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The Evolution Mining Ltd (ASX: EVN) share price is among the worst performing stocks today even as it unveiled its best interim net profit in its history.

The Evolution share price crashed 7.9% to a 10-month low of $4.31 this morning. This makes the gold miner the third worst performer on the S&P/ASX 200 Index (Index:^AXJO).

The only ASX shares that are in a deeper hole are the Zip Co Ltd (ASX: Z1P) share price with its 11.9% tumble and the Pro Medicus Limited (ASX: PME) share price with its 8.4% dive.

Record profits sink Evolution share price

But it seems good isn’t good enough when it comes to Evolution. The miner posted a 57% uplift in underlying net profit to $234 million for the six months to end December 2020.

The strong gold price and bigger margins helped drive the result. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin improved 6% to 52%, which puts it around the top of the sector.

However, revenue only increased by a more modest 9% as the higher gold price was offset by a drop in volume sold.

Not all good news

Also, the increase in EBITDA margin isn’t related to operating costs as that was roughly flat compared to the previous period.

While management was also touting its strong cash generation prowess from favourable tailwinds, group cash flow declined by 10% to $218.1 million.

The record result also wasn’t enough to convince management to boost its interim dividend. That remains flat at 7 cents a share.

Flat dividend as cash drops

To be frank, the dividend decision isn’t a big deal. No one buys an ASX gold miner for income. Even if Evolution did lift its dividend, it would make little difference to total shareholder returns.

Also, given the drop in cashflow, it is probably prudent for management to hold on to the cash.

Having said that, Evolution’s half year results may not be the only factor pressuring the Evolution share price.

Metal fatigue hits ASX gold shares

The spot gold price fell 0.3% to US$1,788 an ounce and some gold traders are predicting more falls for the precious metal.

This is because the yellow metal failed to hold above US$1,800 an ounce and that could invite more selling pressure.

Other ASX gold miners are also on the nose this morning, although not quite to the same extent as Evolution.

The Newcrest Mining Ltd (ASX: NCM) share price shed 2.9% to $24.95 and the Northern Star Resources Ltd (ASX: NST) dropped 6.6% to $10.85 at the time of writing.

More reading

• Why the Pro Medicus (ASX:PME) share price is getting thumped today
• Why is the Splitit (ASX:SPT) share price underperforming Afterpay and Zip?
• 5 things to watch on the ASX 200 on Wednesday
• The latest ASX shares upgraded by brokers to “buy” during the reporting season
• ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps

Brendon Lau owns shares of Evolution Mining Limited and Newcrest Mining Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Pro Medicus 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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Bapcor Ltd (ASX: BAP) shares are sliding in morning trade despite the company’s results for the first half of the 2021 financial year (H1 FY21) showing significant growth. At the time of writing, the Bapcor share price has slumped 3.72% to $7.76.

What did Bapcor report?

The Bapcor share price is failing to lift off this morning despite the company reporting record results for the half-year ending 31 December. The vehicle parts and services provider said revenue grew across all of its business segments.

Revenue from operations increased 25.8% over the prior corresponding period’s $702.5 million to $883.6 million.

Pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $145.6 million increased by 36.5% from H1 FY20.

Pro-forma net profit after tax (NPAT) of $70.2 million was up 54.0%, while statutory NPAT increased 49.7% to $67.7 million.

Bapcor will pay an interim dividend of 9 cents per share (cps), fully franked. That’s up 12.5% from the 8 cps paid in H1 FY20.

Commenting on the results, Bapcor’s CEO Darryl Abotomey said:

The group added 27 new company locations throughout our network resulting in our business now having over 1,100 locations throughout Australia, New Zealand and Thailand…

Significant progress has continued to be made in investments to drive the long-term success of Bapcor. The new distribution warehouse building at Tullamarine in Victoria is nearing practical completion while a new point of sale system has been implemented in Autobarn and a new e-commerce platform will be launched over the next 2 months.

Further investment in digital transformation is underway. Bapcor continues to have avenues to drive the performance of the business including further network growth, realising operational efficiencies and expansion of our own brand product range.

Abotomey said that the company’s performance in January was at a similar level to the first half of the 2021 financial year.

He cited that mean market consensus for Bapcor’s proforma full year NPAT is around $122 million, which “does not appear unreasonable”, dependent on future economic conditions.

