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The CSL Limited (ASX: CSL) share price is shooting higher again on Thursday.

In afternoon trade, the biotherapeutics company’s shares are up a sizeable 5% to $276.18.

This means the CSL share price is now up an impressive 14% in the space of just two days.

Why is the CSL share price charging higher?

Investors have been bidding the CSL share price higher since the release of its half year results on Wednesday.

For the six months ended 31 December, CSL reported a 5.3% increase in revenue to US$6,041 million but a 5% constant currency decline in net profit after tax to US$1,722 million.

However, getting investors excited was management speaking positively about the outlook for plasma collections and upgrading its full year profit guidance.

The tide is turning

The team at Morgans remains positive on the CSL share price and has put an add rating and $327.60 price target on its shares. This implies potential upside of almost 19% for investors even after its recent gains.

Morgans commented: “CSL – 1H above expectations; the “tide is beginning to turn” 1H results were better than expected, albeit in line with management’s assumptions, with net profit down 5% in cc on 4% revenue growth. Seqirus was the standout on pandemic driven demand for influenza vaccines, while Behring went backwards as plasma-based products were constrained on tight supply and higher costs, although certain Specialty product saw gains.”

“Promisingly, plasma collections continue to improve, although remain slightly below pre-pandemic levels, and while industry wide issues remain (eg Omicron; staffing; increase costs), the worst appears behind us,” it added.

All in all, it may not be too late for investors to pick up CSL shares, according to this top broker.

The post  The ‘tide is beginning to turn’: CSL (ASX:CSL) share price tipped to rise appeared first on The Motley Fool Australia.

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• CSL (ASX:CSL) share price jumps 8% on guidance upgrade and positive plasma outlook
• Why CSL, Liontown, Nearmap, and Treasury Wine shares are storming higher
• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• CSL (ASX:CSL) delivers US$1.7bn half year profit and tips plasma collection rebound
• Down by a quarter in less than three months, is the CSL (ASX:CSL) share price a buy?

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 CSL 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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Origin Energy Ltd (ASX: ORG) shares were one of the worst performing out of the entire S&P/ASX 200 Index (ASX: XJO) in morning trade on Thursday.

It’s difficult to discern what exactly is causing the company’s shares to fall today. Mainly because two significant pieces of information have been released to the market this morning.

Firstly, the energy provider released its half-year results, posting a loss of $131 million. However, the news hitting headlines today is the company’s proposal to bring forward its exit from coal-fired power generation to 2025.

Origin’s coal power plants to go up in smoke in 2025

Investors are mostly sitting on the pessimistic side of the fence today amid the company’s latest stride toward net-zero emissions. Although, shares have bounced back strongly throughout the session.

According to the release, Origin Energy wants to get out of coal-fired power generation sooner rather than later. The plan is to move the retirement of Australia’s largest coal-fired power plant, Eraring power station, to August 2025.

Notably, the closure of Eraring would be seven years ahead of its previous plans. However, Origin shares are not responding positively to the news.

The ASX-listed company has submitted its notice to the Australian Energy Market Operator (AEMO) today. The AEMO introduced this notice period in 2018, requiring large electricity generators to provide a minimum of three years’ notice before a closure.

A three-year window will enable other sources of power generation to make up for any supply losses to the grid. In this situation, the loss would be substantial. Eraring currently supplies around a fifth of New South Wales’ energy, offering 2,880 megawatts of capacity.

Providing reasoning for the proposed early closure, Origin CEO Frank Calabria said:

[…] the cost of renewable energy and battery storage is increasingly competitive, and the penetration of renewables is growing and changing the shape of wholesale electricity prices, which means our cost of energy is expected to be more economical through a combination of renewables, storage and Origin’s fleet of peaking power stations.

Origin sharesholders could soon be battery-backers

In place of the power plant, Origin is proposing a “well-progressed” plan for a battery of up to 700 megawatts. In addition, the company is looking to bring online more renewable infrastructure, including the Shoalhaven pumped hydro scheme.

Early retirement of the large-scale coal-fired plant will put Origin in good step for its net-zero emission targets. However, not everyone is as excited about the announcement.

Austalia’s federal energy minister, Angus Taylor, has voiced concerns over electricity affordability for households. This comes after Taylor shared similar worries with AGL Energy Limited (ASX: AGL) and its plan to bring forward power station closures as well.

