditched: City Chic (ASX:CCX) share price plummets 30% on half-year earnings appeared first on The Motley Fool Australia.

More reading

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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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The TPG Telecom Ltd (ASX: TPG) share price is in the red today on the back of the company’s full-year results.

At the time of writing, TPG Telecom’s shares are swapping hands at $5.46 apiece, a 6.98% drop. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 2.68%.

Let’s take a look at what the telecommunications giant reported today.

TPG share price falls as profits slip

Highlights of the company’s full-year (FY21) results include:

• 10.6% drop in net profit after tax (NPAT) compared to FY20 to $110 million
• 3.2% slide in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.7 billion
• 3.1% drop in revenue to $5.3 billion
• 3.7% fall in gross margin to $2.8 billion
• Fully franked final dividend of 8.5 cents per share, up 1 cent per share on FY20

What else happened in the half?

Investors have not responded well to the results, judging by the TPG share price. However, TPG declared a boost in its dividend to shareholders despite a fall in profit. The total dividend declared for 2021 is 53% of the adjusted NPAT.

Service revenue declined 4% to $4.4 billion due largely to a drop in mobile subscribers. This was partly offset by a growth in fixed broadband customers.

EBITDA dropped more than 3% due to the “delivery of efficiencies” including labour costs.

Free cash flow improved to $410 million due to less expenditure, lower interest costs, and working capital efficiencies.

In total, TPG reported 5.02 million mobile customers, a 4% drop on FY20 due to COVID-19 travel restrictions. However, since November 2021, the company has seen a boost in mobile subscribers as international travel returns.

Fixed wireless broadband customers have jumped 1.2% to 2.22 million. Since 31 December, TPG has been building on this momentum, adding 80,000 new customers to its 4G and 5G home broadband services.

TPG delivered what it described as its “best ever network” in 2021, rolling out 1,000 5G sites that can be accessed by 85% of the population.

The company also achieved $71 million of cost synergies following its merger with Vodafone Australia in 2020.

Management commentary

Commenting on the results which have seen the TPG share price tank today, chief executive officer Inaki Berroeta said:

2021 was a year of significant progress as we unified our operations and demonstrated strong operating and financial discipline to navigate the challenging COVID operating environment and position ourselves strongly for improving market conditions.

We have been encouraged by the uptick in mobile customer numbers as international travel returns and we are optimistic about the year ahead as COVID impacts lessen.

We are targeting to more than double our fixed wireless base in 2022, with our offering providing customers with a high quality, great value alternative to the NBN.

What’s next for TPG?

TPG has recently signed a mobile operator core network agreement with Telstra Corporation Ltd (ASX: TLS) which will provide TPG with access to 3,700 of Telstra’s mobile network assets.

The telco plans to roll out its 5G network to 1,000 more sites in 2022. TPG is also targeting at least 160,000 fixed wireless subscribers in FY22. A strategic review of towers and rooftop infrastructure is close to completion.

The company has a goal to deliver more than $1 billion in enterprise revenue by the 2025 financial year.

TPG plans continue to improve cost synergies following its merger with Vodafone Australia. The company is targeting $125 million to $150 million of total merger synergies in 2022.

Commenting on this process, Berroeta added:

Having executed strongly against our objectives in 2021 amid challenging conditions, we are now in a strong position to achieve our full potential as an integrated full-service telecommunications company in coming years.

We are confident of delivering value from targeted growth initiatives, smarter asset utilisation and further simplification of our business as headwinds lessen and underlying momentum improves in 2022

TPG share price summary

The TPG share price has dived 22% in the past 12 months while it is down 7% year to date.

For perspective, the benchmark ASX 200 index has returned around 3.5% over the past year.

TPG has a market capitalisation of about $10.9 billion.

The post Profit plunge: TPG Telecom (ASX:TPG) share price slides 7% on full-year results appeared first on The Motley Fool Australia.

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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 TPG Telecom 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 Eagers Automotive Ltd (ASX: APE) share price is slipping on Thursday morning.

It seems shareholders were hoping for more than the slam dunk given on its FY21 full-year result. At the time of writing, shares in Eagers on the ASX are down 4.3% to $13.40.

Let’s dive into the company’s numbers for the full year.