Bapcor share price snapshot

The Bapcor share price is up 14.41% over the past 12 months. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO). Year to date, Bapcor shares have fallen 2.3%.

Based on the current Bapcor share price, the company commands a market capitalisation of around $2.7 billion.

More reading

• 2 ASX 200 shares to buy for growth
• 2 ASX shares to own according to fund managers
• 3 compelling ASX shares rated as buys by brokers
• Got money to invest for dividends? Here are 3 ASX shares
• 2 ASX dividend shares rated as strong buys by brokers

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is falling this morning after the gold miner released its half-year results. By the look of the numbers, it was a bit of a mixed bag for the 6-month period.

At the time of writing, the St Barbara share price is trading 4.35% lower at $2.20.

Here are the numbers for St Barbara

The gold miner reported a statutory profit after tax of $37 million, down from the $39 million bagged last year. On the other hand, the underlying profit increased 14% to $40 million from $35 million. The key difference between these figures is that statutory profit is the accounting-based profit, whereas underlying is more of an internal profit that excludes some accounting items such as impairments.

St Barbara’s gold production was also down from the previous corresponding period. Production was 162,660 ounces during the recent half, compared to 165,921 last year. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) margin came in at 42%.

Furthermore, global operations contributed a net cash contribution of $100 million. The miner benefitted from a stronger gold price during the period, resulting in the flat result, despite the fall in production.

The result comes with the announcement that St Barbara will pay a 4 cents per share dividend fully franked. Payment will be on 24 March, with the ex-date (cutoff) being 2 March.

CEO commentary

Commenting on the results, St Barabara CEO Craig Jetson said:

This financial result represents an encouraging recovery from the operational disappointments of the first quarter, with improving contributions from all three operations.

Over consecutive halves, Atlantic Gold has delivered record production as continuous improvements in mill throughout generated early returns. St Barbara is in a strong financial position that affords us the opportunity to support growth projects across all three of our operating jurisdictions.

In the coming months we will provide an update on the sulphide feasibility study at Simberi, the Leonora Province plan and submit environmental impact statements for Atlantic Gold’s growth projects.

Despite the cash inflows, St Barbara’s cash levels are hovering around $118.7 million at the end of the half. This is in contrast to the $405.5 million in cash the company held at the end of June 2020.

St Barbara share price snapshot

The gold miner’s share price has slipped 15.4% over the last 12 months. However, from the March 2020 low of $1.665, the share price has rallied 38%. St Barbara now holds a market capitalisation of $1.6 billion.

To give a bigger picture view, the gold price per ounce has dipped roughly 2% in the last 12 months.

More reading

• 3 ASX 200 gold miners paying dividends
• Brokers list the latest ASX shares to buy in this market meltdown
• Top broker says you should buy these oversold ASX gold stocks now

Motley Fool contributor Mitchell Lawler 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 Treasury Wine Estates Ltd (ASX: TWE) share price is dropping lower this morning as the company announced its half-yearly results. Shares in the company are currently falling to a price of $9.78. As such, shares in the wine producer are down 1.21% since last nights close.

How did Treasury Wine perform in the first half?

Treasury Wine today announced its half-yearly report to the ASX. The company announced a sharp decline in net profit after tax (NPAT) down 24% to $175.3 million as the China conflict hurt the company’s earnings. As a result, the company’s earnings per share was also down by 24%.

The well documented ongoing impacts from the global pandemic and the disruptions to sales in China were key drivers of lower earnings in 1H21. Earnings before interest and tax (EBIT) came in at $284.1 million. Moreover, the company saw its cost of goods sold increase by 2.8%. Driven by a favourable portfolio mix shift, lower volume and higher costs.

Nonetheless, it was not all bad news for the wine producer as the company continued with the execution of its COVID-19 recovery plan. Treasury Wine stated that its plan ahead agenda is driving strong momentum towards recovery in all regions.

Furthermore, thanks to careful management the company retains a strong balance sheet. Net debt was down to $403.7 million in the first half to $1,030.5 million. With total available liquidity remaining strong with approximately $1.5 billion on hand at the end of last year.

The company will also pay an interim dividend of 15 cents per share, fully franked. Representing a payout ratio of 62% of NPAT. This is consistent with the company’s dividend policy.

