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The market may be pushing higher again today but the same cannot be said for the Commonwealth Bank of Australia (ASX: CBA) share price.

In afternoon trade the banking giant’s shares are down 1% to $85.41. This compares to a 0.4% gain by the S&P/ASX 200 Index (ASX: XJO).

What is happening?

The decline in the CBA share price might be confusing investors, especially given how the rest of the big four are on the rise today.

For example, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is up 1.2%, the Westpac Banking Corp (ASX: WBC) share price is up 0.7%, and the National Australia Bank Ltd (ASX: NAB) share price is up 0.8% following its first quarter update.

The good news for the shareholders of Australia’s largest bank is that today’s decline in the CBA share price has nothing to do with its performance and everything to do with its dividend.

This morning CBA shares traded ex-dividend. This means that the rights for the upcoming CBA interim dividend now lie with the seller rather than the buyer. In light of this, a share price generally declines in order to reflect this. After all, you wouldn’t want to pay full price for a share if you’re not going to receive the dividend.

In fact, had it not been going ex-dividend today, the CBA share price would actually be pushing higher.

The CBA interim dividend is a fully franked $1.50 per share, whereas its shares have declined by $1.00.

What now?

Eligible CBA shareholders can now look forward to being paid this dividend into their nominated accounts in around six weeks on 30 March.

Looking ahead, analysts at Citi are expecting the bank to declare a final dividend of $1.95 per share, which will bring its full year dividend to $3.45 per share.

Based on the current CBA share price, this represents a fully franked 4% yield.

More reading

• Morgan Stanley: ASX earnings season is topping expectations
• How CBA (ASX:CBA)’s CommSec expanded its millennial footprint
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• How to generate $50,000 a year from ASX dividends
• Is the CBA (ASX:CBA) share price a buy?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

Apple (NASDAQ: AAPL) is partnering with Taiwan Semiconductor Manufacturing (NYSE: TSM) to produce micro OLED displays for its long-rumored augmented reality devices at a secretive facility in Taiwan, according to Nikkei Asia Review.

That Feb. 10 announcement is surprising since TSMC mainly manufactures semiconductors on silicon wafers instead of display panels on glass substrates. However, Apple’s micro OLED displays will be built directly on chip wafers to make them smaller, thinner, and more power-efficient than regular OLED screens.

These new screens are reportedly less than one inch wide and would be well-suited for AR devices like headsets and glasses, which need to be lightweight and last for a long time on a single charge.

Nikkei’s sources claim the screens are still being tested, and they will take “several years” to enter mass production — which supports rumors that Apple will be launching AR devices over the next few years. The facility is also testing out larger micro-LED screens for upcoming Apple Watches, iPads, and MacBooks.

How will this deal help Apple?

Apple’s near-term goals are simple. It needs to keep selling more iPhones, which generated over half its revenue last year, to tether more users to its expanding ecosystem of services, which include the App Store, Apple Music, Apple TV+, Apple Arcade, Apple Pay, and other services.

Meanwhile, it needs to keep refreshing its iPad, Mac, Watch, and AirPods segments. But looking further ahead, Apple will eventually need to launch a completely new line of hardware devices, and AR headsets and glasses will likely represent that next big leap.

That’s why Apple has boosted its presence in the AR market in recent years. It launched ARKit, a software development kit for AR apps on iOS, back in 2017. It added 3D-sensing cameras to its iPhones to encourage developers to create more AR apps and patented several designs for AR glasses.

It also gobbled up smaller AR and VR companies, including Metaio, Flyby Media, SensoMotoric Instruments, and Akonia Holographics, and assembled a team of industry experts to develop new products. However, Apple already reportedly scrapped several of its ambitious AR/VR projects, and it’s still unclear how the tech giant plans to proceed in the slippery, nascent market.

The latest rumors suggest Apple could launch an AR headset in 2022 and a pair of lightweight AR glasses in 2023. Those launch dates suggest Apple could wait for early movers like Microsoft and Magic Leap to expose the market’s flaws before launching disruptive user-friendly products, as it previously did with MP3 players, smartphones, tablet computers, and smartwatches.If Apple’s AR glasses gain mainstream momentum, it would diversify the company’s hardware business away from the iPhone while locking more users into its walled garden. It could also pave the way for the eventual launch of the long-rumored “Apple Car” tethered to its AR services.

