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The G8 Education Ltd (ASX: GEM) share price has fallen in early trade. The soft start to the week comes despite the childhood education group reporting a surge in profits after a COVID-affected 2020.

At the time of writing, the G8 Education share price is down 2.86% trading at $1.02.

G8 Education share price slumps despite profit surge

Shares in the Aussie early childhood education provider are sliding after the company’s half-year results release. Some of the key takeaways from 1H 2021 include:

• Revenue up 36.8% on the prior corresponding period (pcp) to $421.5 million
• Statutory net profit after tax (NPAT) of $25.1 million compared to a $244.1 million net loss in 1H 2020
• Operating earnings before interest, tax, depreciation and amortisation (EBITDA) up 15.2% to $102.4 million
• Basic earnings per share of 6.5 cents, compared to a 62.5 cents per share loss in 1H 2020
• No interim dividend

Investors are likely to keep an eye on the G8 Education share price today after the company announced intentions to pay a full-year dividend at year-end.

What happened in first-half FY21 for G8 Education?

COVID-19 restrictions were disruptive to operations throughout the half. Core occupancy levels recovered from 65.1% in 1H 2020 (on a restated basis) to 68.0% in the most recent half-year period.

The group’s 191 regional centres performed strongly with occupancy levels up 4.4% than the COVID-19 impacted 1H 2020 result.

G8 reported a strong balance sheet (with a net cash position) to help ride out the COVID-19 storm. Management has also signalled its intention to pay a full-year dividend for the period ended 31 December 2021.

The G8 Education share price fell 16.7% from the start of the year through to 30 June.

What did management say?

G8 CEO and managing director Gary Caroll had this to say about the result:

During the half, our operating performance continued to recover, with occupancy in the first half narrowing the gap on CY19, driven by our strategic change programs and a particularly strong performance from our regional centres.

Costs were well-managed, and we remain concentrated on maintaining our balance sheet strength and flexibility.

After an encouraging first half, since June, we have started to see some impact of COVID-19 lockdowns on occupancy in the eastern states.

We have the right settings and systems in place, and are well-capitalised to weather this period and emerge in a strong position.

What’s next for G8 Education and its share price?

COVID-19 restrictions across the country continue to impact G8’s operations in FY22.

The G8 Education share price is slipping today as management sets its sights on an end-of-year dividend.

Shares in the Aussie early childhood education provider are down 14% this year and underperforming the S&P/ASX 200 Index (ASX: XJO).

The post G8 Education (ASX:GEM) share price slips despite half-year profit surge appeared first on The Motley Fool Australia.

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• Reliance Worldwide (ASX:RWC) share price hits 52-week high after 111% profit jump
• What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares
• Bigtincan (ASX:BTH) share price halted ahead of $116 million Brainshark acquisition
• Amazon vs. Netflix: Which is a better growth stock to buy?
• Pushpay (ASX:PPH) share price higher on US$150 million Resi Media acquisition

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 Sydney Airport Holdings Pty Ltd (ASX: SYD) earnings for the first half of 2021 were released last week. Within them were several insights that could affect the shares of its ASX travel peer Flight Centre Travel Group Ltd (ASX: FLT).

Right now, Flight Centre shares are trading for $13.74 apiece. The travel agency group is expected to report its earnings for financial year 2021 on Thursday.

Let’s take a look at what Sydney Airport’s half-year results might mean for Flight Centre shares.

What can Flight Centre investors take from Sydney Airport’s results?

Flight Centre shares will be in the spotlight on Thursday as the market anticipates the release of the company’s FY21 earnings.

While we wait, let’s take a look at the earnings of what is normally Australia’s most traversed airport to see if they provide any insight on the travel industry’s woes.

Sydney Airport’s earnings included some dire figures. Here’s a snapshot of what the airport reported:

• An 81.7% greater net loss after tax benefit than it recorded in the first half of 2020
• A 36% drop in aeronautical revenue
• 6 million travellers passed through the airport – 36.4% fewer than the previous corresponding period (pcp)
• Sydney Airport saw 91% fewer international passengers than the pcp

As you can see, international travel into and out of Australia’s biggest airport dropped notably in the first half of 2021 compared to the pcp. Of course, Australia’s international borders slammed shut in the middle of the first half of 2020.