Origin shares have been benefitting from the rise in natural gas — which is touted as a cleaner alternative to coal. The Origin share price is up 30% in the past 12 months.

Today’s announcement marks a milestone in the energy giant’s pivot away from coal.

The post Australia’s largest coal power plant set for early D-day. What it means for Origin (ASX: ORG) shares 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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The Wesfarmers Ltd (ASX: WES) share price is plummeting today after the company released its earnings for the first half of financial year 2022.

The conglomerate behind retail brands Bunnings, Kmart, and Officeworks reported its profits had slumped 14.2% while its earnings before interest and tax (EBIT) slid 12.3%.

At the time of writing, the Wesfarmers share price is $51.68, 5.9% lower than its previous close.

That’s an uptick on its morning low of $51.26 – a 6.6% tumble.

Let’s take a closer look at the news dragging Wesfarmers’ stock lower on Thursday.

Wesfarmers share price slides on COVID-19 impacts

The Wesfarmers share price has slumped after the company’s managing director Rob Scott declared the first half “the most disrupted period for our businesses since the onset of COVID-19“.

The Omicron variant’s spread caused supply chain disruptions, staffing challenges, and store closures, with the company’s crown jewel retailers hit hard.

It reported around 34,000 of its store trading days were impacted by store closures or trading restrictions. That’s around 20% of the half’s trading days.

Likely, as a result, Bunnings, Kmart, Target, and Officeworks all saw their earnings drop.

The former suffered least, with its EBIT falling just 1%. Officeworks’ was hit harder, dropping 18%. Meanwhile, Kmart and Target saw their combined earnings drop 55%.

Profits from Wesfarmers’ chemicals, energy, fertiliser, industrials, and safety businesses weren’t enough to save the embattled conglomerate.

The group’s net profits for the period ended up falling 14%.

Likely helping spur the market to bid the stock down, Wesfarmers also announced a lower interim dividend.

Shareholders will receive an 80 cent dividend for the first half – 9% lower than that of the first half of financial year 2021.

And the company’s pain isn’t over yet. It expects to report continuous COVID-19 impacts in its full-year results.

Today’s tumble sees the Wesfarmers share price trading 23% lower than its 52-week high of $67.20, reached in August.

Though, it’s now just 5.4% off its 52-week low of $49.01.

The post Wesfarmers (ASX:WES) share price plunges 6% as Omicron takes its toll appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• 5 things to watch on the ASX 200 on Thursday
• Own Wesfarmers (ASX:WES) shares? Here’s what to watch when the company reports this week
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years

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 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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This particular S&P/ASX All Ordinaries Index (ASX: XAO) company is enjoying an impressive trading week, riding a share price increase of 15.77% to $2.79 over the past five days.

Fleet management company, SG Fleet Group Ltd (ASX: SGF) released its half-year results yesterday. To say ASX investors were pleased with the details might be an understatement given the 19% share price spike by the session’s end.

Today, the SG Fleet share price is down 1.77% to $2.78 at the time of writing.

SG Fleet share price spikes on 16% profit surge

For the half-year ending 31 December 2021, SG Fleet highlighted:

• $29.7 million in profit, a 16.6% increase against the prior corresponding period (1H21)
• Underlying net profit after tax (NPAT) of $39.3 million, up 54.3%
• Underlying earnings per share (EPS) at 12.02 cents per share, up 23.5%
• Fully franked interim dividend of 8.318 cents a share, up 15.7%.

The company saw increases in both reported and underlying NPAT — including an “$8.1 million and $9 million four-month contribution respectively” from the LeasePlan Australia and New Zealand businesses.

After acquiring LeasePlan in September last year, SG Fleet expects to continue reaping the benefits.

SG Fleet announced that shareholders will be paid a fully franked interim dividend of 8.318 cents a share on 10 March.

What else happened in the half?

SG Fleet also gave an update on both its local and global operations.

The Australian segment of the business saw “a significant number of new accounts” and “several large contract extensions”, the company said.

It also reported that customers were increasingly replacing their fleets with hybrid or electric vehicles.

Just across the water, the company’s New Zealand business continued to be impacted by the country’s COVID-19 lockdowns. However, it was buoyed by the renewal of “a large government contract”, according to the announcement.

