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The Spirit Technology Solutions Ltd (ASX: ST1) share price is shooting higher today. This comes after the company announced record results for the first-half of the 2021 financial year.

In early-morning trade, the company’s shares swapping hands at 44 cents, up 10%.

How did Spirit perform for H1 FY21?

The Spirit share price is soaring today after the tele-communications company advised it had achieved record growth across all key business segments.

For the period ending 31 December, Spirit reported first-half total revenue of $42.7 million, reflecting a 243% increase year-on-year (YoY). The second-quarter did most of the heavy lifting, contributing $27.1 million, a jump of 338% YoY and 73% on the first quarter of FY21.

The robust result for Q2 came from recurring revenue which stood at $11.5 million, indicating a 116% lift YoY. In addition, its solutions and projects revenue delivered $15.6 million to the company. This represented a mammoth 1,768% growth YoY and 155% on the prior quarter. The projects department however did receive government grant infrastructure revenue, driving the sound performance.

Total contract value (TTV) sales soared to $14.1million, accelerating 303% YoY. This was credited to the strong demand for Spirit products from customers. Notably, pending installations, and IT services and technology are in the order book, worth $15.1 million and $6.6 million, respectively.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $4.1 million and $4.4 million. On the prior corresponding period (H1 FY20), EBITDA came in at $1.6 million.

The group recorded positive cash flow of $4.3 million from operating activities for the first-half.

Spirit maintained a healthy balance sheet with $23.3 million in cash at the end of the calendar year.

What did the managing director say?

Spirit managing director Sol Lukatsky welcomed the positive results, saying:

We have had an exceptional first half for FY21. Our record growth has continued as businesses seek to modernise their IT & Telco systems. We’re now building scale and taking significant market share across SMB, essential services and corporate segments.

…The integration of Spirit’s acquired businesses into a bundled offering is proceeding at speed, is ahead of schedule and already showing significant commercial results – as seen in our Q2 21 numbers. We are still expecting additional upside as the operating model matures in the market in H2 21.

About the Spirit share price

The Spirit share price has tracked well over the past 12 months, gaining more than 100% for investors.

Its shares hit a low of 12 cents in April, and reached a multi-year high of 45 cents in September.

Based on the current share price, Spirit commands a market capitalisation of around $172 million.

More reading

• 3 biggest risks to ASX share investors right now
• Here’s why the Fortescue (ASX:FMG) share price is edging lower
• Here’s why the Lynas (ASX:LYC) share price jumped 7% higher today
• Why the MyFiziq (ASX:MYQ) share price is racing higher today
• Why the Coca-Cola Amatil (ASX: CCL) share price is in focus today

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

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COVID-19 vaccines are rolling out, consumers are cashed up and most market analysts are bullish for 2021.

But after a shocking 2020, the world remains a very uncertain place.

So two professional investors were asked this week at a GSFM briefing what would wipe the smiles off their faces.

Here’s what they said:

Big risk #1: China

Tribeca Investment Partners portfolio manager Jun Bei Liu identified the rising power of China as a potential danger to investors.

“It’s created political tension over the last 12 months. China’s growing very rapidly. Its economy may well exceed the size of the US within sight, very quickly,” she said.

“You might see more conflicts, whether it’s trade or something else.”

Big risk #2: big tech

Liu also called out the public and government scrutiny of giant technology companies as a risk for stock markets.

“We also have increased pressure on the market power of some of the tech players,” she said.

“You will see increased scrutiny around the western world… There will be more regulation.”

Some current examples are anti-trust and news revenue arguments against Alphabet Inc (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB). And even the Chinese government’s scrutiny of Alibaba Group Holding Ltd (NYSE: BABA).

There will also be a segregation of tech infrastructure between the US and China for security, political and economic reasons, according to Liu.

She feared for the worst if either China or tech regulation dented market confidence.

“What does that mean for the equity market? It means risk. It means when we start having these uncertainties, markets just aren’t priced in for it.

“If any of those [risks] flare up, we will see equity markets sold off. Investors will try to re-price on what it means.”

Big risk #3: inequality

Munro Partners chief investment officer Nick Griffin’s biggest concern for the market was the growing gap between the wealthy and the poor.

