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The 4DMedical Ltd (ASX: 4DX) share price is soaring today after the company released its latest quarterly activity and cash flow report.

The medical technology company announced COVID-19 vaccines have allowed it to increase its commercial activities over the quarter ended 30 June 2021.

Right now, the 4DMedical share price is $1.44. That’s 5.49% higher than it was at Friday’s close.

Let’s take a closer look at the quarter that’s been for 4DMedical.

What’s driving the 4DMedical share price higher?

The 4DMedical share price is gaining on news of a successful fourth quarter.

The company has surpassed numerous clinical milestones. Additionally, the US COVID-19 vaccination rollout has given the company more access to hospitals and medical institutions.

Therefore, it believes its sales and marketing events will ramp up over the coming months.

Financial update

Over the June quarter, 4DMedical received $7.1 million in government grants and tax incentives. It also received a $600,000 customer receipts.

4DMedical spent $8.3 million on research and development, staffing, administration, and general operating. Its net operating cash outflows were $585,000.

At the end of the quarter just been, 4DMedical had $80.9 million of cash in the bank.

Clinical trails

The 4DMedical share price is likely higher due to productive clinical trials.

4DMedical now has 8 clinical trials approved by the US’s Institutional Review Board (IRB).

Over the quarter, participants for 4DMedical’s XV LVAS clinical trial began to be recruited.

The trial aims to find if XV LVAS can help treat patients with chronic obstructive pulmonary disease (COPD).

4DMedical says COPD is the third highest cause of death in the world and a “multi-billion dollar opportunity for 4DMedical’s non-invasive, low dose technology”.

4DMedical also entered a partnership to place XV LVAS at 8 US clinical sites.

There, between 75 and 100 late-stage COPD patients undergoing endobronchial valve procedures will be evaluated.

Finally, 4DMedical began the first clinical trial of its contrast-free Ventilation-Perfusion product.

The trial will be conducted in partnership with the University of Miami with the goal of speeding up the development of breakthrough lung technologies.

The company has also made headway with XV LVAS’s pilot programs. They’re reportedly going well and could evolve into future commercial relationships.

Other news

Its financial and clinical performance hasn’t been all that’s driven the 4DMedical share price lately.

Over the quarter, 4DMedical received a US$600,000 order from the University of Michigan.

The university bought one of 4DMedical’s Permetium preclinical scanners and associated XV Technology.

Finally, 4DMedical subsidiary Australian Lung Health Initiative received $28.9 million of funding from the Australian federal government’s Medical Research Future Fund.

The finds will go towards developing the XVD Scanner which analyses lung function.

Additionally, 4DMedical completed a $40 million capital raise and a $6 million share purchase plan to assist in the funding of this development.

4DMedical share price snapshot

Despite today’s good news, it’s still a bad year for the 4DMedical share price.

4DMedical’s shares have dropped more than 40% year to date. They are also trading for 9% less than they were this time last year.

The company has a market capitalisation of around $401 million, with approximately 294 million shares outstanding.

The post Here’s why the 4DMedical (ASX:4DX) share price is gaining today appeared first on The Motley Fool Australia.

More reading

• Is the Altium (ASX:ALU) share price in the buy zone?
• Crown (ASX:CWN) share price drops following scathing written submission
• What to look for when Rio Tinto (ASX:RIO) reports on Wednesday
• Santos (ASX:STO) share price sinks despite record first oil announcement
• ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens

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 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 Altium Limited (ASX: ALU) share price is pushing higher on Monday morning.

At the time of writing, the electronic design software platform provider’s shares are up 1% to $33.45.

Despite this and some strong recent gains, the Altium share price is still down 3% year to date.

Is the Altium share price in the buy zone?

This morning analysts at Bell Potter gave their verdict on the Altium share price.

According to the note, the broker has retained its hold rating and cut its price target by ~6.5% to $35.00.

Based on the current Altium share price, this implies modest upside of 4.5% over the next 12 months.

Bell Potter made the move in response to news that US software giant Autodesk has walked away from takeover talks.