SG Fleet also saw a “number of new business opportunities” as the United Kingdom began to relax its COVID-19 restrictions.

Since 31 December 2021, the price of this ASX All Ordinaries share has increased by 6.9%.

Management commentary

Speaking on the results, CEO Robbie Blau said:

Our Corporate businesses in Australia, New Zealand and the UK continued the strong performance delivered during the COVID-19 period and Novated demand is growing steadily. Supply disruption still dominates our operating environment and this impacted our ability to deliver the increasing number of orders won in this and earlier periods. A significant proportion of this order pipeline will consequently be delivered in future periods.

SG Fleet shares underperform All Ordinaries index

Over the past 12 months, the SG Fleet share price has increased by just 1.4%. By comparison, ASX All Ordinaries shares increased collectively by 6.4%.

SG Fleet saw its 52-week high of $3.29 in June last year and hit its annual low of $2.21 in late January.

The company has a market capitalisation of $967 million.

The post Why this ASX All Ordinaries share has rocketed 16% in a week appeared first on The Motley Fool Australia.

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• Own BHP (ASX:BHP) shares? Here’s how the ASX 200 miner is battling COVID
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report

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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The Codan Limited (ASX: CDA) share price is struggling today and is now 3.62% in the red at $8.53.

It’s been a rollercoaster day for the ASX tech share, which jumped out of the blocks to $9.05, before slumping as low as $8.21 — a 7% fall on its previous closing price.

The share price movement comes after the release of the company’s first-half result for the period ending 31 December 2021.

Codan share price sinks despite record profit

The metal detection-focused technology company highlighted several investment takeouts, including:

• Highest half-year profit in the company’s history
• Communications orderbook of $163 million, $71 million expected to ship H2 FY22
• Excellent results from Minelab given geo-political disruptions and a return to more normal levels of demand after COVID-19 impacted FY21
• Secured higher inventory heading into the second quarter
• Net profit after tax (NPAT) of $50.1 million, a 21% increase
• Group sales of $257 million, a 32% increase against FY21 record first half
• Interim dividend of 13.0 cents, fully franked, representing a 24% increase on the previous payment
• Earnings per share (EPS) of 27.6 cents, up 21%

What else happened this half for Codan?

The company came into FY22 with “negative working capital due to prepayments from a number of large customers last year to secure supply”.

As such, these factors led Codan to invest an additional $65 million in working capital in the first half. This decision was helped by “a near-record sales month in December 2021 and positioning DTC and Zetron for growth”.

Codan says these figures will start to normalise over the next 6 months and that “positive cash flows will follow”.

The company paid down around $10 million of its liabilities such that net debt dropped to $38 million in January 2022.

First-half metal detection sales over the last 3 years have been FY20 $100 million, FY21 $155 million, and FY22 $138 million.

This boiled down to efficiency and prioritising cost and improving margins, the company noted.

“Despite the reduction in sales this year, the business delivered a near-record first-half profit result with a clear focus on improving margins and on cost efficiency,” the company said.

“As the market leader in the sector we were able to pass on price increases as required and the management of our supply chain meant that we reduced freight costs against global trend.

“For these reasons, we were pleased with the performance of the business.”

Management commentary

The result has done little for the Codan share price. However, recently appointed chief executive Alf Ianniello was upbeat about the company’s future. He said:

I am excited to join an exceptional business with strong culture and foundations. Our vision at Codan is to achieve consistent growth through the delivery of world class technology and innovation. We will do this by implementing the strategic growth plan and looking for opportunities to further strengthen the business via acquisitions.

What’s next for Codan?

With respect to guidance, Codan notes “there are a number of factors that are relevant when considering the outlook for FY22”.

These include “the successful uptake of GPX6000® gold detectors into the developing world; the resolution of the on-going civil unrest in Sudan; the extent to which DTC and Zetron will exceed their initial full-year profit targets”.

“The Board is not in a position to provide full-year profit guidance at this point, however, we will continue to keep shareholders updated as the year progresses,” Codan said.

Codan share price snapshot

The Codan share price has sunk more than 34% in the past 12 months. It has also fallen around 8% this year to date.

The post Codan (ASX:CDA) share price sinks despite best profit in years appeared first on The Motley Fool Australia.

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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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The Crown Resorts Ltd (ASX: CWN) share price is in the red after the release of the company’s earnings for the first half of financial year 2021.

