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The Regis Resources Limited (ASX: RRL) share price has dipped into the red on Tuesday after the company reported its FY21 earnings.

Regis shares are now changing hands at $2.49 apiece, a 2.73% drop from the open.

Let’s take a closer look.

Regis Resources share price slumps after NPAT, dividend drop

Here’s how the gold producer performed in FY21:

• Revenue of $819.2 million from sale of 367,285 ounces of gold, an 8% year-on-year increase
• Gross profit of $236.5 million, down from $304.6 million in FY20
• Earnings before interest, taxes, depreciation and a mortisation (EBITDA) of $403 million, up 2.3% on the year, on a margin of 49%
• Net profit after tax (NPAT) $146 million, a decrease of 27% from the year prior
• Profit before income tax (PBIT) of $212 million, down from $285 million a year ago
• Total dividend payout of $61.3 million, a 25% down-step from the $81.3 million paid out in the year prior
• Dividend of 7 cents per share in FY21, a 56% decrease from the 16 cents per share in FY20.

What happened in FY21 for Regis Resources?

The gold production company reported a mixed bag of results, which could potentially weigh in on the Regis Resources share price.

Firstly, Regis produced a total of 372,870 ounces of gold in FY21, a 6% increase from FY20. From this, Regis recognised an 8% year-on-year increase in revenue to $819 million, all from the sale of 367,285 ounces of gold.

The average realised price on these sales was $2,229 per ounce, up from $2,200 a year ago.

Despite the growth in revenue, Regis recognised a 22% decrease in gross profit to $236.5 million. This carried through to a decline in profit before tax of 26% to $212 million.

As a result, the company also recorded a 27% decrease in NPAT for the year, down from almost $200 million in the year prior.

All-in sustaining costs (ASIC) were also higher in FY21 at $1,372 an ounce versus $1,246 a year ago.

Regis also completed the 30% acquisition of the Tropicana Gold Project in Western Australia. The transaction was funded through a “$650 million equity raising and $300 million debt facility”.

Group mineral resources expanded by 35% whereas the group ore reserves increased by 33% in FY21. The company also “commenced development” at the Garden Well underground mine in Western Australia.

Finally, one other point that could weigh in on the Regis Resources share price, is the declared final dividend of 3 cents per share. This brings the total FY21 dividend to 7 cents per share, fully franked, and represents a significant 56% down-step from the FY20 dividend of 16 cents per share.

What did management say?

Speaking on the results which could be affecting the Regis Resources share price, managing director Jim Beyer said:

Regis Resources has delivered another year of solid production for FY21 generating an EBITDA of $403 million, a net profit after tax of $146 million, a net profit after tax margin of 18% and operating cash flows of $276 million. While delivering this result, Regis executed a genuinely transformational transaction through the acquisition of a 30% interest in the Tropicana Gold project which delivers on our strategic objectives to grow as a safe, responsible, reliable, long-life, low-cost gold producer, generating strong financial returns.

What’s next for Regis Resources?

There are a few projections that could affect the Regis Resources share price going forward.

Regis expects “a solid year of production at Duketon” in FY22, driven by the company’s 30% interest in the Tropicana Gold Project.

Management sees gold production in the range of 460,000–515,000 ounces for the group in FY22 on an AISC of $1,290–$1,365/ounce.

It also sees growth capital of $155 million to $165 million, including open pit and underground mining costs.

Regis management notes that the “September quarter is expected to be soft” from “major mill shutdowns”. It also sees a weak upcoming quarter from “pit rescheduling requirements” and rebasing into steady state production at its Rosemont site.

Regis Resources share price snapshot

The Regis Resources share price has struggled this year to date, posting a loss of 30% since January 1. It has also fallen about 50% over the last 12 months.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post Regis Resources (ASX:RRL) share price slides as profits fall 27% in FY21 appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Thursday
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• 5 things to watch on the ASX 200 on Thursday

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.

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The Creso Pharma Ltd (ASX: CPH) share price has been among the best performers on Tuesday.

At the time of writing, the cannabis and psychedelics company’s shares are up 16% to 14 cents.

Why is the Creso Pharma share price rocketing higher?