After all, that very trend prompted the rise of populism in recent years – as seen in the US election of Donald Trump and the UK’s vote for Brexit.

And last year only exacerbated the situation.

“I know the pandemic was a terrible thing, and it has created these winners and losers. So the inequality that was in the market before gets worse,” said Griffin.

“There will be a reckoning at some point in the future. There has to be, because you can’t have this level of inequality occurring in the world… Over the long run it’s probably not sustainable.”

Griffin said that climate change is the biggest investment opportunity since the rise of the internet.

“We conservatively estimate this will cost US$21 trillion (AU$27 trillion) over the next 30 years… This is going to be the biggest S curve of my investment lifetime.”

But this type of change leaves citizens behind who are only skilled to work in old world industries, heightening the very tension that he identified.

Griffin did temper his view about the timing though, saying he thought the “reckoning” would not take place “in the next 12 months”.

More reading

• Here are the US shares ASX investors are buying
• US decides against delisting Tencent and other Chinese giants
• Signal share price? An Elon Musk tweet and a WhatsApp controversy
• Here are the US shares ASX investors are buying in 2021 so far
• Apple’s latest privacy move is a blow for Facebook, but not The Trade Desk. Here’s why

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares) and Facebook. 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 edging lower on Friday.

In morning trade, the iron ore giant’s shares are down 0.5% to $24.79.

Why is the Fortescue share price edging lower?

Investors have responded in a subdued fashion to Fortescue providing the market with guidance for the first half of FY 2021.

According to the release, Fortescue’s Chairman and founder, Dr Andrew Forrest AO, has recorded to a live audience the first ABC Boyer Lecture for 2021.

The release explains that the lecture includes a reference to Fortescue’s net profit after tax for the month of December. Which, based on preliminary unaudited management accounts, came to over US$940 million thanks to sky high iron ore prices.

In light of this information being out in the public, the company has decided to release its guidance for the first half ahead of the formal release of its results on 18 February.

What is Fortescue expecting in the first half?

The iron ore giant advised that the preliminary net profit after tax for the six months ended 31 December 2020 on an unaudited basis will be in the range of US$4 billion to US$4.1 billion.

As a comparison, in the first half of FY 2020, Fortescue reported a net profit after tax of US$2.5 billion. This means that the company is expecting to deliver an impressive 60% to 64% increase in net profit after tax over the prior corresponding period.

This bodes well for dividends. FY 2020’s interim dividend was a fully franked 76 cents. If Fortescue were to increase its interim dividend by the same amount, it will mean an interim dividend of ~$1.23 per share.

Which, based on the current Fortescue share price and purely from the interim dividend, implies a 5% yield for investors.

However, as great as this is, the market appears to have already factored this into the Fortescue share price. Hence the subdued response this morning.

More reading

• What a dramatic day in the US could mean for ASX shares in 2021
• Leading brokers name 3 ASX shares to buy today
• ASX dividends: Are miners the new bank shares?
• Can iron ore keep pumping the share prices of these ASX miners?
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is on course to end the week on a very positive note.

At the time of writing, the rare earths producer’s shares are up 7% to a multi-year high of $5.25.

Why is the Lynas share price jumping higher?

The catalyst for this strong gain has been an announcement this morning in relation to its activities in the United States.

According to the release, the company has entered into an agreement with the United States Government to build a commercial Light Rare Earths separation plant in Texas.

This project is in collaboration with the U.S. Department of Defense and is scheduled to be completed in accordance with the department’s timetable and as part of the Lynas 2025 plan.

While the cost of the project is still being finalised, Lynas expects Department of Defense funding to be capped at approximately US$30 million. The company will also be expected to contribute approximately US$30 million under the agreement.

Once operational, the plant is expected to produce approximately 5,000 tonnes per annum of rare earths products. This includes approximately 1,250 tonnes per annum of neodymium-praseodymium (NdPr). It will also be able to receive material directly from the cracking and leaching plant that Lynas is developing in Kalgoorlie, Western Australia.

What’s next?

In the middle of last year, the company signed another contract with the U.S. Department of Defense for Phase I work on a U.S. based Heavy Rare Earth separation facility.

