Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) has had a strong start the week. In afternoon trade, the benchmark index is up 0.55% to 7,363.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Advanced Human Imaging Ltd (ASX: AHI)

The Advanced Human Imaging share price has tumbled 10% to $1.00. This morning the software company announced plans to raise US$15 million. The proceeds will be use research and development, business development, and marketing. The remainder of the proceeds will be used for general corporate purposes. This could include investing in or acquiring synergistic companies that are complementary to its technologies and working capital.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 5% to $35.27. This decline appears to have been driven by a lukewarm response from brokers to last week’s quarterly update. This morning Macquarie retained its neutral rating and lifted its price target ever so slightly to $38.00. While it was pleased with its performance during the quarter, it feels its shares are close to full value now.

Western Areas Ltd (ASX: WSA)

The Western Areas share price is down almost 3% to $3.07. This morning the team at Citi reduced their FY 2022 earnings estimates for this nickel producer following its first quarter update. The broker has, however, held firm with its neutral rating and $3.40 price target.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 6.5% to $24.01 following the release of its full year results. Although the banking giant doubled its cash earnings in FY 2021, this was still a touch short of expectations. In addition, a softening net interest margin and smaller than expected share buyback appear to be weighing on its shares. In respect to the latter, Australia’s oldest bank announced a $3.5 billion off-market share buyback. A note out of Morgans reveals that its analysts were forecasting a $5 billion buyback

The post Why Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling appeared first on The Motley Fool Australia.

More reading

• Advanced Human Imaging (ASX:AHI) share price sinks on US listing update
• Leading brokers name 3 ASX shares to buy today
• The Resmed (ASX:RMD) share price is falling 5% on Monday. Here’s why
• Here’s everything to know about the Westpac (ASX:WBC) dividend after its earnings update
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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/3ExRlwl

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Airtasker Ltd (ASX: ART)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target slightly on this small jobs marketplace provider’s shares to $1.27. This follows the release of a resilient quarterly update last week. Morgans was pleased with the company’s performance given how over half its target market was locked down. The Airtasker share price is trading at $1.10 on Monday.

Macquarie Group Ltd (ASX: MQG)

A note out of Citi reveals that its analysts have upgraded this investment bank’s shares to a buy rating with an improved price target of $226.00. Citi was pleased with Macquarie’s performance in the first half and expects more of the same in the second half. Particularly given how the company is well-placed to benefit from the current energy crisis. Combined with upgraded guidance for commodities revenue and gain on sale revenue in MacCap, the broker has upgraded its earnings estimate for FY 2022 by 17% to $4,145 million. The Macquarie share price is fetching $197.00 today.

ResMed Inc. (ASX: RMD)

Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this sleep treatment focused medical device company’s shares to $40.80. This follows the release of a better than expected first quarter update last week. While the broker acknowledges that supply constraints will limit market share gains from the rival product recall, it is still expecting solid earnings growth over the medium term. The ResMed share price is trading at $35.29 today.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• The Resmed (ASX:RMD) share price is falling 5% on Monday. Here’s why
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?
• Macquarie (ASX:MQG) share price falls after completing $1.5bn capital raising
• 5 things to watch on the ASX 200 on Monday

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 recommended Airtasker Limited and ResMed. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended ResMed Inc. 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/3jVAcVv

Shares in Australian pharmaceutical company Race Oncology Ltd (ASX: RAC) are up 4% from the open to now trade at $3.41 apiece. This follows an intraday high of $3.52.

Race Oncology shares are on the move despite there being no market-sensitive for the company today.

However, they are gaining ground amid a key update regarding a clinical trial submission the company announced today which is worth exploring at greater length.

Here are the details.

Race submits application to start phase 2 trial

The company advised that it has submitted the “first human ethics application to the Hunter New England Human Research Ethics Committee” for approval to commence a phase 2 trial with its drug candidate Zantrene.

Specifically, the application is to commence an open-label phase 2 clinical trial investigating Zantrene in two complex disease segments, Extramedullary Acute Myeloid Leukaemia (AML) and Myelodysplastic Syndromes (MDS).

The former occurs when leukaemia spreads from the bone marrow and forms solid tumours in areas such as the skin, breast, kidney, or brain, etc.

The latter, MDS, is a category of blood cancers that affects the production of blood cells in bone marrow. Around a third of all patients with MDS diagnoses progress to develop AML, according to the company.