However, Flight Centre shares might be safer than that figure makes them seem. Sydney Airport reported it only saw a 3.1% drop in domestic travel for the 6 months ended 30 June.

Additionally, Sydney Airport CEO Geoff Culbert said domestic traffic rebounded well each time Australia’s domestic borders reopened. Further, before New Zealand shut its borders to Australia again, trans-Tasman traffic recovered to more than 40% of its pre-COVID levels.

This seems to suggest many Australians (and New Zealanders) were travelling however they could during the first half of 2021.

All eyes will be on Flight Centre – and its shares – on Thursday. The market will likely be waiting to see if the travel agent experienced the same strong domestic travel sector throughout FY21.

The post What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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The Bigtincan Holdings Ltd (ASX: BTH) share price won’t be going anywhere on Monday morning.

This morning the sales enablement-focused software company requested a trading halt.

Why is the Bigtincan share price halted?

The Bigtincan share price was halted this morning so the company could undertake an equity raising to fund a major acquisition.

According to the release, the company is seeking to raise $135.3 million. This comprises a placement to U.S. based investment firm SQN Investors of $21 million and an underwritten 1 for 4 accelerated pro-rata non-renounceable entitlement offer to raise approximately $114.3 million.

The equity raising is being conducted at an offer price of $1.05 per share, which represents a 12.1% discount to the Bigtincan share price at Friday’s close.

Why is Bigtincan raising funds?

Bigtincan is raising the funds after entering into a merger agreement to acquire 100% of the issued securities of Brainshark, Inc. for US$86 million (A$116 million). The release notes that Massachusetts based Brainshark is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness.

The acquisition price of A$116 million represents an acquisition multiple of 2.5x estimated sustainable annualised recurring revenue (ARR) of ~A$46 million. In light of this, Bigtincan estimates that combined FY 2022 ARR will meet or exceed A$119 million.

This will be a big lift year on year. For example, Bigtincan recently revealed that it achieved A$53.1 million in ARR in FY 2021. That was an increase of 48% from FY 2020’s ARR of $35.8 million.

Management advised that it believes Brainshark is a strong fit across all of Bigtincan’s acquisition criteria, transforming the combined business to a global leader in the sales enablement market with significant scale.

The Bigtincan share price is up 36% since this time last year.

The post Bigtincan (ASX:BTH) share price halted ahead of $116 million Brainshark acquisition 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. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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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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.

Two wildly successful companies are often discussed in the same breath, whether it’s surrounding their tenured presence in the popular group of FAANG stocks or the fact that they both offer fast-growing streaming-TV services. Those stocks are none other than Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX), two longtime Wall Street darlings.

Today, both of these companies remain extremely successful, continuing to grow their top and bottom lines rapidly. Indeed, a good case can still be made for buying both companies’ stocks.

But which of these two growth stocks is a better buy today: e-commerce, cloud computing, and digital services juggernaut Amazon or pure-play streaming TV specialist Netflix?

Amazon

Amazon has stubbornly resisted the meaningful deceleration in growth you would expect from a company as big as it is. Indeed, revenue growth accelerated last year. In 2019 and 2020, revenue grew 20% and 38%, respectively. Sure, 2020 results benefited significantly from increased e-commerce use as people around the world were sheltering at home amid a pandemic. But even as Amazon laps tough comparisons from 2020, it is growing rapidly. Second-quarter 2021 net sales increased 27% year over year. 

The company’s profits have been growing even more rapidly. Net income in the trailing 12 months ended June 30, 2020, was $29.4 billion, up from $13.2 billion in the same period one year earlier.

And Amazon stock isn’t as expensive as one might think. Yes, its $1.6 trillion market capitalization is hard to fathom. But with $443 billion in trailing-12-month sales, $59.3 billion in operating cash flow, a fast-growing top line, and a steadily expanding operating margin, this valuation starts to look conservative, or even cheap.

