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The IOUpay Ltd (ASX: IOU) share price has returned from its trading halt and is charging higher.

The Malaysia-based buy now pay later (BNPL) provider’s shares were up as much as 14% to 80 cents at one stage.

However, the IOUpay share price has now pulled back notably from there and is currently up 3.5% to 72.5 cents.

Why is the IOUpay share price charging higher today?

This morning IOUpay returned from its trading halt following the successful completion of a $50 million placement to sophisticated and institutional investors.

According to the release, 100 million shares were offered to investors at 50 cents per share. This represents a 28.6% discount to its last close price of 70 cents.

Management advised that the placement received strong investor demand far exceeding the placement limit agreed by the company. It also secured strong support from new and existing sophisticated, local and international institutional investors.

To put this placement into context, at the start of 2021 IOUpay had a market capitalisation of $74 million. This is based on an IOUpay share price of 19.5 cents and its shares outstanding of ~380 million.

This means that through this placement the company has raised over two-thirds of its market capitalisation from just six weeks ago.

Why is IOUpay raising funds?

Management advised that the proceeds will be used for growth initiatives including digital payments and to accelerate new business development opportunities in the BNPL sector in South East Asia. Funds will also be used for working capital purposes.

IOUpay Chairman, Aaron Lee, commented: “The Company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments and BNPL sectors in South East Asia.”

“This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings and accelerate the growth potential of that expansion. We welcome all new shareholders and thank our existing shareholders for their continued support for this exciting new next chapter of IOU which combined with existing cash reserves provides us with a strong capital platform to execute our market validated business plan,” he concluded.

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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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CSL Ltd (ASX: CSL) shares are trending higher in early trade today following the release of the pharmaceutical giant’s half-year results. At the time of writing the CSL share price is 2.38% higher at $287.89.

Profits in tip-top shape

All eyes were on the CSL share price this morning following the release of the company’s results. Fortunately, the numbers did not disappoint, sending CSL shares higher in morning trade.

The most exhilarating number to come out of the half-year report was the company’s bumper profit. Due to increased margins, CSL managed to deliver a 45% increase to its reported net profit after tax of US$1,810 million.

Additionally, CSL’s revenue grew to US$5,739 million. Although not as substantial an increase in percentage terms, at 16.9%, the top-line growth is significant. The driving force behind the increase was a 9% lift in CSL Behring revenue and a 38% jump in Seqirus revenue.

Importantly, it appears the business segment responsible for the seasonal flu vaccine has contributed largely to the result. Seqirus added US$693 million to earnings before interest and tax – an increase of 112%.

Increased CSL dividend

As a result of the strong numbers, the CSL board increased the interim dividend by 9% to US$1.04 per share. Unfortunately, the weak US dollar to AUD means this payout is 9% lower than the prior corresponding period on a constant currency basis.

By chief executive officer and managing director Paul Perreault’s account, the future for CSL remains rosy: “Demand for CSL’s core plasma, and influenza vaccine products remain robust.”

However, there is expected to be a lift in costs in the next half as the biotech builds its research up again, after falling due to COVID-19 vaccine development efforts.

CSL share price under the microscope

The CSL share price has taken a beating over the last year, down by around 13%. COVID-19 disruptions and vaccine development efforts weighed on the business and its usual operations.

However, in the last month, the share price has experienced a reasonable 7.6% lift as some geographies return to normal.

More reading

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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 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 Seven Group Holdings Ltd (ASX: SVW) share price is falling in morning trade today, down 2.73% at $22.48 at the time of writing.

Let’s look at the Seven Group’s results for the first half of the 2021 financial year (H1 FY21).

What financial results did Seven Group report?

In this morning’s ASX release, the diversified investment company reported its trading revenue increased 4% year-on-year to reach $2.4 billion.

Underlying earnings before interest and tax (EBIT) of $396 million was down 5% on the H1 FY20 results.

Seven Group’s underlying operating cash flow increased 4% compared to the prior corresponding period, to $367 million.

The company’s reported an underlying net profit after tax (NPAT) of $247 million, a decrease of 3% year-on-year, while underlying earnings per share (EPS) also dropped 3% to 73 cents.

The final dividend of 23 cents per share (cps), fully franked, was up 10% year-on-year.