Being a phase 2 clinical trial, it will primarily examine the overall effectiveness and safety of Zantrene in patients with these conditions.

What does the trial look like?

The study, which Race labelled BISECT, will recruit up to 60 patients, separated into two ‘stratum’ or population groups.

Group 1 will receive a higher dose of Zantrene as a single treatment over 7 days with follow up cycles thereafter. The cohort will comprise patients with AML who can tolerate high-intensity chemotherapy.

The second group will receive Zantrene as a combination therapy, albeit at a lower dose, for patients who are unable to tolerate high-intensity chemo.

The trial is expected to take around 36 to 40 months to complete.

The application builds on previous studies indicating a potential therapeutic response in AML in combination with another drug, using mouse studies.

An important point for investors to note is that the trial “supports the use of orphan drug registration under the FDA 505(b)(2) pathway”.

The 502(b)(2) pathway in the US enables drug manufacturers to obtain Federal Drug Administration (FDA) approval without having to compile the mammoth amount of data that’s normally required with a new drug application (NDA).

If successful, this would remove much red tape for Race Oncology before commercialising Zantrene in the US.

What did management say?

Speaking on the announcement, Race Oncology’s CEO Phillip Lynch said:

This study supports our Pillar 3 registration ambition to see Zantrene’s historical safety and efficacy in AML demonstrated with superior drug combinations that may benefit patients who remain challenged by initial treatment failures. It is pleasing to be able to open up this trial to MDS patients who are equally in need of new improved treatment options.

Race Oncology share price snapshot

Race Oncology share price has climbed over 249% in the past 12 months after rallying 95% in the green since January 1.

That’s well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of about 25% in the past year.

The post Why the Race Oncology (ASX:RAC) share price is up on Monday appeared first on The Motley Fool Australia.

More reading

• Race Oncology (ASX:RAC) share price struggles despite new Leukemia study
• Race Oncology (ASX:RAC) share price edges higher amid patent update
• Why the Race Oncology (ASX:RAC) share price is storming higher today

The author Zach Bristow has no positions 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/3CxrSm1

The Lynas Rare Earths Ltd (ASX: LYC) share price is currently up around 3% after the rare earth miner reconfirmed long-term support from a key stakeholder.

Lynas share price rises as letter signed

Lynas has signed a letter of agreement with Japan Australia Rare Earths (JARE), reconfirming JARE’s long-term support for the Lynas business.

What is JARE?

Lynas explained that JARE is a special purpose company established by Japan Oil, Gas and Metals National Corporation and Sojitz Corporation. Lynas and JARE are parties to a long-term senior loan facility, with a principal balance of US$145 million, an interest rate of 2.5% per annum and a maturity date of 30 June 2030. The company announced this loan facility in June 2019.

As agreed, Lynas and JARE continue to work together on the development of the Lynas business.

Further delay of interest payment

Lynas had previously announced that in support of Lynas’ capital expenditure on Lynas 2025 growth projects, JARE deferred interest of US$11.5 million until 31 October 2021, with no penalty and no additional interest. JARE has agreed to further defer the repayment of this interest until 31 March 2021, with no penalty and additional interest.

Quarterly update

It was just over a week ago that Lynas told investors how the first quarter of its 2022 financial year had gone compared to the fourth quarter of FY21.

Lynas said that its quarterly sales revenue was $121.6 million (down from $185.9 million in the FY21 fourth quarter) and the sales receipts were $92 million (down from $192 million).

Looking at the production, total rare earth oxide (REO) production was 3,166 tonnes (down from 3,778 tonnes), whilst neodymium and praseodymium (NdPr) production was 1,255 tonnes (a reduction from 1,393 tonnes.

However, Lynas noted that the rising COVID-19 cases in Malaysia meant that cracking and leaching plant was partially or fully shutdown for 11 days due to the unavailability of personnel who were required to isolate. Product finishing of non-NdPr products was also shutdown for 16 days during the period as it prioritised NdPr production with available personnel. The pandemic continued to affect logistics with delays in both inbound and outbound shipments affecting availability of key production inputs and finished product deliveries.

Despite those challenges, the team managed to maintain NdPr production at 70% of Lynas NEXT capacity.