Netflix

Streaming TV company Netflix is similarly growing its top line rapidly. Revenue increased 19% year over year during the second quarter.

But the real magic for Netflix right now is the company’s soaring earnings. EPS in the second quarter was $2.97, up from $1.59 in the year-ago period. More importantly, analysts expect rapid earnings growth to persist over the next five years because of how scalable the company’s business model is. Content costs and other expenses are quickly declining as a percentage of revenue.

On average, analysts expect Netflix’s earnings per share to compound at an average annual rate of 43% over the next five years — ahead of the 36% growth expected from Amazon. Understanding Netflix’s uncanny earnings potential is key to justifying its high price-to-earnings ratio of 56.

The verdict

Overall, both stocks look like attractive long-term investments. But the better buy might be Amazon, thanks to its robust top- and bottom-line growth and its sprawling competitive advantages from its powerful flywheel of Prime member benefits and its leadership in both e-commerce and cloud computing.

Amazon’s growth story ultimately seems more sustainable and predictable as the company benefits from numerous secular tailwinds across various aspects of its business.

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

The post Amazon vs. Netflix: Which is a better growth stock to buy? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Netflix. 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 Pushpay Holdings Ltd (ASX: PPH) share price is pushing higher on Monday morning.

In early trade, the donor management platform provider’s shares are up 3% to $1.61.

Why is the Pushpay share price charging higher?

Investors have been bidding the Pushpay share price higher today after it announced a major acquisition.

According to the release, Pushpay has entered into a definitive agreement to acquire 100% of the ownership interests in Resi Media for US$150 million in cash and shares. This represents 8.8x FY 2021 revenue.

The consideration comprises US$110 million in cash and US$40 million in shares. The former will be funded by a combination of cash on hand and a senior secured debt facility of US$90 million.

Management expects the acquisition to close by the end of August. This is subject to satisfaction of customary closing conditions.

What is Resi Media?

The release explains that Resi Media is a US-based market-leading streaming solutions provider. It services more than 70% of the Outreach 100 largest churches in the US. Its offerings comprise live streaming services to web, social media, mobile apps, and other locations and multisite streaming which delivers video to remote locations.

Management believes Resi Media is well positioned to execute on a value proposition of high quality, reliable live streaming as streaming becomes a core part of faith-based and other organisations’ operations.

It also notes that its Resilient Streaming Protocol (RSP) protects against audio and video quality loss during transmission regardless of network interruptions. The technology enables live streaming online across any platform, social media or the organisation’s own brand. Customers can automate, monitor and review streams to make events extremely effective.

Resi Media’s executive team will continue leading the business.

Pushpay’s CEO, Molly Matthews said, “Adding Resi’s top tier streaming solutions to our product suite will greatly enhance our value proposition to customers, allowing Pushpay to fully support churches’ digital engagement with their communities, and ensure Pushpay is staying at the forefront of church technology innovation. We welcome the Resi team to Pushpay and look forward to working together in providing market leading solutions to the faith sector.”

The Pushpay share price is down 10.5% in 2021.

The post Pushpay (ASX:PPH) share price higher on US$150 million Resi Media acquisition 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. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is down this morning after the airline announced it will launch incentives for vaccinated Australians tomorrow.

Qantas has a number of goodies lined up for Australians who have rolled up their sleeves for a COVID-19 jab. Additionally, those who claim a prize will automatically go into the draw to win 12 months of free travel.  

Right now, the Qantas share price is $4.22, 0.71% lower than Friday’s close.

Let’s take a closer look at the rewards Qantas will be handing out to vaccinated Australians tomorrow.

Qantas rewards vaccinations

The Qantas share price is falling amid news it will be giving vaccinated Australians 1000 Qantas points, 15 status credits, or a $20 flight voucher from tomorrow.

Additionally, those who claim a reward will be entered into the “mega prize draw”.

