Tag: Motley Fool

There are some S&P/ASX 200 Index (ASX: XJO) dividend shares that have higher dividend yields.

Here are three of those examples:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the leading electronics and appliance retailers in Australia and New Zealand.

It has been regularly growing its dividend. In FY20 the final dividend shot 76.5% higher and the annual FY20 dividend went up 33.1% to $1.89 per share.

Based on the current JB Hi-Fi share price it has a grossed-up dividend yield of 5.2%.

The ASX 200 dividend share revealed that it’s going to report more growth in its upcoming FY21 half-year result. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.

JB Hi-Fi said that disciplined cost control combined with strong sales growth drove significant operating leverage. According to management, gross margins were well managed with strong improvements in gross margins in key categories, particularly for The Good Guys.

APA Group (ASX: APA)

This ASX 200 dividend share owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

At the current APA Group share price it has a distribution yield of 5.3%.

APA funds its distribution from the annual operating cashflow. The cashflow grows as it completes more of its energy infrastructure projects.

The business is building a new 580km pipeline in Western Australia for a cost of $460 million. The new pipeline will connect the resource rich Goldfields region to emerging gas fields. This will make an interconnected gas grid for APA.bManagement are expecting this new pipeline to be finished around the middle of 2022.

This may be able to unlock even more growth for APA because historically it gets requests for energy connections from miners that want a reliable and affordable energy source, complementing their variable renewable energy sources.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX 200 dividend share with one of the longest dividend records. It hasn’t cut its dividend for over 40 years.

That dividend is supported by two key asset groups.

Brickworks owns around 40% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which is an investment conglomerate with a diversified portfolio. It owns ASX shares like TPG Telecom Ltd (ASX: TPG), Brickworks, Clover Corporation Limited (ASX: CLV), Australian Pharmaceutical Industries Ltd (ASX: API), Palla Pharma Ltd (ASX: PAL), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT). It’s also invested in private businesses in sectors like financial services, resources and agriculture. 

Soul Patts pays Brickworks (and all other shareholders) a growing dividend. The Soul Patts dividend per share has risen every year since 2000.

The other dividend-supporting asset for Brickworks is its industrial property trust that it owns along with Goodman Group (ASX: GMG) in a joint venture. This trust pays a growing stream of rental profit to Brickworks (and Goodman).

That property trust is now building two huge distribution warehouses, one each for Amazon and Coles Group Ltd (ASX: COL). Once these two warehouses are finished it’s expected to increase the gross assets of the trust to more than $3 billion and the rental profit distribution will increase by more than 25%.

At the current Brickworks share price it has a grossed-up dividend yield of 4.6%.

More reading

• Why Frontier Digital Ventures, JB Hi-Fi, Regis, & Tyro are dropping lower
• The latest ASX stocks to be upgraded by brokers to “buy” today
• ASX 200 up 0.5%: BHP’s update, PolyNovo jumps, Ansell impresses
• Here’s why the Regis Healthcare (ASX:REG) share price is crashing 11% lower
• 3 top ASX dividend shares to buy for income

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 high-yielding ASX 200 dividend shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3p08Q0V

The Westgold Resources Ltd (ASX: WGX) share price closed 2.12% higher at $2.41 today after the miner released its December 2020 quarterly report.

Let’s take a closer look at the results and the recent history that’s led to here.

A strong period for gold sales

Westgold reported gold production and sales of 65,214 ounces and 65,167 ounces respectively for the December quarter. Both of these numbers are in line with the company’s previously published guidance.

The company reported an 11% increase in operating cash flow quarter-to-quarter reaching $65 million. Westgold also increased its revenue by 11% quarter-to-quarter reporting a revenue of $156.4 million for the period.

During the quarter, no environmental breaches were filed against Westgold’s operations. Westgold operates the Fortnum Gold operation, the Meekatharra Gold operation and the Cue Gold operation.

Regarding prospects across these locations, Westgold noted that excellent results continue across all operations despite subdued exploration efforts during the quarter.

A bumpy six-month ride for the Westgold share price

Over the past six months, the Westgold share price has stumbled around 5.5% lower to reach where it’s currently trading. In the past month, the share price has fallen more than 11%. 

However only a few weeks ago, Westgold managed to post some nice gains on a day when the market was genuinely down.

Westgold’s current market cap is $991.8 million.

Commenting on today’s results, Westgold executive chair Peter Cook said:

These results highlight the operational flexibility and diversity of the group’s assets… This flexibility in mining has allowed Westgold to carry on production, mitigating the ongoing difficulties associated with the COVID-19 pandemic, such as travel restrictions and quarantining.

Mr Cook went on to say that while Westgold had managed the restrictions relating to COVID-19, it was apparent that “flow on effects such as skilled labour shortage and mobility of the workforce will cause disruption to the industry as a whole”.

Westgold’s net cash position was up 12% compared to the previous quarter balance, standing at $163 million in cash.

More reading

• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• These were the worst performing ASX 200 shares last week
• These 3 ASX mining companies closed lower today
• ASX 200 down 0.4%: Afterpay tumbles, bank shares lower, gold miners crash
• Do ASX mining companies carry the Australian share market?