Management Comments

On today’s results announcement, TWE’s Chief Executive Officer, Tim Ford commented:

Our first half fiscal 2021 results demonstrate that we are making progress against our TWE 2025 strategy, despite a period of significant disruption. Our progress is the result of disciplined execution of the plans we put in place to manage through these disruptions and highlight the strength of our business models in all regions.

Looking Forward

As Management noted, it expects the difficult current conditions to continue through the remainder of fiscal 2021.

In China, Treasury Wine expects that demand for its portfolio will remain extremely limited. However, the company is confident around its plans for reallocation of its luxury brands away from China as it continues to engage with its customer and consumer base.

Nonetheless, it does not see these benefits having effect until the end of FY21. It expects 2H21 EBIT to be below that of this report.

The Treasury Wine share price has had a difficult year, falling by 12%. This is well below the flat All Ordinaries Index (ASX: XAO) return in the same period.

More reading

• Leading brokers name 3 ASX shares to sell today
• Why ARB, Domain, Redbubble, & Treasury Wine shares are sinking today
• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets
• ASX 200 rises 0.6%, Vocus jumps on takeover offer, Afterpay hits new record
• ASX 200 up 0.6%: Vocus rockets, Zip surges, & Treasury Wine rebuffs speculation

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Warren Buffett’s investment strategy seeks to use the market cycle to maximise returns. He has historically purchased high-quality companies when they trade at low prices during a market crash. He then holds them over the long run, during which time they often benefit from a subsequent market rally that propels their share prices higher.

Buffett has repeatedly been able to use this strategy because the market cycle is omnipresent. As such, the next market crash is never far away. Through following the Oracle of Omaha’s lead and using a patient approach that builds a cash balance, it is possible to outperform the stock market over the long run.

A market crash is always on the horizon

Even though many shares have surged higher following the 2020 market crash, history suggests they are very unlikely to rise in perpetuity. After all, no previous market rally has ever lasted indefinitely. They have always come to an end, with rapidly-falling stock prices usually following periods of high growth.

As such, it makes sense to always plan ahead for the next market downturn. Warren Buffett achieves this goal through only purchasing high-quality companies when they offer wide margins of safety. In doing so, he avoids overvalued businesses that may be negatively impacted to the largest extent by a market downturn. He also holds large amounts of cash at all times that can be deployed quickly should share prices temporarily fall to extremely low levels.

Warren Buffett is also able to use a market crash to his advantage because he takes a long-term view of his portfolio. A sudden market decline is only likely to be of major concern to an investor who has a short time horizon. For long-term investors who are concerned about their portfolio’s performance over the next decade, several months of paper losses are unlikely to cause issues for their financial future.

Implementing Warren Buffett’s strategy today

Clearly, when the next market crash will occur is a known unknown. However, history shows that it will occur at some point over the coming weeks, months or years. Therefore, following Warren Buffett’s strategy could be a sound move.

At the present time, this may mean avoiding overvalued companies that have soared as a result of improving investor sentiment. Instead, buying businesses that are underappreciated by investors, or that have wide margins of safety due to temporary operating disruption, could be a less risky move. They may offer greater return potential over the long run, as well as being less susceptible to the next market downturn.

Furthermore, holding some cash at the present time could be a shrewd move. Even though it means obtaining a low return due to low interest rates, cash allows an investor to capitalise on the next market crash. Over the long run, this strategy may be more profitable versus buying shares after they have already risen in value.

More reading

• Why the Treasury Wine (ASX:TWE) share price is falling
• The Tabcorp (ASX:TAH) share price wobbles on results
• Carsales (ASX:CAR) share price slides despite earnings growth
• Why the Pro Medicus (ASX:PME) share price is getting thumped today
• Webjet (ASX:WEB) share price edges lower on H1 FY21 results

Motley Fool contributor Peter Stephens 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 Tabcorp Holdings Limited (ASX: TAH) share price is wobbling in early trading today after dipping almost 2% at the open. This follows the company’s release of results for the first half of FY21.  

At the time of writing, the Tabcorp share price is trading down 0.11% at $4.46.

How did Tabcorp perform?

For the half-year ending 31 December 2020, Tabcorp reported a 7% decline in net profit of $185 million. The gaming and entertainment services provider also saw revenue fall 2% to $2.87 billion.

