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The Whitehaven Coal Ltd (ASX: WHC) share price has closed 4.95% higher on Thursday having pared back early losses from its results for the year ended 30 June 2021 (FY21).

Whitehaven share price rebounds 5% on earnings result

In case you missed it, here are some of the key takeaways from this morning’s full-year result:

• Revenue down 9.3% on the prior corresponding period (pcp) to $1.56 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 33% on pcp to $204.5 million
• Operating cash flows down 5% on pcp to $138.8 million
• Net loss after tax before significant items of $87.3 million, after $30 million net profit after tax (NPAT)

The Whitehaven share price initially crashed following the softer earnings result before slingshotting higher on Thursday afternoon. Shares in the Aussie coal miner closed the day up 4.95% in a stunning turnaround.

Investors may be wondering what caused the lower revenues and earnings figures. The obvious place to start with any commodity-based company is with commodity prices themselves.

Whitehaven’s EBITDA margin slipped from $21 per tonne in FY20 to just $14 per tonne in FY21. That was largely as a result of the company’s average realised price falling 8.7% to $95 per tonne.

The Aussie coal miner reported 14.4 million tonnes in sales during the year which was broadly in line with FY20 numbers but fell short of what the market was expecting.

Despite a weak result this morning, it’s actually been a strong year for shareholders. The Whitehaven share price has rocketed 150% higher in the past 12 months and 41% in 2021 alone.

Whitehaven CEO Paul Flynn reflected on the FY21 result:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.

Investors saw those highs and lows mirrored in the Whitehaven share price move on Thursday, recovering from a 3.4% drop at the open to finish the day up 4.95% at $2.33 per share.

That’s just shy of the company’s high of $2.44 per share and gives the company a market capitalisation of $2.4 billion.

The post Whitehaven (ASX:WHC) share price rebounds 5% on earnings appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Thursday
• Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues
• Here are the top 10 ASX 200 shares on Monday
• Whitehaven (ASX:WHC) share price lifts 6% ahead of earnings this week
• How did the Whitehaven (ASX:WHC) share price respond last earnings season?

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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Well, what a mammoth day for reporting on the ASX. Investors were inundated with full-year report after full-year report — we don’t blame you if you’re still working your way through some of those announcements.

Unfortunately, the higher number of earnings released did not coincide with a better outcome for the broader market.

Out of the companies listed in the S&P/ASX 200 Index (ASX: XJO), only 72 rose or remained flat — the remaining 128 slipped lower.

We’ll quickly unpack today’s results and then wrap things back up for tomorrow:

Those that reported on the ASX today

A2 Milk Company Ltd (ASX: A2M)

Shares in A2 Milk took the elevator downwards after the company reported its FY21 full-year results. As border closures continue to impact the daigou sales channel, the infant formula maker incurred significant damage to its revenue and earnings.

The takeaway points:

• Revenue down 30.3% to NZ$1.21 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 77.6% to NZ$123 million
• Stock write-downs of NZ$109 million
• Net profit after tax down 79.1% to NZ$80.7 million
• Cash balance of NZ$875.2 million
• Board decides against capital return
• Outlook: Tough year ahead in FY 2022

The A2 Milk Company share price finished the day down 12.32% trading at $6.01.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price was a more positive performer following its reporting of full-year results for FY21.

Shares in the supermarket giant inched 0.42% higher to $40.99 on the back of a major jump in earnings. The company also announced a $2 billion buyback and a bumper dividend to boot.

The takeaway points:

• Group sales rose 5.7% to $67,278 million
• e-Commerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

Appen Ltd (ASX: APX)

Lastly, the Appen share price plummeted on the ASX today after reporting its earnings fell more than 50% in its FY21 result. Investors were clearly rattled by the decrease, resulting in the tech company’s shares falling 21.4% to $10.86 by the end of the session.

The takeaway points:

• Group revenue down 2% to US$196.6 million
• Annual contract value increased 16% to US$119.6 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 14.3% to US$27.7 million
• Interim dividend of AUD4.5 cents per share 50% franked declared, flat on 1H20 dividend.
• Net profit after tax down 55.1% to US$6.7 million
• Appen to acquire location data provider Quandrant for US$25 million upfront
• Outlook: higher confidence in the pipeline supported by a stronger order book

ASX shares reporting next week

We might have reached the peak of the ASX reporting mountain today. However, tomorrow we embark on the journey back down with a handful of companies dispensing their results.

