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The BetMakers Technology Group Ltd (ASX: BET) share price will be on watch this reporting season.

With the betting company slated to report its earnings for FY21 on Thursday, investors will be interested to know how the company responded last year.

Let’s take a look at how the BetMakers share price reacted last earnings season.

FY20 results spurs BetMakers share price

Initially, the BetMakers share price did not raise any eyebrows last reporting season.

Shares in the wagering company were relatively flat immediately after releasing its full-year results for FY20.

However, there was significant buying interest for shares in BetMakers after investors had time to interpret the company’s report.

A couple of days after reporting, buyers flocked for shares in the wagering company, sending its share price soaring more than 20% higher.

Highlights from the company’s FY20 report included;

• Revenue of $9.2 million, up 34% from the prior corresponding period (pcp)
• 74% increase in gross profit of $6.3 million
• $2.9 million increase in EBITDA of $0.8 million for FY20

Snapshot of Betmakers share price

It has been a landmark year for the BetMakers share price thus far.

Shares in the wagering company have soared more than 85% since the start of 2021.

There have been several catalysts fuelling the BetMakers share price.

Most recently, shares in the wagering company received a boost after fixed-odds wagering was legalised in New Jersey.

The legalisation of fixed-odds wagering bodes well for the company’s US ambitions.  BetMakers currently holds a 10 year agreement to deliver and manage fixed-odds thoroughbred horse racing in New Jersey.

The BetMakers share price also received a boost in late July after the company released a promising quarterly update.

The wagering company recorded $8.9 million in cash receipts for the fourth quarter of FY21, a 71% increase on the previous quarter.

BetMakers attributed the strong growth to improved sentiment in the Australian market and positive results from its international expansion.

In addition, the company cited its recent acquisition of Sportech PLC for enhancing the company’s revenue-generating opportunities.

Investors will be keen to see if BetMakers can replicate its strong growth when the company releases its full-year results for FY21 tomorrow.

The post How the BetMakers (ASX:BET) share price responded last reporting season appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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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.

One of the surprise announcements at Tesla‘s (NASDAQ: TSLA) artificial intelligence event last week was a humanoid robot: Tesla Bot. Despite unveiling it with a dancing human in a robot costume, it was not a joke.

The electric car and green energy company (and now a robotics company?) hopes to have a prototype by next year. The humanoid bot will aim to help eliminate dangerous, repetitive, and boring tasks, Tesla CEO Elon Musk said after Tesla Bot was announced.

With such an exciting potential product, should investors start pricing this into the stock?

Absolutely not.

Meet Tesla Bot

With the Tesla Bot still in early development, specs on the new product were unsurprisingly sparse. Tesla did say it would be 5 feet 8 inches tall, weigh 125 pounds, walk at a speed of 5 mph, and be able to deadlift 150 pounds.

While Tesla Bot may seem “out there,” Musk said the company would be essentially employing technology it’s already developing for its vehicles.

“Tesla is arguably the world’s biggest robotics company,” Musk said during the event, “because our cars are like semi-sentient robots on wheels.” Tech used in its cars that could be utilized in Tesla Bot would include its neural nets for recognizing the environment, sensors, batteries, and actuators.

“It’s intended to be friendly, of course,” Musk said. Even more, there are precautions in place: The company will set it at a mechanical level so that you can run away from it and, if needed, “most likely” overpower it, the CEO added. Whew. Thank you, Tesla!

Why investors should be skeptical

Analysts seem to be largely ignoring Tesla Bot as a potential driver for the stock — and they’re right to do so.

Wedbush analyst Daniel Ives even called Tesla Bot “an absolute head scratcher.” Meanwhile, Wells Fargo analyst Colin Langan says the company’s 2022 target timeline for a prototype robot may be too optimistic. Neither of them increased their price targets for Tesla stock in response to the news.

The analysts are right to be raising eyebrows. Investors shouldn’t start pricing anything in until there’s a clear path to revenue and profits. If anything, the Tesla Bot could be viewed as a distraction and could be a net negative for the stock. But given the company’s history of doing extraordinary things and exceeding expectations, investors may want to at least refrain from counting the project against Tesla. Not only could it potentially turn into a driver for the business someday but it may be the type of project needed for Tesla to attract some of the world’s greatest minds in the artificial intelligence space.