Should that contract proceed to the next phase, the Texas facility would house both Heavy Rare Earths and Light Rare Earths processing facilities.

These facilities would serve both the Defense Industrial Base (DIB) and the growing commercial market. The latter includes electric vehicles and green technologies made in the U.S. and global markets.

Management commentary

Lynas CEO, Amanda Lacaze, commented: “As the only non-Chinese commercial producer of separated Rare Earths products to the global marketplace, Lynas is delighted by the opportunity to develop a Light Rare Earth separation facility in the United States.”

“Rare Earth materials are critical inputs to many industrial supply chains, including electric vehicles, electronics and several defence applications. While demand for Rare Earth materials continues to grow, COVID-19 has exposed the risks within global supply chains of the single sourcing of critical materials.”

“This agreement is consistent with the U.S. Government’s commitment to rebuild the domestic industrial base, while working effectively with partner nations. The Texas plant will ensure the U.S. has a secure domestic source of high quality separated Rare Earth materials. This secure supply will provide the essential foundation for the renewal of downstream specialty metal making and permanent magnet manufacturing in North America,” Ms. Lacaze concluded.

More reading

• 3 ASX shares powering the electric car revolution
• What does the Biden administration mean for ASX shares? 
• Iluka (ASX:ILU) share price surged higher on a potential $1bn+ valuation uplift
• These were the best performing ASX 200 shares last week
• ASX 200 rose 1.6%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The MyFiziq Ltd (ASX: MYQ) share price is racing higher on Friday morning.

At the time of writing, the dimensioning technology provider’s shares are up 3.5% to $1.24.

Why is the MyFiziq share price racing higher?

Investors have been buying MyFiziq shares after it provided an update relating to a funding agreement entered into with Bearn LLC.

Bearn provides a multi-sided vendor backed platform that allows for the gamification and engagement of health with its users. Bearn users can earn actual cash for improving their health, fitness and wellness. It reportedly has 56 million pre-registered users.

According to the release, MyFiziq and Bearn have been working together over the past 60 days to formulate a marketing and expansion plan. This plan is targeting both the delivery of 1 million active monthly users to MyFiziq and the required expansion to the Bearn platform to allow for the volume provisions required to support the large already existing pre-registered users.

The company explained: “Bearn approached MyFiziq wanting to execute on a large-scale campaign to their pre-registered users. It was outlined by Bearn management that the scale of which they had received pre-registrations would not be possible based on the existing specifications of the Bearn platform. To achieve this outcome, Bearn required a small injection of development capital and then a further joint amount to execute on a direct to preregistration onboarding campaign.”

In light of this, MyFiziq has agreed to fund a total of US$500,000 to Bearn over four tranches. This comprises an initial US$200,000 paid for the platform scale to be implemented, followed by three US$100,000 payments for the direct onboarding campaign.

The loan is secured over Bearn’s software and separately a pledge over the membership interests of Bearn’s founder, Mr Aaron Drew.

Why doesn’t Bearn get funding elsewhere?

With apparently 56 million pre-registered users, it is quite odd that Bearn was unable to get funding from other sources. Traditionally, you would expect private equity to be champing at the bit to inject cash given those numbers.

However, MyFiziq’s CEO Vlado Bosanac, who the ATO is reportedly pursuing for more than $9.34 million in unpaid taxes, explained that this was due to its inability to roadshow and source new capital because of COVID-19.

He commented: “Bearn is a great company, and it was roadblocked due to the US COVID lockdowns and inability to roadshow and source new capital. I saw this as an opportunity to work with an already established partner and to enable Bearn to reach our joint goals.”

“With 56,000,000 potential users, it would be a shame to not empower Bearn to onboard a number that is significant to MyFiziq and a substantive move forward for Bearn. The sheer number of pre-registrations Bearn has confirmed across all of the partnerships demonstrates they have an audience with an immediate desire for the Bearn product offering. Due to the exponential growth over the recent months, it has caused Aaron Drew CEO of Bearn more concern than joy.”