Management commentary

Commenting on the results, Seven Group CEO Ryan Stokes said:

We are pleased to deliver group revenue growth and underlying EBIT growth for WesTrac and Coates. Our industrial services portfolio is benefitting from accelerating mining production and economic stimulus measures to generate building and infrastructure activity. During the half, we further increased our exposure to industrials and the growing pipeline of infrastructure projects through our investment in Boral.

While our energy portfolio was impacted by lower realised oil prices during the half, Beach has remained active with drilling success at Enterprise-1, FID taken on Waitsia Stage 2 and new asset acquisitions to consolidate its East Coast gas position.

Addressing the growing issue of corporate sustainability policies, Stokes said Seven Group Holdings would achieve net-zero greenhouse gas emissions by 2040.

Seven Group share price snapshot

The company has performed strongly in the past 12 months, with the exception of last year’s COVID-driven market meltdown which saw the Seven Group share price tumble 56% from 20 February through to 23 March.

Shares are up 144% from the March low, and running 16% higher over the past 12 months. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO).

The Seven Group share price is down 4% year-to-date.

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Motley Fool contributor Bernd Struben 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 Whispir Ltd (ASX: WSP) share price is gaining today, up more than 2% in morning trade. At the time of writing, the Whispir share price has retreated slightly to $4.16, down 1.2%. 

This comes following the release of the cloud-based communication platform provider’s financial results for the half-year ending 31 December (H1 FY21).

Financial results for H1 FY21

In this morning’s ASX release, Whispir reported a 29.2% increase in its Annualised Recurring Revenue (ARR) to $47.4 million. That’s up from ARR of $36.7 million over the prior corresponding half year. The company credited most of the boost to increased activity from its existing customers.

Total revenue of $23.1 million was up 27.3% over the prior corresponding period (PCP).

Bringing 77 net new customers aboard during the half-year, Whispir reported it now has 707 customers, an increase of 38.9% from the first half of the 2020 financial year.

Earnings before income, taxes, depreciation and amortisation (EBITDA) was $(1.8) million. Though still negative, this represents a 61% improvement year-on-year.

Commenting on the results, Whispir’s CEO Jeromy Wells said:

Our Australia and New Zealand (ANZ) operations continue to outperform our expectations with revenue increasing 30.2% over the PCP. Our enterprise customers are spending more with us as they increase use cases, utilising our contemporary tools to solve more of their communications challenges. This region is also experiencing strong growth in new customers as organisations look for platforms that can be implemented quickly to digitise their business communications…

In line with our five-year product roadmap, we continue to add new features and functionality to improve user experience. Enhanced platform functionality with AI-inferred insights will enable us to better serve our existing customers with additional data driving more valuable, higher margin products and supporting our transition to becoming a communications intelligence company.

Whispir spent $4.6 million on research and development (R&D) during the half-year to deliver its five-year product roadmap. The company expects to increase its R&D expenditures in the second half of the 2021 financial year.

Looking ahead, Whispir upgraded its guidance of the FY21 EBITDA from $(6.2)–$(4.8) million to $(4.5)­–$(3.0) million.

Whispir share price snapshot

Whispir is among the star performers over the past 12 months, with shares up 198%. By comparison, the All Ordinaries Index (ASX: XAO) is down 3% over that same time.

So far in 2021, the Whispir share price is up just over 17%.

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Bernd Struben 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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Origin Energy Ltd (ASX: ORG) shares have had a lousy 12 months, having dropped more than 40% over the past year. The bad news keeps coming for shareholders with the Origin share price dipping another 1.74% in early trade today.

This comes on the back of the energy giant’s FY2021 half-year results (1H FY21) which were released to the market this morning. 

Let’s take a look at how Origin has been performing.

What’s impacting the Origin share price?

The Origin Energy share price is on the slide this morning after the company reported its statutory profit tanked from $599 million in 1H FY20 to $13 million in 1H FY21. Underlying profit also fell from $528 million in 1H FY20 to $224 million in 1H FY21.

Origin’s earnings per share (EPS) also took a dive. Statutory EPS dipped to 0.7 cents in the half compared with 34 cents in the prior half. Meanwhile, underlying EPS fell from 30 cents in 1H FY20 to 12.7 cents in 1H FY21.

Investors are driving down the Origin share price after the company slashed its interim dividend to 12.5 cents, down from 15 cents in the prior corresponding period. 

