Tag: Motley Fool

The Woolworths Group Ltd (ASX: WOW) share price closed higher today at $34.36, up 1.33% on yesterday’s close.

Shares in the retail conglomerate have levelled off in 2022 after the company’s share price plunge at the end of last year. Investors have seen their holdings come off 52-week highs of around $52 dollars to now trade near 52-week lows.

But not everyone is downbeat on Woolworths with one broker retaining its overweight stance on the retail giant. Let’s take a look.

Is Woolworths a buy in 2022?

According to analysts at JP Morgan, Woolworths looks attractively priced and offers long-term upside potential. The broker says that makes it a buy right now.

After some readjustments, analysts now value Woolworths at $39.60 per share, suggesting an upside potential of more than 15%.

The broker reckons that Food LFL [like-for-like] sales growth is supported by “local, online and ongoing execution capabilities, as Woolworths continues to execute across its strategy of convenience, fresh and range”.

JP Morgan analysts also like Woolworths’ operating leverage and that falling COVID-19 costs, and not lower labour costs, are supporting lifting operating margins.

But the broker also likes each of the other segments in Woolworths’ portfolio, especially given the changing landscape of the sector.

“[The] Big W turnaround has been a positive with further opportunity due to DC [distribution centre] and store network optimisation,” the broker said in a recent note.

However, analysts say visible challenges remain, particularly from ongoing cost pressures due to supply chain disruption, COVID-19 costs in early 2022, and higher wages from FY23 onwards.

Nevertheless, there are plenty of bullish signals that offset these headwinds in the broker’s view.

“The Everyday Needs ecosystem leverages and extends the competitive advantages of the Food business, while adding to WOW earnings growth,” analysts said.

The team also views Woolworths’ “market-leading online platform favourably and see[s] sustained levels of high online penetration post-COVID”.

With this in mind, analysts at JP Morgan forecast revenue of $60.5 billion in FY22, leading to a free cash flow conversion of $3.1 billion – both down on FY21.

The broker also sees return on equity (ROE), alongside other profitability measures, declining substantially over the coming periods. However, analysts say this is likely to return Woolworths’ figures in line with long-term averages after the company’s period of hyper-growth.

“After a period of normalisation, we expect online penetration to continue to grow to approximately 14% over the next five years,” the broker said.

Woolworths share price snapshot

In the last 12 months, the Woolworths share price has fallen more than 6% and is down more than 10% since 2022 trading began on January 4.

The company has a market capitalisation of around $41.4 billion dollars at its current share price.

The post Is it a buy in 2022? Why this top broker tips 15% upside in Woolworths (ASX:WOW) shares appeared first on The Motley Fool Australia.

More reading

• Why UBS is warning of more pain for the Coles (ASX:COL) share price
• Own Woolworths (ASX:WOW) shares? Now you also own part of this niche start-up
• Why is the Woolworths (ASX:WOW) share price trailing Coles by 5% over the past month?
• Why does the Woolworths (ASX:WOW) share price have the blues today?
• Price check: Woolworths (ASX:WOW) shares have already dropped 8% in 2022. Can they recover?

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.

from The Motley Fool Australia https://ift.tt/Eduz1Vm

In late trade, the S&P/ASX 200 Index (ASX: XJO) is heading for a disappointing decline. At the time of writing, the benchmark index is down 0.4% to 7,212.5 points.

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

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is down 7% to $2.51. This is quite a turnaround for the online beauty retailer’s shares, which were up 7% in morning trade. Although Adore Beauty delivered strong revenue growth during the first half, investors may have concerns over its slender margins.

Beach Energy Ltd (ASX: BPT)

The Beach share price is down 10% to $1.46. Investors have been selling this energy producer’s shares following a pullback in oil prices and a broker note out of Macquarie. In respect to the latter, this morning the broker downgraded Beach’s shares to an underperform rating with a $1.50 price target.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has fallen 5% to $21.64. This may have been driven by weakness in the iron ore price overnight. This appears to have been caused by China seeking to cool the rallying price of the steel making ingredient. One action that was taken was increasing transaction fees for iron ore futures on China’s Dalian Commodity Exchange.

Praemium Ltd (ASX: PPS)

The Praemium share price is falling again and is down 6% to 99.2 cents today. Investors have been selling this investment platform provider’s shares after its half year results on Monday disappointed. In addition, while Ord Minnett remains positive on the company, it has cut its price target on its shares down by 12% to $1.50.