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

The post Is Tesla Bot a catalyst for Tesla stock? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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.

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

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The Medibank Private Ltd (ASX: MPL) share price will be one to watch when trading resumes this Wednesday. That’s after the health insurance company released its full-year results for FY21.

At close of trade yesterday, shares in the company were swapping hands for $3.53 – down 1.67%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, ended the day 0.17% higher.

Let’s take a closer look at today’s announcement.

Medibank share price in focus with falling dividend payout ratio

• Revenue increased 1.99% on the prior corresponding period (pcp) to $6.9 billion.
• Net profit after tax (NPAT) jumped 39.8% to $441 million. Despite operating expenses increasing 1.12% on the pcp, a 4,900% leap in net investment income ($120 million) aided the rocketing NPAT.
• Earnings per share (EPS) of 16 cents – up 39.8% on the pcp.
• A full-year dividend payout of 12.7 cents per share (6.9 cent final + 5.8 cent interim payment), fully franked. It’s an increase of only 5.8% on the pcp – despite the larger profit rise. The payout ratio fell from 90.1% to 87.7%. At the current share price, the payout represents a dividend yield of 3.60%.

What happened in FY21 for Medibank?

The biggest news of the year — in general and for the Medibank share price — would arguably be the coronavirus pandemic.

Medibank CEO David Koczkar addressed the impact of the virus on the company in today’s release:

More people continue to prioritise their health and wellbeing and see greater value in private health, given the uncertainty around COVID and heightened pressure on the public system.

The investments we have made over the last few years have enabled us to step up and provide broader support to our customers during this period, while accelerating our growth at the same time.

Koczkar became CEO in this financial year, taking the helm on 17 May. His predecessor, Craig Drummond, announced his retirement in late February.

What else did management say?

Koczkar also addressed the company’s performance at large, saying:

We have delivered a high-quality result underpinned by strong policyholder growth across both brands, our highest ever customer advocacy, growth in Medibank Health, and ongoing focus on management expenses.

This result is a clear demonstration that focusing on our customers’ needs and being disciplined in how we run our business delivers strong results.

What’s next for Medibank?

Medibank is forecasting a 2.4% growth in underlying average net claims in FY22. This is in line with the second half of the prior financial year. It is also hoping to achieve a 3% growth in policyholders.

The company also has a $15 million target for productivity savings and is targeting inorganic growth for Medibank Health and Health Insurance for FY22. Let’s see what this will mean for the Medibank share price.

Medibank share price snapshot

Over the past 12 months, the Medibank share price has increased 23.4%. This is about 1.5 percentage points better than the ASX 200. Year-to-date, Medibank shares have increased 16.1% – outpacing the benchmark index by around 4 percentage points.

Medibank Private has a market capitalisation of approximately $9.7 billion.

The post Medibank (ASX:MPL) share price on watch after 40% jump in profit appeared first on The Motley Fool Australia.

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• How did the Medibank (ASX:MPL) share price respond last earnings season?
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• 3 ASX 200 dividend shares lifting to 52-week highs
• The Medibank (ASX:MPL) share price is now trading on a forecast 3.76% fully franked dividend yield

Motley Fool contributor Marc Sidarous 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 WiseTech Global Ltd (ASX: WTC) share price could be on the move today.

This follows the release of the logistics solutions company’s full year results which revealed that the company outperformed its guidance in FY 2021.

WiseTech share price on watch after smashing guidance

• Total revenue up 18% (or 24% in constant currency) to $507.5 million
• CargoWise revenue increased 26% to $331.6 million
• Acquisition revenue rose 6% to $175.9 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 63% to $206.7 million
• Net profit after tax doubled to $105.8 million
• Free cash flow up 149% to $139.2 million, underpinning a 141% increase in its final dividend to 3.85 cents per share
• Outlook: More strong growth in FY 2022

What happened in FY 2021 for WiseTech?

For the 12 months ended 30 June, WiseTech was on form again and delivered strong top and bottom line growth. Revenue increased 18% to $507.5 million and EBITDA jumped 63% to $206.7 million. The former was at the high end of its guidance range of $470 million to $510 million, whereas the latter smashed its updated earnings guidance range of $165 million to $190 million. This could bode well for the WiseTech share price today.