Investors have been bidding the Creso Pharma share price higher today after it announced the termination of its proposed merger with Red Light Holland. Instead, the company will seek to list on the NASDAQ index.

According to the release, the decision to mutually terminate the merger plans follows Creso Pharma’s ongoing review of market conditions, COVID limitations, and consultation with shareholders and institutional investors.

The latter is likely to have been the biggest factor in the merger breakdown. The response to the merger was very negative and the Creso Pharma share price had been on a downward trajectory since its announcement.

Why list on the NASDAQ?

Management believes that listing on the NASDAQ will unlock growth. It notes that it is expecting a number of favourable regulatory shifts to materialise in North America, which will provide a favourable operating environment for Creso Pharma to expand into the US market.

This following the introduction of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, the Marijuana Regulation and Taxation Act (MRTA), and the Cannabis Administration and Opportunity Act. These are all aimed at legalising, taxing, and regulating recreational cannabis.

By having the Creso Pharma share price listed on the NASDAQ, it feels it will be positioned to capitalise on a number of opportunities.

Creso Pharma’s Non-Executive Chairman, Adam Blumenthal, explained: “We are now shifting our resources and focus to the proposed NASDAQ dual listing. The Company anticipates that this development will allow for easier comparisons to our North American listed peers and allow Creso Pharma to be valued accordingly. Following potentially favourable legislative shifts, a NASDAQ listing will also provide us with access to the world’s largest recreational cannabis market and a growing psychedelic medicines sector.

But don’t worry, there will still be a Creso Pharma share price on the Australian share market.

Mr Blumenthal said: “Pleasingly, a dual listing opportunity will also allow Creso Pharma to retain its ASX listing, which we believe is in the best interests of our longstanding and faithful shareholders. The Company remains well capitalised, with considerable financial flexibility to pursue these initiatives.”

The Creso Pharma share price is down over 20% in 2021.

The post Creso Pharma (ASX:CPH) share price jumps 16% on merger termination & NASDAQ plans appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened

Apple‘s (NASDAQ: AAPL) stock price climbed 3% to a record closing high of $153.12 on Monday, following an intriguing analyst report.

So what

Alphabet‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) Google could pay Apple roughly $15 billion this year to retain its place as the default search option on iOS, according to Bernstein analyst Toni Sacconaghi. That’s up from an estimated $10 billion in 2020.

Sacconaghi posits that the deal with Google will boost Apple’s services revenue growth by 8.5 percentage points — and account for as much as 9% of the iPhone maker’s gross profits in fiscal 2021.  

Now what 

It’s not hard to see why Google would be willing to pay such large sums. Despite its efforts to diversify its business, advertising revenue still represents the lion’s share of its profits. And while Google remains the dominant search engine in the U.S. and many other areas of the world, the last thing it wants to do is let rival Microsoft outbid it and claw back market share.

As for Apple, there’s little to lose and much to gain. Google is clearly the most popular search engine, and the great majority of its users would probably choose Google for their search needs. Apple also lets its users choose among different search providers, such as Microsoft’s Bing, if they prefer a different option. So for simply doing something most of its customers would do anyway, Apple reportedly earns billions of dollars of high-margin revenue.

The risk, however, is that regulators will move to block these payments to curb Google’s ability to stifle competition. Yet for today, at least, investors appear to be taking a more optimistic view — and are bidding Apple’s shares up in kind.

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

The post Why Apple stock jumped to a new all-time high on Monday appeared first on The Motley Fool Australia.

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Joe Tenebruso has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The S&P/ASX 200 Index (ASX: XJO) is gaining in late morning trade, up 0.3%.

The ASX 200 has largely managed to shrug off concerns over the ongoing pandemic and renewed lockdowns. It’s up 12.5% in 2021, a stellar 8 months by any standards.

August saw most ASX 200 companies reporting their full year (or in some cases half year) results for the 2021 financial year.

This month also saw the index hit a new record closing high of 7,628.9 points on 13 August.

While it’s down 1.3% from the all-time high, the index remains up 0.4% since reporting season kicked off at the beginning of the month.

Now, with earnings season all but done and dusted, investors are wondering, what’s next for ASX 200 shares?