Origin reported free cash flow for the period of $655 million as at 30 December 2020. This compares to the $680 million that was reported for the first half of FY20.

CEO comments

Discussing what lies ahead for the business, Origin CEO Frank Calabria said:

Throughout the first half, Origin continued to navigate the very challenging operating conditions facing the sector, as the pandemic caused a reduction in energy demand and depressed prices across key commodities…

The recent rally in oil and gas markets is expected to have a positive impact on Australia Pacific LNG’s earnings in the second half, given the lag in contract LNG prices.

However, as flagged in our recent earnings update, the near-term outlook for Energy Markets is more challenging. A mild summer has compounded already weaker demand and reduced volatility, gas supply costs are expected to increase, and wholesale electricity prices remain depressed, particularly as renewable supply continues to come online.

Outlook

Origin provided updated guidance for FY21 on 4 February 2021. It advised that the company’s outlook is dependent on no material changes in market conditions or the regulatory environment. It also cautioned that considerable uncertainty remains due to the potential ongoing impacts of coronavirus.

The company’s energy markets earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2021 financial year is expected to be in the range of $1 billion to $1.1 billion.

Based on the current Origin share price of $4.52, the company commands a market capitalisation of around $8.1 billion with 1.8 billion shares outstanding.

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Motley Fool contributor Gretchen Kennedy owns shares of Origin Energy Limited. 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 Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher on Thursday following the release of its half year results.

At the time of writing, the iron ore producer’s shares are up 2% to $24.93.

How did Fortescue perform in the first half?

For the six months ended 31 December, Fortescue delivered a 44% increase in revenue to US$9,335 million and a 66% lift in net profit after tax to US$4,084 million.

This strong result was of course driven by the sky high iron ore price. During the half, the company commanded an average realised price of US$114 per dry metric tonne for its iron ore. This was a 42.5% increase on the prior corresponding period.

This is actually a larger increase that the 62% Fe CFR Platts index over the same period. Management advised that the outperformance of the index reflects the enhanced contribution of higher value products meeting the demands of its customers, as well as iron ore market supply constraints from South America.

Also supporting its growth was a 2.4% increase in shipments to a total of 90.7 wet metric tonnes.

Fortescue increases its dividend

In light of its strong first half and its positive outlook, the Fortescue board has declared a fully franked A$1.47 per share interim dividend. This is an increase of 93.4% on the prior corresponding period.

Based on the current Fortescue share price, this interim dividend alone equates to a fully franked 5.9% yield.

Fortescue’s interim dividend also represents a payout ratio of 80% of net profit after tax. This is in line with its guidance of maintaining a payout ratio at the top end of the Board approved range of 50% to 80% of net profit after tax.

Management advised that the interim dividend declared reflects the strong operating cash flow environment, confidence in the outlook for the second half of FY 2021, and the strength of the balance sheet.

Outlook

Possibly holding back the Fortescue share price slightly today has been a change to its guidance due to the stronger Australian dollar.

While Fortescue continues to target iron ore shipments of 178mt to 182mt, it has revised its C1 costs and capital expenditure guidance.

C1 costs are now expected to be US$13.50 to US$14.00 per wet metric tonne. This compares to previous guidance for US$13.00 to US$13.50 per wet metric tonne. Whereas capital expenditure is now expected to be at the upper end of its previous guidance range of US$3 billion to US$3.4 billion.

This is based on a revision to the assumed FY 2021 average exchange rate from 0.70 to 0.75 USD/AUD.

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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.

Shopify Inc (NYSE: SHOP) reported its fourth-quarter earnings before the market open on Wednesday, and even though the e-commerce platform delivered impressive top- and bottom-line results, its guidance left investors wanting for more. The company cautioned that the frantic pace of growth that characterized much of the past year would slow in 2021, giving investors pause.

The company reported revenue of $978 million, up 94% year over year. Adjusted net income of $199 million generated adjusted earnings per share (EPS) that soared 198% to $1.58. This easily surpassed analysts’ consensus estimates, which called for revenue of $910 million and adjusted EPS of $1.25. 

There was plenty of stout growth that underpinned Shopify’s robust top- and bottom-line performance. Subscription solutions revenue grew an impressive 53% year over year to $279 million, spurred on by monthly recurring revenue (MRR) of $83 million, which was also up 53%.