This strong result was underpinned by growth in usage and increased market penetration. The latter includes six new global rollouts secured in FY 2021 and the signup of FedEx since the end of the financial year. Another positive was organisation-wide efficiencies that delivered $22 million of gross cost reductions in FY 2021. This was ahead of target.

Another positive from the result that could support the WiseTech share price today was that its revenue growth was predominantly from recurring sources. The company advised that of the $101.4 million additional revenue generated in FY 2021, $97.3 million was recurring.

What did management say?

WiseTech’s Founder and CEO, Richard White, said: “Our strong CargoWise revenue growth in FY21 demonstrates industry recognition of our customer value proposition. We have continued to gain momentum in our market penetration with six new CargoWise global rollouts by large global freight forwarders secured in FY21, and the signing of FedEx post 30 June 2021. Importantly, we have a strong pipeline of potential new global customers, which we are actively pursuing.”

“Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.”

What’s next for WiseTech?

Also potentially giving the WiseTech share price a lift on Wednesday was its guidance for FY 2022.

On the basis that market conditions do not materially change, management anticipates FY 2022 revenue growth of 18% to 25% (representing revenue of $600 million – $635 million) and EBITDA growth of 26% to 38% (representing $260 million – $285 million).

Mr White concluded: “The strong growth in CargoWise revenue and margins we have seen in FY21 is testament to our product-led strategy, which is delivering increased usage by existing customers and new global rollout wins. We are benefitting from the acceleration in structural shifts from legacy systems to integrated global software solutions and industry consolidation, as large customers acquire businesses and add them to their CargoWise rollouts. Looking ahead we remain focused on R&D that delivers breakthrough products that enable and empower those that own and operate the supply chains of the world.”

The post WiseTech (ASX:WTC) share price on watch after smashing FY 2021 earnings guidance appeared first on The Motley Fool Australia.

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• 2 excellent ASX tech shares named 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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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Later this week the A2 Milk Company Ltd (ASX: A2M) share price will be on watch when it releases its full year results.

With its shares down 43% since the start of the year, clearly expectations are low this time around.

However, that wasn’t the case in February when the company released its results. And unfortunately, with the company failing to deliver on expectations, the a2 Milk share price came crashing down to earth.

What happened to the A2 Milk share price last time it announced its results?

In February, the a2 Milk share price dropped 16% after it posted a 16% decline in revenue to NZ$677.4 million and a 32.2% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$178.5 million.

Though, the biggest impact to the a2 Milk share price came from what was the third downgrade to its earnings guidance of FY 2021.

What happened?

The company was originally guiding to strong revenue growth with an earnings before interest, depreciation and amortisation (EBITDA) margin of 30% to 31% in FY 2021.

But just a few weeks later in September the company downgraded its guidance to revenue of NZ$1.8 billion to NZ$1.9 billion but held firm with its ~31% margin guidance. This would mean modest revenue growth of 4% to 10% and EBITDA of NZ$558 million to NZ$589 million for the year.

Then in December, its revenue guidance was downgraded by almost half a billion dollars to NZ$1.4 billion to NZ$1.55 billion. Management also downgraded its margin guidance to 26% and 29%, which implies EBITDA of NZ$364 million to NZ$450 million.

Half year results guidance downgrade

It got worse. Investors were quick to sell down the a2 Milk share price with the release of its half year results when management downgraded its guidance to revenue of NZ$1.4 billion with EBITDA of NZ$336 million to NZ$364 million. A far cry from where it started.

Unfortunately, that wasn’t the end of the story, with a further downgrade coming in May.

This means that when a2 Milk hands in its full year results this week, it is expecting to report revenue of NZ$1.25 billion with EBITDA of NZ$132 million to NZ$150 million. The latter will be a reduction of 73% to 76% year on year.

Investors will be hoping the bar has been set so low this time that the company outperforms this guidance. Though, as we have seen over the last 12 months, a miss would not be beyond the company.

The post The A2 Milk (ASX:A2M) share price crashed 16% last time it reported 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 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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Luckily for income investors, the Australian share market is home to a good number of quality dividend shares.

Two that are highly rated right now are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket giant. Over a century after GJ Coles opened his first store in Collingwood, Victoria in 1914, Coles has gone on to become one of Australia’s most recognisable brands and one of the big two players in the supermarket industry.

The company now has 800 supermarkets across the country, over 900 liquor retail stores, and over 700 Coles express stores. From this vast network, the company processes more than 21 million customer transactions each week. That’s the equivalent of 35 transactions every second.

