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With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.

While this is disappointing, investors need not worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share to look at is Bravura Solutions. It is a leading provider of software products and services to the wealth management and funds administration industries.

Its shares have been sold off this week following the release of its full year results. Although the company achieved the low end of its guidance, its FY 2022 guidance was a touch below expectations. In addition, the shock departure of its long-serving CEO hit investor sentiment hard.

The team at Goldman Sachs believe that this is a buying opportunity. They believe the selloff was overdone and have retained their buy rating with a slightly trimmed price target of $3.70.

The broker is also forecasting dividends per share of 10 cents, 11 cents, and then 13 cents between FY 2022 and FY 2022. Based on the current Bravura share price of $3.10, this will mean yields of 3.2%, 3.5%, and 4.2%, respectively.

Goldman Sachs is positive on the company and believes it is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy.

Super Retail Group Ltd (ASX: SUL)

A second ASX dividend share to consider is Super Retail. It is the retail conglomerate responsible for the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

It was a very strong performer in FY 2021. For example, earlier this month Super Retail released its full year results and revealed a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.

This was underpinned by double digit like for like sales growth across all of its brands. Positively, it also revealed that FY 2022 has started strongly, with sales up 15% year on year for the first seven weeks of the financial year.

In response to the result, analysts at Credit Suisse put an outperform rating and $14.40 price target on its shares.

As for dividends, Credit Suisse is forecasting dividends per share of 51.6 cents in FY 2022 and 50 cents in FY 2023. Based on the current Super Retail share price of $12.07, this will mean fully franked yields of 4.3% and 4.1%, respectively.

The post Analysts name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• Broker says Bravura (ASX:BVS) share price selloff is a buying opportunity
• The ASX reporting wrap-up: WiseTech, Bravura, Seven Group
• Why Bravura, Nine, Reece, & Zip shares are sinking today
• Bravura Solutions (ASX:BVS) share price plunges 17% on FY21 earnings
• 3 reasons why the Super Retail (ASX:SUL) share price may be down 7% 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. owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Super Retail 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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The EML Payments Ltd (ASX: EML) share price is rated as a buy by multiple brokers, suggesting it could be a smart buy. 

Which brokers like the EML Payments share price?

The payments business recently released its FY21 result and a few different brokers decided it’s a buy after seeing that report.

UBS is one of the brokers that likes EML, it has a buy rating on the business with a price target of $4.80. That means the broker thinks the EML Payments share price could rise by around 15% over the next 12 months.

The brokers at Macquarie Group Ltd (ASX: MQG) also believe the EML Payments share price is a buy, with a price target of $4.55. That means Macquarie thinks the business could see a rise of around 10% over the next 12 months.

What are the brokers looking at with EML Payments?

There were two factors that brokers focused on: the FY21 result itself and the issues with the Central Bank of Ireland (CBI).

Both Macquarie and UBS thought the FY21 result was good.

EML Payments reported a number of financial measures that increased by strong double digit numbers.

Gross debit value (GDV) went up 42% to $19.7 billion, helping revenue rise by 60% to $194.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 65% to $53.5 million. The underlying profit (NPATA) rose by 54% to $32.4 million. Operating cashflow grew by 121% to $48.8 million. The cash at the bank also rose by 19% to $141.2 million.

The revenue for two of its segments – gift and incentive, and virtual account numbers – were largely flat.

The general purpose reloadable (GPR) segment saw substantial growth. GPR is used for things like banking as a service, software as a service, neo lending, multi-currency, government and non-government organisations.

GPR revenue grew from $41.9 million to $113.5 million and the yield increased from 99 basis points to 117 basis points. PFS was consolidated into the group results for a full 12 months, contributing $78.3 million. EML contributed $35.3 million of revenue, representing growth of 34% year on year. Gaming payout programs grew in all markets and revenue rose 87%.

CBI’s impact on the EML Payments share price

On 19 May 2021, the business told investors that the regulator CBI raised significant regulatory concerns about its Irish regulated subsidiary, PFS Card Services. The concerns related to anti-money laundering and counter-terrorism financing, risk and control frameworks and governance.