The post Why Adore Beauty, Beach, Fortescue, and Praemium shares are falling appeared first on The Motley Fool Australia.

More reading

• Hunger Games? Here’s why more Fortescue (ASX:FMG) execs are calling time out on the miner
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Not so sunny: why the Beach Energy (ASX:BPT) share price is sinking 10% today
• ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
• You beauty! Adore Beauty (ASX:ABY) share price up 7% after record half year result

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 Praemium Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/wetNFl5

The Qantas Airways Limited (ASX: QAN) share price is in the red today amid news the airline will continue to operate its iconic ‘kangaroo route’ via Darwin rather than Perth.

The direct service between Australia and London will fly from Darwin until at least mid-June as Western Australia’s border uncertainty continues.

At the time of writing, the Qantas share price is $5.23, 1.51% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.28%.

Qantas delays Perth to London flight

The Qantas share price is slipping amid news the airline has opted against restarting its direct Perth to London route.

The landmark flight — one of the longest in the world — was meant to revert to taking off from Australia’s westernmost capital in April.

However, the airline will instead continue to operate the flight from Darwin until at least June, as it has been doing since international travel recommenced last November.

The airline broke news of the delayed re-start hours before Western Australia premier Mark McGowan stated he will be making an announcement regarding the state’s borders later this month, according to the ABC.

It follows the premier’s earlier decision to delay the state’s reopening – originally scheduled for 5 February – indefinitely earlier this month.

As readers might have heard, Qantas boss Alan Joyce reportedly recently compared Western Australia’s border policy to that of North Korea.

Qantas is also choosing to stop over in the Top End to “streamline transit arrangement” for travellers from Sydney, rather than using traditional stopover destination, Singapore.

Joyce today said:

This extension through to at least mid-June means the Top End has several months to properly leverage the opening up of Australia’s borders to all tourists. It’s a great opportunity to encourage thousands of visitors to stop off in Darwin to see what the NT has to offer.

Qantas to build jet base in Darwin

In more Top End tourism news, Qantas has announced it will be building a new jet base in the territory’s capital.

The base will service at least 4 E190 jets servicing QantasLink routes and a new commercial route between Darwin and Dili, made possible by Qantas’ deal with Alliance Aviation Services Ltd (ASX: AQZ).

The planes will also see Qantas able to open routes that would be unserviceable with larger aircraft. These include flights between Darwin and Canberra, Cairns, and Townsville.

On the new jet base, Joyce commented:

Basing these aircraft in Darwin means securing more jobs and a stronger local aviation industry.

As we prepare to welcome back international visitors, the E190s will make it easier to fly directly between Darwin and other popular tourist destinations including Alice Springs for central Australia, encouraging travellers to see more of Australia.

In other airline news, new budget carrier Bonza today revealed it will fly 25 routes to 16 destinations around Australia. Bonza is due to begin flying in October.

Qantas share price snapshot

The Qantas share price has often been turbulent throughout the pandemic. However, it’s outperforming the ASX 200 in 2022.

The airline’s stock has gained 1.75% year to date. Meanwhile, the index has slipped 4.8%.

Qantas shares are also currently trading for 14% higher than they were this time last year. For comparison, the ASX 200 is 5.2% higher than it was 12 months ago.

The post Border drama: Qantas (ASX:QAN) faces continued challenges on ‘kangaroo route’ appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price slips amid Bonza plans to launch ‘something very different to the market’
• ‘Deeply unfair’: Here’s why some Qantas (ASX:QAN) customers are seeing red
• ‘Squawking’ bird? War of words erupts between Regional Express (ASX:REX) and Qantas (ASX:QAN)
• Qantas v the WA government: here’s the latest
• ‘Open for business’: Qantas (ASX:QAN) share price lifts amid CEO’s renewed optimism

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. owns and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/x2hKETu

Commonwealth Bank of Australia (ASX: CBA) has a different take on inflation than the Reserve Bank of Australia (RBA). Saying inflation is running hot, the bank foresees the RBA lifting rates sooner than the central bank has forecast.

CBA shares – alongside the other banks – are among those that could stand to benefit from higher interest rates.

Though it’s a two-edged sword.