How will this deal help TSMC?

TSMC, the world’s largest contract chipmaker, has produced Apple’s first-party chips for years. Apple accounted for just over a fifth of TSMC’s revenue in 2020, with most of its orders boosting the 5nm and 7nm nodes, which accounted for 41% of its top line.

TSMC’s top rival, Samsung, also manufactures chips for Apple. However, Samsung also produces LCD and OLED displays for Apple’s devices. Therefore, Apple’s decision to partner with TSMC to produce micro OLED screens marks a deliberate shift away from Samsung, which could also have produced micro-LED and OLED displays with its in-house chip foundry.

It makes more sense for Apple to partner with TSMC, for two reasons: Samsung is still its biggest competitor in the smartphone market, and splitting its orders between two or more suppliers gives it more clout in price negotiations.

Apple clearly benefits from this partnership, but it could also help TSMC reduce its dependence on the maturing smartphone market, which accounted for 48% of its revenue in 2020. As the AR market expands, other companies could also follow Apple’s lead and tap TSMC to manufacture similar advanced screens for their devices — which would open up new sources of revenue growth beyond semiconductors.

The bottom line

This deal won’t move the needle for Apple or TSMC anytime soon. But it could still be a win-win deal over the long term — Apple would reduce its dependence on Samsung and advance its AR plans, while TSMC would tighten its relationship with Apple and diversify its business away from smartphone chips.

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

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

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun owns shares of Apple. The Motley Fool owns shares of and recommends Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

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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 ARB Corporation Limited (ASX: ARB) share price is trading lower today following the release of the company’s half-yearly report.

Shares in the 4WD accessory business are up 90% over the past 12 months and 23% higher year-to-date. However, the ARB share price has slipped 2.48% to $38.14 at the time of writing.

ARB share price drops despite strong performance

Sales for the half-year period ending 31 December 2020 were $284 million, an increase of 21.6% over the prior corresponding period (pcp).

ARB reported a profit after tax of $54 million for the half-year 2021, representing a 113.5% gain compared to the same period in FY20.

ARB’s half-year profit before tax was $72.1 million, which is at the top of its previously released guidance.  This beats the December 2019 half-year profit before tax by 109.6%. 

The board declared an interim fully franked dividend of 29 cents per share. This was 18.5 cents per share fully franked last year.

The board noted that the interim dividend payout ratio of 43% was “well below ARB’s historical payout ratio of between 53% and 58% over the last five years”.

This is because the board plans to use excess capital to increase its future business growth.

What’s ahead for the ARB share price? 

With regard to its half-year performance and looking ahead, ARB said in today’s release:

The company maintains a positive short-term outlook based on a strong customer order book and a return to growth in new car sales in Australia over the past few months.

The company’s first half performance should not be used as an indicator for the second half of the financial year given continued uncertainty around COVID-19 related restrictions and trading conditions more generally and the inclusion of non-recurring government benefits received during the first half.

Due to uncertainty caused by the coronavirus pandemic, the company did not provide full-year guidance.

At the current ARB share price, the company has a market capitalisation of $3.13 billion.

More reading

• Why ARB, Domain, Redbubble, & Treasury Wine shares are sinking today
• Real reporting season surprise isn’t about profits but dividends
• 3 forgotten ASX stocks left behind in the car sales recovery
• Why the ARB Corp (ASX:ARB) share price popped today

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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 National Australia Bank Ltd (ASX: NAB) share price is up 0.7% after revealing substantial profit growth in the first quarter of FY21.

NAB profit

The big bank revealed that its first quarter cash earnings of $1.65 billion were 47% higher than the FY20 second half quarterly average. This was primarily driven by low credit impairment charges. At the underlying level, NAB said that performance has been sound in the current competitive, low interest rate environment. Statutory profit generation amounted to $1.7 billion.

NAB reported that its credit impairment charges fell 98% compared with the second hand quarterly average, to $15 million.