The rare earth miner pointed out that demand for rare earth materials continues to be very strong in the magnet market and customers say that they expect this demand to further accelerate in 2022. The average China domestic price for NdPr was US$80.1 per kilo for the quarter.

Projects on track

Lynas also noted that work has continued with procurement and minor and preliminary works at the Kalgoorlie rare earths processing facility (as approved by the EPA) in March 2021. Concrete works were installed on the site to enable the delivery of the kiln shell, which is being shipped from Europe and is expected to arrive in WA in November 2021.

After the quarter finished, the WA EPA recommended the Kalgoorlie facility for environmental approval subject to conditions and released its assessment report on 20 October 2021.

Rating on the Lynas share price

The broker Ord Minnett currently rates Lynas as a sell with a price target of $4.30, which is approximately 40% lower than today’s price. Whilst Lynas is doing well in the current environment, the broker thinks the Lynas share price is valued too highly.

The post Here’s why the Lynas (ASX:LYC) share price is up 3% on Monday appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Can the Lynas (ASX:LYC) share price fall to $4 by the end of 2021?
• Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Lynas (ASX:LYC) share price falls 7% on news of COVID-induced shutdown

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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/3kealIP

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. At the time of writing, the benchmark index is up 0.8% to 7,382.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Ausnet Services Ltd (ASX: AST)

The Ausnet share price is up almost 4% to $2.57. The catalyst for this was news that the electricity distribution networks company has accepted a takeover offer from Brookfield Asset Management. According to the release, Brookfield has tabled a binding proposal of $2.65 per share, which is up from its original offer of $2.50 per share. As part of the terms of the agreement, Ausnet has terminated its due diligence process with APA Group (ASX: APA).

Charter Hall Group (ASX: CHC)

The Charter Hall share price is up over 4% to $18.07. Investors have been buying this property company’s shares after it upgraded its post-tax operating earnings per security (OEPS) guidance. Charter Hall now expects OEPS of no less than 83 cents per share in FY 2022, which represents a minimum 36% year on year growth rate.

Codan Limited (ASX: CDA)

The Codan share price is up 4.5% to $10.51. This gain appears to have been driven by bargain hunters swooping in after the metal detector company’s shares were sold off last week. The Codan share price sank 23% last week following the release of its annual general meeting update.

Imugene Limited (ASX: IMU)

The Imugene share price has jumped 7% to 53 cents. This morning Imugene announced a strategic collaboration with Eureka Therapeutics. The collaboration will evaluate Eureka’s anti-CD19 Artemis T-cell therapy in combination with Imugene’s CD19-expressing oncolytic virus onCARlytics in solid tumours. Eureka Therapeutics is a US based clinical-stage biotechnology company focused on developing novel cancer T-cell therapies to treat cancers.

The post Why Ausnet, Charter Hall, Codan, and Imugene shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the Imugene (ASX:IMU) share price is up 9% on Monday
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Ausnet (ASX:AST) share price jumps as Brookfield offers $2.65/share
• These were the worst performing ASX 200 shares in October
• These were the worst performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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/3brlHnN

Shares in global medical device company Resmed Inc (ASX: RMD) are sliding in early afternoon trade today as the US-based entity released its Q1 FY22 earnings.

At the time of writing, Resmed shares are 5.27% into the red, sinking to $35.21 apiece.

Resmed share price slides despite 20% revenue growth in Q1

During the quarter, Resmed achieved a number of investment highlights, including:

• Revenue of US$904 million, a 20% year on year (YoY) growth pattern
• Gross margin of 56%, down from 57.2% year on year
• Income from operations increased by 21% from the same time last year to US$261.9 million
• Operating profit gained 18% from the year prior with net income up 14% YoY to US$203.6 million
• Diluted earnings per share of US$1.39, up from US$1.22 during the same period in FY21
• Declared quarterly cash dividend of US42 cents per share

What happened this quarter for Resmed?

The company announced its quarterly earnings update with the release of its 10-K form. This is the standard documentation required by US-listed or domiciled companies when reporting earnings.

Resmed came in with a quarter that was ahead of analyst expectations, exhibiting a period of decent growth throughout its income statement.

For instance, revenue grew by 20% YoY to US$904 million, around $46 million above the consensus of analyst estimates for its Q1 sales.