But Coles isn’t settling for that and continues to target further store network expansion. For example, in FY 2022 the company is aiming to open 20 new supermarkets.

The company is also aiming to reduce costs through its Smarter Selling strategy and focus on automation. This includes the development of almost fully automated distribution centres, which will be operational in the coming years.

Macquarie is positive on the company’s future due partly to its investment in its omnichannel. It has an outperform rating and $19.80 price target on its shares.

The broker is also forecasting fully franked dividends per share of 62.2 cents in FY 2022 and 64.8 cents in FY 2023. Based on the current Coles share price of $18.26, this will mean yields of 3.4% and 3.55%, respectively.

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be another ASX dividend share to consider. Telstra has just released its FY 2021 results and posted an 11.6% reduction in total income and a 9.7% decline in underlying EBITDA to $6.7 billion.

Once again, the NBN rollout weighed on its EBITDA result. Telstra recorded an in-year NBN headwind of $650 million for FY 2021. If you exclude this, the company’s underlying EBITDA would have fallen only $70 million year on year.

The good news is that the NBN headwind is easing, its costs are reducing, and its mobile business is performing strongly. As a result, management is expecting its underlying EBITDA to grow for the first time in years in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9%. After which, management appears confident that it can deliver a further increase in FY 2023.

Goldman Sachs believes Telstra will deliver on these targets. So much so, the broker believes that a long-awaited dividend increase could be coming in the not so distant future.

It is forecasting fully franked dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024. Based on the current Telstra share price of $3.93, this will mean yields of 4.1% through to FY 2023 and then 4.6% in FY 2024.

Goldman has a buy rating and $4.30 price target on its shares.

The post Telstra (ASX:TLS) and this dividend share have been named as buys 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 owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price has been trending strongly, marking an all-time record high of $44.06 on Friday 20 August.

The supermarket sector has likely benefited from recent lockdowns, driving an increase in in-house consumption.

According to the Australian Bureau of Statistics, the latest Australian retail turnover figures for June flag a 1.8% month-on-month decrease. Within those figures, food retailing rose 1.5%, supported by subgroups including supermarkets and grocery stores, other specialised food retailing, and liquor retailing.

A similar narrative occurred during the February earnings season, with localised COVID-19 outbreaks driving volatility in business.

Let’s take a look at how the Woolworths share price performed following its 1H FY21 results.

How did Woolworths perform in 1H FY21?

Following the release of its 1H FY21 results in February, the Woolworths share price closed 1.05% higher at $33.46.

The company delivered strong sales growth across all business segments – with the exception of hotels – with record Christmas trading. Highlights include:

• Group sales up 10.6% to $35,845 million
• eCommerce sales surging 77.9% to $2,937 million
• Group earnings before interest and tax increased 10.5% to $2,092 million
• Group net profit after tax up 15.9% to $1,135 million
• Dividend per share increasing 15.2% to 53 cents per share

Management flagged a moderation in sales for the rest of the financial year, saying, “we expect sales to decline over the March to June period compared to the prior year in all our businesses.”

“However, in parallel, we also expect COVID-related costs to be materially below the prior year, subject to no further widespread prolonged lockdowns.”

The topic of moderating sales would emerge in Woolies third-quarter update on 29 April, where the company flagged a 0.4% increase in group sales to $16,566 million. The Woolworths share price would tumble 3.86% to $33.72 on the day of the announcement.

Woolworths share price snapshot

The Woolworths share price has rallied 22.1% year to date.

Shares in the supermarket giant have performed strongly following the $10 billion demerger of its Endeavour drinks business in June.

The demerger will return $1.6 billion to $2 billion in cash to Woolworths shareholders via dividends. This could be something to keep an eye out for in the company’s upcoming FY21 result.

The post How did the Woolworths (ASX:WOW) share price perform last earnings season? appeared first on The Motley Fool Australia.

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• How does the Woolworths (ASX:WOW) dividend compare to its sector?
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Motley Fool contributor Kerry Sun 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 Iluka Resources Ltd (ASX: ILU) share price is one to watch this morning after the Aussie miner reinstated its interim dividend in its latest half-year results release.

