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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a tough week on a positive note. The benchmark index rose to 0.5% to 7,406.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% lower this morning. This follows a very disappointing end to the week on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.8%, and the Nasdaq tumble 0.9%. Economic uncertainty led to the Dow recording five consecutive daily declines last week.

Oil prices storm higher

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong start to the week after oil prices stormed higher on Friday night. According to Bloomberg, the WTI crude oil price is up 2.3% to US$69.72 a barrel and the Brent crude oil price has risen 2.1% to US$72.92 a barrel. Traders were buying oil on tight US supplies.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes NZ telco Chorus Ltd (ASX: CNU), healthcare company Healius Ltd (ASX: HLS), and investment platform provider HUB24 Ltd (ASX: HUB).

Gold price falls

Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price dropped on Friday night despite weakness on Wall Street. According to CNBC, the spot gold price fell 0.45% to US$1,792.1 an ounce. Uncertainty over the US Fed’s tapering timeline was weighing on the precious metal.

Telstra named as a buy

The Telstra Corporation Ltd (ASX: TLS) share price could be in the buy zone ahead of its strategy day this week. This morning Goldman Sachs reiterated its buy rating and lifted its price target to $4.40. Goldman advised: “Strategically we expect a continuation of the current strategy (simplicity and customer focus, network leadership and improved efficiency) but with a tilt towards growth (such as Energy, Health, FWA, Enterprise 5G).”

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

More reading

• Leading broker says Telstra (ASX:TLS) share price is a buy
• How have ASX resources shares performed during the August 2021 earnings season?
• September is not being kind to the Woodside (ASX:WPL) share price
• How have ASX energy shares performed during the August 2021 earnings season?
• These were the best performing ASX 200 (ASX:XJO) 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. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re interested in investing in the tech sector, then you may want to look at the three ASX tech shares listed below.

These tech shares are the ones that the team at Bell Potter believe are the top three options in the sector right now.

Here’s what you need to know:

Nitro Software Ltd (ASX: NTO)

This document productivity software company is now the broker’s number one pick in the sector, partly for valuation reasons.

It commented: “[Nitro] Moves up to our number one pick given the slight pullback in share price following the 1H2021 result – which was good but not great – and our expectation the next few results (i.e. 2H2021, 1H2022 and 2H2022) will all show strong top line growth on the back of the increase in sales staff in 1H2021 and also the recent commencement of charging for eSigning.”

Bell Potter currently has a buy rating and $4.00 price target on Nitro’s shares.

Infomedia Limited (ASX: IFM)

The broker is also a big fan of this leading global provider of software as a service solutions to the parts and service sector of the automotive industry.

Bell Potter explained: “A new key pick following the better than expected outlook and guidance for FY22 which suggests a return to reasonable if not good organic growth in FY22 after this was relatively low in FY21 due mostly to the impacts of COVID-19 and, in particular, global shutdowns and travel restrictions.”

Its analysts have a buy rating and $2.00 price target on Infomedia’s shares.

Life360 Inc (ASX: 360)

Finally, this fast-growing family focused app maker remains in the broker’s top three sector picks.

The broker said: “[Life360] Remains a key pick but moves down to number three following the strong share price performance though we believe good upside remains with the company expected to be a key beneficiary of country’s reopening – particularly in the US – and the likelihood of a material M&A transaction in the coming months which may help better monetise the large active user base. “

Bell Potter has a buy rating and $10.75 price target on Life360’s shares.

The post Broker names the 3 best ASX tech shares to buy appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that could be buys
• Why the Life360 (ASX:360) share price could be heading higher
• 2 exciting ASX tech shares to buy
• 5 ASX shares under $10 that have more than doubled in the past year
• 3 top ASX growth shares for investors in September

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 Infomedia and Life360, Inc. The Motley Fool Australia has recommended Infomedia and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This weekend could be a handy time to look into some quality, growth-focused ASX shares.

Businesses that are growing their revenue and profit margins give themselves a good chance of growing the bottom line and hopefully producing returns for shareholders.