Some of the big-name companies set to release their financials tomorrow include BWX Limited (ASX: BWX), Freedom Foods Group Ltd (ASX: FNP), Wesfarmers Ltd (ASX: WES), Bega Cheese Ltd (ASX: BGA), and Pointsbet Holdings Ltd (ASX: PBH).

To see the full line-up, check out our ASX Reporting Season Calendar.

The post The ASX reporting wrap-up: A2 Milk, Woolworths, Appen appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, A2 Milk sinks, Appen plummets
• Here are the 3 heaviest trading ASX 200 shares this Thursday
• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22
• Which ASX shares are leading the ASX 300 today?

Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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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The Santos Ltd (ASX: STO) share price slumped today after news broke that the company is facing a lawsuit.

At market close, Santos shares are down 2.27% to $6.02. It is worth noting that this means the company’s share price is now at a new low for the 2021 calendar year.

What happened?

According to the Financial Review, Santos is being taken to the Federal Court by an activist group over wrongful claims. This relates to the company stating that it produces clean energy and has set itself up to achieve zero emissions in the future.

The Australasian Centre for Corporate Responsibility (ACCR) noted that Santos’ 2020 annual report made false remarks about natural gas as a clean source of fuel. It also disputed that the company has a clear plan to reach net zero emissions by 2040.

Santos aims to expand production capacity at its Barossa gas/LNG project and Dorado oil field development. This will undoubtedly leave the company producing greater emissions, which the ACCR argues.

Previously, Santos said that it will rely on the development of carbon capture and storage (CCS) technology to negate emissions. The ACCR is calling into question whether this is credible.

The group filed the lawsuit on Wednesday stating that the company’s approach to addressing climate change is misleading and deceptive.

Santos is yet to formally respond to the accusations by the ACCR. It did say however it would not be appropriate to comment on matters before the court.

The court case is being recognised as a world first in challenging a company’s target of net zero emissions.

About the Santos share price

Over the past 12 months, Santos shares have moved in circles, up 7% in the period. However, year to date has moved in the opposite direction, down around 3%.

Based on today’s price, Santos commands a market capitalisation of roughly $12.5 billion, with approximately 2 billion shares on issue.

The post Santos (ASX:STO) share price slumps amid misleading emissions lawsuit appeared first on The Motley Fool Australia.

More reading

• The Santos (ASX:STO) share price is now trading on a trailing 2.35% fully-franked dividend yield
• 5 things to watch on the ASX 200 on Wednesday
• Energy sector leading the ASX 200 shares on Tuesday
• August hasn’t been a great month for the Santos (ASX:STO) share price
• 5 things to watch on the ASX 200 on Monday

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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The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch on Friday.

This follows the release of the lithium miner’s full year results after the market close.

Pilbara Minerals share price on watch after sales surge

• Shipments up 142% to 281,440 dry metric tonnes (dmt)
• Revenue up 108.9% year on year to $175.8 million
• Cash gross margin of $46.2 million compared to cash gross margin loss of $12.2 million in FY 2020
• EBITDA of $21.4 million compared to loss of $33.9 million a year earlier.
• Statutory net loss after tax of $51.4 million
• Cash balance of $115.7 million

What happened in FY 2021 for Pilbara Minerals?

For the 12 months ended 30 June, Pilbara Minerals reported a significant improvement in its cash gross margin to $46.2 million. This was driven by a combination of improved market conditions and strong operational performance at the company’s Pilgangoora Lithium-Tantalum Operations in Western Australia.

Management notes that a significant increase in demand from customers during the second half of the year supported total FY 2021 spodumene concentrate shipments of 281,440 dmt. This enabled better utilisation of the processing plant.

Another positive was the completion of several key process plant improvement projects. These resulted in increased feed, higher utilisation, and improved lithia recoveries. This ultimately led to a reduction in the average unit cash operating cost to A$519/dmt (CIF China), supporting an improved cash gross margin from operations.

Finally, on the bottom line, Pilbara Minerals recorded a $47.9 million improvement in its consolidated net loss after tax to $51.4 million. This is after accounting for $26.6 million of depreciation and amortisation, $17.1 million of non-cash acquisition costs written off, and net financing costs of $29.1 million.

What did management say?

Pilbara Minerals’ Managing Director, Ken Brinsden, was pleased with the company’s performance in FY 2021.

He said: “What an incredible turnaround we have seen during the second half of FY2021. Global demand growth for lithium raw materials has now really kicked-in and it is resulting in substantial increases in the price received for our products.”