What did the broker say?

Bell Potter commented: “With Autodesk walking away we have reduced the premium we apply in our relative valuations from 50% to 25%. The result is a 7% decrease in our PT to $35.00 which is <15% premium to the share price so we maintain our HOLD recommendation. We do not rule out further takeover interest in Altium though the lack of engagement by Altium with Autodesk suggests valuation will be an obstacle in the short to medium term.”

Outside that, there are no changes to the broker’s forecasts for Altium. It continues to forecast FY 2021 revenue and EBITDA close to the low end of Altium’s guidance ranges for both. In addition, its analysts continue to forecast FY 2022 and FY 2023 revenue and EBITDA consistent with the guidance ranges in both years.

Bell Potter’s estimates are for revenue of US$179.2 million in FY 2021, US$206.5 million in FY 2022, and then US$249.5 million in FY 2023. Whereas EBITDA is expected to be US$67.2 million, US$79 million, and US$97.9 million, respectively, over the same period.

And finally, for earnings per share, Bell Potter has pencilled in 32.2 US cents, 37.2 US cents, and 47.6 US cents between FY 2021 and FY 2023. This means the Altium share price is trading at 66x FY 2022 earnings and 51x FY 2023 earnings.

The post Is the Altium (ASX:ALU) share price in the buy zone? 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 Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 Crown Resorts Ltd (ASX: CWN) share price has lost all of its gains since it was initially approached for takeover by Blackstone Group Inc (NYSE: BX).

At the time of writing, shares in the casino operator are trading for $9.86 – down 1.6%. The S&P/ASX 200 Index (ASX: XJO), on the other hand, is 0.17% higher.

The negative price movement comes after counsel assisting the Victorian Royal Commission into the suitability of Crown Melbourne’s casino licence said “it is not in the public interest that Crown Melbourne continue to hold the casino licence in Victoria.”

Let’s take a closer look.

“It is open…to doubt whether [the government] could ever trust Crown Melbourne again”

Crown Resorts took a beating during oral closing arguments at the Royal Commission and is still being pummelled in the written submission.

Counsel assisting says the commission has only two choices:

1. Cancel the Crown Melbourne licence.
2. Allow it to be retained on the proviso of massive changes at the company.

While counsel assisting says it is possible for Crown to reform, it will take a “complete, holistic, bottom up” approach that could take years and possibly cost millions of dollars. They go on to argue it is not feasible for Crown to be left unsupervised if it were to be allowed to reform.

These harsh words are leaving a scar on the Crown share price this morning.

Interestingly, the submission explicitly does not recommend how Crown should reform if the Royal Commission does intend to not cancel its licence. It does, however, say 2023 would be an appropriate benchmark for assessing whether reforms at the company have been successful.

Quoting from the submission:

At this point in time, it is not possible for this Commission to prescribe or describe with any particularity or precision what actions would be required for Crown Melbourne and Crown Resorts to become suitable.

The appropriate sanction would be a matter for the [Victorian Commission for Gambling and Liquor Regulation] VCGLR in the exercise of its discretion under s 20 of the CCA. It would not be desirable to limit the VCGLR’s discretion by suggesting a prescriptive pathway to suitability.

Any reform will not be possible under Chair Helen Coonan or Crown Melbourne CEO Xavier Walsh, according to counsel assisting.

The evidence presented against Crown was so bad, Star Entertainment Group Ltd (ASX: SGR) pulled its bid to buy the company.

What if the Crown licence was cancelled?

Counsel assisting says if Crown’s licence were to be cancelled, it should not be done with immediate effect.

Cancellation of the casino licence with immediate effect, for example, would be highly disruptive – having the potential to cause significant harm to many third parties who have had no involvement whatsoever in the misconduct of Crown Melbourne over the years. The impact of immediate cancellation would likely have inestimable negative consequences for many people, at least in the short term.

Any cancellation of the casino licence would need to provide adequate time for adjustment, including but not limited to, the conduct of an application process for a new licensee. A deferral of the date of cancellation could provide for a period within which a more orderly transition to a new licensee can be achieved – say a year to eighteen months.