“MyFiziq understands the requirement for uninterrupted scale for the users and I was happy to act on the needs of our partner and the potential it brings to MyFiziq. Aaron is very confident on the ability to deliver the number once the platform has the depth required to support the proposed influx. The launch of new improved Bearn app has been targeted for April 2021, giving Bearn ample time to make the platform improvements and engage the marketing campaign for the onboarding process,” Mr Bosanac concluded.

More reading

• These 6 ASX companies just started measuring ESG
• MyFiziq (ASX:MYQ) share price falls despite announcing new app release
• Why Dacian Gold, Lovisa, MyFiziq, & Zip shares are dropping lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coca-Cola Amatil Ltd (ASX: CCL) share price is one to watch today after the company announced updated earnings guidance this morning.

Why is the Coca-Cola Amatil share price on watch?

The Aussie bottling group provided an initial, unaudited trading update for Q4 2020 and the full year ended 31 December 2020 (FY20). Coca-Cola is expecting to deliver FY20 ongoing earnings before interest and tax (EBIT) before non-trading items down 13.9% on FY19 to $550.7 million.

Group managing director Alison Watkins said the group saw “strong trading performance” in the Q4 2020 Christmas period. That was especially the case in the Australian grocery channel with broader strong performance in New Zealand.

“Month to month volatility” is expected to persist, particularly in Australia. Ms Watkins cited variability in trading conditions from state to state under coronavirus restrictions as a key factor.

Coca-Cola’s Indonesian business is facing “challenging” trading conditions. That comes as the country continues to battle COVID-19 outbreaks and difficult macroeconomic conditions. Indonesian volumes fell 18.7% for the quarter thanks to lower consumer mobility and economic activity.

It will be interesting to see how the Coca-Cola Amatil share price performs this morning following this latest earnings update. Coca-Cola saw FY20 group volumes fall 5.4% lower for the quarter and 8.4% for the year. Low FY20 volumes impacted on group revenue which fell 6.1% to $4,762.1 million.

The group EBIT result of $550.4 million includes an expected $140 million of cost savings due to efficiency gains announced at the start of COVID-19. There was also the Q4 2020 uplift as Victorian restrictions eased and business activity resumed late in the year.

In Australia, grocery (+5.0%) and convenience & petroleum (+6.7%) saw strong growth throughout FY2020 despite on-the-go volumes falling 8.3% for the year.

Foolish takeaway

The Coca-Cola Amatil share price is one to watch in early trade after the company updated its guidance for Q4 2020 and FY2020. Shares in the Aussie bottling company are up 7.9% in the last 12 months compared to a 4.3% drop in the S&P/ASX 200 Index (ASX: XJO).

More reading

• The ASX 200 stock facing a day of reckoning at the February reporting season
• Citi sees bigger takeover offer coming for Coca-Cola Amatil (ASX:CCL) share price

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As we embark on another year on the ASX, a dominant theme from last year is still very much at play. That would be the near-zero interest rates we are currently experiencing. 

If you thought the interest you could receive from your savings accounts and term deposits was pathetic in 2020, it’s quite likely things will not improve in 2021, given that interest rates are predicted to remain low for at least a few years. This means many income investors are increasing turning to ASX dividend shares seeking more attractive returns.

After a torrid year for income investors last year, getting a decent and secure yield from the share market is high on many ASX investors’ priority lists. So, to that end, let’s take a look at 3 ASX dividend shares:

3 ASX dividend shares for 2021 and beyond

Telstra Corporation Ltd (ASX: TLS)

In contrast to the big banks, Telstra kept its (arguably generous) dividend of 16 cents per share steady last year. It seems the even more intense love affair Aussies developed with on-demand TV and other online entertainment during the pandemic was good for an internet and network provider. On current pricing, Telstra’s 16 cent dividend is worth around 5.05% (or 7.21% grossed-up with full franking).

At the company’s annual general meeting last year, Telstra’s management stated that keeping this dividend steady in 2021 was a top priority for the company. That bodes well for income investors.

Coles Group Ltd (ASX: COL)

Coles is another robust ASX dividend share for income investors to consider. It was one of the few ASX blue chips that arguably benefitted from the pandemic last year as consumers stocked up their pantries with life’s essentials. This was highlighted when Coles raised its final dividend last year by 14%. That looks pretty good considering other companies were slashing their shareholder payouts left and right.