That correspondence stated that “CBI is minded to issue directions”. EML warned that these directions could materially impact the European operations of the PFS business, including potentially restricting its activities under the Irish authorisation. EML estimated that approximately 27% of EML’s global consolidated revenue was derived from Irish authorisation.

The EML share price fell 46% in response to this news. But it has risen 47.5% since then.

UBS noted that it seems that EML is going to keep its licence after the company’s update and the progress it has made is a plus point for the business.

EML has “incurred or provided” for $11.4 million of costs in relation to professional fees, remediation and other potential costs with resolving this matter. EML expects the remediation plan to be substantively complete by the end of the 2021 calendar year.

The post The EML Payments (ASX:EML) share price is rated as a strong buy appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares rated as strong buys by brokers
• EML (ASX:EML) share price plunges 8% after reporting record results
• When was the worst ever day on the EML (ASX:EML) share price chart?
• Why the EML (ASX:EML) share price is gaining today
• What’s going on with the EML Payments (ASX:EML) share price?

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. The Motley Fool Australia owns shares of and has recommended EML Payments and Macquarie 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning run and dropped lower. The benchmark index fell 0.55% to 7,491.2 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. This follows a poor night on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.6%, and the Nasdaq tumble 0.65%.

Wesfarmers full year results

The Wesfarmers Ltd (ASX: WES) share price will be one to watch today when it hands in its full year results. According to Morgans, its analysts are expecting the conglomerate to report a full year earnings before interest tax (EBIT) growth of 18% to $3,481 million. This compares to the analyst consensus EBIT estimate is $3,632 million. Morgans’ expects Wesfarmers result to be driven largely by Bunnings EBIT growth of 20% and Kmart Group growth of 62%.

Oil prices fall

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.75% to US$67.85 a barrel and the Brent crude oil price is down 1% to US$71.57 a barrel. COVID concerns were weighing on prices.

Ramsay rated as buy

The Ramsay Health Care Limited (ASX: RHC) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker responded to the private healthcare company’s full year results by retaining its buy rating and $74.00 price target on its shares. It commented: “In our view, valuation of 8.5x NTM EV/EBITDA is not demanding for a defensive asset leveraged to improving vaccine rates, with a favourable growth profile (+8% EBITDA CAGR FY21-24E GSe) and material balance sheet optionality.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.15% to US$1,793.90 an ounce. The price of the precious metal has been volatile this week due to the ongoing US Federal Reserve event at Jackson Hole. Fed Chair Jerome Powell will be making a speech tonight.

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

More reading

• Santos (ASX:STO) share price slumps amid misleading emissions lawsuit
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Here are the top 10 ASX 200 shares on Thursday
• ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises
• St Barbara (ASX:SBM) share price falls 3% on $177 million 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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It certainly has been a disappointing week for the Bravura Solutions Ltd (ASX: BVS) share price.

Since this time last week, the financial technology company’s shares have lost 19% of their value.

This means the Bravura share price has given back all its 2021 gains and a touch more.

Why is the Bravura share price falling heavily this week?

Investors have been selling down the Bravura share price this week following the release of its full year results.

Although the company delivered a result largely in line with expectations, its guidance was modestly lower than consensus estimates.

Though, perhaps the biggest drag on the Bravura share price was the surprise and sudden (next week) departure of its CEO, Tony Klim, after a decade at the helm.

Is this a buying opportunity for investors?

According to a note out of Goldman Sachs, its analysts believe the weakness in the Bravura share price is a buying opportunity.

This morning the broker retained its buy rating but trimmed its price target slightly to $3.70.

Based on the latest Bravura share price of $3.10, this implies potential upside of 19% over the next 12 months.

What did the broker say?

Goldman believes the post-results selloff has been overdone and feels it has left the Bravura share price trading at a very attractive level. The broker also has confidence in the company’s new CEO, Nick Parsons, who has been with the company for 14 years.