“Our world-class asset base has been further enhanced by the Altura acquisition, as we now own two processing plants and have the ability to rapidly ramp-up production from the second plant into a market that is low in spodumene concentrate supply. Importantly, production from this second plant is completely uncommitted.”

“This additional capacity, along with the restart of the Ngungaju Plant, will see us supply the market with around 550,000-580,000tpa of spodumene concentrate by June 2022 through our existing offtake agreements and newly-established BMX platform,” he added.

What’s next for Pilbara Minerals?

The good news for the Pilbara Minerals share price is that the company is forecasting a major lift in shipments in FY 2022.

It is forecasting shipments of 440,000 to 490,000 dmt for the year. This will be a 56.3% to 74.1% increase on FY 2021’s shipments of 281,440 dmt.

However, one thing that could weigh on the Pilbara Minerals share price is its cost guidance for FY 2022. It is guiding to unit cash operating costs of A$525 to A$575/dmt (CIF China), up from A$519/dmt.

Management advised that its costs are expected to be higher during FY 2022 and FY 2023 due to elevated strip ratios, Pilgan production ramp up, and the restart of the Ngungaju operation.

After which, the company is aiming to bring its unit cash operating cost down to A$450 to A$500/dmt.

Pilbara Minerals share price outperformance

The Pilbara Minerals share price has been an exceptionally strong performer this year.

Since the start of the year, its shares have risen 155%. This compares to a 12% gain by the ASX 200 over the same period.

The post Pilbara Minerals (ASX:PLS) share price on watch after doubling sales in FY21 appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares this Tuesday
• These 3 ASX 200 shares were the most heavily traded on Monday
• Here are the top 10 ASX 200 shares on Monday
• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
• Which ASX companies are the top movers in the ASX 300 today?

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 Novonix Ltd (ASX: NVX) share price dipped into the red during afternoon trade on Thursday as the lithium-ion company reported its FY21 earnings.

Novonix shares closed the day at $4.10 apiece, a 5.53% drop from the open.

Let’s delve a little deeper.

Novonix share price sinks despite revenue growth and narrowing net loss

• Revenue from ordinary activities of $5.2 million, a 22.9% year on year increase
• Loss before tax of $18 million, down 9.7% from the year prior
• Basic earnings per share (EPS) of (4.9 cents), an improvement from (14.7 cents) in FY20
• Net asset growth to $184.4 million from $66.5 million the year prior
• Net tangible assets per share of 41 cents, up from 14 cents a year ago.

What happened in FY21 for Novonix?

In what could be a positive for the Novonix share price, the company recorded net asset growth from $66.5 million to more than $184 million over the year.

This comprised around $137 million in cash and cash equivalents as of 30 June 2021. Novonix also grew revenue by 23% year over year which narrowed the statutory after-tax loss to $18 million (down from $20 million this time last year).

In addition, the company was selected to receive US$5.6 million in funding from the US Department of Energy to “support the development of new, continuous high-efficiency furnace technology”.

This would be used for the “production of lithium-ion battery synthetic graphite material”. The company is partnering with Phillips 66 for the funding opportunity, as per the report.

Novonix is also partnering with Emera Technologies to “tap into the significant opportunities that are available throughout North America” when it comes to “manufacturing energy storage systems for community microgrids”. The pair is developing a “battery pack” to support these microgrids’ requirements.

Finally, the company announced in June that it is under “conditional contract” to purchase and retrofit the “former Alstom building”. This will be the company’s “second facility Tennessee”.

The facility would accommodate a “planned 8,000+ tonne per year production operation”, as per the release. As such, the expansion would bring the company’s total production capacity of anode materials to 10,000 tonnes a year. It is expected to come online by FY23.

What did management say?

Speaking on the release, Novonix’s directorship said:

We are focused on the development of technologies that support key ESG criteria in the field of battery materials and technologies, including: longer life batteries, higher energy efficiency, reduced chemical usage, reduced waste generation, and cleaner power inputs. Our vision is to accelerate adoption of battery technologies for a cleaner energy future.

Regarding the year that was, it added:

Fiscal Year 2021 has been transformational for NOVONIX. The company continued to execute against its long-term strategic and operational roadmap, strengthen its capital structure, and explore additional avenues to create value for shareholders.

What’s next for Novonix?

The company outlined its “growth strategies” for FY22 in the report. It hopes to “execute on development of synthetic graphite production”, with a plan to expand to 150,000 tonnes per annum.