It was merchant solutions that stole the show, however, with revenue that grew 117% to $698 million. This was driven higher by gross merchandise volume (the value of products that changed hands on Shopify’s platform) that soared 99% to $41 billion in the fourth quarter.

While these number all gave investors cause to celebrate, shareholders focused instead on Shopify’s guidance, sending the stock lower. The company didn’t provide specific numbers for the upcoming quarter or full year, but rather painted broad strokes of how it sees 2021 playing out.

Management noted that growth would be “driven by more merchants … joining the platform in a number lower than the record in 2020, but higher than any year prior to 2020 … We expect that we will continue to grow revenue rapidly in 2021, albeit at a lower rate than in 2020.” 

Shopify said it will continue to invest “aggressively” to fuel growth.

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

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Danny Vena owns shares of Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Shopify. 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.

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The Wesfarmers Ltd (ASX: WES) share price has tumbled lower following the release of its half year results.

In morning trade, the conglomerate’s shares are down 3% to $52.50.

How did Wesfarmers perform in the first half?

For the six months ended 31 December, Wesfarmers reported a 16.6% increase in revenue to $17,774 million.

This was driven by a 24.4% increase in Bunnings revenue to $9,054 million, a 23.7% jump in Officeworks revenue to $1,523 million, a 9% lift in Kmart Group revenue to $5,441 million, and a 6.6% increase in Chemicals, Energy and Fertilisers revenue.

An improvement in its earnings before interest and tax (EBIT) margin from 11.3% to 12% led to half year EBIT growing 23.2% to $2,137 million.

On the bottom line, Wesfarmers delivered a 25.5% increase in net profit after tax (excluding significant items) to $1,414 million. Including significant items, net profit grew 23.3% to $1,390 million.

Also growing very strongly was the company’s free cash flow, which increased 89% over the prior corresponding period to $1,964 million.

This ultimately allowed the Wesfarmers board to declare a fully franked interim dividend of 88 cents per share. This is up 17.3% on last year’s interim dividend.

The company advised that this dividend takes into account available franking credits, its balance sheet position, credit metrics, and cash flow generation. It also preserves the flexibility to manage continued uncertainty associated with COVID-19, and to take advantage of value-accretive growth opportunities, if and when they arise.

What drove its strong growth?

Wesfarmers’ Managing Director, Rob Scott, revealed that its performance was driven by strong sales and earnings growth across its retail businesses. This was supported by an improvement in the performance of its Industrial and Safety businesses during a period of continued disruption and uncertainty.

Mr Scott said: “Bunnings, Kmart Group and Officeworks delivered strong trading results for the half, reflecting their ability to adapt to changing customer preferences and provide a safe environment for customers and team members.”

“In line with Wesfarmers’ objective of delivering superior and sustainable long-term returns, the retail divisions continued to invest in building deeper customer relationships and trust by providing greater value, service and convenience for customers during a period in which many Australian households faced significant challenges and uncertainty,” he added.

Mr Scott also revealed that the company experienced strong online sales growth during the half.

He explained: “Pleasing progress on the Group’s data and digital agenda in recent years supported strong online sales growth and digital engagement during the half. Total online sales across the Group more than doubled for the half, excluding Catch. Including the Catch marketplace, online sales of $2.0 billion were recorded for the half.”

How does this compare to expectations?

As I mentioned here last month, Goldman Sachs was forecasting revenue of $17,616.2 million and EBIT of $1,831.8 million.

Whereas Wesfarmers outperformed these forecasts with revenue of $17,774 million and EBIT of $2,137 million. 

So, with the Wesfarmers share price tumbling lower this morning, it appears as though some investors may be concerned with what’s to come in the second half.

Outlook

No guidance was given for the remainder of FY 2021, but management spoke positively about its outlook.

It said: “Economic conditions in Australia have recovered strongly and the outlook is more positive, subject to future COVID-19 risks. While the continued impact of COVID-19 on customer demand and operations presents significant uncertainty, the Group’s portfolio of cash-generative businesses with leading market positions remains well-placed to deliver satisfactory shareholder returns over the long term.”

Wesfarmers also revealed that retail sales have been strong during January and February.