Goldman said: “BVS has guided to solid mid-teen FY22 NPAT growth; seasonality should be slightly 2H weighted but far less pronounced than FY21. In our view the share price reaction today (-16%) may be overdone. The mid-point of guidance implies only 2% downgrade to consensus NPAT (Bloomberg); we downgrade our FY22/FY23E EPS by -1.9%/-5.5%.”

“The departure of CEO Mr. Tony Klim may have come as a surprise; he has been CEO for 10 years and has been replaced by Mr. Nick Parsons. Mr. Parsons has been with BVS since 2007, appointed as CTO. He has undertaken a range of senior leadership roles in the business, most recently as Global COO.”

“Our updated forecasts imply +12% 3-yr EPS CAGR. The stock is trading at a 29% discount to the FY22 Small Industrials Index, which we think makes the stock a compelling investment in the current environment,” it concluded.

Overall, this could make it worth considering when the market reopens on Friday.

The post Broker says Bravura (ASX:BVS) share price selloff is a buying opportunity appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: WiseTech, Bravura, Seven Group
• Why Bravura, Nine, Reece, & Zip shares are sinking today
• Bravura Solutions (ASX:BVS) share price plunges 17% on FY21 earnings
• How did the Bravura (ASX:BVS) share price react last earnings season?
• 2 ASX dividend shares named as buys in August

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 Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions 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 Ainsworth Game Technology Ltd (ASX: AGI) share price closed in the red today after the company released its FY21 results.

At the closing bell, Ainsworth shares were trading at $1.02, down 1.45%.

Let’s take a closer look to see how the gaming technology company performed during the period.

Ainsworth share price slides despite solid revenue growth

Here are some of the company’s key highlights for the 12 months ending 30 June 2021:

• Revenue of $159.5 million, up 6.8% year on year;
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $15.5 million, up 167.2%;
• Net loss after tax of $53.4 million, down 23%.
• No final dividend declared for FY21 (continues to be suspended)

What happened in FY21 for Ainsworth?

During the year, Ainsworth progressed its game development, software and hardware activities.

International revenue brought in $120.5 million due to the progression of vaccination programs which saw most customer venues gradually reopen. In domestic markets, Australia recorded revenues of $39 million with increase sales due to improved product performance on A-STAR hardware.

Online revenue came in at $5.9 million, up 28% following the launch of Real Money Gaming in New Jersey in April 2020. The company progressively went live with its innovative content amongst seven major operators during the period.

The company’s bottom line suffered a loss, which related to currency impacts and other one-off non-recurring items. This included a non-cash impairment charge of $41.7 million.

Ainsworth ended the 2021 financial year with a cash balance of $42.7 million.

What’s the outlook for Ainsworth in FY22?

Looking ahead, Ainsworth advised that it has laid the foundations for a solid FY22 year. The company has strengthened its balance sheet to develop superior games and hardware and maintain its distribution network.

Furthermore, online revenue is forecasted to surge following the execution of the United States exclusivity agreement deal with GAN Ltd.

While positive, no revenue or profit guidance was given by the company.

Ainsworth share price snapshot

The Ainsworth share price has accelerated more than 150% over the past 12 months, with year-to-date gains above 110%.

Based on today’s prices, Ainsworth has a market capitalisation of around $343.5 million, with 336 million shares on issue.

The post Ainsworth (ASX:AGI) share price slips on FY21 results appeared first on The Motley Fool Australia.

More reading

• 3 exciting ASX growth shares for smart investors
• The 4DS Memory (ASX:4DS) share price sinks 6% on widened operating loss in FY21
• Huon (ASX:HOU) share price edges lower after $128 million loss
• IDP Education (ASX:IEL) share price tipped by broker to jump 17%
• Own Flight Centre (ASX:FLT) shares? Here’s what the company has planned for FY22

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.

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If you’re looking for growth shares to add to your portfolio, then you may want to get better acquainted with the ASX shares listed below.

Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first growth share to look at is Altium. Its electronic design software platforms, Altium Designer and Altium 365, are leaders in their field. In fact, they are so far ahead of the competition that management is targeting market domination later this decade. At that point, it expects to be generating annual revenue of US$500 million. This will be more than double what it is achieving at present. This growth is expected to be underpinned by strong demand for this type of software due partly to the growing Internet of Things and artificial intelligence industries.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to look closely at is Pushpay. It is a leading donor management and community engagement platform provider in the faith sector. It has been growing its operating revenue at a rapid rate in recent years thanks to a combination of organic growth and the benefits of acquisitions. Pleasingly, the latter has continued in FY 2022 with Pushpay announcing the US$150 million acquisition of Resi Media earlier this week. Management expects the strategically compelling acquisition of a market-leading faith-focused streaming platform to broaden Pushpay’s core product offering.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. As with the others, Temple & Webster has been growing at a very quick rate in recent years. This has been driven by the structural shift to online shopping and its strong market position. For example, Temple & Webster recently released its full year results and revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. Positively, the shift online is still only in its infancy, particularly for this category in Australia. This bodes well for the future.

The post 3 exciting ASX growth shares for smart investors appeared first on The Motley Fool Australia.

More reading

• 2 great ASX shares to consider
• 2 ASX shares primed to grow double-digits for years: experts
• Top broker names Temple & Webster (ASX:TPW) share price as a buy
• 2 ASX COVID-19 shares reporting big growth
• These are the 10 most shorted ASX shares

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 Altium, PUSHPAY FPO NZX, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Altium and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group 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 4DS Memory Ltd (ASX: 4DS) share price has slipped into the red on Thursday as the memory technology company reported its FY21 earnings.

4DS Memory shares were exchanging hands at 16 cents apiece at market close, a 5.88% drop.

What’s sinking the 4DS Memory share price today?

Major points from the company’s FY21 results today included:

• Operating loss ballooned to $6.64 million from $5.45 million the year prior
• Loss before income tax (LBIT) of $6.66 million, a 20% increase into the red from FY20
• Total comprehensive loss for the year increase 22% year on year to $6.63 million after foreign currency effect
• Research and development (R&D) costs increased to $4.2 million from $3.78 million last year
• Other income came in at $213,000, up from $33,511 a year ago.

What happened in FY21 for 4DS Memory?

4DS Memory made “significant progress” in the development of its Interface Switching ReRam technology this year. It also extended two collaborations between Imec and Western Digital Corporation for another 12 months.

In addition, the company was granted 8 more US patents, bringing the total to 31, specific to the company’s interface switching ReRam technology.

4DS Memory’s second “non-platform lot” was manufactured by Imec and testing was completed by February this year. The data showed that the device was functional and “does what it says on the tin” to an effect.

Furthermore, the company reported that produced second platform lots had arrived at 4DS Memory’s facility in Fremont for testing.

4DS Memory recognised other income of $213,000 in FY21, whilst R&D costs increased by about 11% to $4.2 million.

The company’s operating loss ballooned from $5.45 million to $6.64 million over the year, which ultimately blew the LBIT out by 20% from FY20 to $6.66 million.

Consequently, 4DS Memory recognised a total comprehensive loss for the year of $6.63 million, a 22% year on year increase in its after-tax loss.

What did management say?

Regarding the impacts of COVID-19 on its business, 4DS Memory noted in the release:

COVID-19 related restrictions did not significantly affect the company’s operations. However, for the safety of all employees, only a limited number of employees were allowed be at the Fremont facilities at the same time. Productivity was maintained by scheduling on-site tasks over longer days including weekends and holidays.

Touching on the company’s second platform lot, it added:

The results of the analysis of the second platform lot and the third non-platform lot bring 4DS and its partners closer to realising their strategic objective of commercialising the company’s technology.

What’s next for 4DS Memory?

4Ds Memory advised it was finalising the production date of its third platform lot. This is expected to start late in the third quarter of 2021.

The company is set on advancing its third platform lot while strengthening its joint collaboration with Western Digital’s subsidiary HGST, which is a “global storage leader”.