On one side, higher interest rates can improve banks’ lending margins.

On the other side, if rates rise quickly, it could impact the banks’ lucrative mortgage lending as new home buyers take a pause. Not to mention the potential of increased bad debts.

Depending on which force is stronger, rising rates could either help or hinder CBA shares.

With rate rises in the cards, whether sooner or later, investors should have some greater insight into this balance over the coming year.

Brace for a June rate rise

Previously, CommBank had forecast that the RBA would move to raise the cash rate from the current record low of 0.10% in August.

Now CBA has moved that up to a likely June rate increase.

As the Australian Financial Review reports, CBA’s economics team estimates trimmed mean inflation to come in at 3.5% by mid-year. That’s above the RBA’s own forecast of a trimmed mean CPI of 3.25%.

According to CBA’s head of Australian economics, Gareth Aird:

We are very comfortable with our expectation that the Q1 2022 underlying inflation data will be a lot stronger than the RBA’s forecast. If the Q1 2022 CPI prints in line with our forecast, the RBA will not need an additional CPI to conclude that inflation is ‘sustainably within the target range’. The RBA will simply need to be satisfied that wages growth is moving towards the desired levels.

On the wages front, CommBank expects that first quarter results will show Aussie wages growing by 3% on an annualised basis.

If the RBA moves the cash rate higher in accordance to CBA’s forecast, Australians will see a 0.15% increase in the cash rate in June, followed by 3 more increases of 0.25% this year yet, bringing the official rate to 1% by the end of 2022.

How have CBA shares been performing?

CBA shares, flat in late afternoon trading today, have outperformed the S&P/ASX 200 Index (ASX: XJO) in 2022, in that the bank’s losses have been less.

Since the opening bell on 4 January, CBA shares are down 2.3% compared to a loss of 4.9% posted by the ASX 200.

The post Own CBA (ASX:CBA) shares? Here’s the bank’s hawkish outlook for RBA rate rises appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 bank shares getting so much love today?
• These are some of the top performing ASX 200 value shares of the past year
• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022
• Own CBA (ASX:CBA) shares? Here’s the bank’s next big tech move
• 3 of the best results on the ASX 200 last week

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.

from The Motley Fool Australia https://ift.tt/DN8pdXG

Later this week, all eyes will be on the South32 Ltd (ASX: S32) share price when it releases its half year results.

Ahead of its results release on Thursday, let’s take a look to see what the market is expecting from the mining giant.

What is expected from South32’s half year results?

Much like we have seen today from former parent BHP Group Ltd (ASX: BHP), the market is expecting bumper profits from South32 during the first half.

According to a note out of Goldman Sachs, its analysts are forecasting underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) ahead of the market’s expectations.

Goldman has pencilled in EBITDA of US$1.9 billion for the period, compared to the Visible Alpha consensus estimate of US$1.82 billion.

Either way, it will be an enormous increase on the prior corresponding period. This time last year, South32 delivered underlying EBITDA of US$633 million. This means that Goldman’s estimate implies a 200% increase year on year. This is being driven by favourable commodity prices and strong production.

When it comes to its bottom line, Goldman is actually sitting in line with the market consensus estimate with its forecast for a net profit after tax of US$1 billion. This represents a stunning 637% increase over the prior corresponding period.

What else?

Given this massive profit increase, South32 shareholders are expected to be rewarded with a generous dividend payment. Goldman is forecasting an 8.6 US cents per share interim dividend, while the market has pencilled in a 9.9 US cents per share dividend.

Based on current exchange rates and the latest South32 share price of $4.41, this interim dividend equates to a 2.7% yield on Goldman’s numbers and a 3.1% yield on the market’s numbers.

Goldman summarised: “GSe underlying EBITDA US$1.9bn vs. VA consensus US$1.8bn. NPAT US$1.0bn vs. VA cons US$1.0bn. Interim dividend US8.6cps (40% payout) vs. VA cons US9.9cps. Net cash US$0.9bn vs. VA cons US$0.9bn. S32 may lift FY22 opex and capex guidance due to cost inflation, should extend the on-market buyback program (GSe US$250mn p.a.) and provide an update on the closure timing of the Sierra Gorda, restart of the Alumar smelter in Brazil, re-scoping of the Dendrobium next domain (DND) met coal project.”

Is the South32 share price in the buy zone?