Revenue declined 3%, reflecting lower markets and treasury income, mainly because of the one-off reversal of mark-to-market reversal of losses in the second half of FY20. Excluding markets and treasury, revenue grew 1% with higher fees and commissions income benefiting from increased levels of business activity.

The net interest margin (NIM) declined but was stable excluding the impact of markets and treasury and higher liquids. NAB explained that competition and the impact of low interest rates were offset by home loan repricing and lower funding and deposit costs.

NAB’s expenses for the period fell 1% with productivity benefits and lower restructuring related costs, partly offset by provisions for higher performance-based compensation. The big bank is targeting expense growth in FY21 of 0% to 2%.

Loan book

The bank said at that 31 December 2020, the Australian home loan deferral balance had declined to approximately $2 billion and the Australian business loan deferral balance had declined to approximately $1 billion. These balances are much lower than the peak balances of approximately $38 billion for home loans and approximately $19 billion for business loans.

However, the percentage of loans that are more than 90 days past due and gross impaired assets, compared to gross loans and acceptances, increased by 17 basis points between December 2020 and January 2021 to 1.18%.

Balance sheet

The big four ASX bank disclosed that its group common equity tier 1 (CET1) ratio had increased to 11.7%, compared to 11.5% at 30 September 2020. This includes the benefit of 12 basis points from the foreign currency translation and mark-to-market on its liquids portfolio.

NAB strategy comments

NAB’s CEO Ross McEwan spoke about the bank’s ongoing strategy:

“Implementation of our strategy is proceeding well as we invest for the long-term and focus on initiatives that make a real difference to our customers and colleagues. While there is still much to do, it is pleasing to see momentum building in our core businesses as we simplify and streamline our processes and policies and enhance our digital offerings.”

Initial reaction

Aside from the market’s upbeat reaction to the report, sending the NAB share price higher, analysts have also been having their say.

The Australian Financial Review quoted Credit Suisse analyst Jarrod Martin as saying that the NAB result was a clean and solid first quarter trading update and that he expected the market to react positively.

Using the earnings projections on Commsec, the NAB share price is valued at under 20x FY21’s estimated earnings and it’s valued at 16x FY22’s estimated earnings.

More reading

• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets
• NAB (ASX:NAB) share price on watch after Q1 update
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• How big will the ASX bank dividends be in 2021 and beyond?

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.

The post The NAB (ASX:NAB) share price is up after 47% profit growth in Q1 appeared first on The Motley Fool Australia.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of European markets and is pushing higher. At the time of writing, the benchmark index is up 0.6% to 6,909 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are under pressure:

ARB Corporation Limited (ASX: ARB)

The ARB share price is down over 2% to $38.25 following its half year update. For the six months ended 31 December, the 4×4 parts manufacturer reported a 21.7% increase in sales revenue to $283.9 million and a whopping 113.5% jump in profit after tax to $54 million. Investors may be disappointed with the company’s decision to reduce its interim dividend payout ratio well below historical levels. It made the decision so it could increase its investment in the business for future growth.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down 4% to $5.07. This follows the release of the property listings company’s half year results this morning. Domain reported a 3.8% decline in revenue to $137 million. But thanks to a 14.5% reduction in operating expenses, it delivered a 52.5% jump in half year net profit to $19.4 million. Despite the strong profit growth, the Domain board opted to defer its dividend. Management also warned that operating expenses would grow over the full year.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has tumbled 16% lower to $5.85 despite delivering very strong first half profit growth. For the six months ended 31 December, the ecommerce company reported marketplace revenue growth of 96% to $352.8 million. This ultimately led to the company posting earnings before interest and tax (EBIT) of $41.8 million, which was a massive improvement over the loss of $1.9 million in the prior corresponding period. Possibly causing concerns for investors was news that customer orders were affected by COVID-19 constraints during December.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 4% to $9.74. Investors have been selling the wine company’s shares ahead of its half year results release tomorrow. One broker that doesn’t appear overly confident on the company is Citi. On Monday the broker reiterated its sell rating and $8.20 price target on the company’s shares.