Overall, Tabcorp’s group revenue declined 1.5% for the first half, while earnings before interest, tax, depreciation and amortisation (EBITDA) also came in lower, down 6.2% compared to the prior corresponding period.

Despite challenges imposed by the COVID-19 pandemic, Tabcorp’s Lotteries and Keno division saw strong digital growth, with revenue up 1.6% for the first half. However, the company’s gaming services division did not experience the same resilience. It plummeted 51% to $73 million for the first half, due to coronavirus-related venue restrictions.

In today’s results, Tabcorp highlighted that the company was emerging from the pandemic in a stronger financial position. As a result, Tabcorp declared that it would resume an 80% dividend payout ratio, equating to 7.5 cents per share, fully franked.

What is the outlook for the Tabcorp share price?

Tabcorp’s management also provided an outlook on the company’s recovery post-pandemic.

Tabcorp CEO David Attenborough said the company was “experiencing a strong recovery following the recent market challenges”.

Mr Attenborough said that all three businesses were “well-positioned for the second half and we will continue to unlock digital growth, drive operational improvements and optimise costs”.

Management also addressed the rumours of a potential takeover of its wagering and media business. It noted that the details of any proposal remained confidential, and were indicative and non-binding in nature.

Tabcorp also highlighted that any proposal would be highly conditional and subject to numerous requirements.

Foolish takeaway

At the time of writing, the Tabcorp share price is staying relatively flat after closing yesterday’s trading session at $4.46. The Tabcorp share price has soared more than 13% since the start of the year, fuelled by speculation on a potential takeover of its wagering business.

More reading

• Real reporting season surprise isn’t about profits but dividends
• NRW (ASX:NWH) share price jumps as it moves closer to Primero acquisition
• Tabcorp (ASX:TAH) share price soars 10% on potential buyout

Motley Fool contributor Nikhil Gangaram 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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Carsales.com Ltd (ASX: CAR) shares are slipping in morning trade following the release of the company’s results for the first half of the 2021 financial year (H1 FY21). At the time of writing, the Carsales share price has fallen 4.47% to $21.16.

What did Carsales report?

The Carsales share price is heading lower today despite the company delivering strong earnings growth in both its domestic and international markets for the half-year ending 31 December. That growth came despite headwinds resulting from the COVID-19 pandemic.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)  increased 18% to $126 million. Adjusted net profit after tax (NPAT) of $74 million represented an increase of 17% from H1 FY20. Adjusted revenue was down 2% to $210 million.

(Adjusted figures are post-non-controlling interests and exclude certain non-recurring or non-cash items.)

The company reported earnings growth across all its segments, with the strongest EBITDA growth in its South Korean market, up 30% year on year.

Investors are driving down the Carsales share price after the company reported revenue of $199 million was down 7%. Meanwhile reported EBITDA was up 9% on the prior corresponding period and reported NPAT was $61 million, a decrease of 14%.

Carsales noted that its reported metrics were impacted by an $11 million COVID-19 dealer support package.

The company will pay an interim dividend of 25 cents per share (cps), up 14% on the 22 cents paid in the first half of the 2020 financial year.

Commenting on the results, Cameron McIntyre, Carsales CEO said:

Our ongoing investment in product and customer experience helped us continue strengthening our leadership positions in our largest markets of Australia, South Korea and Brazil. We saw traffic growth of 20% across our global network of automotive websites, demonstrating that we are the best place for our customers to buy and sell cars…

There are positive trends for our business emerging from the pandemic. We have seen accelerated migration to digital platforms across our global network of sites as evidenced by strong traffic growth. Demand for vehicles across all our markets has been strong due to lower public transport usage, the absence of international travel and the evolution of more flexible working arrangements.

Looking ahead, Carsales forecasts modest adjusted revenue growth and “solid” adjusted EBITDA and adjusted NPAT growth for the 2021 financial year, with the assumption there are no major changes to its current operating environment.

Carsales share price snapshot

Over the past 12 months, the Carsales share price is up 14%. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO).

Carsales shares have also surged from their post viral selloff last year, up more than 100% from the 23 March lows. Year to date, the Carsales share price is up 6.2%.

More reading

• Why brokers rate these 4 ASX shares a buy this month
• Why Amcor, Carsales, Rent.com.au, & Temple & Webster are surging higher
• ASX 200 up 1.1%: Amcor jumps, South32 sinks, Virgin Money UK rockets
• Carsales (ASX:CAR) share price on watch following broker upgrade
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com 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 Pro Medicus Limited (ASX: PME) share price has come under pressure this morning following the release of its half year results.

