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With interest rates at ultra low levels and likely to stay that way for some time to come, dividend shares continue to be a great alternative to traditional interest-bearing assets such as term deposits.

But which dividend shares could be buys? Here are two highly rated ASX dividend shares to look at:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a retail group with a collection of popular footwear-focused store brands. These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

Accent was a very strong performer in FY 2021 and has just released its full year results. Those results revealed a 19.9% increase in sales to $1.14 billion and a 38.6% jump in net profit after tax to $76.9 million. This allowed the Accent Board to increase its full year dividend by 21.6% to 11.25 cents in FY 2021.

Bell Potter has responded to the release by retaining its buy rating but trimming its price target to $2.90.

While the broker expects FY 2022’s result to be softer due to lockdowns and elevated sales in FY 2021, it remains positive on the future. Bell Potter has pencilled in dividends per share of 9 cents in FY 2022 and 13 cents in FY 2023.

Based on the latest Accent share price of $2.26, this represents yields of 4% and 5.8%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at is Telstra. It could be a top option due to its increasingly positive outlook thanks to its leadership position with 5G, asset monetisation, cost cutting, and rational competition.

Combined, these are expected to allow the company to return to growth next year at long last.

Goldman Sachs is positive on Telstra and currently has a buy rating and $4.30 price target on its shares. The broker is also forecasting fully franked dividends of 16 cents per share through to FY 2023. After which, it is expecting a long-awaited dividend increase to 18 cents per share in FY 2024.

Based on the current Telstra share price of $3.97, this will mean 4% yields until an increase to 4.5% in FY 2024.

The post 2 buy-rated ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• The Accent (ASX:AX1) dividend has lifted by 22%
• August has been a great month so far for the Telstra (ASX:TLS) share price
• Accent (ASX:AX1) share price slides despite strong sales growth
• Accent (ASX:AX1) share price on watch following record FY21 results
• Accent (ASX:AX1) share price down as market awaits FY21 earnings

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 Telstra Corporation Limited. The Motley Fool Australia has recommended Accent Group. 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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There are some leading ASX growth shares that might be worth looking at after they delivered their results recently.

The below two companies are ones that are expecting to deliver substantial profit growth over the next year or two.

They are also companies that speak of rising operating leverage as they get bigger.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world’s largest corporate travel businesses.

FY21 was obviously heavily impacted by COVID-19, restrictions and lack of travel but the company is expecting a recovery.

Indeed, the fourth quarter of FY21 showed positive profit numbers (as opposed to losses).

In earnings before interest, tax, depreciation and amortisation (EBITDA) terms, Corporate Travel made a loss of $8.2 million in the second quarter, a $5.5 million loss in the third quarter and generated $13.6 million of EBITDA in the fourth quarter.

Corporate Travel’s FY21 second half showed 199% half on half growth of total transaction value (TTV) to $1.2 billion and 70% half on half growth of revenue and other income to $126.3 million.

The company also said that the ANZ region was profitable throughout FY21 despite continuing border closures.

After the year end, July delivered a record post-COVID revenue result. The ASX growth share noted that July defied the seasonal activity reduction in North America and Europe during the seasonal vacation period.

The company has no debt and finished the period with $99 million of cash. It’s targeting a return to dividends in the 2022 calendar year.

Corporate Travel Management managing director Jamie Pherous said:

After the Travel & Transport acquisition, CTM is now estimated to be the world’s fourth largest global travel management company. Through our recent acquisitions, realised synergies and permanent reductions to our cost base we expect the business will deliver material accretion to group earnings post-COVID.

Airtasker Ltd (ASX: ART)

The marketplace business was another ASX growth share to report its result to the market.

In FY21, Airtasker recorded revenue growth of 38% to $26.6 million. This was ahead of the prospectus forecast of $24.5 million.

Gross marketplace volume (GMV) also beat the prospectus forecast (of $143.7 million), rising 35% year on year to $153.1 million.

Whilst starting from a low base, the UK marketplace saw accelerating GMV growth – it was up 232% year on year and 93% quarter on quarter.

The ASX growth said that the Zaarly integration and US expansion planning is progressing well.

‘Underlying pro forma EBITDA’ was $0 million, compared to a loss of $4 million in FY20. It also made positive operating cash flow of $5.5 million, which beat the prospectus forecast of $0.1 million.

Coming into the result, the broker Morgans rated Airtasker as a buy with a price target of $1.29, which is still materially higher than where Airtasker is today. The broker was attracted to the growth potential in the US and UK, with Airtasker accelerating its plans.