The experts’ outlook for the ASX 200

To get an idea of what’s ahead, we turn to the experts who say lockdowns are likely to impact revenue and drive up costs for some ASX 200 companies. At the same time, very few are willing to offer guidance in today’s uncertain environment.

Catherine Allfrey, principal and portfolio manager at WaveStone Capital, says, “The numbers don’t lie.”

According to Allfrey, (quoted by the Australian Financial Review):

There’s been a clear revision in the market’s earnings expectations for the 2022 financial year… We’ve seen CEOs come out and warn the market to expect a tough first half, with many companies not operating due to lockdowns and others dealing with margin pressure due to factors such as elevated freight costs.

Shane Oliver, head of investment strategy at AMP Capital, highlighted the lack of guidance for FY22. He says, “An air of uncertainty is hanging around because even though results were solid and there were good payouts, which is normally a good sign, the outlook statements were either lacking or non-committal.”

The AFR notes that Macquarie’s market’s forecast for earnings per share (EPS) growth in FY21 is down to 10.5% from 13% before earnings season commenced.

Morgan Stanley’s chief Australian equity strategist Chris Nicol also noted many companies had not provided guidance, saying just 39% of companies had done so.

“Supply chain and cost friction was a key theme to watch going into the season,” he said, noting that  with more companies mentioning terms like ‘headwinds’, ‘wages’, and ‘inflation’, “this makes the set-up for the first half of financial year 2022 earnings more challenged”.

ASX 200 companies exposed to potential increased supply chain costs could find their shares under pressure.

The upsides and downsides of FY21 reporting season

According to AMP’s Oliver, 40% of the ASX reporting results “have surprised on the upside“. While that’s slightly below the average of 44%, he noted that only 18% “surprised on the downside which is well below the norm of 26%”.

Oliver also said that 75% of companies reported increased earnings year-on-year while 88% upped or maintained their dividends.

Citing analysis from Richard Coppleson at Bell Potter, he said shareholders are looking at a record $30 billion plus in dividend payments along with more than $20 billion in buybacks.

He estimated dividend growth of roughly 57% from FY20 levels, certainly welcome news in today’s low interest rate environment.

What’s next for ASX 200 shares?

So what can we expect in the months ahead for ASX 200 shares?

According to Oliver:

Shares remain vulnerable to a short-term correction with possible triggers being coronavirus, the inflation scare and US taper talk, likely US tax hikes and a debt ceiling standoff and geopolitical risks. But looking through the short-term noise, the combination of improving global growth and earnings helped by more fiscal stimulus, vaccines ultimately allowing a more sustained reopening and still low interest rates augurs well for shares over the next 12 months.

The remarkable bounce back from the early pandemic lows isn’t something we’re likely to see repeated on the ASX 200. But if Oliver’s right, the outlook remains solid.

The post Soaring profits and record dividends…what’s next for ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• Why Apple stock jumped to a new all-time high on Monday
• The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next?
• ASX 200 midday update: Harvey Norman’s record profit, PointsBet posts large loss
• Here’s why the 88 Energy (ASX: 88E) share price is frozen today
• Regis Healthcare (ASX:REG) share price leaps on return to profit

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 Aussie Broadband Ltd (ASX: ABB) share price has been a standout performer, surging almost 40% in the past month.

The winning spree is continuing on Tuesday, with the company’s shares this morning leaping to an all-time high of $4.14.

At the time of writing, they have partially retreated to $3.95, still a gain of 5.33% on yesterday’s closing price.

Aussie Broadband share price rallies after FY21 results

The Aussie Broadband share price is on the rise after the company released its FY21 results on Monday.

Despite a well-rounded FY21 performance, Monday’s trading session proved to be a volatile one for the Aussie Broadband share price.

At the morning bell, it opened 4% higher to an intraday high of $3.84, before selling pressure dragged it well into negative territory, down 2.4% to lows of $3.60 by lunchtime.

Aussie Broadband shares finished the bumpy session 1.63% higher at $3.75.

While its shares might have whipsawed back and forth, the company delivered a strong FY21 performance and an uplift in market share across internet and mobile services. Highlights include:

• Revenue rose 84% to $350.3 million;
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 433% to $19.1 million before initial public offering costs;
• Total broadband services increased 53% to 400,848;
• Mobile services lifted 102% to 25,606;
• Business and wholesale broadband services up 90% to 37,498.

