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Is the Afterpay Ltd (ASX: APT) share price a buying opportunity? The buy now, pay later business just reported another quarter of strong growth to the market.

Afterpay’s FY21 third quarter

Total underlying sales went up 104% to $5.2 billion. In constant currency terms, underlying sales went up 123%.

There was a mixed level of growth across its main operating regions. North American underlying sales soared 167% higher to $2.6 billion, it’s now the biggest segment. ANZ underlying sales grew 48% to $2.1 billion. UK underlying sales jumped 246% to $0.5 billion.

The US became the first region to record more than $1 billion of underlying sales in a single month.  

Active customer growth also saw different levels of increases. UK customers went up 134% to 1.8 million, which will help future growth. North American customers grew 112% to 9.3 million. ANZ active customers only went up 9% to 3.5 million. Total active customers grew 75% to 14.6 million.

There was strong growth with its number of active merchants. Total active merchants grew 77% to 85,800. North American active merchants rose 154% to 23,200, ANZ merchants increased 49% to 57,700 and UK active merchants went up 672% to 5,000.

The rollout of its in-store presence in the US continues, with a number of new retailers going live in the first half of FY21. ANZ in-store volumes continue to recover and are now tracking near to pre COVID-19 levels.

The buy now, pay later business said that merchant revenue margins remain in line with what was reported in the six months to December 2020.

Repeat customers are becoming even more important for the Afterpay share price

Afterpay said that the network effect of its platform continues to drive increasing customer frequency across all regions.

The top 10% of customers globally, on average, now transact 33 times per year per year. That breaks down to around 23 times per year in the US, 62 times per year in ANZ and 29 times per year in the UK.

Europe growth incoming

Afterpay revealed that merchants with over $1.5 billion of total addressable online sales are live, integrating or signed in the EU after the completion of the Pagantis acquisition and launch of Clearpay across Spain, France and Italy in March 2021.

Is the Afterpay share price an opportunity?

Brokers have mixed thoughts on Afterpay shares.

Credit Suisse thought that this quarter was better than it expected and had solid customer growth, but not quite as good as its forecast. The broker decided to slightly decrease its forecast of underlying sales for FY21. It has a price target of $145 on Afterpay.

However, UBS still has a negative outlook on the Afterpay share price with a price target of $36. The broker noted the strong northern hemisphere growth, though the UK customer growth was a bit lower than expected.

In-particular, the broker noted that ANZ saw single digit customer growth because it has reached a certain size, which is why it decided to reduce its FY21 expectations for sales. But that doesn’t impact the medium-term outlook much.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Regis Resources Limited (ASX: RRL) share price is on the move in early trade following a pre-market announcement from the Aussie gold miner.

Why is the Regis Resources share price climbing?

There was a flurry of price sensitive announcements from Regis Resources this morning. All of those related to the Tropicana Gold Mine near Kalgoorlie, Western Australia.

IGO Ltd (ASX: IGO) announced that it has sold its 30% stake in the Tropicana Gold Mine. That sale comes after the satisfaction of a key condition precedent for the proposed transaction.

That was the waiver or non-exercise of a right of last refusal (ROLR) by AngloGold Ashanti Australia Limited. AngloGold Ashanti holds the remaining 70% interest in the mine but looks set to partner with Regis Resources.

Given AngloGold Ashanti has waived its ROLR, that paves the way for Regis Resources to snap up the 30% stake. The transaction will complete on or before 31 May 2021 and the Regis Resources share price has jumped higher accordingly.

Regis has entered a conditional binding agreement for the Tropicana stake for cash consideration of A$903 million. The acquisition remains conditional on the approval from the Minister for Mines and Petroleum to the “transfer of certain tenements”.

Regis Managing Director and CEO Jim Beyer said, “We are very pleased this critical condition has been satisfied and look forward to working closely with our new JV partner, AngloGold”.