In fact, the company is targeting a capacity of 10,000 tonnes per annum in “early 2023”. It then intends to expand capacity to 40,000 tonnes in 2025 and 150,000 tonnes in 2030.

In addition, Novonix is also aiming to commercialise its “proprietary pipeline” of advanced battery materials. Here it is seeking to “meet key testing milestones” over the coming year and a half.

The Novonix share price has posted a year to date return of 238%. This far outpaces the S&P/ASX 200 index (ASX: XJO)’s return of about 14% over the same time.

The post Novonix (ASX:NVX) share price slides despite 23% revenue growth appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the most heavily traded ASX 200 shares today
• Novonix (ASX:NVX) share price surges another 12%. Here’s why
• Top brokers name 3 ASX shares to buy today
• Which shares are the biggest movers on the ASX 300 this Wednesday?
• These 3 ASX 200 shares were the most traded this Tuesday

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 S&P/ASX 200 Index (ASX: XJO) fell by 0.5% to 7,491 points.

Here are some of the highlights from the ASX:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price fell around 12% after the infant nutrition business released its FY21 result. It was one of the worst performers in the ASX 200.

It reported that its revenue dropped by 30.3% to $1.21 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 77.6% to $123 million – that included $109 million of stock write-downs and $10 million of Mataura Valley Milk (MVM) acquisition costs.

This led to net profit after tax (NPAT) dropping 79.1% to $80.7 million.

A2 Milk disclosed that actions taken in the fourth quarter of FY21 to address excess inventory are proving effective with channel inventory levels reducing, product freshness improving and market pricing increasing. Rebalancing of channel inventory is expected to continue in the first quarter of FY22.

The ASX 200 share’s board and management are confident in the underlying fundamentals of the business and that the growth opportunity in core markets remains strong. A2 Milk said that the long-term outlook is positive, with opportunities for product innovation, category expansion and new markets, supported by a “healthy brand” and strong balance sheet.

Chinese label infant nutrition is expected to show sales growth in FY22, while the English label is targeting a stabilisation of sales in FY22 but a “wide range of outcomes is possible”.

Appen Ltd (ASX: APX)

The Appen share price dropped around 22% after the tech business announced its FY21 half-year result. It was the worst performer in the ASX 200.

It reported that global revenue was down 2% to $196.6 million because of lower global services revenue as global customers allocated resources to new, non-advertising projects in the first half of 2021. But markets revenue increased by 31.5% to $47.8 million, driven by China, new Enterprise customer wins and product-led growth.

Underlying EBITDA fell 14.3% to $27.7 million. Appen explained that this was due to higher costs relating to growth investments.

The underlying net profit after tax dropped 35% to $12.5 million and statutory net profit plunged 55.1% to $6.7 million.

It also announced the acquisition of Quadrant for US$25 million upfront and an extra US$20 million of Appen shares if it achieves certain milestones. Quadrant was described as a global leader of mobile location and point of interest data, extending Appen’s product offering.

In terms of the outlook, it reduced its EBITDA guidance by $2 million to a range of between $81 million to $88 million. The reduction was due to the planned investment in Quadrant’s product and market expansion. Full year underlying EBITDA is expected to be at the low end of this range due to ad-related project impacts.

Year to date revenue and orders in hand for delivery in FY21 is approximately $360 million as at August 2021. This is 10% above the August 2020 guidance of $328 million which was 79% of full year 2020 revenue.

Blackmores Limited (ASX: BKL)

The Blackmores share price rose around 15% today after the release of its FY21 result. It was the best performer in the ASX 200.

Blackmores reported that group revenue increased by 1.3% to $575.9 million. Its gross profit increased by 4.6% to $301 million, with the gross profit margin increasing 1.6 percentage points to 52.3%.

Underlying earnings before interest and tax (EBIT) increased 51.7% to $47.6 million, with a 2.7 percentage point increase of the underlying EBIT margin to 8.3%. Underlying net profit soared 61.2% to $25.4 million. Statutory net profit rose by 89.4% to $28.6 million.

Blackmores achieved $28 million of annualised gross cost saving benefits in FY21 through strong delivery against business improvement programs.

Management said the business was continuing to execute on its strategic game plan, including reducing costs and improving efficiency, along with targeted investment in growth opportunities across key markets and profit margin uplift initiatives.

The Blackmores board declared a final dividend of 42 cents per share.

Within the result, international revenue increased by 17.7% and underlying EBIT rose 49.5%. China segment revenue went up 27.8% and underlying EBIT rose from $0.2 million to $14.3 million. Blackmores says the outlook remains positive for its international and China segments with strong sales growth for these segments.