What’s next for Aussie Broadband?

Looking ahead, Aussie Broadband managing director Phillip Britt commented, “We will continue our marketing and sales focus on organic growth of our residential and business/enterprise segments, as well as exploring new channels for growth. We will continue to review merger and acquisition opportunities that are aligned with our strategy and culture and would deliver value for our shareholders.”

Britt highlighted the company’s fibre build as a catalyst to drive cost savings and growth.

“We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure but also through the opportunity to directly connect customers to our own network,” Britt said.

According to the results, the fibre build will be complete this financial year. The company said more than 1,200 km of Aussie Broadband-owned fibre will be in the ground on completion.

The fibre build is expected to result in more than $15 million per year saving in backhaul charges from FY23 onwards.

Changing to be solutions focused

Aussie Broadband aspires to become a “one-stop-shop” for customers’ communications and IT requirements. Instead of selling connections to customers or third parties, the company said it wants to become an “expert [in] design, advice and implementation of solutions”.

The company’s results highlight a number of solutions-focused products under development. This could see the company branch out into cloud services, managed hardware and security in the near term.

Aussie Broadband share price snapshot

The Aussie Broadband share price has delivered a four-fold increase from its initial public offering price of $1.

From a year-to-date perspective, the company’s shares have almost doubled from their closing price of $2.00 on 31 December 2020.

The post The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another small gain. The benchmark index is currently up 0.2% to 7,519.8 points.

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

Harvey Norman shares lower despite record profit

The Harvey Norman Holdings Limited (ASX: HVN) share price is dropping today despite delivering a record profit in FY 2021. For the 12 months ended 30 June, the retail giant reported a 15.3% increase in total aggregated sales to $9,491 million and a 63% jump in profit after tax to a record $743.1 million. However, news that sales were down sharply in July and August due to lockdowns appears to be weighing on its shares.

PointsBet shares lower on results

The Pointsbet Holdings Ltd (ASX: PBH) share price is also tumbling today following its full year results release. The sports betting company delivered a 228% increase in turnover to $3,781.4 million. However, due largely to a big increase in its marketing spend, PointsBet recorded a statutory loss after tax of $187.1 million.

Webjet trading update

The Webjet Limited (ASX: WEB) share price is pushing higher today following the release of a positive trading update by the online travel agent. That update reveals that the company’s key WebBeds business returned to profitability during the month of July. Pleasingly, it has continued to be profitable in August and is expected to remain this way in September.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price with an 8% gain. This is despite there being no news out of the biopharmaceutical company. The worst performer has been the Mesoblast Limited (ASX: MSB) share price with an 11% decline following the release of its full year results.

The post ASX 200 midday update: Harvey Norman’s record profit, PointsBet posts large loss appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are leading the way on the ASX 300 today?
• Harvey Norman (ASX:HVN) share price down 5% despite strong FY21 growth
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• Webjet (ASX:WEB) share price higher on positive trading update
• PointsBet (ASX:PBH) share price on watch after stellar sales growth but $187m loss

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 Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Harvey Norman Holdings Ltd. and Pointsbet Holdings 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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The 88 Energy Ltd (ASX: 88E) share price is frozen today as it prepares to release news to the market.

The company’s shares are halted at their previous closing price of 3.2 cents.

According to the oil and gas company’s request for the trading halt, it’s planning to announce news of a capital raise this week.

Let’s take a closer look at 88 Energy’s upcoming capital raise.

Why are 88 Energy’s shares frozen?

The 88 Energy share price is on ice today as the company prepares to announce news of a capital raise.

88 Energy expects its share price will remain stagnant until Thursday morning at the latest.

The capital raise will be 88 Energy’s second this year. In February, it raised $12 million in a placement. As part of the placement, sophisticated and institutional investors could get their hands on a piece of 88 Energy for 0.8 cents.

The 0.8 cent price tag represented a 27% discount on the 88 Energy share price’s prior close of 1.1 cent.

Most of the funds from the February cash raise were earmarked to go towards the Project Peregrine‘s Merlin-1 well, along with its holding in the project’s Harrier-1 well.

The obvious question regarding 88 Energy’s soon-to-be-announced capital raise is: what does it need the extra cash for now?