More reading

• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets
• Redbubble (ASX:RBL) share price sinks 13% despite strong H1 FY21 results
• Got money to invest? Here are 3 ASX shares to buy
• 3 reasons why the Redbubble share price could be a buy
• Real reporting season surprise isn’t about profits but dividends

Motley Fool contributor James Mickleboro 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 Australia has recommended ARB 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 is inching lower today. This comes despite the company announcing a new contract award with a major university health system in the United States.

At the time of writing, shares in the leading health imaging company are slightly down 2% to $46.

What’s driving the Pro Medicus share price lower?

The Pro Medicus share price is in negative territory as investors seem unfazed by the company’s latest contract win.

According to its release, Pro Medicus advised that its United States wholly-owned subsidiary, Visage Imaging, Inc., has signed a 7-year, $31 million deal with a major academic health system.

This includes UC Los Angeles (UCLA), UC San Francisco (UCSF), UC San Diego (UCSD), UC Davis (UCD) and UC Irvine (UCI).

Based on a transactional licencing model, the agreement will see the company’s Visage 7 Viewer deployed across all five campuses. This will create a unified diagnostic imaging platform which will replace the current PACS systems. Pro Medicus noted that this will be the first time the entire system will operate under the Visage platform.

In addition, the deal allows the option for the health system’s affiliates to adopt the Visage platform.

Pro Medicus revealed that it will begin planning the rollout, with the initial go-live date set for H2 CY21. It expected all campuses to be operating the Visage platform within the next 18-24 months.

Management commentary

Pro Medicus CEO, Dr. Sam Hupert, hailed the contract win, saying:

This was a highly sought after, extremely competitive tender and as you would expect for such a large and highly sophisticated client, they underwent a very extensive evaluation process that included onsite pilots involving all five main campuses.

The fact that we won unanimous endorsement speaks to the strength of our offering.

We have won six out of six of the major contracts in our market over the last seven months. These have been across a broad range of opportunities in both the academic and non-academic-IDN space, five in North America and one in Europe. Two have been for more than one of our products and three will be deployed in public cloud. This confirms our view that our solution, more so than any other, is ideally suited to a large percentage of the total addressable market.

It’s worth noting that the Pro Medicus share price is up over 30% year to date due to positive investor sentiment. Earlier this month, the company announced it received United Stated Food and Drug Administration (FDA) approval for its Breast Density Algorithm. In January, the company won a 7-year, $40 million contract with Intermountain Healthcare.

Based on the current share price, Pro Medicus commands a market capitalisation of close to $4.8 billion.

More reading

• 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
• These were the best performing ASX 200 shares in January

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 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 Rhipe Ltd (ASX: RHP) share price is sliding in morning trade, down 3.61% to $1.74 at the time of writing.

This comes following the cloud and technology solutions provider released its results for the first half of the 2021 financial year (H1 FY21), and despite posting strong growth in sales.

What financial results did Rhipe report?

In this morning’s release, Rhipe reported group sales from its software products and services of $180 million. That’s an increase of 18% from the $153 million reported in H1 FY20.

Sales from its software products increased by 17% to $171 million. The company credited growth in its sales of Microsoft Office365 and Azure. Asia is a strong growth market, with Rhipe’s sales increasing 34% in the region year-on-year.

The half-year revenue increased by 15% to $30.5 million (up from $26.6 million).

Growth in the company’s licensing revenue of $21.6 million slowed to 7% year-on-year. Rhipe pointed to changes in its software vendor incentives and the impact of COVID-19 on its business partners for the lower revenue growth.

Revenue from its services and support activities grew more strongly, up 40% on the previous corresponding half year, to $9 million.

Earnings before income, taxes, depreciation and amortisation (EBITDA) of $8.2 million was up 17% from H1 FY20. Profit after tax also increased by 17% to $3.8 million, up from $3.2 million.

As of 31 December, the company had cash of $57.5 million, having paid $3.2 million in dividends and $4.3 million for its Parallo acquisition.

Rhipe announced an interim dividend of 1.5 cents per share (cps), fully franked, to be paid in March.

Looking ahead, Rhipe forecasts strong financial results for the second half of the 2021 financial year. The company stated it intends to increase investments in several areas of its business. Rhipe is aiming for full-year operating profit of $17.5 million for FY21, approximately 27% more than it delivered in FY20.