The company ended FY21 with $45.9 million of cash, which it was ready to invest into accelerating its international expansion. Airtasker reported that its gross profit margin was 93% in FY21.

The post 2 top ASX growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Airtasker (ASX:ART) share price jumps 3% as FY21 results top forecasts
• Corporate Travel (ASX: CTD) share price lifts on FY21 earnings
• How did the Corporate Travel (ASX:CTD) share price respond last earnings season?
• Why the Corporate Travel Management (ASX:CTD) share price is outperforming
• Are you a ‘Catch and Release’ investor?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) continued its poor run and tumbled lower. The benchmark index fell 0.5% to end the day at 7,464.6 points.

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

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.5% higher. This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 climb 0.1%, and the Nasdaq rise 0.1%.

Cochlear full year results

The Cochlear Limited (ASX: COH) share price will be one to watch today when it hands in its full year results. According to CommSec, the market is expecting the hearing solutions company to report a full year net profit after tax of $245.5 million. A dividend of $1.28 per share is expected to be declared.

Oil prices fall

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$64.08 a barrel and the Brent crude oil price is down 1.9% to US$66.91 a barrel. This was the sixth day of declines in a row amid fears of slowing global economic growth.

Sydney Airport results

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price could be on the move today when it releases its half year results. Due to the negative impact of COVID-19, the airport operator is expected to post a sizeable loss. According to CommSec, the analyst consensus estimate is a loss of $225 million for that half.

Gold price edges lower

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,783.10 an ounce. The price of the precious metal slipped after the US dollar strengthened.

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

More reading

• ASX 200 drops, Redbubble soars, TWE falls
• Here are 3 of the heaviest trading ASX 200 shares this Thursday
• Here are the top 10 ASX 200 shares today
• These ASX 200 bank experts are forecasting a bumpy ride for our economy
• Will the ASX 200 follow the S&P 500 to double its March 2020 lows?

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Are you wanting to add some growth shares to your portfolio this month? If you are, then you may want to check out the two listed below.

Here’s why analysts are tipping these ASX shares as buys:

Bapcor Ltd (ASX: BAP)

The first ASX growth share to look at is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.

Earlier this week, Bapcor released its full year results and revealed strong sales and profit growth. For the 12 months ended 30 June, the company reported a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million.

This was driven by growth across the business. Bapcor’s CEO & Managing Director, Darryl Abotomey, explained: “As was the case in the first half of the year, every one of our business segments increased revenue and earnings, capitalising on the increased demand during the period while at the same time also delivering major projects across the group that will set us up for continued success.”

And while management’s guidance for FY 2022 was somewhat cautious, the team at Credit Suisse remain positive.

In response to the release, the broker has retained its outperform rating and trimmed its price target ever so slightly to $9.20.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the Australian appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Breville was on form in FY 2021 and has also just delivered a stellar full year result. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.

The company’s CEO, Jim Clayton, explained that its international expansion and the work from home initiative were key drivers of its strong result.

He commented: “A fairly remarkable year for the Group with accelerated demand experienced in the first half carrying through to the second half. Increased consumer demand, driven by the need/requirement to work from home, coupled with our continued geographic expansion, outweighed logistical challenges and a weakening USD.”

In response to the result, Morgan Stanley retained its overweight rating and lifted its price target to $36.00. It expects its strong form to continue and is forecasting further strong earnings growth in FY 2022.

The post 2 fantastic ASX growth shares named as buys this week appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
• The Bapcor (ASX:BAP) share price is rising after FY21 earnings on Wednesday

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 Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re wanting to add some diversification to your portfolio, then you might want to look at exchange traded funds (ETFs). The reason for this is that ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs which are popular with investors. Here’s what you need to know about them:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors exposure to a diversified portfolio of 48 fairly priced US companies with sustainable competitive advantages or moats.

Historically, companies with moats have generated strong returns for investors. It is for this reason that Warren Buffett is such a big fan of investing in companies with this characteristic. And given the returns he has generated over the long term, it is hard to argue against this.

Among the ETF’s holdings are the likes of Alphabet (Google’s parent), Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, Salesforce, and Yum! Brands.

Over the last five years, the fund has outperformed the ASX 200 index by some distance. During this time, it has generated an average total return of 19.4% per annum.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,505 of the world’s largest listed companies from major developed countries.