In the company’s recent half-year results, released earlier this month, it noted it has around $14.8 million of cash in the bank.

Additionally, 88 Energy paid off US$16.1 million of debt using funds from the sale of its Alaskan oil and gas tax credits in July. It is now debt-free.

However, earlier this month 88 Energy confirmed it has found light oil at Merlin-1. It also recently announced good news of its Umiat oil field. Finally, it was granted 100% of Project Peregrine’s working interest in July.

Perhaps the market could soon be wowed with a flurry of activity from 88 Energy. It does appear to be primed to make moves on its big-ticket projects.

All may be revealed sometime between now and Thursday morning.

The post Here’s why the 88 Energy (ASX: 88E) share price is frozen today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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

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The Regis Healthcare Ltd (ASX: REG) share price is leaping higher in morning trade, up 6.09% to $2.09 per share.

Below we take a look at the residential aged care provider’s financial results for the year ending 30 June (FY21).

Regis Healthcare share price up on FY21 results

Some top results likely moving the Regis Healthcare share price this morning:

• Revenue from services increased 3.5% from FY20 to $701.4 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $137.8 million, down 2.7% year-on-year from $141.6 million
• Net profit after tax (NPAT) of $19.9 million compared to a loss of $700,000 in FY20
• Declared a final dividend of 4.63 cents, 50% franked

What happened during the reporting period for Regis Healthcare?

During the financial year, Regis reduced its debt by 39.8%, down to $142.4 million from $236.7 million at the end of FY20.

Average occupancy at its facilities edged 0.7% higher, to 88.9% from 88.2% the prior year.

As an operator of aged care facilities, COVID-19 mitigation measures were prioritised. All residents were offered vaccination via a government program. Regis also secured a separate provider, offering vaccines to all willing residents and employees.

As at 27 August, the company reports 78% of residents have had 2 doses while 58% of staff is double dosed. Regis received $7.7 million of government funding and $4.2 million of government grants in relation to costs incurred from COVID-19..

On 9 August, Regis announced that it had “identified potential underpayments of employee entitlements” going back 6 years and affecting some current and former employees. The review is ongoing, but Regis provided $35 million in the financial statements in relation to the issue. $7.1 million of this comes off the FY21 profit before income tax. The rest has been “recorded as a prior period restatement”.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) moved to acquire Regis in September in an initial confidential, non-binding indicative proposal, valuing Regis Healthcare’s share price at $1.65. In November WHSP upped the offer to $1.85 per share.

Regis said the proposals were rejected as they “materially undervalued the company”. In January, WHSP withdrew its proposal.

The final dividend is payable 30 September. It takes the full-year dividends to 6.63 cents per share, or 100% of FY21 NPAT.

What did management say?

Commenting on the results, Regis’ CEO, Linda Mellors said:

Regis has performed strongly, responding to a range of significant events, including the threat to residents and employees from the global pandemic, an extended Royal Commission, the Australian government’s reform agenda, and various internal matters. Each challenge has been met with commitment and focus from a highly experienced team…

The company continues to review the progress of the COVID-19 pandemic and take necessary steps to protect the health, well-being and safety of residents, clients and employees.

What’s next for Regis Healthcare?

Looking ahead, management said it wasn’t prudent to provide guidance in the current macro-environment and the ongoing pandemic.

Mellors said:

Our focus on providing quality resident care, service and accommodation to support improved occupancy remains a high priority, while the reduction in debt places the company in a strong position to take advantage of various growth opportunities as they emerge.

The Regis Healthcare share price is up 68% over the past 12 months.

The post Regis Healthcare (ASX:REG) share price leaps on return to profit appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Thursday

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 300 Index (ASX: XKO) is relatively flat today as earnings season begins to wrap up for most companies.

At the time of writing, the ASX 300 is up 0.10% to 7,513 points. Still, just a smidgen off its all-time high record of 7,625 points reached in the middle of this month.

Nonetheless, let’s take a look at which ASX 300 shares are some of the biggest movers on Tuesday.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is steaming ahead despite no market sensitive news being released by the e-commerce company.

It appears investors are buoyant on Kogan shares after a broker weighed in their thoughts on the company last week.