Qantas has put 10 mega prizes up for grabs. There will be a winner from each of Australia’s states and territories. Another 2 winners will be crowned as part of a national television campaign.

The winners will be able to travel with Qantas and Jetstar to more than 60 destinations around Australia. Once they arrive at their destination (or destinations), they’ll stay for free at Accor hotels, resorts, or apartments. Additionally, they’ll be able to top up their car for free at a BP service station.

Winners will also be able to get on board international flights when Australia’s borders reopen.

Australians living in Australia, aged over 18, and a member of Qantas’ Frequent Flyers program will be eligible to enter the giveaway. Eligible Australians can claim their rewards through the Qantas app, available on the Apple app store and Google Play store.

Management’s comments

Qantas CEO Alan Joyce spoke of the news potentially driving the Qantas share price today. He said:

This is one of the biggest giveaways we’ve ever done. The impact of the pandemic on the travel industry and our own Qantas Group team members means we have a clear vested interest in the success of the vaccine rollout.

For us, getting the vaccine rate up to 70 and 80 per cent means thousands of people can go back to work.

With the Federal Government’s vaccine program ramping up across the country, now is the ideal time to say thank you to Australians for stepping up and protecting themselves and others.

Qantas share price snapshot

The Qantas share price has slipped 13% year to date. However, it is 9% higher than it was this time last year.

The post Qantas (ASX: QAN) share price falls amid campaign to reward vaccination appeared first on The Motley Fool Australia.

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

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The Vulcan Energy Resources Ltd (ASX: VUL) share price is storming higher on Monday.

In early trade, the lithium developer’s shares are up 7% to $12.98.

Why is the Vulcan Energy share price storming higher?

The catalyst for the rise in the Vulcan Energy share price today has been an announcement relating to its Zero Carbon Lithium Project.

According to the release, Vulcan has appointed BNP Paribas as its financial advisor. It notes that the bank is a leader in sustainability with a strong track-record in advisory and financing of battery and renewable projects. This includes the 1.3 billion euros Northvolt’s Gigafactory in Sweden and the 5.5 billion pounds Dogger Bank project in the UK.

The release explains that Vulcan and BNP Paribas will work together on a bankability review in the lead up to the Definitive Feasibility Study (DFS) and, upon its completion, on the structuring and execution of the financing of the Zero Carbon Lithium Project.

This Project aims to decarbonise the production of batteries for electric vehicles, by developing the world’s first zero carbon lithium project. Excitement around this project has been a key driver of the staggering gains made by the Vulcan Energy share price over the last 12 months.

Management commentary

Vulcan Energy’s Managing Director, Dr. Francis Wedin, was very pleased to be working with BNP Paribas.

He commented: “It is important to work with partners who share our sustainability goals and values. BNP Paribas is a leader in financing and advisory in the renewables and battery supply chain sector in Europe, with a strong focus on ESG. The combination of values, market presence and drive will be important factors in assisting us with the successful preparation and execution of financing our globally unique Zero Carbon Lithium Project.”

This sentiment was echoed by BNP Paribas.

BNP Paribas’ Head of Energy, Resources & Infrastructure, Séverine Mateo, said: “We are delighted to be appointed by Vulcan to assist in the Zero Carbon Lithium Project and help realising this significant step towards carbon neutrality in electric vehicle battery production. The road to energy transition requires significant increases in mineral consumption at the lowest possible level of carbon intensity, and BNP Paribasis committed to accompanying companies and economies in combating climate change.”

The Vulcan Energy share price is up 325% since the start of the year.

The post Why the Vulcan Energy (ASX:VUL) share price is jumping 7% today appeared first on The Motley Fool Australia.

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

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The Ampol Ltd (ASX: ALD) share price is falling on Monday following the announcement of its half year results and a major acquisition.

At the time of writing, the fuel retailer’s shares are down 5% to $26.20.