These two companies could be ones to watch:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a leading ASX tech share in the electronic donation space. It is facilitating the digitalisation of large and medium churches in the US. It provides donation tools for its customers and, bolstered by the acquired Church Community Builder, offers church management tools.

The business is both growing revenue and its profit margins as more people shift to digital donations.

FY21 saw processing volume rise 39% to US$6.9 billion, with operating revenue increasing 40% to US$179.1 million. The gross profit margin increased from 65% to 68%, whilst total operating expenses as a percentage of operating revenue improved 11 percentage points, from 47% to 36%. Net profit jumped 95% to US$31.2 million. Operating cashflow increased 145% to US$57.6 million.

Pushpay says it expects operating leverage to accrue as operating revenue continues to increase, whilst growth in total operating expenses remains low.

The ASX share recently acquired Resi Media, to add to its streaming solutions for the Pushpay product suite. This acquisition cost US$150 million.

Management said this acquisition accelerates front book growth, adding a further stream of high growth and high margin software as a service (SaaS) revenue.

The Pushpay share price is currently valued at 29x FY23’s estimated earnings according to Commsec.

EML Payments Ltd (ASX: EML)

EML Payments is another business in the payments space. It has a few different business segments.

There’s the general purpose reloadable division – this has uses like salary packaging and gaming payouts. It has gift and incentive, which is used for things like shopping centre gift cards and consumer incentives. Finally, there’s virtual account numbers, with use cases like commercial payments and buy now, pay later.

It’s benefiting from the shift to digital payments. FY21 saw gross debit volume (GDV) increase 42% to $19.7 billion, with revenue rising 60% to $194.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 65% to $53.5 million.

Regarding the Central Bank of Ireland (CBI) concerns, the ASX share said it’s working constructively with CBI and has responded in significant detail on all matters, and has provided CBI with a detailed remediation plan addressing the concerns raised. EML expects the remediation plan to be substantively complete by the end of the 2021 calendar year, with the remaining items remediated by the end of March 2022.

In FY22, EML is expecting its underlying EBITDA to rise by at least 8.4%, to a range of $58 million to $65 million.

According to Commsec, the EML share price is valued at 29x FY23’s estimated earnings.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

More reading

• Why the Pushpay (ASX:PPH) share price is edging higher on Monday
• 3 ASX shares with strong growth potential
• Here’s why the EML (ASX:EML) share price is up 8% in the last month
• 3 excellent ASX growth shares for September
• The EML Payments (ASX:EML) share price is rated as a strong buy

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. owns shares of and has recommended EML Payments and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended EML Payments and PUSHPAY FPO NZX. 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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Last week the Telstra Corporation Ltd (ASX: TLS) share price ended the period at $3.88.

This means the telco giant’s shares are now up 29% since the start of the year.

This is more than double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the Telstra share price?

The good news for shareholders is that one leading broker believes the Telstra share price can keep rising.

According to a recent note out of Goldman Sachs, its analysts have a buy rating and $4.30 price target on the company’s shares.

Based on the latest Telstra share price, this implies potential upside of almost 11% over the next 12 months before dividends.

And if you include the 16 cents per share fully franked dividend the broker is forecasting in FY 2022, the potential return stretches to 15%.

Why is Goldman positive on Telstra?

Goldman Sachs has a buy rating on the Telstra share price due partly to its belief that the telco giant’s key mobile business will drive growth in the coming years.

This is not only expected to bring an end to dividend cuts, but also lead to a dividend increase in FY 2024. Goldman is forecasting dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024.

With the Telstra share price currently trading at $3.88, the latter will mean an attractive fully franked 4.6% yield.

Commenting on its mobile growth, Goldman said: “We forecast +5% MSR growth in FY22/23E driven by: (1) Consumers transacting at pricing $6-7 above FY19; (2) deferred 5G price rises; (3) Enterprise/Small Business returning to growth; and (4) c.$250mn of roaming revenues returning.”

“We also believe that as long as TLS is growing mobile subs, it will be happy to cede share in exchange for a more rational ARPU environment. Finally, we expect service revenue growth and residual productivity savings to drive c.400bps of margin expansion, noting our 43% FY23 margin is still low relative to prior levels (adj. for AASB16/MTAS is 38.7% vs. 41% peak),” it added.