Rhipe share price snapshot

The Rhipe share price has yet to recover from the hit it took during last year’s viral selloff in February and March. Over the past 12 months, Rhipe’s shares are down 29%. Year-to-date the share price is down 7% (with today’s intraday losses factored in).

For comparison, the All Ordinaries Index (ASX: XAO) is up 3% so far in 2021.

More reading

• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Why is the Ecograf (ASX:EGR) share price on a wild ride today?
• Mesoblast (ASX:MSB) share price surges on new results
• Why the Optiscan (ASX:OIL) share price is going gangbusters
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal

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 Money3 Corp Ltd (ASX: MNY) share price is on the rise today, up 4% in morning trade. Shares are gaining today following the release of Money3’s results for the first half of the 2021 financial year (H1 FY21). At the time of writing, the Money3 share price is trading at $2.94, up 2.5%. 

What results did Money3 report for H1 FY21?

In this morning’s release, the financial services company reported it had achieved record results for the half-year and is turning its focus to growth.

Earnings before income, tax, depreciation, and amortisation (EBITDA) came in at $40.5 million. That’s up 32.8% from H1 FY20.

Net profit after tax (NPAT) also posted strong growth, up 26.8% to $19.9 million.

Money3’s revenue for the half-year grew by 8.3% to $67.9 million while its $151.1 million cash holdings increased by 9.3% over the previous corresponding period.

The company reported an 11.1% upturn in its gross loan book, reaching $474.0 million. And Money3 declared a 3 cent interim dividend, fully franked. The dividend will be paid on 8 April.

Statement from the Managing Director

Commenting on the results, Scott Baldwin, Money3’s Managing Director said:

We acquired AFS and GMFA, both settling early in 2021. AFS broadens the Australian product offering for the Group, increasing the leverage of the Group’s existing distribution channels, and expanding the addressable market into new vehicles and growing our presence in the commercial vehicle market. While GMFA provides us with a loan book of high credit quality customers.

Finally, securing the $250 million warehouse from Credit Suisse provides a cornerstone to the Group’s future growth, as does the Westpac funded $55 million warehouse facility supporting the AFS business. We are now very well placed with substantial bank funding at a lower cost of funding… The Group is now focused on growing the business toward $1 billion of receivables.

Looking ahead Money3 reported it is “cautiously optimistic” on its outlook for the second half of the 2021 financial year. It forecast NPAT of $36.0 million. The company expects to pay 9 cents in dividends for the full financial year, fully franked.

Share price snapshot

Money3’s shares hit a record high of $3.03 per share on 21 February last year. The share price then plunged 73% by 23 March. But it’s come back strongly since then. Shares are now up 268% from the 23 March lows and less than 2% below their all-time highs.

Year-to-date the Money 3 share price is up 4.2%. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.3%.

More reading

• Here’s why the Money3 (ASX:MNY) share price is racing higher

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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Brokers are constantly looking at ASX dividend shares to decide which ones look like good value to buy.

The brokers are looking at things like the profit expectations, the valuation, the operational performance and the outlook.

One broker might say that Australia and New Zealand Banking Group Ltd (ASX: ANZ) is a buy whilst another broker might decide that Telstra Corporation Ltd (ASX: TLS) shares have more growth potential. 

However, if there’s an ASX dividend share that multiple brokers like then it could be one to think about.

BHP Group Ltd (ASX: BHP)

The big resources business just reported its FY21 first-half result to investors. It’s liked by at least four different brokers.

In the report, BHP said that its profit from operations went up 17% to US$9.75 billion, underlying attributable profit rose 16% to US$6 billion, and net operating cashflow rose 26% to US$9.37 billion.

However, reported attributable profit fell 20% to US$3.9 billion. This number included an exceptional loss of US$2.2 billion predominately related to the impairments of New South Wales Energy Coal (NSWEC) and associated deferred tax assets and Cerrejon.

On the dividend front, BHP’s board decided to declare a 55% increase to the interim dividend to US$1.01 per share. Net debt reduced by 7% to US$11.8 billion.

The brokers at Macquarie Group Ltd (ASX: MQG) noted that iron ore made up 70% of the first half profit and copper contributed about a quarter of earnings. Petroleum and coal didn’t contribute much to earnings, they only made up around 5% of earnings.