Ampol share price falls on results and acquisition announcement

• Fuels & Infrastructure EBIT up 86% to $208 million
• Convenience Retail EBIT increased 19.2% to $149 million
• Corporate costs lifted 12.5% to $18 million
• Group RCOP EBIT jumped 53.8% to $340 million
• RCOP net profit after tax up 70.8% to $205 million
• Fully franked interim dividend of 52 cents per share
• NZ$2 billion offer to acquire Z Energy

What happened during the first half for Ampol?

The Ampol share price is trading lower today despite the company reporting a significant jump in profits and a potential acquisition.

For the six months ended 30 June, the fuel retailer reported a 70.8% increase in RCOP net profit after tax to $205 million. A key driver of this was its Fuels & Infrastructure business, which delivered an 85% increase in EBIT for the period. However, this was largely due to the improvement in profitability of the Lytton refinery and the receipt of the Federal Government’s Temporary Refining Production Payment of $40 million.

This was supported by a 19.2% increase in Convenience Retail EBIT to $149 million. Management advised that this reflects continued improvement in shop performance and the $14 million benefit of lower depreciation due to the impairment of Convenience Retail sites a year earlier. This helped offset compressed fuel margins during the period.

Also failing to give the Ampol share price a boost today was news that it has tabled a non-binding indicative proposal to acquire Z Energy Ltd (ASX: ZEL) for a cash offer price of NZ$3.78 per share. This represents a 35% premium to its close price on 26 July 2021, which is the day prior to the first media speculation in relation to corporate activity involving Z Energy. It values Z Energy’s equity at NZ$2 billion.

The Z Energy Board has granted Ampol a four-week period of exclusivity for it to undertake confirmatory due diligence.

What did management say?

Ampol’s Managing Director and CEO, Matt Halliday, said: “The first half of 2021 has been pivotal for Ampol. We finalised our Lytton review, with a commitment to continue operating to support the dual objectives of fuel security and energy transition in partnership with government. In addition, the launch of our Future Energy and Decarbonisation strategy provides a pathway to build new lower emissions energy solutions for our customers into the future.”

“The business also continues to perform strongly as we execute the delivery of our growth strategies in challenging conditions. In addition to improved performance in our core Australian fuels business, we continue to grow earnings in our International and Convenience Retail businesses in line with our earnings growth targets,” he added.

Commenting on the proposed acquisition of Z Energy, Mr Holiday said: “Z Energy is a logical growth opportunity for Ampol as both companies are market leaders in their respective home markets and have very similar business models. A successful acquisition would create an A&NZ leader in fuel, with significant regional scale and trusted and iconic brands on both sides of the Tasman.”

What’s next for Ampol?

One thing that could be weighing on the Ampol share price today was its outlook commentary.

Management revealed that it has had a difficult start to the second half due to lockdowns. So much so, fuel volumes were down 15% in July and down 18% in August through to 15 August.

As a result, it notes that its current run rate suggests Australian fuel volumes will be below the previous guidance range of 13.5 billion to 14.0 billion litres.

Furthermore, shop sales were down 16% in July and 17% in August through to 15 August.

Nevertheless, management appears positive on its longer term outlook. It notes that the market has shown that demand and sales recover quickly when restrictions ease and there are signs that retail margins are providing a partial offset to the volume weakness.

The post Ampol (ASX:ALD) share price sinks on half year results and acquisition news appeared first on The Motley Fool Australia.

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

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The Boral Ltd (ASX: BLD) share price is on watch today as it plans on reporting its FY21 earnings on Tuesday.

Boral shares have climbed into the green since January 1. As such, it’s worthwhile investigating investors’ reaction last time the company reported.

Let’s peel back the layers to find out exactly what happened in the week when Boral reported its FY21 half year results back in February.

What happened after Boral’s last earnings report?

Boral recognised several tension points in its FY21 half-year earnings report, including:

• 8% year on year revenue decrease to $1.6 billion
• Boral North America also absorbed a 9% decline in revenue behind the year prior
• Net profit after tax (NPAT) of $156 million, which was flat compared to the same time last year
• No dividend payment for 1H 2021
• Free cash flow growth from $35 million to $333 million in 1H FY21, in line with its peers free cash flow growth

In addition to these points, Boral outlined uncertainties in the market going forward and expects further impacts from COVID-19.