The post Leading broker say Telstra (ASX:TLS) share price is a buy appeared first on The Motley Fool Australia.

More reading

• How have ASX telecommunication shares performed during the August 2021 earnings season?
• Analysts name Westpac (ASX:WBC) and this dividend share as buys
• Here are the 3 heaviest trading ASX 200 shares on Thursday
• Is the Telstra (ASX:TLS) share price undervalued right now?
• This has been a good week so far for the Telstra (ASX:TLS) share price

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 shares of 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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If you’re an income investor on the lookout for dividend options, then you may want to look at the two listed below.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is a retail group with a focus on the leisure footwear market.

Accent has been growing at a solid rate over the last few years thanks to the popularity of its store brands, its network expansion, and strong demand. This continued in FY 2021, with Accent recently reporting a 19.9% increase in sales to $1.14 billion and a 38.6% jump in net profit after tax to $76.9 million.

And although the team at Bell Potter are expecting a softer result next year, they remain very positive on the longer term.

A recent note reveals that Bell Potter has a buy rating and $2.90 price target on its shares. The broker is also expecting fully franked dividends per share of 9 cents in FY 2022 and 13 cents in FY 2023.

Based on the current Accent share price of $2.14, this will mean fully franked yields of 4.2% and 6.1%, respectively.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Another ASX dividend share for income investors to look at is banking giant ANZ.

It could be a top option for income investors due to its improving outlook and cost cutting plans. The latter sees the company aiming to reduce its cost base materially to $8 billion in the near future.

In addition, ANZ has a very strong capital position. At the end of the third quarter, ANZ’s CET1 ratio stood at 12.2%.

This is well ahead of APRA’s unquestionably strong benchmark of 10.5%, giving the bank plenty of opportunities to return funds to shareholders. For example, ANZ’s recently announced $1.5 billion share buyback is only expected to reduce its CET1 ratio by 35 basis points.

Analysts at Morgans are bullish on the bank. They currently have an add rating and $34.50 price target on ANZ’s shares.

In addition, the broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $27.59, this represents yields of 5.1% and 5.8%, respectively.

The post 2 excellent ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

• A look at insider buying among ASX 200 big four bank shares
• 2 of the best ASX share ideas according to this leading broker
• The ANZ (ASX:ANZ) share price is down 4% in a month. Here’s why.
• Analysts name 2 ASX dividend shares to buy
• Dividends galore! 10 ASX shares trading ex-dividend on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

City Chic Collective Ltd (ASX: CCX)

According to a note out of Citi, its analysts have retained their buy rating and $7.20 price target on this plus sized fashion retailer’s shares. This follows the release of a stronger than expected quarterly update by its US rival Torrid. The broker believes this bodes well for City Chic’s performance in FY 2022. Especially given how almost 40% of its sales derive from the US market at present. The City Chic share price ended the week at $6.42.

GrainCorp Ltd (ASX: GNC)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $7.27 price target on this grain exporter’s shares. The broker believes that above-average rainfall bodes well for the East Coast winter crop. In light of this, Macquarie suspects that GrainCorp could benefit greatly and receive a big profit boost in FY 2022 if its estimates prove to be accurate. The GrainCorp share price was fetching $6.46 on Friday.

Pilbara Minerals Ltd (ASX: PLS)

Another note out of Macquarie reveals that its analysts have an outperform rating and $2.70 price target on this lithium miner’s shares. The broker was pleased with the larger than expected increase to its mineral resource estimate. In addition, Macquarie continues to believe that Pilbara Minerals is well-placed to grow its production at a strong rate over the remainder of the 2020s and benefit from increasing demand for battery materials. The Pilbara Minerals share price ended the week at $2.05.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares this Friday
• Here are the 3 heaviest trading ASX 200 shares on Thursday
• Is the party only just getting started for ASX lithium shares?
• Why these seasoned investors are watching the Pilbara (ASX:PLS) share price
• Leading broker reveals why these 10 big-name shares have been firing up its clients

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

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The Insurance Australia Group Ltd (ASX: IAG) share price has been pushing higher this month.