Goldman believes the South32 share price offers plenty of upside at current levels.

It currently has a conviction buy rating and $5.00 price target. This implies 13% upside over the next 12 months before dividends.

The post Top broker tips South32 (ASX:S32) to deliver 637% jump in half year earnings appeared first on The Motley Fool Australia.

More reading

• Analysts tip these ASX shares to offer huge fully franked dividend yields
• Here are the 3 most heavily traded ASX 200 shares this Friday
• These 3 ASX energy shares just hit 52-week highs
• Why is the South32 (ASX:S32) share price surging to all-time highs today?
• Morgans names the best ASX resources shares to buy in February

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/yIl3raj

The Fortescue Metals Group Ltd (ASX: FMG) share price is down 5% today amid news the company is facing a staff exodus.

The Fortescue share price is currently trading at $21.60, a 5.03% fall. In comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is 0.29% in the red at the time of writing.

Let’s take a look at the latest news on the company.

What’s in the water at Fortescue?

Fortescue is facing a mass exodus of senior executives and managers, The Australian reported. Communities group manager Heath Nelson is rumoured to be leaving the company along with Fortescue Future Industries global resources manager Nadia Butler. The West Australian also reported these departures.

In further reports in The Australian, Fortescue Future Industries commercial head Bethwyn Cowcher and funding group manager Penny Stonier are also said to be leaving Fortescue. Based on their LinkedIn profiles, Cowcher started at Fortescue in January 2012 while Stonier has been with the company since June 2009.

As my Foolish colleague James reported in December, Fortescue’s CEO Elizabeth Gaines has also stepped down as CEO. She will transition to the role of non-executive director and assist with a global search for her replacement.

The latest exodus follows the departure of several other directors and senior staff over the past 12 months.

Staff who spoke to The Australian in December have likened the company’s culture to ‘the Hunger Games’. The Hunger Games is a series of dystopian novels and films where competitors are engaged in a brutal fight to the death. The game ends when only one person remains alive.

But in response to this suggestion, Fortescue chair Andrew ‘Twiggy’ Forrest defended the company. He said:

Yes, I can see that people can misinterpret that as Hunger Games, but it’s not – it’s efficiency. It’s called strength of selection.

Fortescue is due to report its earnings tomorrow. On a positive note for the company, JP Morgan analysts are expecting earning results and profit forecasts to land ahead of consensus.

As my Foolish colleague Zach reported, JP Morgan is looking for an H1 FY22 net profit after tax (NPAT) of $2.77 billion (consensus $2.70 billion) and 86 cents per share dividend.

Fortescue share price snap shot

The Fortescue share price has surged 13% year to date but fell more than 11% in the past 12 months.

For perspective, the benchmark index has returned around 5% over the last year.

Fortescue has a massive market capitalisation of around $67 billion based on today’s share price.

The post Hunger Games? Here’s why more Fortescue (ASX:FMG) execs are calling time out on the miner appeared first on The Motley Fool Australia.

More reading

• Are ASX mining shares the place to be right now?
• Could opening WA borders expose ASX 200 mining shares to production risks?
• Should you buy Fortescue (ASX:FMG) shares before the mining giant reports next week?
• Are ASX hydrogen shares in a ‘hot air’ bubble?
• CBA’s stunning profit, Fortescue investing $10b in renewables. Scott Phillips on Nine’s Late News

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.

from The Motley Fool Australia https://ift.tt/jmC81v3

The S&P/ASX 200 Index (ASX: XJO) is having a pretty lacklustre day of trading so far this Tuesday. At the time of writing, the ASX 200 has lost 0.21% and is currently sitting at 7,229 points.

So rather than trying to figure that out, let’s instead check out the ASX 200 shares that are currently at the top of the market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far on Tuesday

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Mienrals once again features on this list of most active ASX 200 shares. This lithium producer has seen a hefty 20.04 million of its shares trade on the markets so far this Tuesday. There has been no major news or announcements out of Pilbara today.

As such, we can probably put this volume down to the movements of the Pilbara share price itself. This company is currently down by a notable 1.97% at $2.98 a share after going as low as $2.93 this morning, a 2022 low. This drop is the likely reason why we find Pilbara on this list today.