In early trade, the health imaging company’s shares were down as much as 17% to $38.00.

The Pro Medicus share price has since recovered slightly but remains 8% lower at $41.83 at the time of writing.

Why is the Pro Medicus share price crashing lower?

Investors have been selling Pro Medicus shares on Wednesday after its half year results fell short of the market’s lofty expectations.

For the six months ended 31 December, the company reported a 7.8% increase in revenue to $31.6 million. Management advised that the stronger Australian dollar impacted its result. On a constant currency basis, its revenue would have been up 12.4% to $32.9 million.

Currency headwinds also weighed on its profits. Reported underlying profit before tax came in 25.9% higher at $18.76 million but would have been up 29% to $19.7 million in constant currency.

On the bottom line, Pro Medicus delivered a 12.4% increase in net profit after tax to $13.5 million. This includes tax expense of $4.66 million, which represents a tax rate of 25.6%. This compares to a tax rate of 18.6% in 2019.

At the end of the period, the company had cash reserves of $50.9 million and no debt.

This strong balance sheet allowed the Pro Medicus board to declare a fully franked interim dividend of 7 cents per share.

How does this compare to expectations?

According to a note out of Goldman Sachs, Pro Medicus missed on both revenue and earnings.

The broker notes that Pro Medicus feel short of its revenue forecast by 9% and its EBIT forecast by 7%.

This goes some way to explaining the weakness in the Pro Medicus share price today.

What were the drivers of its growth?

Pro Medicus’ CEO, Dr Sam Hupert, revealed that the company performed well across all markets despite the restrictions of COVID-19.

He said: “It was a good six months across all jurisdictions. Examination numbers in the first three months of the quarter were still recovering from their April 2020 lows however we were able to make up for the decrease with new clients coming on stream and exam numbers tracking back to pre COVID levels.”

The star of the show for the company was arguably the Australian business, which delivered a 22.8% increase in revenue. This was largely due to the rollout of the Healius Ltd (ASX: HLS) contract and the extension of a contract with I-MED.

The company’s European operations also had a positive half. This is expected to continue in the second half thanks to its new contract with Ludwig-Maximilians University.

Outlook

No guidance or commentary was given in regard to its second half outlook. This may have disappointed investors and be contributing to the Pro Medicus share price decline today. Though, it is worth noting that this is customary for Pro Medicus.

Positively, Dr Hupert did speak briefly about the company’s sales pipeline.

He said: “We have had a very good run of contract wins over the past seven to eight months and pleasingly we have seen an increasing number of opportunities enter the pipeline in addition to those opportunities that have been progressing through the sales cycle. Importantly, the opportunities are across a range of market segments, including some for multiple Visage products, as well as a healthy mix of Cloud and non-Cloud.”

More reading

• What’s with the Pro Medicus (ASX:PME) share price today?
• A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME)
• ASX 200 down 0.7%: AGL & Origin sink lower, Qantas pushes higher
• Pro Medicus (ASX:PME) share price drops lower despite FDA approval
• The Pro Medicus (ASX:PME) share price zoomed 25% higher in January

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 Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus 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 Webjet Ltd (ASX: WEB) share price is edging lower this morning following the release of its half-year results for 2021. In opening trade, shares in the online travel agent are marginally down 2% to $4.68.

Let’s take a look and see how Webjet performed for the H1 FY21 period.

Financial highlights

The Webjet share price is trading lower today after announcing a weak first-half result.

According to its release, Webjet reported heavy falls across its key business metrics due to COVID-19 government-mandated travel restrictions.

For the six months ending December 31, Webjet delivered a total transaction value of $267 million, down 89% over the prior corresponding period.

Group revenue plummeted to $22.6 million, dropping 90% over the same time last year. The biggest fall came from its WebBeds segment which sank from $127.5 million in H1 FY20 to $8 million for the reporting period.

Ongoing travel restrictions and lockdowns impacted bookings in all of its regions. The company noted that it is in the process of executing a transformation strategy that will see a 20% improvement in costs when at scale.