At the time of writing, the Crown share price is $12.55, 0.08% lower than its previous close.

Crown share price falls after dividend ditched

• Statutory revenue of $778.6 million – 34% more than the prior comparable period
• Net profit after tax (NPAT) came to a loss of $196.3 million – a greater hit than the previous first half’s $120.9 million loss
• Costs from closures came to $79.2 million
• No dividend declared

The first half of financial year 2022 was a rough 6 months for Crown.

The company’s corporate costs increased to $94.7 million – up from $50.5 million – mainly due to higher legal and consulting fees born from various regulatory inquiries.

Its operating cash flow came to an outflow of $203.5 million over the period ­– reflecting COVID-19 impacts.

Crown also made several cash payments during the half related to items including the underpayment of casino tax by Crown Melbourne, a shortfall on a minimum gaming tax obligation in Melbourne, and payment towards the cost of the Bergin Inquiry.

Captial expenditure came to $69 million. Around half was due to Crown Sydney’s construction and offset by $252.8 million from the sale of its apartments.

Crown’s lack of interim dividend spurs from negotiations with banks regarding its financing arrangements.

Crown’s non-gaming revenue grew to $36.1 million, compared to around $900,000 in the prior comparable period.

Its non-gaming earnings before interest, tax, depreciation, and amortisation (EBITDA) came at a $35.7 million loss – compared to a loss of $26 million in the prior first half.

It recognised $14.8 million of closure costs and a profit of $54.8 million on disposing Crown Sydney Apartments.

Crown Aspinalls saw an EBITDA loss of $5.5 million, compared to a loss of $23 million.

Crown’s digital operations came to $69.5 million, 12.7% less than during the prior comparable period. Meanwhile, its EBITDA came to $14.3 million – a 38.4% drop.

The company ended the half with around $1.5 billion of debt and $630.7 million of cash.

What else happened during the half?

The first half of financial year 2022 saw the company battling COVID-19 impacts.

Crown Melbourne was closed for 96 days over the half while Crown Sydney was closed for 102 days.

Crown Aspinalls was also forced to close for parts of the half due to operational constraints. When open, it suffered from subdued international travel, staff shortages, and reduced operating hours.

The company’s hotels saw 17% occupancy during the period. However, after reopening in October, hotel occupancy averaged nearly 40%.

Now that the Victorian Royal Commission and evidentiary hearings of the Perth Casino Royal Commission have closed, the company expects its corporate costs to be lower in the second half.

Crown also settled a shareholder class action during the half for $125 million. It paid $20 million towards the settlement last half. The settlement is conditional on Federal Court approval.

Crown Melbourne brought in $265 million of revenue over the first half – up from $97.1 million in the prior first half. Its EBITDA came to a loss of $79.6 million – up 3.7% from the prior period’s $87.8 million loss.

The company’s Perth casino saw $402.9 million of revenue – a 1.5% drop. It reported $105.8 million of EBITDA, down 34.8%.

Finally, Crown Sydney’s gaming areas are still in limbo as Crown works through the consultation process with the casino’s regulator, the Independent Liquor and Gaming Authority.

What did management say?

Crown managing director and CEO Steve McCann commented on the company’s half year results, saying:

Crown’s first half performance reflects the continued challenging operating conditions as a result of COVID19 as well as the impact of ongoing regulatory matters.

While we do not underestimate current headwinds facing Crown, there is growing confidence we have turned the corner. All three of our domestic resorts are back open, with a vaccination strategy to combat COVID-19 providing a pathway forward for our staff, the business and the wider community.

Importantly, we continue to build momentum on our company-wide reforms, accelerating work on our remediation plan and making significant advances across multiple regulatory processes. Not only are we building a stronger business, we are working well with the regulators with a priority to deliver a safe and responsible world-class gaming operation.

In Victoria, we are working in a collaborative and constructive manner with the Special Manager and his office, as well as the new regulator, the VGCCC, to ensure that we build a safe and responsible gaming environment at Crown Melbourne as we seek to re-establish our suitability to hold a casino licence in Victoria.

What’s next?

Those interested in the Crown share price might be disappointed to learn that the company hasn’t provided guidance for the remainder of financial year 2022.

It says the continuing Omicron outbreak and its recent performance means that it’s still operating in an uncertain environment.