Iluka’s dividend announcement

Key highlights from this morning’s half-year results to 30 June 2021 (1H21) include:

• Mineral sands revenue up 61% on the prior corresponding period (pcp) to $735.6 million
• Mineral sands earnings before interest, tax, depreciation and amortisation (EBITDA) up 69% on pcp to $299.2 million
• Underlying group EBITDA up 37% on pcp to $308.2 million
• Net profit after tax (NPAT) up 14% on pcp to $129.0 million
• Free cash flow up 288% on pcp to $179.3 million
• 12.0 cents per share interim dividend (no interim dividend paid in 1H20)

What happened in FY21 for Iluka?

A significant increase in sales volumes was a key driver of the latest result with demand returning to pre-pandemic levels. Mineral sands sales volumes surged to 177 kilotonnes (kt) in the first half with weighted average prices edging higher.

Chinese tile production returned to pre-pandemic levels while demand from the photovoltaic (solar) industry maintained the push for fused zirconia. Titanium sales were also strong despite supply concerns persisting.

Investors will be watching the Iluka share price following this morning’s result. Iluka reported that Australian operations returned to maximum settings during the year after a period of inventory management as the company continues to progress its development pipeline of projects.

What did management say?

Iluka CEO and managing director Tom O’Leary had the following to say this morning:

Iluka commenced 2021 in a strong position and we have built on that platform to deliver an excellent first half result.

The company demonstrated discipline during 2002, including our initial response to the COVID-19 pandemic. That discipline continues to underpin our broader approach, albeit now in different and evolving circumstances.

As we look to the second half and beyond, Iluka is positioned to lead in the response to market and industry conditions by deploying its operations, product suite and development pipeline.

What’s next for the Iluka share price?

There was no full-year guidance noted in today’s half-year results update from the Aussie resources company. The focus remains on inventory and balance sheet management as well as progressing key projects on schedule.

The Iluka share price is up 37.5% in 2021, well ahead of the S&P/ASX 200 Index (ASX: XJO).

The post Iluka (ASX:ILU) share price on watch as interim dividend returns appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

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 Afterpay Ltd (ASX: APT) share price will be on watch this morning.

This follows the release of the buy now pay later (BNPL) provider’s full year results for FY 2021.

Afterpay share price on watch after delivering more strong growth

• Underlying sales grew 90% (or 102% in constant currency) to $21.1 billion
• Total income up 78% (or 89% in constant currency) to $924.7 million
• Gross loss to underlying sales ratio flat at 0.9%
• Net transaction loss up 210% to $132.6 million
• EBITDA down 13% to $38.7 million
• Active customers increased 63% to 16.2 million
• Active merchants up 77% to 98,200
• Square-Afterpay transaction on track to complete in Q1 of calendar year 2022

What happened for Afterpay in FY 2021?

For the 12 months ended 30 June, Afterpay was on form again and delivered stellar underlying sales growth of 90% to $21.1 billion. In constant currency, its underlying sales would have doubled year on year.

This was driven by growth across its ANZ, Clearpay, and North America operations. The latter was arguably the highlight, delivering a 146% increase in underlying sales to $9.8 billion for the year. This was complemented by a 44% jump in ANZ underlying sales to $9.4 billion and a 227% jump in Clearpay underlying sales to $1.8 billion.

This sales growth was underpinned by increased repeat use and further strong customer growth. In respect to the latter, active customers grew 63% year on year to 16.2 million. Once again, the North America business was the highlight, delivering an 88% jump in active customers to 10.5 million. This was supported by a 104% increase in Clearpay customers to 2.1 million and a modest 8% lift in ANZ customers to 3.6 million.

In respect to repeat use, the company notes that in its most established ANZ region, the top 10% of consumers are now using Afterpay more than 60 times per year. Positively, it notes that international regions continue to follow the ANZ trajectory with both North America and Clearpay recording increases in consumer frequency during the period. This led to approximately ~93% of FY 2021 underlying sales coming from repeat customers.

Afterpay’s net transaction loss for the year came in at 0.6% of underlying sales. This was up from 0.4% a year earlier, which reflects a lower contribution of late fees from customers. Late fees contributed less than 10% of Afterpay’s total income, down from 14% in FY 2020 and 19% in FY 2019. Late fees now represent less than 0.4% of underlying sales.

What did management say?

Afterpay’s Chair, Elana Rubin AM, continues to see a bright future for the company, particularly given the demise of credit cards.