This is despite CMC Hospitality filing an application starting a representative proceeding against IAG in the Federal Court.

It appears investors are willing to put the company’s FY21 woes aside and are focusing on the FY22 financial outlook.

At Friday’s market close, the IAG share price finished the day up 1.33% to $5.33. This added to its gain of 2.5% in September so far.

During the week, IAG peaked at $5.49 — not far off its 52-week high of $5.51 reached on 13 August.

What’s driving IAG higher lately?

A likely catalyst is that investors are bullish on the company’s anticipated performance for FY22.

In its full-year results, IAG highlighted that it achieved a mostly solid scorecard, with growth across key metrics.

The biggest downside of the report was the company’s bottom line, registering a net loss after tax of $427 million.

However, it was the result of significant one-off corporate expenses, mainly relating to business interruption, customer refunds, and payroll remediation.

Looking ahead, IAG reintroduced its guidance, given its sound underlying financial numbers in FY21.

Gross written premium (GWP) is expected to produce “low single-digit growth” and an insurance margin of between 13.5% and 15.5% for FY22.

The company said the guidance aligns with its aspirational goal to achieve a 15% to 17% insurance margin over the medium term. IAG believes an insurance profit of at least $250 million is achievable over the next 3 to 5 years.

IAG managing director and CEO, Nick Hawkins commented:

The strength of our core business and its sound underlying performance in FY21, our new operating model with clear, embedded executive responsibilities, as well as greater certainty in the economic outlook, mean that we are confident that IAG’s underlying performance will continue to improve.

IAG share price summary

Over the past 12 months, IAG shares have moved about 10% higher, with year-to-date gains of close to 15%.

The IAG share price has underperformed the S&P/ASX 200 Index (ASX: XJO), which is 26% higher over the 12 months and almost 11% higher year to date.

Based on today’s price, IAG has a market capitalisation of roughly $13.11 billion, with 2.46 billion shares on its registry.

The post Is the IAG (ASX:IAG) share price bouncing back in September? appeared first on The Motley Fool Australia.

More reading

• Why the IAG (ASX:IAG) share price has underperformed the ASX 200 in the last year
• How have ASX financial shares performed during the August 2021 earnings season?
• Here’s why the IAG (ASX:IAG) share price is slumping today
• Here’s why the IAG (ASX:IAG) share price is up 10% in a month
• Here’s why the IAG (ASX:IAG) share price is down 3% in a week

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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company’s shares. Although the broker notes that infant formula prices were stable in August and channel inventory is heading in the right direction, it isn’t enough for a change of rating. The broker continues to be concerned with its market position and China’s slowing birth rate. Credit Suisse fears its weak Stage 1 formula sales could impact future Stage 2 and Stage 3 sales. The A2 Milk share price ended the week at $5.51.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

A note out of Citi reveals that its analysts have retained their sell rating and NZ$27.00 (A$26.11) price target on this medical device company’s shares. Citi notes that lower COVID-related hospitalisations in Europe and North America are weighing on demand for its products in FY 2022. This has led to a decline in sales financial year to date. In light of this, the broker appears to believe its shares are overvalued at the current level. The Fisher & Paykel Healthcare share price was fetching $31.62 at Friday’s close.

Macquarie Group Ltd (ASX: MQG)

Another note out of Citi reveals that its analysts have retained their sell rating and lifted their price target on this investment bank’s shares to $153.00. The broker notes that Macquarie is guiding to a better than expected first half performance in FY 2022. However, this isn’t enough for a change of rating. Particularly given the broker’s belief that the second half will be tougher. As a result, the broker continues to believe that Macquarie’s shares are expensive at the current level and retains its sell rating. The Macquarie share price ended the week at $174.23.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• September is not being kind to the BHP (ASX:BHP) share price
• How have ASX healthcare shares performed during the August 2021 earnings season?
• How does the A2 Milk (ASX:A2M) share price compare to the ASX 200 today?
• Top brokers name 3 ASX shares to sell today
• The Macquarie (ASX:MQG) share price has gained 3 times that of CBA over 5 years

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 shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended A2 Milk. 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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ASX resources shares had a booming August 2021 earnings season. Commodity prices were strong for much of FY21, boosting returns for resources shareholders.