There’s a lot to be said for owning a company that sells food, drinks and other household essentials we all need. On current pricing, Coles’ 57.5 cents per share trailing dividend is worth around 3.18% (or 4.54% grossed-up with full franking).

Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)

A final ASX dividend share to consider is ‘Soul Patts’. One could argue this industrial conglomerate is a contender for one of the best dividend shares on the ASX today. This is evidenced by the fact that Soul Patts is the only ASX company to deliver 20 consecutive annual dividend increases (a record that was upheld in 2020). Yes, this company has managed to not just keep, but grow, its dividend through both the global financial crisis and the coronavirus recession.

Soul Patts is more of a holding company these days. It owns massive stakes in a variety of other ASX shares, including Brickworks Limited (ASX: BKW) and TPG Telecom Ltd (ASX: TPG). On current pricing, Soul Patts offers a trailing dividend yield of 2.07% (or 2.96% grossed-up with full franking).

More reading

• Why the Soul Patts (ASX:SOL) share price will be on watch today
• ASX dividends will be up 30% this year: fundie
• 2 quality ASX dividend shares for income investors to buy
• 5 things to watch on the ASX 200 on Friday
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price will be on watch this morning. This comes after the investment house announced an unsecured senior convertible notes offer after yesterday’s market close. The Soul Patts share price finished Thursday’s session 1.2% higher at $29.00.

Why will the Soul Patts share price be in focus?

Investors will be keeping an eye on the Soul Patts share price this morning after the company advised it’s launching a $250 million unsecured convertible notes offer to eligible investors. The offer will consist of a base issue size of $225 million, with a further $25 million upsize option. The notes have a 5-year maturity date, expiring January 2026, at which time they will be converted to fully-paid ordinary shares.

The net proceeds of Soul Patts’ latest offer is expected to reign in between $221 million and $246 million. This is after associated fees and administrative expenses to launch the convertible notes.

The investment conglomerate revealed that most of the funds received will be used to repay around $200 million of existing debt. The remaining amount will be allocated towards increasing the company’s capital position.

In addition, Souls Patts stated it will apply for the offer to be listed on the Singapore Exchange Securities Trading. This will broaden the notes to eligible shareholders across the other exchange hub.

As more Soul Patts shares will be added to the register, the Australian branch of investment bank UBS, will offload some ordinary Soul Patts shares to reduce share dilution. The agreed sale price for these shares will be placed at $27.99 per share.

Furthermore, Brickworks Limited (ASX: BKW), of which Soul Patts owns more than 40%, proposed to enter into a market stock loan facility. The agreement, pending documentation approval, will see 3 million Soul Patts shares issued to Brickworks for 12 months.

What did management say?

Soul Patts managing director and CEO Mr Todd Barlow commented on the notes offer:

We are excited to introduce a new group of global investors to support WHSP’s growth strategy. The majority of the net proceeds from the Offering will be used to repay approximately A$200 million of existing financial indebtedness which will lower WHSP’s average cost of debt and increase WHSP’s debt maturity profile. The remaining proceeds will be applied to further strengthen WHSP’s liquidity position. Following the Offering, WHSP will continue to have low gearing and diversified sources of funding.

Soul Patts share price snapshot

Over the last 12 months, the Soul Patts share price has risen almost 30%, reflecting stable gains for the company.

Its shares dipped to a low of $16.66 in March due to COVID-19, but have been on an upwards trajectory since. Last month, the Soul Patts share price reached an all-time high of $30.84.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• 3 high-yielding ASX 200 dividend shares
• Why Frontier Digital Ventures, JB Hi-Fi, Regis, & Tyro are dropping lower
• Here’s why the Regis Healthcare (ASX:REG) share price is crashing 11% lower

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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Share markets will hit record highs this year because of one move that Joe Biden has already made.

That’s according to DeVere Group chief executive Nigel Green, who explained the appointment of Janet Yellen as US Treasury secretary is a very positive development for equities. 

“Despite the inauguration pomp and ceremony at the Capitol, investors’ focus is now already on Janet Yellen, who will take over from Steve Mnuchin as US Treasury secretary,” he said.