The fund manager notes that this ETF gives investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the many companies investors will be buying a slice of are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Procter & Gamble, and Visa.

Over the last five years, the Vanguard MSCI Index International Shares ETF has generated a total return of almost 15.3% per annum.

The post 2 excellent international ETFs for ASX investors this month appeared first on The Motley Fool Australia.

More reading

• This Buffett-inspired ASX ETF is up almost 30% in just 6 months
• Why these 2 top ETFs could be buys
• ASX investors can’t get enough! ETF inflows hit new record high
• 3 excellent ETFs for ASX investors in August
• 2 ASX shares that might be worth looking at this weekend

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 VanEck Vectors Morningstar Wide Moat ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a wild day of reporting on the ASX today. While we can’t fit all of the day’s results into a single article, we’ll take a look at some of the biggest names.

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

Those that delivered today

Origin Energy Ltd (ASX: ORG)

Shares in Origin Energy fell 4.12% after the energy company reported its FY21 full-year results. A reduction in revenue and a significant loss on the bottom line appear to have caught investors off guard during Thursday’s session.

The takeaway points:

• Total group revenue down 8% to around $1.2 billion
• Around $2 billion of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) – 35% less than in FY20
•  Statutory loss of approximately $2.2 billion
• Underlying profit of $318 million
• Unfranked 7.5 cent final dividend – 2.5 cents less than FY20’s final dividend.

Redbubble Ltd (ASX: RBL)

The Redbubble share price swung violently after reporting on the ASX its full-year results for FY21 before the market opened. In early trade, shares in the e-commerce company dropped roughly 14%. However, by the end of the day, the share price was up 18.95%.

The takeaway points:

• Gross transaction value up 48% on the prior year to $701 milliion
• Marketplace revenue increased to $553 million, up 58%
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $53 million, up 930% from FY20
• Net profit after tax swung from a loss of $9 million in FY20 to a profit of $31 million
• Unique customers climbed to 9.5 million, up 40% from prior year.

Treasury Wine Estates Ltd (ASX: TWE)

While Treasury Wine Estates delivered an FY21 result mostly in line with guidance, shares in the winemaker sank 1.5%. Import duties on Australian wine put in place by China took a toll on earnings from the Asia geography. Yet, the company remained positive on growth for key markets outside of China.

The takeaway points:

• Net sales revenue down 3% to $2,569.6 million
• Earnings before interest, tax, SGARA and material items (EBITS) down 0.4% to $510.3 million
• EBITS margin increased 0.6ppts to 19.9%
• Net profit after tax up 1.8% to $250 million
• Fully franked final dividend up 62.5% to 13 cents per share, bringing full year dividend to 28 cents per share.

ASX shares reporting tomorrow

Tomorrow will be a bit quieter on the ASX for reporting. However, there will still some ASX shares that likely ring a bell.

Some of the big-name companies set to release their financials include Cochlear Ltd (ASX: COH), Sydney Airport Holdings Pty Ltd (ASX: SYD), Adairs Limited (ASX: ADH), and Bravura Solutions Ltd (ASX: BVS).

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

The post The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Redbubble soars, TWE falls
• Why BHP, Codan, IGO, & Origin shares are dropping
• Redbubble (ASX:RBL) share price bounces 40% off Thursday lows
• Why Data#3, NRW, Redbubble, & Western Areas shares are storming higher
• Treasury Wine Estates (ASX:TWE) share price struggles despite profit increase

Motley Fool contributor Mitchell Lawler 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 Treasury Wine Estates 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 Beacon Lighting Group Ltd (ASX: BLX) share price pushed higher today, finishing up 3.95% to $1.98 per share at market close.

This comes after the lighting specialist company released its full year results for the 2021 financial year (FY21) this morning.

We take a look at the highlights below.

Beacon Lighting share price lifts on FY21 results

• Sales increased 14.7% to $288.7 million
• Gross profit of 197.3 million, an increase of 23.1% year-on-year
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37.4% to $85.96 million, up from $62.57 million in FY20
• Net profit after tax (NPAT) of $37.66 million, up 69.4% from the $22.23 million reported in FY20
• Record dividend of 8.80 cents per share (fully franked) declared for FY21, up from 5 cents in FY20

(*Note, the above results are statutory.)

What happened during the 2021 financial year?

Reporting on its record sales and profit results, Beacon Lighting revealed that its company store comparative sales increased by 13.3% year-on-year. Meanwhile, online sales were spurred to a new record by COVID stay at home orders, increasing 60.3%. And international sales soared 45.3% to a record $12.3 million.