The iron ore price rose above US$220 a tonne earlier this year benefitting major miners such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG). The gold price has also been elevated, boosting incomes for gold miners such as Newcrest Mining Ltd (ASX: NCM).

This translated into strong cash flows and record profits for ASX resources shares. Shareholders were rewarded with outsize dividends, many of which may flow back into the share market given current low interest rates.

COVID-19 did not cause serious disruptions to resource production, and government stimulus measures increased demand for raw inputs, leading to higher commodity prices. 

How have ASX resources shares performed against the market?

ASX resources shares have underperformed the broader market recently, possibly on fears that higher commodity prices won’t last.

The All Ordinaries Index (ASX: XAO) is up 10% over 2021. However, the BHP share price has fallen 4.3% since January and the Rio Tinto share price is down 7.5%. Shares in Fortescue Metals have plummeted 26.3% over 2021, while the Newcrest Mining share price is down 11%.

This month, iron ore prices fell to their lowest level since December last year, while gold prices have also backed away from recent highs.

Who are the winners this earnings season? 

Despite the recent withdrawal in commodity prices, ASX resources shares benefited from strong prices for most of FY21, leading to plenty of earnings season winners.

Rio Tinto and Fortescue achieved record financial results in the period to 30 June — Rio Tinto’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year grew 118% to $21,037 million while Fortescue’s earnings (EBITDA) for the full year grew 96% to US$16.4 billion.

Government stimulus in response to COVID-19 pressures has driven strong demand at a time of constrained supply resulting in a spike in prices. Rio Tinto reported free cash flow of $10.2 billion, with underlying earnings per share of 751.9 US cents, a 156% increase on FY20. The miner declared an interim dividend of 561 US cents per share, representing 75% of underlying earnings. 

Fortescue achieved record shipments, revenue, earnings, and cash flow in FY21, reflecting strong performance across the supply chain and heightened customer demand. Shareholders were rewarded with a $2.11 final dividend, bringing FY21 dividends to A$3.58 per share, a 103% increase on the previous year. This represented an 80% payout of net profit after tax, which was US$10.3 billion, up 117%. 

Fortescue finished the financial year with cash on hand of US$6.9 billion and net cash of US$2.7 billion. Delivering its second consecutive year of record performance, Fortescue is investing in its iron ore operations as well as pursuing opportunities in renewable energy. 

Newcrest also delivered record profits and free cash flows, delivering on full-year guidance. The gold miner produced 2.1 million ounces of gold and 142.7 thousand tonnes of copper (a record) in FY21.

The company has kept costs low, allowing for record margins even as the gold price has increased across the year.

This translated to record statutory and underlying profits for Newcrest of $1.2 billion, up 80% and 55% respectively. Annual free cash flow was a record $1.1 billion. Newcrest declared a fully franked final dividend of US 40 cents per share, 129% higher than the prior year. This brought full-year dividends to a record US 55 cents per share, equal to a 41% payout of FY21 free cash flow. 

And the losers? 

There were no real losers amongst resources shares this earnings season — BHP also delivered strong financial results and a record full-year dividend. BHP’s earnings (EBITDA) increased 69% to US$37.4 billion, with free cash flow up 140% to US$19.4 billion.

Iron ore accounted for the bulk of earnings, at US$26.3 billion, followed by copper with earnings of US$8.5 billion. Earnings per share increased 88% to US 337.7 cents per share assisted by a strong underlying performance across the portfolio of assets. A final dividend of US 200 cents per share was declared. This brings full-year dividends to US 301 cents per share, a 151% increase on FY20. 

Simultaneously with the release of its full-year results, BHP announced plans to enter a merger with Woodside Petroleum Limited (ASX: WPL). The companies plan to combine their respective oil and gas portfolios in an all-stock merger, creating a global top 10 energy company by production.

BHP’s oil and gas business would merge with Woodside, with Woodside issuing new shares to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders. The merger is intended to maximise the value of BHP’s oil and gas assets through increased operating scale and synergies. 