Yet, despite the growth, the company’s gross margins contracted by around 270 basis points to 56%. This was the result of higher shipping and manufacturing costs across the board during calendar year 2021 to date.

Geographically speaking, revenue growth in Europe and Asia was strongest for the company in Q1 with an average of 21% growth in gross earnings in these regions.

This carried vertically down the income statement for Resmed. Its income from operations also expanded by 21% YoY and net income gained 14% during the quarter (20% on non-GAAP accounting figures).

Operating profit also rose around 20% for the quarter when compared to Q1 FY21. However, it was impacted by a payment made to the Australian Tax Office (ATO) of US$284.8 million.

According to its earnings report, this was actually the settlement amount of US$381.7 million net of prior remittances for all prior years since 2009.

As a result of its earnings strength this quarter, the board declared its quarterly cash dividend of US42 cents per share, payable on 16 December 2021.

Although this is in US currency, Australian holders of Resmed’s ASX-listed shares will receive the equivalent in Aussie dollars with an ex-dividend date of 10 November.

What did management say?

Speaking on the announcement, Resmed CEO Mick Farrell said:

Our first-quarter results demonstrate strong performance across our business with double-digit growth in both top-line and bottom-line metrics, driven by ongoing high demand for our sleep and respiratory care products, and steady growth across our software-as-a-service business.

He added:

It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components.

What’s next for Resmed?

Resmed has previously stated a full-year revenue outlook of US$300 million to $350 million.

However, it also concurrently stated on its earnings call that it does not generally give specific ‘quantitative’ guidance.

When probed by analysts, the company reiterated its US$300–$350 million figure without going into too much detail.

Overall, it’s been a choppy year for Resmed shareholders who have still enjoyed a share price increase of 30% since January 1.

Over the last 12 months, the Resmed share price has climbed 26% into the green, roughly in line with the benchmark S&P/ASX 200 Index (ASX: XJO)’s gain of just under 25% in that time.

The post The Resmed (ASX:RMD) share price is falling 5% on Monday. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why HT&E, JB Hi-Fi, Reece, and ResMed shares are charging higher
• ASX 200 (ASX:XJO) midday update: Macquarie doubles profit, ResMed jumps
• ResMed (ASX:RMD) share price jumps 7% on Q1 earnings beat
• 5 things to watch on the ASX 200 on Friday
• 3 buy-rated ASX shares

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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/3mvA28Y

Shares in biotech company Imugene Limited (ASX: IMU) are lifting in afternoon trade today and are changing hands 9.09% higher at 54 cents.

Imugene’s share price has been gaining ground today after the company announced a strategic partnership with Eureka Therapeutics, Inc.

Here are the details.

What did Imugene announce today?

Imugene gave in-depth coverage of its strategic partnership with clinical stage biotechnology Eureka Therapeutics, including an investor presentation of the data and collaboration itself.

The collaboration will “explore the therapeutic potential of a combination of Imugene’s CD19 oncolytic virus onCARlytics in combination with Eureka’s anti-CD19 ARTEMIS T-cell therapy for the treatment of solid tumours”.

For reference, Imugene has a novel hypothesis that it uses to treat solid tumours using its onCARlytics platform, by priming tumour cells for destruction with a tumour marker called CD19.

Imugene states that Eureka’s T-Cell therapy may be superior to CAR-T cells – a kind of bio-engineered T-Cell designed to specifically attack cancer cells, that Imugene is currently studying.

It reckons that based on head-to-head preclinical trials, Eureka’s ARTEMIS T-Cell therapy may be a better fit as a combination therapy with onCARlytics instead of CAR-T therapy, in order to eradicate solid tumours in eligible patient groups.

This is because ARTEMIS T Cells “demonstrated superior efficacy, enhanced tumour infiltration, and less T-cell exhaustion” in the aforementioned studies.

Eureka already has a number of clinical partnerships on its books with the likes of French biopharma company Sanofi S.A, and oncology giant Lyell Immunopharma Inc (NASDAQ: LYEL).

In fact, it has also eclipsed the top 10 mark in terms of the world’s best ‘CAR-T Patent Assignees Worldwide’ with its ARTEMIS asset in 2020, per the release.

News of the collaboration sent Imugene’s share price higher, and today’s trading volume is already 122% of its 4-week average after just a few hours of activity.

What did management say?