Also, 4DS now will continue building its development agreement with Imec, to continue pioneering its “non-volatile memory technology”.

The 4DS Memory share price is up 28% year to date, thereby beating the S&P/ASX 200 index (ASX: XJO)’s gain of 14% since January 1.

The post The 4DS Memory (ASX:4DS) share price sinks 6% on widened operating loss in FY21 appeared first on The Motley Fool Australia.

More reading

• 4DS Memory (ASX:4DS) share price crashes 21% on technical update
• Why is the 4DS Memory (ASX:4DS) share price halted?

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 Huon Aquaculture Group Ltd (ASX: HUO) share price has closed lower on Thursday after the Aussie salmon farmer’s latest full-year results release.

Huon share price edges lower after $128 million loss

For those who missed it, Huon announced its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

• Revenue up 24% on the prior corresponding period (pcp) to $426.4 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of -$113.2 million, compared to +$48.8 million in FY20
• Operating cash flow down 136% on pcp to -$3.0 million
• Earnings per share (EPS) of -120.79 cents compared to +5.63 cents in FY2020

The Huon share price closed down 0.26% following the result, having slumped as low as 2.34% throughout the day.

What happened for Huon in FY20?

It’s been a big few months for Huon. Australia’s second-largest salmon producer reported a drop in global salmon prices due to COVID-19 and noted the impact of surging freight costs on its finances.

There were also the November 2020 fires in one of its fish pens that saw the company lose 50,000 fish, followed by a December 2020 fire. Adding insult to injury, Huon lost a further 130,000 fish in a mass escape after a cage was damaged during cleaning.

Lower salmon prices and disruptions throughout the year ultimately combined to weigh on the FY21 earnings result.

The Huon share price has still managed to climb 44% higher in 2021 but the bulk of those gains have come in the last month following a takeover bid by Brazil-based meat processer, JBS.

Huon shares surged on August 6 after the company announced it had entered into a Scheme Implementation Deed with JBS to acquire 100% of Huon shares.

What’s next for Huon and its share price?

Huon’s outlook for revenue is “more positive compared to this time last year”. The company is targeting a greater balance in its sales mix with expected growth from international market sales as a proportion of overall revenue.

Despite the significant losses in FY21, the Huon share price remained largely unchanged with the JBS takeover being the main driver of value at the moment.

The post Huon (ASX:HOU) share price edges lower after $128 million loss appeared first on The Motley Fool Australia.

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• What’s with the Huon (ASX:HUO) share price today?
• Can the Western Areas (ASX:WSA) takeover prompt BHP (ASX:BHP) to go nickel shopping?
• Huon (ASX:HUO) share price wobbles as Twiggy ups crusade against JBS
• Huon (ASX:HUO) share price slides as Twiggy lays down law on takeover
• Why the Tassal (ASX:TGR) share price is surging higher today

Motley Fool contributor Ken Hall 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 IDP Education Ltd (ASX: IEL) share price was on form on Thursday.

The language testing and student placement company’s shares rose 2% to $29.00.

This leaves the IDP Education share price trading within sight of its record high of $30.34.

Can the IDP Education share price keep rising?

The good news is that one leading broker still see a lot of value in the IDP Education share price even though it is close to a record high.

According to a note out of Goldman Sachs this morning, the broker has retained its buy rating but slightly trimmed its price target on the company’s shares to $34.00.

Based on the current IDP Education share price, this implies potential upside of 17% over the next 12 months.

Why is Goldman bullish on IDP Education?

Goldman Sachs was pleased with IDP Education’s performance in FY 2021. Particularly given the headwinds it was facing because of COVID-19.

Pleasingly, with these headwinds easing, the broker is confident that the coming years will be even stronger. The note reveals that its analysts are expecting its Northern Hemisphere operations to underpin a strong result in FY 2022. After which, it expects its ANZ operations to support further strong growth in FY 2023. It is partly for this reason why it feels the IDP Education share price is such good value now.