Beacon Lighting also opened 4 new stores during the financial year, with 1 new store in Queensland, 2 in New South Wales, and 1 in Western Australia.

In line with record online sales, the company upgraded its website for a smoother customer experience.

While revenues were up, operating expenses were down, falling by 3.6% of sales to $112.2 million.

Beacon ending the year with a cash balance of 33.8 million following investment property purchases totalling $15.2 million.

The company cautioned that rolling state lockdowns continue to impact its retail sales.

What’s next for Beacon Lighting

Looking ahead, the company plans to open more new stores, with 2 slated to open in Western Australia and 1 more in Victoria. It will relocate 2 existing stores in New South Wales, 1 in Victoria and 1 in Queensland.

Beacon Lighting also reported it will launch beaconlighting.us direct to a consumer sales website in the United States. It also plans to expand its international sales of Australian Designed products into the China market.

It said it will continue to target a dividend payout ratio in the range of 50–60%. The Dividend Reinvestment Plan remains suspended until further notice.

The Beacon Lighting share price is up 45% over the past full year.

The post Beacon Lighting (ASX:BLX) share price shines on record profit results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 fantastic ASX growth shares named as buys this week
• 2 excellent international ETFs for ASX investors this month
• The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine
• ASX 200 drops, Redbubble soars, TWE falls

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 0.5% today to 7,465 points.

Here are some of the highlights from the ASX:

Redbubble Ltd (ASX: RBL)

The Redbubble share price soared around 19% after the company’s FY21 result.

Redbubble reported that its marketplace revenue increased by 58% to $553 million, with gross profit rising by 66% to $223 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 930% to $53 million, whilst earnings before interest and tax (EBIT) was $39 million (up from a loss of $9 million).

Redbubble’s net profit after tax was $31 million, also up from a loss of $9 million. Operating cashflow increased from $47 million to $55 million.

Artist and customer numbers also increased, rising 54% and 40% respectively.

Redbubble said that it’s now cycling against strong prior period comparatives, particularly as mask sales contributed $57 million to marketplace revenue in FY21.

Excluding mask sales, Redbubble is expecting FY22 marketplace revenue to be slightly above FY21 underlying marketplace revenue. Whilst the first half of FY22 is expected to show a decline of sales, the second half is expected to show a “steady return” to year on year growth rates that will meet its medium-term goals.

Redbubble is going to make investments to improve the customer experience and grow the business.

Management said the business remains confident and excited about the medium and longer-term opportunity to grow strongly and extend Redbubble’s global market leadership as the largest marketplace for independent artists.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates also reported its FY21 report. The Treasury Wine Estates share price dropped 1.5% in response.

The ASX 200 share revealed that its FY21 net sales revenue fell 3% to $2.57 billion. But that represented 1.3% growth in constant currency terms. FY21 Earnings before interest, tax, SGARA and material items (EBITS) fell 0.4% to $510.3 million, with constant currency growth of 2.8%

Net profit after tax increased 1.8% to $250 million and went up 5.5% in constant currency. Earnings per share (EPS) came in at 34.7 cents, which was also growth of 1.8% in reported terms and 5.5% growth in constant currency.

The Asian division reported a 15% decline in EBITS to $205.4 million and an EBITS margin of 36.3% (a decline of 2.8 percentage points). Shipments to China “significantly” reduced after import duties were imposed on Australian wine. Mainland China EBITS declined $77.3 million in FY21. The impact was partially offset by continued growth across the rest of the region.

Treasury Wine Estates decided on a final dividend of 13 cents per share, an increase of 62.5% on the final dividend.

The Treasury Wine Estates CEO Tim Ford said:

In FY22, we enter a new phase for TWE under our brand portfolio divisional operating model, led by Penfolds, Treasury Premium Brands and Treasury Americas. Whilst it’s early days in the change program, it is already very clear to our teams that with each division focused on their unique strategic priorities and performance accountabilities, we are better positioned to take advantage of previously untapped growth opportunities across the globe. This is a truly exciting stage in our journey as we progress deliberately at pace towards our ambitions and goals.

Western Areas Ltd (ASX: WSA)

The Western Areas share price surged 13% after confirmed that it was in the early stages of talks with IGO Ltd (ASX: IGO).