It also expects that the reopening of Western Australia’s border will impact its performance in the second half.

Simultaneously, it’s still involved in several regulatory and litigation processes, the outcomes of which are unknown.

Though, it expects Crown Melbourne and Crown Perth will be hit with civil penalty proceedings at the conclusion of AUSTRAC’s ongoing investigation.

The company said its reforms, while driving important changes, will bring higher costs in the second half. It will also be hit with costs from regulatory oversight.

Crown expects full year corporate costs to be around $150 million.

Additionally, Crown is hoping to be able to announce the opening of the Sydney casino’s gaming floor shortly. From there, opening will occur in a staged process.

It’s also progressing sales of the Crown Sydney apartments, with almost $1.2 billion in gross sales and presale commitments to date. Based on current progress, Crown is focused on selling all remaining apartments by 30 June 2022.

The company is awaiting the final report from the Perth Casino Royal Commission. It’s due to drop in early March.

Finally, on Monday the company announced that its planning to be acquired by Blackstone for $8.9 billion.

Crown also provided an update on the start of the second half this morning.

For the first 6 weeks of 2022, revenue of Crown Melbourne was down 16% on that of the prior 6-week period.

Meanwhile, that of Crown Perth and Crown Sydney were down 23% and 20% respectively on their average weekly revenues during the first half while the properties were open.

Crown share price snapshot

Today’s falls included, the Crown share price is 5% higher than it was at the start of 2022.

It has also gained 30% since this time last year.

The post Crown (ASX:CWN) share price dips despite growing confidence the company has ‘turned the corner’ appeared first on The Motley Fool Australia.

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• Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher
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• Crown (ASX:CWN) share price higher after accepting $8.9bn takeover offer
• What’s JP Morgan saying about the Crown Casino (ASX:CWN) saga?

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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BHP Group Ltd (ASX: BHP) shares were not immune from the panic selling that ensued in the early months of the pandemic.

Like most S&P/ASX 200 Index (ASX: XJO) companies, the iron ore giant saw its share price crash. In a matter of weeks, from late February into early March 2020, BHP shares plunged more than 30%.

Since those lows, the BHP share price has come roaring back, up 81% from 13 March 2020.

But the big miner is taking COVID seriously.

As it seeks to ensure the safety of its workforce, and make sure they’re able to deploy to its far-flung sites, BHP has mandated all of its staff be vaccinated.

Hundreds of employees could be ousted

While BHP expects 97%–98% of its Aussie workforce will be jabbed, that could leave as many as 700 unvaccinated employees heading for the door, either by resigning or being sacked.

As The Australian reported, “About 250 employees in the company’s Queensland operations have been put on notice they face termination after not providing proof of their COVID vaccination.”

As of 31 January, BHP now requires anyone entering its workplaces to provide proof of vaccination. That not only impacts BHP’s 23,800 odd workers, but also a host of contractors who will need to prove they’ve been vaccinated to work on BHP sites.

Commenting on the development, a BHP spokesman said (quoted by The Australian):

This is a necessary health and safety measure to help protect our people, their families and communities – including remote Indigenous communities – while continuing to safely run our – operations. We will continue to work with our people as we implement this change.

The mining union, which lost a legal challenge to BHP’s vaccine mandate, called the situation “very intense”.

According to CFMEU Queensland mining division president Stephen Smyth, “It’s quite complex and very, very intense the way they went about it when they started issuing the letters one or two days after January 31. We’ve also got contractors and labour-hire companies terminating people as well.”

How have BHP shares been performing?

BHP shares have benefited from a resurgent iron ore price in recent months.

That’s helped drive the BHP share price to a 14% year-to-date gain, compared to a loss of 3% posted by the ASX 200.

The post Own BHP (ASX:BHP) shares? Here’s how the ASX 200 miner is battling COVID 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 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 Telstra Corporation Ltd (ASX: TLS) share price has come under pressure on Thursday.

At the time of writing, the telco giant’s shares are down over 3% to $3.94.

Why is the Telstra share price falling?

Investors have been selling down the Telstra share price following the release of its half year results.

In case you missed it, for the six months ended 31 December, Telstra reported a 4.4% decline in revenue to $10.5 billion but a 5.1% lift in underlying EBITDA to $3.5 billion. This reflects one-off benefits in the prior corresponding period, solid growth in the mobile business, and a 6.7% decline in operating expenses to $7.4 billion.