Expenses for the period were driven lower as a result of management’s focus on cash burn and cost reduction initiatives. For the period, Webjet recorded expenses at $62.7 million, a 52% decline on the prior comparable term.

Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) sharply retreated with the company reporting a $40.1 million loss. This is a mammoth 146% plunge when matching against H1 FY20’s result.

For the end of December, Webjet recorded a strong cash position of $283 million to withstand prolonged periods of recovery. In contrast, the company’s monthly cash burn rate is $4.8 million per month. This gives Webjet enough breathing space to run operations for the next 5 years without raising additional funds or drawing down on debt.

In light of the expected results, the Board refrained from declaring an interim dividend due to the uncertain travel environment. Furthermore, management stated that it will further defer FY20’s interim dividend payment.

Previously the company planned to reward shareholders on the 16 April 2021 with 9 cents per share. However, this has been further delayed until next year, pending review of H1 FY22 results.

Management commentary

Webjet Managing Director, John Guscic, commented on the result:

These results reflect the devastating impact COVID-19 continues to have on the global travel industry. We remain focused on maintaining our strong capital position. Cost savings initiated across all businesses helped reduce cash burn, while allowing us to return staff to full time work.

Looking ahead, John Guscic appeared optimistic that the travel industry will quickly rebound once restrictions open up. He added:

The demand for travel – and in particular leisure travel – remains high. We believe people will want to travel as soon as they are able to and we are doing everything we can to ensure Webjet is there to capture demand when it happens.

…We are hopeful that global vaccine rollouts will enable travel to return to historical levels and our strong capital position provides flexibility to weather any protracted market recovery.

Review of the Webjet share price

Over the last 12 months, the Webjet share price has been one of the worst performers with a staggering fall of more than 60%. The company’s shares once comfortably above $10, however, the COVID-19 rout caused headwinds for Webjet.

In March, its share reached a multi-year low of $2.25 and has since travelled slightly higher in hope of a recovery in the travel market.

Based on the current share price, Webjet has a market capitalisation of around $1.6 billion.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• These are the 10 most shorted shares on the ASX
• Why ASX travel shares were smashed on Friday
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Is the Webjet (ASX:WEB) share price a buy right now?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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We’re watching the Whitehaven Coal Ltd (ASX: WHC) share price this morning following the release of the company’s half-year FY21 results. Over the previous 12-month period, the Whitehaven Coal share price sank over 36%.

Let’s take a look at the announcement to assess what it might mean for share prices. 

What will today’s results mean for the Whitehaven Coal share price?

Whitehaven Coal reported a half-yearly loss for FY21. This was due to the coronavirus pandemic rattling coal prices.

Consequently, the company posted a net loss after tax of $94.5 million for the six-month period. This is significant, compared to a profit of $27.4 million in the prior corresponding period (pcp). It is worth noting that the loss exceeds the UBS estimate of an interim loss of $53 million.

Whitehaven Coal revenue took a 21% hit to land at $699.3 million compared to $885.1 million in the pcp. Earnings before interest, tax, depreciation and amortisation (EBITDA) flopped 79% from $177.3 million to $37.2 million. Considering FY21 half-yearly earnings, the Board determined an interim dividend will not be declared.

However, the Whitehaven Coal share price has clawed up 20% over the previous six months. The company has reported $411.8 million of available liquidity.

CEO comments on Whitehaven Coal results

Whitehaven Managing Director and CEO, Paul Flynn, said this about the H1FY21 results:

“The impacts of subdued pricing on seaborne coal markets were a key feature of H1 results as COVID-19 impacts on economic and industrial activity continued to be felt.

The business responded strongly to these challenging market conditions, including through improvement measures that delivered meaningful cost reductions and greater operational efficiency, offsetting price headwinds to some extent.

We have closed out H1 FY21 with strong levels of liquidity, strong banking support and we are focused on retiring debt against the backdrop of the improving price environment.

With future savings targets identified and coal markets rebalancing in response to demand signals we are optimistic about achieving stronger outcomes through the second half.”

Moving Forward

Year-to-date, the Whitehaven coal share price has dropped 3.65%. With this in mind, it will be interesting to see how today’s announcement will impact Whitehaven’s share prices. 

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Motley Fool contributor Gretchen Kennedy 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.

The post Why we’re watching the Whitehaven Coal (ASX:WHC) share price today appeared first on The Motley Fool Australia.

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