The post ASX 200 drops, A2 Milk sinks, Appen plummets appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Thursday
• Here are the 3 heaviest trading ASX 200 shares this Thursday
• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today

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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Blackmores 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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The Whispir Ltd (ASX: WSP) share price has spent a day in the green today, despite no fresh news released from the company.

However, the communications platform provider posted its earnings for the financial year 2021 just yesterday.

The Whispir share price finished today’s session trading at $2.53 apiece, 9.52% higher than yesterday’s closing price.

Let’s take a closer look.

The latest news from Whispir

The Whispir share price soared yesterday after it released its FY21 results, which highlighted 12 months of good and bad times for the company.

During FY21, the company brought in $47.7 million of revenue and onboarded 171 new customers. However, its earnings before interest, tax, depreciation and amortisation (EBITDA) showed a $5.6 million loss and it reported a net loss after tax of $9.65 million.

Despite the pitfalls, the market responded positively to Whispir’s results yesterday, boosting its share price 4.9% higher over the course of the day.

Perhaps, the company’s forecast was what excited the market.

Whispir announced it expected to bring in between $57.2 million and $60.2 million of revenue in FY22. However, EBITDA was still likely to be in the red, with an expected EBITDA loss of between $13 million and $15.5 million.

No matter the balance between good and bad news, market watchers appear to have liked what they saw. And not just yesterday.

The Whispir share price has gained a whopping 16.5% this week so far.

Whisper share price snapshot

Despite a good week’s trade, the Whispir share price has struggled on the ASX lately, falling 31% since the start of 2021. It has also slipped 43% since this time last year.

The company has a market capitalisation of around $270 million, with approximately 116 million shares outstanding.

The post Here’s why the Whispir (ASX:WSP) share price surged 9% today appeared first on The Motley Fool Australia.

More reading

• Whispir (ASX:WSP) share price up 6% on solid FY21 result
• 3 exciting small cap ASX shares to watch right now
• 3 quality ASX growth shares for August
• 3 exciting small cap ASX shares to watch
• Why Fortescue, Over The Wire, Pro Medicus, & Whispir shares are dropping

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Whispir Ltd. The Motley Fool Australia has recommended Whispir 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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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Nanosonics Ltd (ASX: NAN)

According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this infection prevention company’s shares to $5.00. While Nanosonics delivered a full year result ahead of Citi’s expectations, it wasn’t enough for a change of rating. The broker continues to believe its shares are overvalued. It also doesn’t believe the market is taking into account execution risks for new product launches. The Nanosonics share price was fetching $7.01 on Thursday.

Platinum Asset Management Ltd (ASX: PTM)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this fund manager’s shares to $3.85. Platinum’s FY 2021 results fell a touch short of Macquarie’s expectations due to higher costs. Outside this, the broker highlights that Platinum’s international funds are underperforming, which it feels will put pressure on fund flows. The Platinum share price fell heavily on Thursday and ended the day at $3.94.

Reece Ltd (ASX: REH)

Another note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this plumbing parts company’s shares to $18.80. This follows the release of a full year result that was just ahead of expectations. However, the broker was disappointed with the performance of Reece’s US business. Combined with its shares trading on lofty multiples, Macquarie is holding firm with its underperform rating. The Reece share price has pulled back significantly since its result but is still trading above the broker’s price target at $20.64.

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

More reading

• Platinum (ASX:PTM) share price slumps 8% as FUM declines
• Top broker gives its verdict on the Nanosonics (ASX:NAN) share price
• Why Bravura, Nine, Reece, & Zip shares are sinking today
• The Reece (ASX:REH) share price is down 12% after yesterday’s FY21 earnings
• Which ASX 300 shares are the biggest winners and losers today?

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 Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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Today, the S&P/ASX 200 Index (ASX: XJO) took a tumble to the downside. The benchmark index finished 0.54% lower to 7,491.2 points. Disappointingly, the weight was felt across several sectors including tech, miners, utilities, healthcare, and consumer staples.

However, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered the biggest gains while the market fell:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Whitehaven Coal Ltd (ASX: WHC) was the biggest gainer today. Shares in the coal miner increased 4.95% after releasing its FY21 full-year results. Find out more about Whitehaven Coal here.

The next best performing ASX share out of the top 200 today was Iluka Resources Ltd (ASX: ILU). The miner’s shares climbed 4.04% to $9.27 today, potentially riding some residual euphoria after posting its full-year results yesterday. Uncover the latest Iluka Resources information here.