“This acquisition provides significant strategic benefits to Regis and when combined with our existing assets, provides a larger-scale, longer-term financial and operating platform to pursue internal and external growth opportunities”, he added.

The Regis Resources share price jumped higher on the news with investors reacting well to the latest acquisition. At the time of writing, Regis shares were up 0.9% to $2.77 per share to start the day.

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Motley Fool contributor Ken Hall 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 Lynas Rare Earths Ltd (ASX: LYC) share price has come under immense selling pressure after the company revealed that Chinese producers were planning to increase production.

Among them, Northern Rare Earth will be doubling production within three years. This accounts for some 60% of China’s total rare earth production. 

This news sent the Lynas share price into free fall, shedding 13% in value in the last two trading sessions.

China has a near-global monopoly in rare earths production. This accounts for more than 55% of total global output. Between 2011 and 2017, fierce domestic competition and ignoring environmental protocols sent rare earth prices plummeting. Furthermore, placing Lynas on the brink of collapse.  

While China’s planned increase in production is met with a different set of circumstances today, it might be worth taking a trip down memory lane. 

The boom and bust for rare earth prices 

Rare earth oxides (REO) were fetching for as much as US$200/kg at their peak in 2011. However, as soon as China began to purge the market with supply, much of which was produced illegally, prices began to crash lower and lower. 

Lynas’ most recent quarterly update observes a steady improvement in REO prices. But the complete opposite was happening just a few years back. In its FY16 quarterly, REO prices went from A$17.2/kg in 1Q16 to as low as A$14.7/kg in 4Q16. The company was burning through cash and on the verge of collapse. 

Between the boom and bust of rare earth prices, the Lynas share price went from as high as $26.70 in April 2011. Prior to falling as low as 30 cents in October 2015. 

This could be why the Lynas share price is facing heavy selling pressure. Due to a significant amount of rare earths production is expected to hit the market in the medium term. 

However, it is also important to acknowledge that the supply increase is met under a different set of circumstances given the global multi-decade commitment to decarbonisation and electrification of vehicles. 

Lynas share price slumps for a third straight session

The Lynas share price dipped as much as 5.50% on open to $5.25. Its shares quickly bounced off lows and are currently trading 2.53% lower to $5.40. 

Its shares are caught in a tug-of-war. Caught between the potential impact that China might have on rare earth prices and the clear long-term demand for rare earths and renewable technology. 

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Motley Fool contributor Kerry Sun 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 Australian Pharmaceutical Industries Ltd (ASX: API) share price is dropping today following the release of its half year results.

At the time of writing, the pharmacy chain operator and distributor’s shares are down 5% to $1.28.

How did Australian Pharmaceutical Industries perform in the first half?

For the six months ended 31 March, the Priceline pharmacy owner reported a 2.6% decline in total revenue to $2 billion.

Things were much worse for its earnings, with underlying earnings before interest and tax (EBIT) falling 26.5% on the prior corresponding period to $32 million.

And on the bottom line it was a similar story, with underlying net profit after tax falling 30.3% to $17.7 million.

This led to the company declaring an interim dividend of 1.5 cents per share, which is down sharply on FY 2019’s interim dividend of 3.8 cents per share. Australian Pharmaceutical Industries didin’t pay a dividend in the first half of FY 2020 due to COVID-19.

What were the drivers of this result?

The main drag on its performance was its Retail business, which reported a 10.7% decline in revenue to $526 million and an 8% reduction in gross profit to $103 million.

The company’s Pharmacy Distribution performed better. It reported steady revenue at $1.46 billion and a small increase in gross profit to $114 million.

Outlook

No guidance was given for the full year. However, management commented that it remains confident about the growth potential of its two retail businesses and the reliability of its Pharmacy Distribution cash-generating business.

The company’s CEO and Managing Director, Richard Vincent, said: “We’ve taken the necessary measures to ensure we have the balance sheet to grasp all the growth opportunities that we’ve identified for our existing businesses and to make any additional moves that we deem will increase shareholder value. Our suburban retail businesses have rebounded strongly since COVID restrictions have eased and our negotiations with CBD landlords to achieve acceptable rental outcomes are ongoing.”