The submission leaves open the possibility that Crown could reapply for its licence after it is cancelled if that were to eventuate.

It should be noted any recommendations that come out of the Royal Commission are just that – recommendations. It will be up to the Victorian Government to decide what to do with that advice.

Analysts do not believe the company’s Victorian licence will be cancelled. Investors may think different, judging by the fall in the Crown share price.

Crown share price snapshot

Over the past 12 months, the Crown share price has increased 9%. Despite the negative press coverage and reputational damage, it has faced, it naturally rebounded from last year’s COVID market sell-off.

With Australia’s east coast gripped by the delta variant of the virus, business is currently down at its resorts. This may also be influencing investors to sell their shares in Crown.

Crown Resorts has a market capitalisation of around $6.7 billion.

The post Crown (ASX:CWN) share price drops following scathing written submission appeared first on The Motley Fool Australia.

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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 Rio Tinto Ltd (ASX: RIO) share price has struggled to break its May record high of $132.94 in the past few weeks.

The mining giant is expected to make an early appearance for reporting season.

According to the company’s website, its half-year results will be announced on Wednesday, 28 July.

With Rio Tinto’s results right around the corner, here’s what investors might want to look out for.

Iron ore shipments to be at low end of guidance

Rio Tinto released its second-quarter production results on 16 July.

The update set expectations that iron ore shipments for the full year FY21 will be at the lower end of its guidance range.

Rio Tinto Chief Executive Jakob Stausholm said, “We faced some challenges in the first half, notably at our Pilbara operations which were impacted by replacement mine tie-ins and materially higher rainfall.”

Rio Tinto’s second-quarter results flagged a 9% decline against the prior corresponding period in iron ore production from its Western Australia Pilbara operations, while shipments from the region also tumbled 12%.

The company blamed coronavirus-related restrictions, with Stausholm saying:

“Heightened COVID-19 constraints, which resulted in numerous travel restrictions, added further pressure on the business and limited our ability to access additional people, particularly in Western Australia and Mongolia, in order to deliver operational improvements or maintenance initiatives and accelerate projects.”

On the day of this announcement, the Rio Tinto share price opened 1.53% lower to $129.13 before closing down just 0.41% to $130.60.

Resilient iron ore prices

While production and shipments might be a slight disappointment, iron ore prices have continued to buoy the Rio Tinto share price.

The second-quarter production results provided positive commentary for both the global economy and iron ore markets. Rio Tinto said that:

The iron ore price has remained resilient on a surge in demand while supply has struggled to keep pace. China’s steel demand is up 5% year on year in the first half, with the construction and automotive sectors performing strongly.

Consumption was also robust across the rest of the world, with demand recovering +15% in 2021 versus 2020. The major iron ore producers’ supply continues to lag expectations, while high cost supply balances the overall market.

According to the second-quarter results, average pricing in the first half for Rio Tinto’s iron ore was US$154.9 per wet metric tonne on an FOB (free on board) basis.

Benchmark iron ore prices remain strong at more than US$215/tonne.

About the Rio Tinto share price

The Rio Tinto share price has rallied 13.29% year-to-date, in line with the 12.47% increase in the S&P/ASX 200 Index (ASX: XJO).

According to Commsec, Rio Tinto is forecast to deliver a HY21 net profit after tax (NPAT) of US$13 billion.

The post What to look for when Rio Tinto (ASX:RIO) reports on Wednesday appeared first on The Motley Fool Australia.

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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 Santos Ltd (ASX: STO) share price has dipped into the red in early trading this morning.

Today’s slump comes after the company announced first oil from its Van Gogh Phase 2 infill development off the coast of Western Australia.

Let’s take a look at what the oil and gas producer said in its release.

Record production rate at Van Gogh

The news from Santos regarded the first of three new production wells at Van Gogh. The well had produced oil “at the highest initial rate from an individual well in field history”.

The first well produced a peak rate of 23,000 barrels of oil per day after completion and tie-in. Santos explains this is “well ahead of expectations for a single well”.