Westpac Banking Corp (ASX: WBC)

For the second day in a row, ASX 200 big four bank Westpac makes the cut. Westpac has had a sizeable 20.5 million shares bought and sold on the markets today thus far. We’ve also had no news out of Westpac today. However, this bank did release an impactful announcement yesterday regarding its now-closed $3.5 billion share buyback program.

That announcement sent Westpac up decisively yesterday, but it appears investors have got cold feet today. The company is now down by 2.66% at the time of writing. This is probably the reason we are seeing Westpac appear on this list today.

Beach Energy Ltd (ASX: BPT)

ASX 200 energy company Beach is our final and most traded share of the day so far. A whopping 25.3 million Beach shares have found new owners as it presently stands. What a week Beach has had. The company released its half-year earnings yesterday, which saw the Beach share price leap an extraordinary 10% at one point.

But again, investors seem to have gotten cold feet. With its nasty 9.7% share price fall today, the company has now given up all of those gains and then some. This large drop is almost certainly why Beach is the ASX 200’s most traded share of the day thus far today.

The post These 3 ASX 200 shares are topping the volume charts this Tuesday appeared first on The Motley Fool Australia.

More reading

• Not so sunny: why the Beach Energy (ASX:BPT) share price is sinking 10% today
• Why is the Vanguard Australian Shares High Yield ETF (ASX:VHY) outperforming in 2022?
• ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX 200 bank shares getting so much love today?

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

from The Motley Fool Australia https://ift.tt/Vb16j4K

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are having a bit of an off day.

In afternoon trade, the banking giant’s shares are down 0.7% to $28.00.

What’s going on?

This afternoon the banking giant announced the offer of a new Additional Tier 1 Capital security, ANZ Capital Notes 7. This notes offering is aiming to raise $1 billion, but also has the option to raise more or less.

In conjunction with the offering, the bank intends to redeem its ANZ Capital Notes 2 on 24 March 2022. The proceeds from the new offer will go towards that redemption and also for general corporate purposes.

ANZ Capital Notes 7

The ANZ Capital Notes 7 are fully paid, convertible, perpetual, unsecured, subordinated notes. Distributions on these notes are payable quarterly in arrears and in cash based on a floating rate and are non-cumulative.

This is subject to a payment condition not existing and is at ANZ’s absolute discretion. Payment conditions include the distribution not resulting in ANZ’s CET1 ratio falling below required levels or APRA objecting to the payment.

These distributions are expected to be franked at the same rate as its dividends. However, if a distribution is not fully franked, ANZ will pay an additional amount in cash to compensate holders for the unfranked component.

After which, ANZ Capital Notes 7 will ultimately convert into shares on 20 September 2031, unless they are converted, redeemed or resold earlier.

What about ANZ shares? Are they a buy?

If you’re more interested in ANZ’s shares than its capital notes, then the good news is that one leading broker sees value in them at the current level.

According to a recent note out of Goldman Sachs, its analysts have retained their buy rating and with a $30.84 price target.

Based on the current ANZ share price of $28.00, this implies potential upside of 10% for investors. And if you include the $1.46 per share fully franked dividend Goldman expects in FY 2022, this total return increases to 15.5%.

The post ANZ (ASX:ANZ) shares drop amid $1bn raising: Time to buy? appeared first on The Motley Fool Australia.

More reading

• Is the ANZ (ASX:ANZ) share price in the buy zone following its Q1 update?
• 2 ASX shares to rise with higher interest rates
• Rising tide? Here’s why ASX 200 bank shares are having such a good run today
• This global financial giant is buying up Bitcoin. Could ASX banks be next?
• Travel soars, ANZ falters, Magellan sinks. Scott Phillips on Nine’s Late News

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.

from The Motley Fool Australia https://ift.tt/bYx6gKL

It’s shaping up to be another big week of earnings reports this week on the S&P/ASX 200 Index (ASX: XJO). We’ve already heard from the ASX big four banks. This week, we have Wesfarmers Ltd (ASX: WES). And, of course, Telstra Corporation Ltd (ASX: TLS) shares.

Yes, Telstra, the ASX 200 telco giant, is scheduled to give its half-year earnings for FY 2022 on Thursday, 17 February, the same day as Wesfarmers, coincidentally. So what might investors be looking forward to when we hear from Telstra?