“We’ve made significant digital investments in the last year to prepare Priceline Pharmacy for growth, including in online shopping, instore health technologies, re-engineering our market leading loyalty program and securing new and exclusive product offerings and there will be further investments in this space over the next twelve months. Our strong track record in effectively managing flu vaccinations means we are better placed than most to quickly roll out COVID vaccinations. We’re incredibly conscious of the responsibility we have to get the rollout right to reduce the risk of COVID breakouts in our community,” he added.

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Motley Fool contributor James Mickleboro 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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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.

In its latest “event” (i.e., new product introduction) on Tuesday, Apple (NASDAQ: AAPL) unveiled a host of fresh products, most of which were improvements on existing offerings rather than entirely new goods.

Arguably the most impressive new hardware was the company’s latest iMac desktop. This comes in a range of bright colors (seven in total) and is the thinnest iMac yet. More importantly, it is powered by Apple’s recently introduced, proprietary M1 chip.

Apple also took the wraps off its new iPad Pro, which like the iMac has an M1 in its guts. Promising a “massive leap in performance,” among other improvements, this model boasts a Liquid Retina XDR display and an ultrawide-angle front camera.

Other product evolutions cover the Apple TV 4K, which has a new remote that is more suited to navigating on-screen options, and a purple color option for both the iPhone 12 and iPhone mini. One new item is the AirTag, a tracking device that hooks into the company’s Find My ecosystem, allowing users to keep tabs on their valuables.

Another fresh offering are Apple Podcasts Subscriptions, described as “a global marketplace for listeners to discover premium subscriptions offered by their favorite creators,” in addition to a vast and intimidating number of free-to-listen shows.

Lastly, there’s Apple Card Family. This allows holders of the eponymous credit card to establish a “family sharing group” that combines their credit lines and permits co-management between two members of that group.

While none of these individually feels as if it’ll be a game-changer, it’s encouraging to see the company continue striving to innovate and keep its lineup fresh. Apple-watchers should pay particular attention to feedback about the machines powered by the new(ish) M1; the company has pinned a lot of hope on that chip.

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

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Eric Volkman owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In morning trade, the Whispir Ltd (ASX: WSP) share price is pushing higher.

At the time of writing, the communications workflow platform provider’s shares are up 3% to $3.34.

Why is the Whispir share price pushing higher?

Investors have been buying Whispir’s shares following the release of its third quarter update.

According to the release, at the end of March, the company’s Annualised Recurring Revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was also up 5.2% since the end of the second quarter.

Management advised that this was driven by continued strong growth in net new customers. During the period, the company onboarded 43 new customers, bringing its total to 750. This is up from 558 this time last year.

Whispir also revealed a 22.5% increase in quarterly cash receipts to $10.9 million. This left it with a cash and equivalents balance of $51.7 million at the end of March. Management believes it is well-fund for growth.

Management commentary

Whispir’s CEO, Jeromy Wells, said: “Our successful capital raising during the Quarter ensures we are able to fast-track our product development and increase our sales and marketing capability to scale the business faster, particularly in Asia and North America where we have large addressable target markets. In ANZ, we are successfully using our land and expand strategy to not only acquire new customers but increase platform usage by our existing customer base.”

“While we are continuing to build our customer base, existing customers remain the primary driver of revenue growth. This reflects the stickiness of our platform which easily integrates with existing IT systems and can be used for multiple use cases.”

Outlook

Positively for shareholders and the Whispir share price, the company is on track to achieve its guidance for FY 2021.

This morning management reaffirmed its ARR guidance of $53 million to $55.3 million and revenue guidance of between $49 million to $51 million.

It also stressed that it remains focused on executing its long-term growth strategy; increasing customer numbers, platform usage, and revenue in ANZ, Asia and North America.