Credit Suisse released a note on Thursday cutting its price target for Kogan by 7.6% to $14.06. Although this is a reduction, it’s worth noting the estimate implies an upside of around 20% based on today’s price.

Kogan shares are up 6.61% to $11.78 at the time of writing.

Webjet Limited (ASX: WEB)

Another mover is Webjet shares, which are advancing following a positive trading update released from the online travel agent.

The company noted that its WebBeds business returned to profitability in July, surprising the market despite current lockdowns. Furthermore, it expects WebBeds to remain profitable in the coming months.

The Webjet share price is up 3.46% to $5.69.

Appen Ltd (ASX: APX)

Following suit, Appen shares are rebounding after a heavy sell-off during the past week following its first-half results last week.

The annotated dataset provider hasn’t provided any news since then, however, JPMorgan revised its outlook on Appen shares.

The broker significantly decreased its rating by 45% to $13.50. However, at the current Appen share price of $10.41, up 3.69%, this gives an upside of about 30%.

And the biggest fallers?

Mesoblast Limited (ASX: MSB)

Heading south is the Mesoblast share price after the company released a disappointing full year result for FY21.

Mesoblast reported losses across the board despite announcing significant regulatory and clinical progress for its lead product candidate, remestemcel-L.

The Mesoblast share price is down a sizeable 10.61% to $1.77.

Mercury NZ Ltd (ASX: MCY)

Also in decline, are Mercury shares despite no news coming from the company since its full year results on 17 August.

However, the energy provider received a series of broker updates from Swiss investment bank, UBS, and Australian multinational company Macquarie.

Both agencies raised their price target by 1.4% to NZ$7.30 (A$7.03), and 1% to NZ$7.27 (A$7.00), respectively.

The Mercury share price is down 5.23% to $6.52.

The post Which ASX shares are leading the way on the ASX 300 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd, Kogan.com ltd, and Webjet 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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The Crown Resorts Ltd (ASX: CWN) share price has dipped into the red from the opening of trade on Tuesday.

Crown shares are now exchanging hands at $9.22 each, a 0.97% drop from the market open.

The casino group’s shares are on the move today after the casino group reported its FY21 earnings on Monday.

In it, Crown announced the suspension of its dividend for FY21. As such, shareholders will not realise any payout in FY21 from their Crown shareholdings.

Let’s investigate a bit further.

Why is Crown suspending its dividend for now?

It was a difficult year for the Crown Resorts share price in 2021, marred by money laundering allegations and Covid-19 impacts on the company’s operations. Crown’s casino licenses were also called into question after a royal commission earlier in 2021.

In its report, Crown recognised a 31% downturn in revenue from the year prior, whereas earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year came in 77% behind FY20. This contributed to a 429% increase in after-tax loss to $261.6 million.

The company’s $892 million net debt service also remains at risk of default, should regulators revoke the group’s casino licenses, according to Crown.

In fact, as “part of the arrangement with lenders”, the group “agreed not to pay dividends” during the period in which certain “waivers” are in place on its debt.

These “waivers” are in reference to agreements reached with Crown’s lenders, regarding “a series of modifications to Crown’s existing financing arrangements”. For instance, the company was granted an extension of $650 million in debt with “near-term maturities” to October 2023.

Crown would not return to paying a dividend until at least halfway through FY22, the company said. The arrangement also means Crown’s largest shareholder, James Packer, will go without a payout for one more year, according to a report in The Australian.

Packer’s 37% shareholding has been a contentious issue of late, with US private equity firm Oaktree withdrawing its $3 billion offer to acquire the stake. Crown has also pushed back takeover offers from Blackstone and Star Entertainment for $8 billion and $12 billion, respectively.

Nonetheless, Crown shareholders will be hoping the group reinstates its dividend over the coming periods. For context, Crown declared a 37.5 cents per share dividend in FY20, franked at 25% of the Australian tax rate of 30%.

Crown Resorts share price snapshot

The Crown Resorts share price has had a difficult year to date, posting a loss of 5% since January 1. Despite this, Crown shares are still 1.5% in the green over the past 12 months.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post Crown Resorts (ASX:CWN) share price slumps amid dividend suspension appeared first on The Motley Fool Australia.

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

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