The progress comes as the drilling of the “second, horizontal, dural lateral production well” is now in situ. This comes 16 months after the final investment decision.

Speaking on the announcement, Santos chief executive Kevin Gallagher said:

We have seen an excellent reservoir outcome from this first well with a larger oil column than expected and a total horizontal section of 5,430 metres, which is 490 metres more than originally planned.

Gallagher added:

The Van Gogh crude oil is also a highly sought-after product, and the premium to Brent that we get allows further value to be realised beyond the current oil price.

Santos holds a 52.5% equity interest at the project, which it operates. Inpex Corp owns the remainder.

Investors responded to the announcement, pushing the Santos share price down 1.37% to $6.48 apiece when the market opened, before making up some ground. Santos shares are currently trading at $6.53 apiece at the time of writing.

Santos share price snapshot

The Santos share price has posted a year to date return of 4.15%. This extends the previous 12-month return of 17%.

These returns have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of ~23% over the last year.

Santos has a market capitalisation of $13.6 billion at the time of writing.

The post Santos (ASX:STO) share price sinks despite record first oil announcement appeared first on The Motley Fool Australia.

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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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S&P/ASX 200 Index (ASX: XJO) travel shares could face a new round of pressure as the COVID-19 Delta variant wreaks havoc on reopening plans.

Case numbers in South Australia and Victoria are trending sharply lower, with South Australia potentially exiting its weeklong lockdown tomorrow evening.

But daily infection rates in New South Wales remain above 100. Which means ASX 200 travel shares are unlikely to benefit from the trans-Tasman travel bubble. That’s the quarantine free travel corridor which breathed fresh hope into the industry when it first opened on 19 April.

New Zealand moves goal posts for travel bubble

On Friday, Prime Minister Jacinda Ardern announced a 2-month suspension of the vaunted travel bubble. (Details here.) Free travel between the 2 nations ended Friday at midnight, with Kiwis urged to return home before quarantine restrictions come back into force.

Now, in further tightening New Zealand’s trans-Tasman policy, the nation will look at Australia’s infection numbers as a whole, and no longer on a state by state basis as it had done previously.

Meaning not even travellers from Australian states declared free of community COVID infections will be allowed into the country until further notice.

According to New Zealand’s Deputy Prime Minister Grant Robertson (speaking to TVNZ and quoted by msn.com):

The precautionary approach says you need to look at this Australia-wide. The reality, particularly on the mainland of Australia, is that unfortunately those are big borders … once (Delta) gets in there it is difficult to contain. We still think we can operate a trans-Tasman travel bubble but we think we need to have Delta under control.

With domestic travel still hampered in Australia due to rolling state border closures, you can almost hear investors in ASX 200 travel shares cheering on the rollout of effective vaccines.

How these ASX 200 travel shares moved post vaccine

You probably remember the jubilation that greeted the announcements of effective COVID vaccines late last year.

Not 1 but 3 different vaccine makers came out with positive news in early November 2020.

The forward looking share market was quick to react to the earliest rumours of their pending success.

Buoyed by hopes that the world was on track to return to normality, the ASX 200 gained 8.1% in the first 2 weeks of November.

But few shares enjoyed as much of a lift from the vaccine hopes as ASX 200 travel shares.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price, for example, soared 23.3% in the first 2 weeks of November 2020 trading.

The Qantas Airways Limited (ASX: QAN) share price leapt 22%

And the Flight Centre Travel Group Ltd (ASX: FLT) share price rocketed 39.1%.

With ASX 200 travel shares still trading well below their pre-pandemic levels, investors will be keeping a keen eye on the Delta variant and the outlook for a return to frequent flying.

The post ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens appeared first on The Motley Fool Australia.

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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 Betmakers Technology Group Ltd (ASX: BET) share price is on the move today.

This morning’s price increase follows the company releasing its results for Q4 FY21. At the time of writing, shares in the wagering data provider are 1.62% higher to 94 cents.

Let’s run through the latest figures.