Today’s top 10 biggest gains were made in these ASX 200 shares:

ASX-listed company	Share price	Price change
Whitehaven Coal Ltd (ASX: WHC)	$2.32	4.51%
Iluka Resources Ltd (ASX: ILU)	$9.28	4.15%
Flight Centre Travel Group Ltd (ASX: FLT)	$16.95	3.67%
Qantas Airways Limited (ASX: QAN)	$5.03	3.29%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.775	3.16%
Growthpoint Properties Australia (ASX: GOZ)	$4.23	2.92%
Seven Group Holdings Ltd (ASX: SVW)	$21.71	2.65%
IDP Education Ltd (ASX: IDP)	$29.07	2.43%
Domino’s PIZZA Enterprises Ltd (ASX: DMP)	$148.66	2.07%
Ramsay Health Care Ltd (ASX: RHC)	$67.825	1.84%

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Motley Fool contributor Mitchell Lawler owns shares of Ramsay Health Care Limited. 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 recommended Dominos Pizza Enterprises Limited, Flight Centre Travel Group Limited, and 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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The Service Stream Ltd (ASX: SSM) share price sunk into the red during Thursday afternoon trade as the telecommunications company reported its FY21 earnings.

Service Stream shares closed the day at 86 cents a piece, a 2.82% drop on the day.

Let’s investigate a little further.

Service Stream share price sinks despite strong profit and earnings growth

• Revenue of $804.2 million, a 13.4% increase from the year prior
• EBITDA growth of 25.9% year on year to $80.1 million
• Adjusted net profit after tax (NPAT) of $38.9 million, which signifies a 33.8% growth from a year ago
• Net cash recorded a loss of $3.9 million compared to FY20
• FY21 interim dividend of 2.5 cents per share, no final dividend announced.

What happened in FY21 for Service Stream?

In what should potentially be a positive for the Service Stream share price, the company grew revenue by about 13% year on year to $804.2 million.

It also recognised a 26% growth in EBITDA to $80 million, which came through to an NPAT of around $39 million. This represents a 34% year on year growth pattern.

In terms of its divisions, Service Stream’s utilities segment grew revenue by $27.5 million to just over $411.5 million. This was split between Comdain infrastructure revenue of $320 million and metering and technical services revenue of $92 million. COVID-19 had a material impact on its utilities division, as per the company’s report.

However, in its telecommunications division, revenue contracted by $152 million, a 28% year on year decrease. The down-step resulted from a decrease in both activation and wireless revenue, down 30% and 14% respectively from FY20.

Service Stream also generated about $74 million in “operating cash flow before interest and tax (OCFBIT)”. This represents an “outstanding EBITDA to OCFBIT conversion ratio of 99%”, according to the company.

The telco company left FY21 with $50.6 million in cash and $35 million of debt. Finally, the board declared that there would be no final dividend for FY21. This point could weigh on the Service Stream share price.

The decision is due to the Lendlease Services acquisition from 21 July to “ensure the group maintains a strong balance sheet”.

What did management say?

Service Stream chair Brett Gallagher said:

Although earnings related to the Group’s telecommunication division reduced during the year, the fundamentals of Service Stream remained strong, reinforcing the resilience of our business model and the nature of the Group’s operations supporting essential infrastructure across the country.

Regarding Lendlease, Gallagher concluded:

The Board is also pleased that despite a challenging year, Management has maintained its focus on executing the Group’s Strategy, and is delighted with the acquisition of Lendlease Services which will create a broader portfolio of operations across the wider infrastructure services market.

What’s next for Service Stream?

Service Stream expects “post-acquisition pro forma FY22 EBITDA” to be in the range of $120 million -$125 million.

The company’s “standalone earnings” are expected to “rebase below FY21”. This would be in line with the “telecommunication contracts secured in FY21”.

Moreover, it expects lockdowns “should diminish as vaccination rates increase”. However, it remains cautious on making forecasts with the current state of the economy affected by COVID-19.

The Service Stream share price has had a difficult year to date, posting a loss of 51% since January 1. This has lagged the S&P/ASX 200 index (ASX: XJO)’s climb of 14% this year to date.

The post Service Stream (ASX:SSM) share price slides despite 34% profit growth in FY21 appeared first on The Motley Fool Australia.

More reading

• Here’s why the Service Stream (ASX:SSM) share price is gaining today

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

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