Speaking on the announcement, Imugene’s CEO Leslie Chong said:

T-cell and CAR-T therapies have not achieved much success in solid tumours in part because of a lack of tumour specific targets. By using our proprietary oncolytic technology to force the tumour to express the CD19 target, we now have the ability to address this shortcoming. We believe the synergy between our onCARlytics platform and Eureka’s anti-CD19 ARTEMIS T-cells has the potential to shift the cellular medicine paradigm in treating solid tumours.

Imugene share price snapshot

It’s been a terrific year for Imugene and its share price, having posted an outsized return of 440% this year to date.

This extends its run into the green to over 800% in the past 12 months, a galaxy away from the benchmark S&P/ASX 200 index (ASX: XJO)’s gain of around 25% in the same time.

The post Why the Imugene (ASX:IMU) share price is up 9% on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Why is the Imugene (ASX:IMU) share price lifting 7% today?
• These were the best performing ASX biotech shares in September

The author Zach Bristow has no positions 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/3mtMfey

The Westpac Banking Corp (ASX: WBC) share price is down more than 6% after the bank released its FY21 result and announced its final dividend.

On top of the dividend, Westpac announced a $3.5 billion off-market share buy-back.

Regarding the buy-back, Westpac Chair John McFarlane said:

Our improved operating performance and positive progress on our strategic priorities, including the completion of a number of divestments, have strengthened capital and allowed us to announce this buy-back. The board carefully evaluated several options and believes this is the most value-enhancing option to distribute part of the group’s capital and franking credits.

Westpac dividend

The board decided to pay a final, fully franked dividend of $0.60 per share, to be paid on 21 December 2021.

That brought the total dividend for the 2021 financial year to $1.18 per share, representing a 62% payout ratio of cash earnings, excluding notable items. That represents an increase of 280% compared to FY20.

Westpac says that after its shareholder payouts of the dividend and buy-back, it will still have a strong capital position to respond to uncertainties, and to support growth and its customers.

The bank also noted that the capital position, together with the potential for further asset sales, creates flexibility for the board in its ongoing considerations on capital management.

Westpac noted that when combined with the final dividend for 2021, the bank delivered a total return to shareholders of $5.7 billion.

At the current Westpac share price, it has a trailing dividend yield of 4.9%. When grossed-up to include the franking credits, it increases to 7%.

What about the Westpac result?

In FY21, the business experienced an impairment benefit of $590 million. This reversal from a cost to a benefit helped statutory profit jump 138% to $5.46 billion, whilst cash earnings increased 105% to $5.35 billion. Excluding notable items, the cash earnings went up 33% to $6.95 billion.

The net interest margin (NIM) fell by 4 basis points to 2.04%, though the return on equity (ROE) increased by 372 basis points to 7.6%. Excluding notable items, the ROE increased 212 basis points to 9.8%.

In terms of the actual number, Westpac’s balance sheet saw the CET1 capital ratio improve by 119 basis points to 12.32%.

Outlook

A company’s thoughts on the outlook could have ramifications for the Westpac share price and the dividend.

Westpac is confident that the Australian economy will rebound over the next 12 months. Whilst uncertainty remains, the major bank thinks that most industries will begin to recover as Australia’s two biggest states re-open.

The Westpac CEO, Peter King, said:

Consumer spending will likely increase significantly as states re-open and pent-up demand is released, particularly supported by consumer optimism and sizeable savings.

We expect the Australian economy to expand by 7.4% in 2022, with credit growth expanding 6.8%. Demand for housing is likely to remain elevated but home price increases should moderate to 8% next year.

Next year we expect to reduce our cast base as we had towards our $8 billion cost target from completion of programs under our Fix priority and realise the benefits from divestments.

Whilst the bank is expecting lending growth, it’s expecting net interest margins to remain under pressure from low interest rates and competition.

Commsec numbers suggest that the Westpac full year dividend could increase by around 6% to $1.25 per share.

The post Here’s everything to know about the Westpac (ASX:WBC) dividend after its earnings update appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?
• Westpac (ASX:WBC) share price sinks 6% despite doubling cash earnings
• Westpac (ASX:WBC) share price on watch amid earnings jump and $3.5bn buyback
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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/2ZHHd4U

The GR Engineering Services Ltd (ASX: GNG) share price is racing higher on Monday. This comes after the engineering company announced an update on its full-year revenue guidance for FY22.