In respect to dividends, the telco has declared a fully franked interim dividend of 8 cents per share. This was flat compared to the prior corresponding period.

Looking ahead, management has reaffirmed its FY 2022 guidance. This includes full year underlying EBITDA of $7 billion to $7.3 billion and free cash flow after lease liabilities of $3.5 billion to $3.9 billion.

How does this compare?

The team at Goldman Sachs was pleased with the result and notes that its “strong mobile beat offsets fixed declines.” In fact, despite what the Telstra share price performance today might indicate, the company’s earnings actually came in ahead of the broker’s expectations.

Goldman commented: “Telstra has reported underlying 1H22 Income/EBITDA/NPAT of A$10.7bn/A$3.5bn/A$825mn, which was -2%/+2%/+16% vs. our estimates. Cash conversion was strong with GOCF = 97% of EBITDA. Balance sheet gearing decreased marginally to 1.9X ND/EBITDA at 1H22 (vs. 2X at FY21, comfort bands 1.5-2X). An interim dividend of 8¢ps was declared (GSe 8¢ps), comprising a 6¢ps ordinary and 2¢ps special.”

The broker was particularly pleased with the performance of the key mobile business.

It said: “Mobile again the standout, with EBITDA +8% vs. GSe on strong mobile service revenues (+1% vs. GSe). We note although postpaid ARPU growth and subscriber growth were largely in-line with GSe, TLS was also impacted by a $1.50 (3%) ARPU accounting impact which would have a stronger revenue outcome & hence explains the EBITDA beat.”

Goldman currently has a neutral rating and $4.40 price target on the Telstra share price. Though, that could change once it has fully digested the result.

Overall, a solid result from the telco giant but some investors appear to have been expecting even better.

The post Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 5 things to watch on the ASX 200 on Thursday
• Own Telstra (ASX:TLS) shares? Here’s what to watch when the ASX 200 telco reports this week
• These are some of the top performing ASX 200 value shares of the past year

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 Telstra Corporation 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on form again and pushing higher. The benchmark index is currently up 0.65% to 7,332.7 points.

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

Telstra’s half year results

The Telstra Corporation Ltd (ASX: TLS) share price is sliding today despite delivering underlying earnings growth during the first half. Telstra posted a 4.4% decline in revenue to $10.5 billion but a 5.1% increase in underlying EBITDA to $3.5 billion. The latter was supported by growth in the key mobile business and a 6.7% reduction in operating expenses to $7.4 billion. Telstra maintained its interim dividend at 8 cents per share.

Wesfarmers half year update

The Wesfarmers Ltd (ASX: WES) share price is sinking today after its half year results disappointed. The conglomerate reported broadly flat revenue but a 14.2% decline in net profit after tax to $1.2 billion. This reflects the loss of ~34,000 store trading days due to closures during COVID-19 outbreaks.

Woodside triples its profits in FY 2021

The Woodside Petroleum Limited (ASX: WPL) share price hit a 52-week high this morning after more than tripling its profits in FY 2021. Thanks to a modest increase in sales volumes and a surge in realised prices per barrel, Woodside reported a 93% increase in operating revenue to US$6,962 million and a 262% jump in underlying net profit after tax to US$1,620 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the NRW Holdings Limited (ASX: NWH) share price with an 11% gain. This morning it reported a 26% increase in first half operating earnings. The worst performer has been the Wesfarmers share price with a 6% decline following its half year update.

The post ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report appeared first on The Motley Fool Australia.

More reading

• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 2 ASX dividend shares that could provide steady passive income
• Is BHP (ASX:BHP) the best ASX dividend share?

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 Telstra Corporation Limited and 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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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.

The metaverse is becoming a popular investment theme of late. Investors are scrambling for stock ideas to avoid missing out on what many are suggesting will be a huge trend.

While much about the metaverse is speculative right now and lots of new companies are coming to market with their ideas for capitalizing on it, investors do not have to buy in on unknown or unproven startups to benefit from the tailwind. There are well-established companies that investors can bet on to ride the metaverse story.

Let’s explore two of these metaverse stocks that might just be worth buying and holding for the next decade of development.