“In her testimony in congress on Tuesday, the former Federal Reserve chair called on lawmakers to ‘act big’ on coronavirus stimulus especially with interest rates being at historic lows.”

Back at the Federal Reserve last decade, she was focused on achieving full employment. In fact, she remains the only chair to see jobs added every month of their term.

Yellen’s track record proves she is prepared to spend to achieve her aims, according to Green.

“With Ms Yellen in charge and with an economy that needs a shot in the arm, I think we can expect massive spending combined with continued ultra-low interest rates for years,” he said.

“This will act as a catalyst for stock markets.”

BetaShares director Adam O’Connor also expected fiscal stimulus to be a high priority for the new administration.

He said there are “expectations of anywhere from $600 billion to $1 trillion in pandemic relief on top of the recently enacted $900 billion package”. 

“Tax increases to finance additional spending are also likely to follow later on.”

She hasn’t even been officially installed yet, but even during Yellen’s congress testimony this week the US dollar sank — indicating investors’ money shifted from safe havens, like currencies, to go towards shares.

White House stability is good for shares too

The predictability that the Biden administration is expected to provide would also be a boon for stocks, said Green.

“There will be peaks and troughs as always, but with these policies and greater stability in the White House, I believe, we could see markets produce even higher highs in 2021 than in 2020.”

Switzer Group founder Peter Switzer agreed the US market, and by extension Australian shares, is on the way up.

“Under Joe Biden, I expect the US to grow stronger in 2021 and 2022, which will be good for the world economy and us as exporters,” he said.

“It’s why the share price of local company, Woodside Petroleum Limited (ASX: WPL), in the oil and gas space, has seen its share price go from $16.80 in October to $27.40 [on Wednesday].”

More reading

• 5 things to watch on the ASX 200 on Friday
• What a dramatic day in the US could mean for ASX shares in 2021
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops 0.8%
• Why the Woodside Petroleum (ASX:WPL) share price is dropping lower today

Motley Fool contributor Tony Yoo 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 Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could jump higher on Friday following the release of a trading update.

In New Zealand, the Fisher & Paykel Healthcare share price is currently up 6% in early trade.

How is Fisher & Paykel Healthcare performing?

Today’s update reveals that Fisher & Paykel Healthcare has continued to experience strong demand for its products in FY 2021.

According to the release, operating revenue for the nine months ended 31 December 2020 was up 73% in constant currency compared to the prior corresponding period.

The main driver of this growth has been its Hospital Product segment. This includes products that are used in acute and chronic respiratory care and surgery.

Hospital Products operating revenue grew 113% over the first nine months of the previous financial year in constant currency.

Over this same period, management notes that Hospital hardware grew 446% and hospital consumables grew 54%, both in constant currency.

Growth in the company’s Homecare Product segment has been a lot more subdued. This segment includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home. It competes head on with ResMed Inc (ASX: RMD) in this market.

The release explains that segment operating revenue grew 6% over the nine months to 31 December 2020 in constant currency.

Managing Director and Chief Executive Officer, Lewis Gradon, commented: “In many parts of the world, we have continued to see an influx of COVID-19 patients requiring hospitalisation for respiratory treatment.”

“Given the elevated hospitalisation rates for COVID-19, our hospital hardware sales have continued to be very strong, as has the use of our hospital hardware,” he added.

Outlook

When the company released its half year results, it provided investors with an idea of what it was expecting in FY 2021 based on a number of assumptions.

It guided to full year operating revenue of approximately NZ$1.72 billion and net profit after tax of approximately NZ$400 million to NZ$415 million.

This compares to FY 2020’s operating revenue of NZ$1.26 billion and net profit after tax of NZ$287.3 million.

Pleasingly, the company notes that these assumptions are now outdated and the company currently expects revenue and net profit after tax to be higher than previous expectations.

However, due to significant uncertainties associated with the course of COVID-19, no formal guidance has been provided and investors will need to wait for its full year results to find out how it performs.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Fisher & Paykel Healthcare (ASX:FPH) share price could jump higher today appeared first on The Motley Fool Australia.

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