The dividend declared by the ASX dividend share was 26% higher than Macquarie was expecting.

Looking ahead to the medium-term, Macquarie thinks that the strong price of iron ore will continue to help BHP’s profit in both FY21 and FY22.

Macquarie expects BHP to pay a dividend of just under $2.64 per share in FY21, representing a grossed-up dividend yield of 8%. The broker has a share price target of $50 for BHP.

Amcor CDI (ASX: AMC)

Amcor is one of the world’s largest flexibles and rigid packaging manufacturers. It’s currently rated as a buy by at least four brokers.

The ASX dividend share recently released its FY21 first half result which showed that adjusted earnings before interest and tax (EBIT) climbed 8% to $743 million and adjusted earnings per share (EPS) grew 16% to 33.3 cents in constant currency terms. Reported EPS shot higher by 71% to 26.5 cents.

One of the main highlights from the result was the ongoing synergies being achieved with the acquired Bemis acquisition. At the time, it had achieved $35 million of cost synergies and it’s expecting a total of $70 million of cost synergies over the current financial year.

Broker Morgans said that the half-year result was better than it was expecting, with the ‘flexibles’ division delivering EBIT growth of 9% and rigids EBIT growth of 10%.

Morgans pointed to Amcor’s improved profit expectations. Prior to the half-year report being released, management were expecting underlying EPS to rise between 7% to 12%, now the company thinks underlying EPS can rise between 10% to 14%.

The broker has forecast a total dividend for FY21 of $0.67, which translates to a dividend yield of 4.6%. It has a share price target of $17.10 for Amcor.

More reading

• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets
• Why BHP, Codan, Seven West Media, & Zip shares are charging higher
• BHP (ASX:BHP) share price higher after huge first half profit and dividend growth
• 5 things to watch on the ASX 200 on Tuesday
• Up 2%: Is the BHP (ASX:BHP) share price a buy?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited, Macquarie Group Limited, and Telstra 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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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to build on yesterday’s solid gain. The benchmark index is currently up 0.5% to 6,904.8 points.

Here’s what is happening on the market today:

BHP half year result impresses

The BHP Group Ltd (ASX: BHP) share price is pushing higher today after investors responded positively to its half year results. The mining giant delivered a 15% increase in half year revenue to US$25.64 billion and a 21% jump in underlying EBITDA to US$14.7 billion. This was driven largely by strong profits from its iron ore and copper businesses. And thanks to its strong free cash flow generation, the BHP board declared an interim dividend of US$1.01 per share (~A$1.30 per share). This is up 55% on the prior corresponding period.

NAB share price rises on Q1 update

The National Australia Bank Ltd (ASX: NAB) share price is pushing higher today following the release of its first quarter update. For the three months ended 31 December, NAB reported an unaudited statutory net profit of $1.7 billion and cash earnings of $1.65 billion. The latter was a 1% increase on the prior corresponding period. Another positive was that the bank’s credit impairment charges fell 98% compared with the quarterly second-half average of FY 2020.

Ansell half year update

The Ansell Limited (ASX: ANN) share price is edging lower today following the release of its half year results. For the six months ended 31 December, the personal protection safety solutions provider reported sales growth of 24.5% to US$937.8 million. Thanks to stronger margins, Ansell reported a 61.9% increase in net profit to US$106.5 million. In light of this strong half, the Ansell board raised its interim dividend by 52.6% to 33.2 US cents.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Zip Co Ltd (ASX: Z1P) share price with a 12% gain on no news. The buy now pay later provider’s shares are now up 150% since the start of the year. The worst performer has been the Treasury Wine Estates Ltd (ASX: TWE) share price with a 6% decline. Investors appear nervous ahead of the wine company’s half year results tomorrow.

More reading

• 2 ASX dividend shares rated as buys by brokers
• Why BHP, Codan, Seven West Media, & Zip shares are charging higher
• Why the Ansell (ASX:ANN) share price is lifting this morning
• BHP (ASX:BHP) share price higher after huge first half profit and dividend growth
• NAB (ASX:NAB) share price on watch after Q1 update

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Ansell 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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