However, as with Coles Group Ltd (ASX: COL), its growth is expected to moderate from March as it begins to cycle the initial sales surge caused by COVID-19.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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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Etherstack PLC (ASX: ESK) shares will be on watch today. This comes after the company announced it has signed a new deal with consumer electronics powerhouse, Samsung for integration activities.

At market close yesterday, shares in the communications wireless technology company finished the day at 63 cents.

Let’s take a closer look at the contract win that Etherstack reported.

What did Etherstack announce?

According to its release, Etherstack advised that its subsidiary, Etherstack Wireless Ltd, has entered a US$1.2 million contract agreement with Samsung.

In short, Etherstack stated the agreement will see it provide ‘a license to existing technology for the purposes of assisting the integration of the joint solution aimed at the telecommunications carrier market’.

The deal forms part of the Global Teaming Agreement that was previously announced in June last year.

Additionally, Etherstack noted that the signed deal does not include the sale of its solution to an end carrier.

Both companies are said to be working together on multiple carrier pursuits, with sales coming to fruition sometime this year. Moreover, Etherstack revealed that once the groundwork has been completed, these deals would require an additional licence and support revenues.

Quick take

Established in 1995, Etherstack designs develop and deploy wireless communications software and products across the globe. The company operates in the mission-critical radio technologies market.

Etherstack has offices in the United Kingdom, Australia, Japan, and the United States. The company services an array of sectors that include public safety, defence, utilities, transportation, and resources.

Share price snapshot

The Etherstack share price has accelerated over the last 12 months, rising to more than 240%. In late June, the company announced a Global Teaming Agreement with Samsung that pushed its shares to an all-time high of $3.70.

Consequently, since this announcement, the company’s shares have been hovering around the low 60-cent mark.

Based on the current share price, Etherstack has a market capitalisation of around $81 million.

More reading

• Why the Etherstack (ASX:ESK) share price will be on watch today

Motley Fool contributor Aaron Teboneras 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 Beacon Lighting Group Ltd (ASX: BLX) share price will be under the spotlight today after reporting a bright set of numbers.

Beacon is Australia’s biggest lighting retail business that has been operating for over 50 years. It sells lighting, ceiling fans and light globes. The company has 116 stores across the country.

Beacon Lighting’s shining FY21 half-year result

The lighting business reported that its sales increased by 23% to $151.3 million. The gross profit increased by 35% to $103.6 million thanks to the revenue growth and an increase of the gross profit margin of 6.1 percentage points to 68.5%. Less discounting helped support the gross margin.  

Company store comparable sales increased by 24.9% and online sales grew by 111.1% to $14.4 million. Beacon International sales increased by 45.2% to $5 million.

Beacon’s operating expenses only grew by 9.2% $56.7 million. This allowed earnings before interest, tax, depreciation and amortisation (EBITDA) to rise by 43% to $47.5 million. The EBITDA margin increased by 4.4 percentage points to 31.4%.

The earnings before interest and tax (EBIT) shot higher by 63.1% to $34.7 million, with the EBIT margin improving by 5.6 percentage points to 22.9%.

Net profit after tax (NPAT) growth was the brightest of all, increasing by 75% to $22.2 million. The NPAT margin improved 4.3 percentage points to 14.6%.

Using the underlying numbers, sales grew 23.5% and NPAT grew 132.8% to $22.2 million.

Beacon reported that its net operating cashflow rose by just over 120% to $38.7 million. This helped Beacon pay down $19.1 million in debt. It finished with a net cash position of $29.3 million. The company also invested $8.5 million in retail properties, with half of it being co-funded by non-controlling interests.

Since the end of FY20, the Beacon Lighting share price has risen by more than 70% (before the market opened).

Beacon Lighting dividend announcement

The Beacon board declared an interim fully franked dividend of 4.2 cents per share, which represents an increase of 61.5% compared to the prior corresponding period.

Outlook for the second half

Beacon revealed that it has bright prospects for the second half, with store sales continuing at an elevated level compared to the start of the second half of FY20.

It’s continuing to try to help its trade customers. Stores now open at 7:30am to allow trade customers to shop and new trade specific products are being developed and progressively released to stores. Beacon Lighting now has 39,800 ‘Trade Club’ customers. Trade Club sales increased by 50.8% in this result.

There will be further improvements to its websites. Beacon is also launching a new website to sell directly to consumers in the USA.

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Motley Fool contributor Tristan Harrison 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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