Eagers share price in focus amid big year for the bottom line

• Revenue down 1% year on year to $8,663.5 million
• Underlying EBITDAI from continuing operations up 60% to $455.9 million
• Record full year statutory profit after tax of $330.7 million, up 112% year on year
• Earnings per share (EPS) up 117% to 125.2 cents per share
• Fully franked final dividend of 42.5 cents per share, up 70% year on year
• Cash position of $197.6 million as at 31 December 2021

What else happened during the half?

In a record year for ASX-listed Eagers, strong demand for vehicles led the company forward. While group revenue slipped slightly, the car retailing segment experienced an 8.6% increase in revenue to $8,438.3 million. Though, the Eagers share price is responding negatively to the result.

Notably, sales across the new vehicle market outstripped deliveries as supply chain issues continue to cause delays. As a result, Eagers’ inventory levels fell from $1,025.8 million at the end of 2020 to $874 million at the end of 2021.

However, inventory levels were also lower following the sale of the Daimler Trucks business. The discontinued operations provided a pre-tax gain of $30.2 million during the year. While on the buy side, Eagers acquired Toowoomba Ford and franchises in Cardiff and Maitland.

Eagers also made a strong push for more property during FY21. This is highlighted by the company’s $169 million worth of property acquired in the full-year period. In a similar vein, the auto retailer made investments in new retail formats including AutoMall West at Indooroopilly Shopping Centre in Brisbane.

What did management say?

Commenting on the record result, Eagers CEO Keith Thornton said:

Our record full year results reflect strong market dynamics, our disciplined focus on maximising operational performance and the continued benefits from executing the five pillars within our Next100 Strategy.

Our franchised automotive business has delivered a record year. The performance was achieved despite significant COVID-19 related disruption, with government mandated lockdowns heavily restricting trading in the second half and was supported by our simplified business and transformed cost base.

Eagers share price snapshot

An investment in Eagers shares would have been a worthwhile one over the past year. Unsurprisingly, the company has performed solidly amid the backdrop of frenzied buying of new and used vehicles.

For the past 12 months, the Eagers share price is up 13.5%. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is up 3.9% — which reflects an impressive outperformance of 9.6%.

The post Eagers (ASX:APE) share price sinks despite profits racing 112% higher 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 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 followed the lead of global markets and dropped deep into the red. The benchmark index is currently down 2.6% to 7,019.4 points.

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

Rio Tinto falls on full year results

The Rio Tinto Limited (ASX: RIO) share price is falling on Thursday despite the mining giant releasing a record-breaking full year result. Rio Tinto reported underlying EBITDA of US$37,720 million, which is up 58% over the prior corresponding period. However, this was a touch lower than the Visible Alpha consensus estimate of US$38.5 billion. This slight miss and broad market weakness may be weighing on its shares today.

Appen share price crushed

The Appen Ltd (ASX: APX) share price has crashed lower today. Investors have been selling off the artificial intelligence data services company’s shares following the release of its full year results. In FY 2021, Appen reported a 3% increase in underlying EBITDA to US$77.7 million. This fell short of its revised guidance. Management also revealed no short term guidance but five-year growth targets. However, it warned that its pursuit of these targets could impact its near term earnings and dividends.

Flight Centre posts huge loss

The Flight Centre Travel Group Ltd (ASX: FLT) share price is sliding today after the travel agent giant reported a $188 million first half loss. Positively, though, management has reaffirmed its profitability targets. The corporate business is targeting a return profit in March-April, whereas the global leisure business is expected to return to profit later in the second half.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the CIMIC Group Ltd (ASX: CIM) share price with a 33% gain. This follows the receipt of a takeover approach. The worst performer has been the Life360 Inc (ASX: 360) share price with a 30% decline. Its full year results revealed that its losses doubled in FY 2021. It also notes privacy concerns in the tracking tech category.

The post ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss appeared first on The Motley Fool Australia.

More reading

• Cimic (ASX:CIM) share price explodes 33% higher following takeover approach
• Flight Centre (ASX:FLT) share price tumbles after posting $188m half year loss
• Life360 (ASX:360) share price plunges 26% after bleeding money in 2021
• Appen (ASX:APX) share price crashes 17% after FY21 guidance miss
• Will 2022 be the year of the cash or the crash for ASX shares?

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd. 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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