Pushing the BetMakers share price higher

Investors are bidding up the BetMakers share price today following its fourth-quarter results. To the delight of shareholders, the company delivered its strongest quarter to date.

According to the release, BetMakers achieved $8.91 million in cash receipts from customers during the quarter. This represents an increase of 75% on the prior quarter and a significant 272% lift from the prior corresponding period.

The company explained the notable jump was from an increase in activity in the Australian market. This was alongside early positive results from BetMakers’ international expansion plans.

Notably, the fourth quarter result includes only approximately 2 weeks of cashflows from its Sportech racing acquisition.

Furthermore, the company remains debt-free and finished Q4 with more than $120 million in cash on its balance sheet.

On that note, BetMakers revealed it intends to be opportunistic with continued investment in its B2B wagering technology and data platforms.

The BetMakers’ share price is up almost 99% over the past 12 months.

CEO commentary

Hailing the record result, Chief Executive Officer Todd Buckingham said:

The past quarter is a very pleasing result for the Company. We have seen an impressive uplift on our strong base of domestic operations while also capturing growth in global markets that we have identified as having the potential to be opportunities for us to expand our B2B wagering technology products and services globally as they continue to develop.

Mr Buckingham also added:

BetMakers has a very clear strategy for growth in Australia and internationally. This includes in the United States where our Fixed Odds plans, starting in New Jersey, progressed during Q4 FY21 after being passed unanimously by the Senate and General Assembly

Following the slight rise in the BetMakers share price, the company’s market capitalisation is now $800 million.

The post BetMakers (ASX:BET) share price up on record results appeared first on The Motley Fool Australia.

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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. 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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The Boral Limited (ASX: BLD) share price is trekking slightly lower today following the company’s update on its Australian timber business. 

During morning trade, Boral shares are fetching for $7.40, down 0.13%. It’s worth noting that its shares are near its 52-week high of $7.43 reached last week.

Boral agrees to sell timber business

In today’s statement, Boral announced it has entered into an agreement with Allied Natural Wood Enterprises (ANWE) to sell its Australian hardwood and softwood timber business.

Headquartered in New South Wales, Australia, ANWE is a leading wood products export marketing and logistics company. ANWE concentrates on the export of woodchip and other wood products to the international markets. The company is part of the Pentarch Group, an established Australian logistics business.

Under the deal, Boral will sell its timber business for $64.5 million. The agreement is subject to the usual customary conditions upon closing the transaction.

The proceeds of the sale will be used to improve the company’s net debt position after allowing for reinvestment needs. Any remaining monies left over will be distributed to shareholders.

Boral noted that the divestment is in line with its strategy of focusing on strengthening its core assets and delivering improved returns.

Boral CEO and managing director, Zlatko Todorcevski commented:

The sale of Boral’s Timber business represents another important milestone in focusing our portfolio and positioning for the future.

In Australia, our focus is on our leading integrated construction materials business and maturing our adjacent growth strategies such as recycling, waste, supplementary cementitious materials and lower carbon products.

The sale of Boral’s Timber business to the Pentarch Group, a private company with growing interests in the forest products sector, is a good outcome for this business and its customers.

The sale is expected to be completed sometime later this year.

Boral share price snapshot

In the last 12 months, Boral shares have continued to accelerate, posting a gain of close to 100%. Year-to-date, the company’s share price has jumped around 50% to hit a 52-week high of $7.43 last Wednesday.

Boral presides a market capitalisation of around $8.1 billion, with over 1.1 billion shares on its books.

The post Boral (ASX:BLD) share price edges lower on divestment news 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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The Core Lithium Ltd (ASX: CXO) share price has started the week strongly.

In morning trade, the lithium explorer’s shares are up 5% to 30 cents.

This latest gain means the Core Lithium share price is up 76% since the start of the year.

Why is the Core Lithium share price charging higher today?

The catalyst for the rise in the Core Lithium share price today was the release of a positive announcement this morning.

According to the release, the company has successfully completed the definitive feasibility study (DFS) at the Finniss Lithium Project.