1. Meta Platforms: The social media-turned-metaverse contender

Meta Platforms (NASDAQ: FB), formerly known as Facebook, has been a social media platform for most of its existence. With more than 3 billion monthly active users, Meta is used by almost half of the global population who access at least one of its family of apps — Facebook, Facebook Messenger, Instagram, and WhatsApp.

While its social media apps generate most of the revenue — with income mainly from advertising — Meta made a strategic move last year to pivot the company’s focus toward the metaverse. In this new frontier, Meta aims to help users maintain a feeling of physical presence, beyond just text and video, when connecting with anyone, anywhere.

For example, today, we video call our family members who live in another location using Facebook Messenger, Whatsapp, or another video streaming program. But in the metaverse world, we can put on our VR headsets and be together with our family members in a virtual space. The experience will be similar to watching Avatar in a 3D cinema. The difference is that we can interact with the virtual avatars of our family members. Or imagine a world where we can attend any live concert, globally, without leaving the comfort of our homes. All we need is to put on Meta’s Oculus headset and our favorite artists appear in front of us (at least virtually). And while we are at the concert, we can make purchases in a virtual marketplace and the products we buy can be virtual as well (like dressing our avatar in a concert T-shirt) or real (like buying an actual concert T-shirt) and the products are then shipped to our homes. These are just some early and basic examples of what we can experience in a metaverse.

So what is Meta’s role in this gigantic shift? To start, the company wants to help develop the core technologies — like virtual reality (VR) and augmented reality (AR) — as well as the social platforms that will bring the metaverse to life. It will also focus on building a more inclusive community, ensuring that privacy and safety, open standards, and the appropriate governance are all there from the start.

While all these sound good and exciting, investors should note that the metaverse will take years, if not decades, to become mainstream. Along the way, Meta will need to invest heavily in technology, talent, and partnerships to pull this off. It helps that the tech company has an advertising business that generates billions in profit annually, billions of active users, thousands of world-class talents (developers), and a visionary founder who has significant skin in the game.

With these ingredients in place, Meta can take a long-term approach toward building its metaverse business.

2. Tencent Holdings: The leading technology conglomerate in China

Tencent Holdings (OTC: TCEHY) is one of the most valuable companies in China thanks to its wide-ranging business activities. It is the leading Chinese company in online games, social media, mobile messaging, fintech, and more. Think of it as the combination of Meta, Activision Blizzard, and PayPal Holdings. Besides its fully owned businesses, Tencent is also an investor in some of the best companies globally, including Meituan, Pinduoduo, Sea Limited, Spotify Technology, and Snap, just to mention a few.

Unlike Meta, which has shifted its whole company to focus on metaverse, Tencent has yet to make such a major change to its business model. Nevertheless, the latter’s exposure to the metaverse is in no way less significant.

To start, Tencent is already an active participant in metaverse via its exposure to video games. As the largest gaming company in China, the company is well-positioned to take the next step of making its games more interactive and immersive. To this end, Tencent has all the resources — cash, developers, and users — to pivot its gaming business toward that direction.

Besides, it has exposure to other leading gaming companies — such as Epic Games and Roblox — to help it ride the metaverse trend. For example, Tencent and Roblox have a joint venture that will distribute Roblox’s content in China. In other words, Tencent will benefit directly (from accessing Roblox’s content) and indirectly (from watching and learning Roblox’s moves) so long as it maintains its partnership with Roblox.

On top of that, Tencent has recently acquired Chinese gaming-focused specialty smartphone maker Black Shark as a move into the AR/VR hardware business. This move completes the puzzle within Tencent’s metaverse plan since the company already has all the necessary pieces through its wide-ranging businesses.

In short, investors looking to ride the metaverse tailwind might want to keep Tencent on their radar. 

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

The post 2 Metaverse stocks of the future appeared first on The Motley Fool Australia.

More reading

• Here’s why Meta Platforms stock is down today
• Why Meta Platforms stock just jumped higher
• What exactly is the metaverse and how are investors making money from it?
• The week ahead: Confidence, ASX earnings, tech in focus. Scott Phillips on Nine’s Late News
• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies

Lawrence Nga owns Pinduoduo Inc. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Activision Blizzard, Meta Platforms, Inc., PayPal Holdings, Roblox Corporation, Sea Limited, Spotify Technology, and Tencent Holdings. The Motley Fool Australia has recommended Activision Blizzard, Meta Platforms, Inc., and PayPal Holdings. 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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