Management also said the USG Boral and Meridian Brick divestments will be completed in FY21. Moreover, it had appointed a new CEO and CFO to its ranks in order to achieve its growth vision for the future.

What happened next?

In an unfortunate turn of events the Boral share price, investors failed to welcome the company’s performance with open arms. Particularly the haircut to its FY21 dividend.

Boral reported its earnings on Tuesday 9 February and, by the Friday, Boral shares had sunk 8% into the red from Monday’s close. On 9 February alone, shares in the construction materials company had sunk around 5%.

The downward pressure on the Boral share price was relatively short-lived, however.

To illustrate, there have been several external catalysts in Boral’s growth engine since February that have pushed its shares back towards its all-time highs.

For instance, Seven Group Holdings Ltd (ASX: SVW) has been on the chase to acquire Boral since May this year.

Boral shareholders originally rejected the bid of $6.50 per share to acquire all remaining outstanding Boral shares. Seven then revised the offer to $7.30 per share, which was again rejected.

However, on 29 July, the conglomerate finished its takeover bid and now holds approximately 70% of Boral’s voting power.

Moreover, Seven Group immediately appointed its CEO Ryan Stokes as chair of the Boral board.

It is reasonable to say the Boral share price sunk last earnings on the back of the company’s lacklustre first-half performance.

Undoubtedly, Boral shareholders will be hoping for a different outcome on Tuesday and are seeking further clarity on the future of its dividend.

Boral share price snapshot

The Boral share price has climbed 36% into the green since January 1, extending the previous 12 months’ gain of 84%.

Despite this, Boral shares are 9% in the red over the last month.

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

The post The Boral (ASX:BLD) share price fell 8% last time the company reported appeared first on The Motley Fool Australia.

More reading

• The Boral (ASX:BLD) share price is down 7% in a month. Here’s why
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• Boral (ASX:BLD) share price falls as Seven wins takeover and outs chair
• Boral (ASX:BLD) share price struggles as Seven waits to take over
• Boral (ASX:BLD) share price edges lower on divestment news

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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Webjet Limited (ASX: WEB) shares have been under pressure once again in 2021. Shares in the online travel agent have fallen 7.2% lower this year as COVID-19 restrictions continue to disrupt business.

Investors want to know that there’s light at the end of the pandemic tunnel. That’s where the August earnings season, including the recent Sydney Airport Holdings Pty Ltd (ASX: SYD) results, could be helpful to see what’s happening in the travel industry.

What could Sydney Airport’s results mean for Webjet shares?

For those who missed it, Sydney Airport released its latest half-year result on Friday. Some of the big takeaways were:

• Net loss after tax benefit of $97.4 million, with losses increasing 81.7% on the prior corresponding period (pcp).
• Revenue down 31.3% on the pcp to $351 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp.
• A negative cash flow of $565.5 million for the 6 months.

Webjet shares fell 1% lower on Friday with ASX travel shares across the board being hit hard. One notable item from Sydney Airport’s results was the overall passenger numbers. Australia’s busiest airport reported a 36.4% decline in pcp with a 91% drop in international arrivals.

In what Sydney Airport CEO Geoff Culbert described as a “challenging six months”, there were a couple of positives. One of those was the trend of increasing passenger numbers once border restrictions do ease in between lockdowns. That implies that there is still demand for domestic and limited international travel when available.

Webjet makes the majority of its earnings in commissions on travel bookings. That means investors looking ahead to post-pandemic life could be encouraged by trends of increasing demand and the potential impact on earnings.

Webjet shares have been smashed during the pandemic as the broader travel industry looks to re-invent itself. One possible saving grace that Sydney Airport is holding onto is the vaccine rollout programme.

Webjet investors will be hoping the country hits its vaccination targets sooner rather than later to reduce disruption and increase earnings potential.

The post What could Sydney Airport’s results mean for Webjet (ASX:WEB) shares? appeared first on The Motley Fool Australia.

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

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