Mr Wells concluded: “Our strengthened balance sheet enables us to accelerate our international expansion to support our longer-term business objectives of 50% of total group revenue being generated internationally by the end of FY23. Given the strength of our ANZ business, we’re increasing our investment in technology and headcount in Asia and North America to drive customer acquisition and product-led growth.”

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

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The Redbubble Ltd (ASX: RBL) share price is crashing lower on Thursday morning.

In morning trade, the ecommerce company’s shares down a disappointing 12% to $4.84.

Why is the Redbubble share price crashing?

Investors have been selling Redbubble’s shares this morning following the release of its third quarter and year to date update.

In respect to the latter, for the nine months ended 31 March, Redbubble reported gross transaction value of $576 million and marketplace revenue of $456 million. This was up 85% and 82%, respectively, over the prior corresponding period.

Management revealed that a strong Australian dollar weighed on its financial performance during the period. On a constant currency basis, gross transaction value would have been up 94% and marketplace revenue would have jumped 97%.

This ultimately underpinned a 100% increase in year to date gross profit to $184 million and EBITDA of $51 million.

What about the third quarter?

While Redbubble’s top line growth is moderating, it remains very strong.

For the three months ended 31 March, gross transaction value increased 58% (79% in constant currency) to $134 million and marketplace revenue rose 54% (76% in constant currency) to $103 million.

Gross profit for the quarter was up 55% (78% in constant currency) to $40 million and EBITDA came in at $2.2 million.

The latter represents an EBITDA/Marketplace revenue margin of 2.1% for the quarter. This compares to its first half margin of 13.8%.

No explanation was given for the significant contraction in its margins. However, with its third quarter revenue approximately half of its second quarter revenue, this could have been the result of a reversal in operating leverage.

Whatever the cause, it seems to have caught the eye of investors today, leading to weakness in the Redbubble share price.

Today’s sizeable decline means that the Redbubble share price is now down 34% from its 52-week high.

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Motley Fool contributor James Mickleboro 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 is one to watch in early trade after the Aussie oil and gas giant’s latest quarterly result.

Why is the Santos share price in focus?

Santos provided an operational and financial update for the quarter ended 31 March 2021 (Q1 2021). The energy group reported “strong base business,” which helped generate US$302 million in free cash flow for the quarter.

Santos produced 24.9 million barrels of oil equivalent (mmboe) for the quarter, up 39 per cent on Q1 2020. That was largely thanks to the ConocoPhillips acquisition completed in May 2020, which helped boost capacity.

Production was down 2 per cent from the previous quarter thanks to lower gas demand in Western Australia and unplanned maintenance in PNG. First-quarter revenue of US$964 million was up 5% on the December quarter and 9% on Q1 2020.

Average realised liquid natural gas (LNG) prices were up 14.6% to US$6.12 per metric million British thermal units. Realised prices across crude oil, condensate, domestic gas and LPG all climbed higher on Q4 2020 figures.

The Santos share price is one to watch in early trade following the quarterly update. Shares in the Aussie energy group are up 7.9% and currently outperforming the S&P/ASX 200 Index (ASX: XJO). 

On the balance sheet side, Santos reported net debt of US$3.6 billion after the US$104 million final dividend. S&P Global Ratings reaffirmed Santos’ investment-grade credit rating with a Stable outlook, with Fitch assigning an inaugural BBB rating during the quarter.

Importantly, Santos reaffirmed all guidance for FY2021. That includes production of 84 to 91 mmboe with sales volumes of 98 to 105 mmboe. Base capital expenditure of ~$900 million and major growth capex of $700 million is expected for the year. Full-year upstream production cost estimates were maintained at $8.00 to $8.50 per barrel of oil equivalent.

Foolish takeaway

All eyes will be on the Santos share price following today’s update, with revenue climbing higher despite lower overall production.

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Motley Fool contributor Ken Hall 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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Megaport Ltd (ASX: MP1) shares will be in the spotlight during morning trade following the release of the company’s quarterly update. At yesterday’s market close, shares of the global provider of elastic interconnection services were sitting at $11.70.