She commented: “Global research continues to indicate that credit cards and credit-based products are in decline, while BNPL continues to expand as a preferred way to pay. Millennials and Gen Z are less likely than their parents to use a credit card, and more likely to engage with organisations and brands that they trust. These factors underpin the important role that Afterpay now plays in social and economic empowerment.”

Rubin also notes that the company is aiming to support and enhance financial inclusion for younger women.

Afterpay’s Chair explained: “The forthcoming launch of the Money by Afterpay product is a great example. This is a testament to the skill and innovation of the team in bringing a new and inclusive financial product to life. It also signals our commitment to supporting and enhancing financial inclusion, particularly for younger women.”

“Data shows that female engagement with financial services is comparatively low, but they are seeing that this issue is theirs to solve. This demographic has seen several societal shifts during the past 20 years, and yet less than a third of women have been taught about investing, and the wage and superannuation gaps remain.”

“These same women make up the majority of the Afterpay consumer base. They want a sensible way to afford discretionary items, using their own money, and greater financial empowerment. Money by Afterpay will make money management simple and frictionless for these consumers, as they improve their financial literacy, grow their wealth, and ultimately secure future life goals by saving alongside responsible spending,” Rubin said.

What’s next for Afterpay?

As you might have seen recently with the rampant rise by the Afterpay share price, the company is in the process of being acquired by US payments giant Square. This morning the company confirmed that the transaction is expected to complete in the first quarter of calendar year 2022.

But management isn’t resting on its laurels and continues to work on its bold growth plans.

This includes expanding its in-store cards offering beyond the ANZ and the US markets and into the UK market in the second quarter of FY 2022.

In addition, the company intends to enhance its merchant value proposition with the launch of Afterpay iQ in September. This is a new merchant insights platform that combines artificial intelligence, machine learning, and data science to provide merchants with deep consumer insights to optimise their marketing investment.

The Afterpay share price is up 46% year on year.

The post Afterpay (ASX:APT) share price on watch after reporting 90% sales growth appeared first on The Motley Fool Australia.

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• When was the best ever day for the Afterpay (ASX:APT) share price?
• The Afterpay (ASX:APT) share price fell 14% last time the company reported
• Afterpay (ASX:APT) share price rallies 3% ahead of this week’s earnings
• ASX 200 Weekly Wrap: Miners drag ASX back to earth

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 has been on fire in August. Shares in the Aussie travel share have rocketed 5.6% higher in the last month amid the latest ASX reporting season.

Let’s take a look at how the Flight Centre share price has responded in previous earnings periods.

How did the Flight Centre share price fare in February?

Given ASX companies generally report half-yearly, there are two major reporting seasons: February (for 31 December year end) and August (for 30 June year end).

Flight Centre reported its half-year earnings on 25 February 2021. Some of the key takeaways from that result include:

• $1.9 billion (c.70%) reduction in annualised costs
• 12% increase in total transaction value (TTV) to $1.5 billion
• 10.4% revenue margin, down from 12.5% in 1H 2020
• $247 million underlying loss

The Flight Centre share price climbed higher following February’s result. That helped the Aussie travel share surge 18.0% higher from the end of January to the market close on Friday 26 February.

And last August?

Investors can also see what happened last August. Flight Centre released its full-year results for the period ended 30 June 2020 (FY20) on 27 August in a COVID-disrupted year for the travel industry.

As a refresher, Flight Centre’s results were headlined by the below:

• $510 million underlying loss before tax (down from $343.1 million profit in FY19)
• $1.9 billion cash balance after increasing liquidity by $1.1 billion
• 36% decline in TTV to $15.3 billion after minimal sales from March to June year end

The Flight Centre share price was volatile last August without any major share price swings following the result.

Foolish takeaway

Shares in the ASX travel agent were up 6.66% to $15.22 yesterday as investors eyed easing restrictions as vaccination numbers surge.

Investors will likely be watching the Flight Centre share price closely ahead of tomorrow’s FY21 results release.

The post What happened to the Flight Centre (ASX:FLT) share price last earnings season? appeared first on The Motley Fool Australia.

More reading

• Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday
• These are the 10 most shorted ASX shares
• What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares
• Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower
• Flight Centre (ASX:FLT) share price slips despite Rex (ASX:REX) agreement

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 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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