The release explains that the Stage 1 updated DFS confirms that Core Lithium is well positioned to be the next lithium producer in Australia.

Positively, the study found it to have excellent DFS economics. Management notes that this is reflected in reserves-backed pre-tax IRR of 53% and pre-tax net present value of $221 million and life-of-mine EBITDA of $561 million from revenue of $1.3 billion.

Furthermore, the project has low initial capital expenditure of $89 million (including pre-production mining costs). This enables a two-year payback and confirms Finniss as one of Australia’s lowest capital intensity lithium projects.

The life-of-mine average C1 operating cost is estimated to be US$364 per tonne concentrate, which it expects to generate a robust average operating margin of more than US$370 per tonne.

Lithium fines

In addition to this, the study found that Core Lithium could potentially produce and sell approximately 110,000tpa of lithium fines with grading of approximately 1.0% Li2O, with no incremental mining activities required

Positively, this would come with low incremental capital cost of $8.4 million and marginal operating costs for processing, storage, haulage to port and ship loading of US$21/t of lithium fines.

Furthermore, Core Lithium has received non-binding interest from potential offtake partners for lithium fines by-product. This includes interest with indicative pricing between US$75 to US$85 per tonne.

Another positive from this is that it has the potential to also reduce tailings stream and waste impact on the environment.

Management commentary

Core Lithium’s Managing Director, Stephen Biggins, said: “The Definitive Feasibility Study confirms Finniss Lithium Project as a simple, low risk and low capital intensity project with high cash generating potential, and puts Core on track to become Australia’s next lithium producer.”

“The study highlights the Project’s attractive combination of high-grade Ore Reserves, simple DMS processing producing a high quality concentrate, and proximity to nearby existing infrastructure including the Port of Darwin.”

What’s next?

Mr Biggins advised that the company will now aim to finalise its funding before making a final decision on whether to go ahead with the project later this year.

He commented: “With the updated DFS now completed, we aim to finalise funding over the coming months, to allow Core to make a Final Investment Decision in 2021 and fast-track construction. We are also maintaining our exploration momentum, with the aim to more than double the mine life and Resources of the Project.”

The post Why the Core Lithium (ASX:CXO) share price is charging 5% higher today appeared first on The Motley Fool Australia.

More reading

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• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
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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 GPT Group (ASX: GPT) share price is starting the week in negative territory on Monday morning. This comes after the property investment company announced an update on its earnings and distribution guidance for FY21.

At the time of writing, GPT shares are swapping hands for $4.64, down 2.32%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.1%, sitting at 7,394 points.

What did GPT announce?

In today’s statement, GPT advised that it has withdrawn its Funds From Operations (FFO) and distribution guidance for 2021.

The 12-month period to 31 December remains uncertain given the nature of COVID-19 and the associated state government measures taken. This is in particular to Melbourne and Sydney, where there is no timeline in which the states will ease restrictions.

Founded in 1971, GPT is a property investment company. The group owns and manages a diversified portfolio of Australian retail, office and logistics property assets.

GPT CEO, Bob Johnston commented on the company’s outlook:

In line with strengthening economic conditions, we have seen a strong recovery across our retail portfolio during the course of the first six months of this year. However, given the recent restrictions in both Sydney and Melbourne and the uncertainty as to when these restrictions will be lifted and the ongoing risk of additional measures, we believe it is prudent to withdraw FFO and distribution guidance for the full year.

GPT has a high-quality diversified portfolio, an exceptionally strong balance sheet and liquidity position, and we expect that we will see a recovery once normal trading conditions resume as we have experienced previously.

The company will release its 2021 interim results on 16 August along with providing a trading update on business performance.

About the GPT share price

It has been a mixed 12 months for GPT shares, rising in November 2020 and then backtracking in February. Since then, the company’s share price has gradually trekked upwards, reaching a 52-week high of $4.99 last month.

At today’s price, GPT commands a market capitalisation of roughly $9 billion, with more than 1.9 billion shares on issue.

The post Why the GPT (ASX:GPT) share price is backtracking 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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