Let’s take a look at how the company has been faring.

How did Megaport perform in Q3?

Megaport shares will be on the radar today after the company provided investors with a robust result that saw consistent growth in all metrics.

For the quarter ending 31 March (Q3), Megaport delivered continued growth in monthly recurring revenue (MRR), which came in at $6.8 million for March. This represents a lift of $0.5 million, or an 8% quarter-on-quarter (QoQ) increase.

Revenue also elevated for the three months to $19.58 million, a jump of $0.9 million or a 5% QoQ increase. When looking at year-on-year change, revenue boosted by more than 25%.

Megaport advised it had 390 installed data centres at the end of March. This follows the commissioning of five new sites and the dropping of one existing data centre.

Total enabled data centres stood at 741, reflecting a surge of 25 new centres or 3% growth QoQ. The expanded network footpring came from Megaport’s partnerships with RagingWire, Digital Realty, and CyrusOne.

In further news that could impact the Megaport share price, the company reported 74 new corporate customers, bringing the total number of customers to 2,117, an increase of 4% QoQ.

Ports also rose by 346 to 7,037 ports, and total services came to 20,056, a jump of 778 services or a 4% lift QoQ.

Megaport declared a cash balance of $141.5 million at the end of the March quarter.

Management commentary

Megaport CEO Vincent English touched on the company’s near-term outlook, saying:

As we enter the final quarter of FY21, we have a strong pipeline of new customers, driven by increased requirements from digital transformation initiatives. We see this as an indication that enterprises now have greater line of sight to a post-pandemic normal and that overall IT budgets are improving. Our growth in ports and underlying revenue in the second half of the third quarter was strong, and we expect to see this trend continue.

Fiscal Year 2021 has highlighted the strong operating leverage in our business model and we remain on track to achieving EBITDA breakeven, on a run rate basis, by June 2021.

About the Megaport share price

The Megaport share price has been relatively flat over the last 12 months, rising by 2.54%. Year to date, however, the company’s shares are down by almost 18%.

Megaport has a market capitalisation of around $1.8 billion, with approximately 156 million shares on issue.

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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lithium Australia NL (ASX: LIT) share price is on watch today after news a subsidiary of the company received Clean Energy Council (CEC) approval. Soluna Australia Pty Ltd, of which Lithium Australia owns 50%, received CEC approval for its residential battery storage product.

The Lithium Australia share price closed yesterday, trading at 12 cents.

Let’s take a closer look at the news shared by the battery metals company this morning.

Residential battery storage product

Lithium Australia announced today that Soluna Au’s 10K Pack HV has received CEC approval and can be marketed in Australia.

The CEC inspects and approves all clean energy products sold in Australia to ensure their safety. 

The 10K Pack HV is a residential battery energy-storage system for homes with single or three-phase power. The product stores solar power and has 10-kilowatt hours of storage capacity.

Customers can purchase up to 4 of the batteries, increasing their storage capacity to 40-kilowatt hours.

Today’s announcement also included news of a distribution deal.

Soluna Au has signed a distribution agreement with Legend Corporate Services Limited, a company that markets and installs electrical products in Australia and New Zealand.

Legend has more than 350 employees across manufacturing, engineering, laboratory, and distribution facilities.

Commentary from management

Lithium Australia managing director Adrian Griffin welcomed the product’s CDC approval, saying:

Signing a national distributor agreement will increase our market penetration and rate of sales.

It is a timely transaction that comes on the back of CEC approval for Soluna’s 10 kilowatt hour pack which extends our product range, providing greater choice for consumers.

Lithium Australia share price snapshot 

The Lithium Australia share price is still riding high on the ASX’s lithium wave.

Currently, the Lithium Australia share price is up 100% year to date and has lifted 140% over the last 12 months.

The company has a market capitalisation of around $108 million, with approximately 901 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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