What is the outlook for ASX resources shares?

Fortescue has provided guidance for iron ore shipments of 180 — 185 million tonnes in FY22. This would be on par with the 182.2 million tonnes of ore shipped in FY21. Capital expenditure in FY22 is projected at US$2.8 — US$3.2 billion, slightly below the US$3.6 billion spent in FY21.

Rio Tinto has provided guidance for iron ore shipments of 325 to 340 million tonnes over 2021. Capital expenditure is expected to be ~$7.5 billion a year for each of FY22 and FY23. 

Newcrest is in a strong financial position with net cash of $176 million as at 30 June 2021 and significant liquidity. This enables investment in attractive growth projects. The gold miner will fund a pipeline of organic growth options from expected cash flow generation as well as the strong balance sheet.

Newcrest has provided guidance for gold production of 1,800 — 2,000 million ounces in FY22 and copper production of 125 – 130 thousand tonnes of copper. 

BHP is focused on executing the merger with Woodside, which it says will provide shareholders with a choice to weight exposure between BHP and petroleum via Woodside. The combined entity will have a greater scale and diversity of geographies, products, and markets. A more diversified product portfolio is intended to support energy transition. 

The post How have ASX resources shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• September is not being kind to the BHP (ASX:BHP) share price
• These were the worst performing ASX 200 (ASX:XJO) shares last week
• Brokers name 3 ASX shares to buy today
• These ASX 200 dividend shares are about to dish out $40bn to shareholders
• 2 of the best ASX share ideas according to this leading broker

Motley Fool contributor Katherine O’Brien 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 Star Entertainment Group Ltd (ASX: SGR) share price has hit it big.

At the close of trade on Friday, shares in the casino operator were trading for $4.25 – up 1.19%. The S&P/ASX 200 Index (ASX: XJO) ended the day 0.38% higher.

While the company hasn’t made any market sensitive announcements since 19 August, something has clearly got investors excited.

Let’s take a closer look.

It’s a royal flush

The start of the Star’s monumental rise through August and early September occurred when the company confirmed reports it was in negotiations with the NSW government to increase the amount of poker machines at its Sydney casino.

Previously, it was reported the Star could almost double its poker machine numbers at the resort. These would apparently come from rural regional pubs and clubs across the state. The impetus for such a move is an alleged concern of the government that money laundering is too easily facilitated at smaller venues as opposed to the Star. In its statement, Star pointed out it has about 1,000 fewer gaming machines at its Sydney venue than compared to facilities run by Crown Resorts Ltd (ASX: CWN).

The next day, the company released its full-year results and the momentum from this seems to really be carrying the Star share price higher and higher.

For FY21, Star Entertainment reported a revenue fall on the prior corresponding period (pcp) of 21%. It also recorded flat earnings before interest, tax, depreciation and amortisation (EBITDA) of $430 million. The company did not pay a dividend.

COVID-19 affected Star’s performance for the worse during the financial year. Management said reduced operational capacity, particularly across Sydney and Brisbane, weighed heavily on earnings.

Looking forward, Star says the first half of this financial year will be negatively impacted by current restrictions in place in Sydney. It said persistent and uncertain restrictions “could materially impact revenues and earnings”.

Despite these headwinds, investors might be confident the days of lockdown are drawing to a close and business will return for Star.

Star share price snapshot

Over the past 12 months, the Star share price has increased 37.1%. Year-to-date it is 13.3% higher. The company’s 52-week high is $4.32 and its 52-week low is $2.97.

Star Entertainment has a market capitalisation of approximately $4 billion.

The post The Star (ASX:SGR) share price is up 26% in a month appeared first on The Motley Fool Australia.

More reading

• How does the Crown Resorts (ASX:CWN) earnings result compare to Star Entertainment (ASX:SGR)?
• ASX 200 midday update: Treasury Wine results, Origin’s $2bn loss, Star impresses
• Star Entertainment (ASX: SGR) share price up 5% despite revenue slump
• How did the Star (ASX:SGR) share price respond last earnings season
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Motley Fool contributor Marc Sidarous owns shares of Star Entertainment Group Ltd. 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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