Well, it’s worth mentioning that we’ve already heard quite a lot out of this telco over 2022 so far. Just last week, the company announced it had entered into a $100 million deal with the internet of things (IoT) company Intellihub Group. As my Fool colleague Monica covered at the time, this will result in “Telstra providing more than 4 million IoT SIMS to the company within the next decade”.

Earlier this month, we also got the news that Telstra would be spending up to $1.6 billion on two “nation-building” projects – the ViaSat satellite program and a new, faster dual fibre network.

So investors will probably be keen for some updates on either or both of these recent announcements. Or perhaps any new plans to further monetise Telstra’s existing stack of infrastructure assets.

Investors were impressed with last year’s sale of 50% of the InfraCo Towers business, so it’s possible we might hear of some additional plans involving other Telstra infrastructure.

What about the Telstra dividend?

Apart from that, it’s likely investors will have their eye on any dividend announcements Telstra might make.

Telstra has been paying out an annual dividend of 16 cents per share for a few years now. That’s a payout level the company has been able to hold steady after a few years of dividend cuts last decade. But investors might be hoping for that long-awaited pay raise from Telstra. Telstra hasn’t raised its dividend since 2015.

Well, according to broker Morgans, investors shouldn’t hold their breath. Morgans recently forecast another 16 cents per share annual dividend for Telstra for FY 2022, as well as the same for FY 2023. That might disappoint some investors if that turns out to be accurate. But even so, that would mean Telstra’s arguably-solid current trailing yield of 3.95% (5.64% grossed-up) is here to stay.

At the current Telstra share price of $4.06, this ASX 200 telco has a market capitalisation of $47.58 billion.

The post Own Telstra (ASX:TLS) shares? Here’s what to watch when the ASX 200 telco reports this week appeared first on The Motley Fool Australia.

More reading

• These are some of the top performing ASX 200 value shares of the past year
• Should Telstra (ASX:TLS) really ‘be worried’ about its major competitor’s new asset?
• Telstra (ASX:TLS) targets government’s deep cyber-crime pockets
• Broker names 2 ASX dividend shares to buy
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 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.

from The Motley Fool Australia https://ift.tt/Dlzx8Au

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting back from a poor start and is now only down marginally. At the time of writing, the benchmark index is down 0.1% to 7,235.1 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are climbing:

Dexus Property Group (ASX: DXS)

The Dexus share price is up 2.5% to $10.40. This follows the release of the property company’s half year results this morning. For the six months, Dexus posted an 82% increase in net profit after tax to $803.2 million. Strong demand and rent collections drove the result. Rent collections came in at 97.9%, whereas occupancy was 95.1% for the Dexus office portfolio and 98.6% for the Dexus industrial portfolio.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 3.5% to $53.48. This appears to have been driven by a positive reaction to its half year results from brokers. One of those is Credit Suisse, which has retained its outperform rating and lifted its price target on the retail giant’s shares to $60.27. It was pleased with its result and buyback and expects the company to benefit from the work from home trend.

Seek Limited (ASX: SEK)

The Seek share price is up 7% to $29.72. Investors have been buying this job listings company’s shares after it reported a 59% increase in first half revenue to $517.2 million and a 147% lift in reported net profit after tax (before significant items) to $124.2 million. A note out of Goldman Sachs reveals that Seek’s revenue and net profit were 4% and 20% ahead of consensus estimates. It also highlights that its FY 2022 guidance upgrade is well-ahead of current estimates.

Sims Ltd (ASX: SGM)

The Sims share price has jumped 18% to $17.66 following the release of a very strong half year result. The scrap metals company reported a 73.9% increase in revenue to $4,265.0 million and a 541.3% jump in underlying EBIT to $361.7 million. This was driven by “higher sales volumes and higher material prices, combined with disciplined margin management.”

The post Why Dexus, JB Hi-Fi, Seek, and Sims shares are climbing today appeared first on The Motley Fool Australia.

More reading

• Seek (ASX:SEK) dividend rebounds to a 3-year high, what it means for shareholders
• Seek (ASX:SEK) share price leaps 8% as revenue soars
• ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
• ‘Excellent performance’: Sims (ASX:SGM) share price rockets 16% on stellar earnings
• Profit up 82%: Dexus (ASX:DXS) share price steady on active half year results

Motley Fool contributor James Mickleboro owns SEEK 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 recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/7kJaSP1