During late morning trade, GR Engineering shares are fetching $1.885, up 7.10%.

GR Engineering eyes strong growth for FY22

Investors are driving up GR Engineering shares following the release of upgraded revenue guidance by the company.

In its statement, GR Engineering advised that favourable trading conditions have continued to run into the new financial year.

As a result, the company upgraded its revenue guidance for the period ending 30 June 2022. It expects its full-year revenue to come in between $540 million and $560 million, reflecting a sizeable increase.

Originally, GR Engineering had forecast FY22 revenue for the same period to be around $440 million to 460 million.

The company seems to have avoided the impact of the recent constriction of the labour market in Australia. It says it has managed to navigate its way through COVID-19, increasing its workforce to meet demand and deliver on projects.

GR Engineering managing director Geoff Jones touched on the company’s improved revenue guidance, saying:

GR Engineering is forecasting significant growth on the record results achieved in FY21. The pipeline of ongoing and near-term work is growing and provides increased revenue and earnings visibility for both FY22 and FY23, enhancing GR Engineering’s ability to deliver returns to its shareholders.

GR Engineering share price summary

Over the past 12 months, the GR Engineering share price has soared, representing an 85% gain for shareholders. Throughout the year, the company’s shares have continued on an upwards trajectory.

It’s worth noting that the GR Engineering share price is currently a whisker away from its multi-year high of $1.96.

Based on today’s price, GR Engineering commands a market capitalisation of roughly $302 million with approximately 160.88 million shares outstanding.

The post GR Engineering (ASX:GNG) share price storms 7% higher today on FY22 guidance update appeared first on The Motley Fool Australia.

More reading

• Why the Imugene (ASX:IMU) share price is up 9% on Monday
• Here’s everything to know about the Westpac (ASX:WBC) dividend after its earnings update
• These are the 10 most shorted ASX shares
• This ASX share is a ‘cheap’ way to invest in green energy transition
• How did the NAB (ASX:NAB) share price perform in October?

Motley Fool contributor Aaron Teboneras 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/3w2h64Y

Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest jump week on week to 12.1%, making it the most shorted ASX share once again. Short sellers are not giving up on this travel agent giant despite borders reopening.
• Redbubble Ltd (ASX: RBL) has short interest of 10.2%, which is up slightly since last week. This ecommerce company’s recent quarterly update disappointed the market. Short sellers don’t appear to believe things will be improving in the near term.
• Webjet Limited (ASX: WEB) has short interest of 9.1%, which is down slightly week on week. This online travel agent’s shares remain a favourite for short sellers despite the improving travel market outlook. This could be due to valuation concerns.
• Kogan.com Ltd (ASX: KGN) has short interest of 8.9%, which is flat week on week. This ecommerce company’s shares have been targeted due to inventory issues and its softening sales growth.
• Mesoblast limited (ASX: MSB) has seen its short interest remain flat week on week at 8.9%. This high level of short interest appears to be due to concerns over this biotech company’s balance sheet. Another capital raising may be necessary in the near future based on its cash burn.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up meaningfully week on week. Much to the delight of short sellers, this defence and space company’s shares tumbled lower last week after it downgraded its earnings guidance.
• Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is up week on week. There are concerns that high grain costs could be putting pressure on this poultry producer’s margins.
• Zip Co Ltd (ASX: Z1P) has seen its short interest remain flat at 7.8%. Short sellers are holding firm with Zip despite it revealing a record quarterly performance last month.
• Cooper Energy Ltd (ASX: COE) has 7.5% of its shares held short, which is up week on week. A disappointing performance from Cooper’s Sole Gas operation has been weighing on sentiment.
• BHP Group Ltd (ASX: BHP) has seen its short interest rise week on week to 6.9%. Short sellers may believe falling iron ore prices will continue to drag on its performance. Though, it is worth noting that strong prices of other commodities are currently offsetting much of this.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Why has October been such a lousy month for the Webjet (ASX:WEB) share price?
• These were the worst performing ASX 200 shares last week
• Morgans tips Zip (ASX:Z1P) share price to jump 30%
• 2 very unpopular ASX shares that’ll keep rising: expert
• 2 beaten-up ASX shares that could be buys in November

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 shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet 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.

from The Motley Fool Australia https://ift.tt/3GBXc5D