Goldman said: “IEL’s business has proven resilient during the pandemic so far and is poised to deliver strong growth in FY22 driven by Northern Hemisphere demand. Qualified SP [student placement] leads in the Northern Hemisphere in 2H21 were above pre-COVID levels. IELTS volumes have shown a similar recovery.”

“We believe this sets the business up for a very strong FY22 in its Northern Hemisphere IELTS testing markets and multi-destination SP. The pending reopening of ANZ to international students is likely commence in late FY22, driving FY23 growth.”

Post-FY 2023, the broker believes “compelling long-term structural growth in international student volumes and IELTS testing demand should drive earnings in FY24 and beyond.”

Overall, Goldman is forecasting a 69% compound annual growth rate (CAGR) for its earnings over the next three years. It also sees opportunities for this growth rate to increase through acquisitions.

Its analysts explained: “Our 3-yr EPS CAGR of 69% justifies our Buy rating in our view. The growth profile is likely to be enhanced by potential future acquisitions, which are not included in our earnings forecasts. These may include further consolidation of the IELTS market.”

The post IDP Education (ASX:IEL) share price tipped by broker to jump 17% appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest trading ASX 200 shares this Thursday
• IDP Education (ASX:IEL) share price higher despite 36% FY21 profit decline
• 3 buy-rated ASX growth shares
• 3 strong ASX growth shares for investors in August
• 3 top ASX growth shares rated as buys

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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price climbed 4% today after the business released its FY21 result to the market.

But the travel business also told investors about its plans for FY22, which included a targeted return to profitability.

FY21 result

If you didn’t catch the Flight Centre result, it said that it saw a $507.1 million underlying loss before tax in FY21, which was similar to the result in FY20 and in line with its guidance.

The underlying loss after tax improved from $378 million to $364 million. The statutory loss after tax improved from $662 million to $433 million.

Flight Centre said that operational performance has improved significantly during the pandemic.

Although the FY21 second half revenue increased by 48% compared to the FY21 first half, this growth was offset by the $41 million reduction in retained employee government subsidies, mainly relating to jobkeeper, and a $42 million increase in underlying costs.

Flight Centre experienced month on month sales revenue growth despite COVID-19 impacts, with a COVID-era record in June 2021.

Corporate total transaction value (TTV) was tracking at 30% of pre-COVID levels by the end of the financial year. It also said there was a rapid recovery in the US late in the fourth quarter for leisure and corporate.

Travel restrictions are being relaxed or removed in several key markets, although ongoing lockdowns are impacting the ANZ recovery. It noted strong and immediate rebounds after travel restrictions are lifted.

Could the FY22 plans influence the Flight Centre share price?

Flight Centre management outlined a number of observations and plans for FY22.

It said that it’s investing to win market share and gain further competitive advantages by enhancing its platforms and products to capitalise on market share opportunities.

The ASX travel share also said that it’s looking to increase its leisure market share and/or profitability in key markets through enhanced multi-channel offerings, alongside network rebalancing.

Flight Centre is targeting a return to monthly profitability in both corporate and leisure during FY22. However, this relies on vaccination efficacy (against the Delta variant and other possible strains), governments reopening domestic borders and keeping them open.

The company is also focused on the resumption of further international travel, with a potential material benefit from trans-Atlantic flights reopening.

Management said the company has earnings leverage to markets with positive short-term outlooks. Before COVID-19, 54% of its underlying segment earnings came from the Americas and EMEA (Europe, the Middle East and Africa).

However, the business is not yet in a position to provide FY22 guidance because of the lack of clarity around government timeframes for border re-openings and removal of other travel restrictions.

To reach breakeven, the company needs to generate around 50% of its pre-COVID TTV in corporate and around 40% in leisure. This is based on the company’s current level of expenditure.

Flight Centre warned it could be some years before the sector returns to pre-COVID levels.

The post Own Flight Centre (ASX:FLT) shares? Here’s what the company has planned for FY22 appeared first on The Motley Fool Australia.

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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 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.

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