Those discussions are about whether IGO, an ASX 200 share, will put forward a proposal to buy the Western Areas business. But the current talks are about the basis upon which engagement and due diligence between the parties could proceed.

But neither business could provide any assurance that a transaction would occur.

The IGO share price fell by 6% today.

The post ASX 200 drops, Redbubble soars, TWE falls appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine
• Here are 3 of the heaviest trading ASX 200 shares this Thursday
• Here are the top 10 ASX 200 shares today
• These ASX 200 bank experts are forecasting a bumpy ride for our economy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 CSL Limited (ASX: CSL) share price was back on form on Thursday.

The biotherapeutics giant’s shares ended the day 3% higher at $302.83.

Why did the CSL share price push higher?

Today’s gain by the CSL share price appears to have been driven by a broker note out of Morgans.

According to the note, the broker has retained its add rating and lifted its price target on the company’s shares by 8% to $324.40.

Based on the latest CSL share price, this price target implies potential upside of 7%.

What did Morgans say?

Morgans was pleased with CSL’s “solid” FY 2021 results, noting that it beat both on the top and bottom lines.

For the 12 months ended 30 June, CSL deliver a 9.6% increase in revenue to US$10,310 million and a 10% lift in net profit after tax to US$2,375 million. This compares to Morgans’ estimates of US$9,816 million and US$2,174 million, respectively.

The highlight for the broker was the company’s Seqirus business. It recorded strong sales and earnings growth thanks to increased demand for seasonal flu vaccines.

Morgans commented: “Seqirus was the standout, on strong demand for influenza vaccines, while Behring was more modest, as Albumin gains on transition to a direct China distribution and cost-outs were offset by Ig/Specialty/Haemophilia growth flattish to down.”

And while the broker notes that FY 2022 will be a transitional year and that plasma collection headwinds continue, it remains positive on the company.

“Improving plasma collections are a prelude to a steepening earnings trajectory, but timing is everything, with a lengthy manufacturing cycle (9-12mos), higher costs and ongoing COVID pandemic, adding uncertainty for a quick turnaround.”

“We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs,” it concluded.

The CSL share price is up 6% in 2021.

The post CSL (ASX:CSL) share price charges higher on bullish broker note appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: BHP Group, Domino’s, CSL
• What you need to know about the CSL (ASX:CSL) dividend dates in 2021
• Passive income your thing? These 3 ASX dividend shares just declared bigger payments
• Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today
• What is the outlook for the CSL (ASX:CSL) share price following FY21 results?

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

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The Rio Tinto Limited (ASX: RIO) share price sunk today despite no market-sensitive news being released by the company.

At the final bell, Rio Tinto shares were at an 8-month low of $107.17, down a sizeable 5.73%. This means the company’s share price has lost almost 18% in the past week alone.

What’s happening with Rio Tinto?

Investors have been selling off Rio Tinto shares following the mining giant’s strong FY21 half-year result announced in late July.

A possible catalyst for the recent Rio Tinto share price weakness could be an issue with the Oyu Tolgoi mine in Mongolia.

According to an article in the Wall Street Journal, Rio Tinto has been accused of mismanagement at the mine. Allegedly, this has been the cause of a $1.4 billion cost overrun to build an underground pit at the giant copper site.

Rio Tinto said the cost blowout was attributed to challenging ground and geotechnical conditions encountered. However, this reasoning was rejected in a report commissioned by the owners of the Oyu Tolgoi mine.

Rio Tinto advised that it will review the 157-page report by the Independent Consulting Group. Once concluded, it will present its findings to the board of Oyu Tolgoi LLC.

Rio Tinto has an indirect interest in the mine through its 50.8% shareholding in Canadian-listed Turquoise Hill Resources. The remaining stake is held by Oyu Tolgoi LLC, of which Turquoise Hill Resources owns 66%, and the Mongolian government.

Further weighing down the Rio Tinto share price could be weakness in the iron ore spot price. The steel-making ingredient has dropped 5% in the past week and 30% in the past month after hitting record highs in May.

Rio Tinto share price snapshot

Over the last 12 months, Rio Tinto shares have gained just 5%, with year-to-date swinging the other way, down 5%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has travelled 21% higher since this time last year. For 2021, the ASX 200 is up almost 14%.

Based on today’s price, Rio Tinto commands a market capitalisation of roughly $39.7 billion, with approximately 371.2 million shares outstanding.

The post Why the Rio Tinto (ASX:RIO) share price plunged 6% today appeared first on The Motley Fool Australia.

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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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