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 Westgold (ASX:WGX) share price pops up on quarterly report appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qEHbmy

Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the ASX and international shares (which usually just means US shares) that are the most popular with its Aussie customers.

My Fool colleague, James Mickleboro, already looked at the most popular ASX shares today.

CommSec is one of the largest online brokers in the country. Thus, this data can be an insightful indicator of general investing trends in the Aussie market.

So here are the top 10 United States shares CommSec customers were buying last week. This week’s data covers 11-15 January. 

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.3% of total trades with an 80%/20% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 4.8% of total trades with an 81%/19% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.3% of total trades with a 75%/25% buy-to-sell ratio.
4. Churchill Capital Corp IV (NYSE: CCIV) – representing 1.6% of total trades with a 93%/7% buy-to-sell ratio.
5. Microsoft Corporation (NASDAQ: MSFT) – representing 1% of total trades with a 57%/43% buy-to-sell ratio.
6. Facebook Inc (NASDAQ: FB)
7. ARK Innovation ETF (NYSE: ARKK)
8. ARK Genomic Revolution ETF (BATS: ARKG)
9. Zomedica Corp (NYSE: ZOM)
10. Plug Power Inc (NASDAQ: PLUG)

What can we learn from these trades?

As always, some interesting results here. Right off the bat, the dominance of electric car and battery manufacturers in Tesla and Nio once again continues to clean up investor interest here on the ASX.

We can probably put this continuing trend down to a combination of excitement over these companies’ futuristic plans, and the sheer fact that both are up more than 1,000% over the past 10 months.

Traditional tech stocks like Apple, Microsoft, and Facebook also make a small resurgence. These companies have been put on the backburner somewhat in recent months as newer growth stories excite ASX investors.

Churchill Capital makes an interesting debut though.

Churchill is what’s known as a SPAC (special purpose acquisition vehicle). This is a unique US corporate structure where a company is formed with the sole purpose of merging with an unlisted company in the future. SPACs have been growing in popularity over the last 12 months or so as an exciting alternative tot eh traditional IPO.

According to Bloomberg, Churchill has reportedly been enchanting investors over rumours that it is set to merge with an unlisted electric vehicle manufacturer called Lucid Motors. Lucid is apparently backed by the Audi Arabian sovereign wealth fund.

We discussed the emergence of ARK Invest exchange-traded funds (ETFs) on this list last week, so it’s interesting to see ARKK and ARKG carry over this week.

Finally, Plug Power and Zomedica also appear for the first time. Plug is a hydrogen fuel cell company that is up more than 100% year to date. Meanwhile, Zomedica is a pharma company that is up more than 200% year to date.

Our Foolish colleagues over in the US recently (and salaciously) discussed how Zomedica may have been in a promotional scheme with Tiger King’s Carole Baskin. No comment there.

More reading

• Tesla debuts China-made Model Y SUV
• Here’s the biggest investment opportunity since the internet
• Top fundie Hyperion to launch new growth ETF
• The worst mistake Tesla investors can make right now
• Stop worrying about a market crash: Do this instead

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, 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. Sebastian Bowen owns shares of Facebook and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Facebook, Microsoft, and Tesla. The Motley Fool Australia has recommended Apple and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here are the US shares ASX investors are buying appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3nZzIwM

The Weebit Nano Ltd (ASX: WBT) share price is breaking into a new 52-week high today. Shares in the computer memory developer hit $4.27 earlier in trade today, before slipping its current $4.11. That means the Weebit share price is up 10% for the day, but more impressive is the yearly netted returns – a staggering return of 925%.

There appears to be no news out from the company today, which leaves us to take a look at what recent developments might still have investors excited.

Refreshing our memory on recent developments

Back in December last year, Weebit offered a share purchase plan (SPP) to eligible shareholders to raise $3 million at $1.70 per share. After the offer had closed, the company announced that the offer was heavily oversubscribed, with applications received totaling $19,957,528.

Consequently, management decided to scale back the offer to the originally set $3 million.  

Following the capital raise, Weebit Nano announced that the company was filing 2 new patents in conjunction with its development partner, CEA-Leti. Weebit’s first patent defines a process improvement to enable high memory yield and high uniformity across memory cells and throughout the wafer.

The second patent reportedly pertains to the selector development for ‘very fast’ read, which enables reduced power consumption and selector stress during the read operation. Both patents are relevant to optimising the company’s ReRAM technology.

More recently, Weebit announced the appointment of non-volatile memory veteran Ishai Naveh. Mr Naveh will assume the role of chief technology officer and focus on driving the strategic direction of the company’s technology development.

Mr Naveh co-founded Adesto in 2007, being one of the early entrants into ReRAM. Adesto was acquired by Dialog Semiconductor PLC last year for $500 million.

Looking ahead

In Weebit’s first quarter FY21 update, the company mentioned that it was in discussions with a production partner ahead of shifting the technology to the partner’s fabrication.  

Additionally, the development of its embedded memory module is a primary focus. The company claimed it was on track at the time.

Weebit Nano’s management provided comment on the progress towards commercialisation of its memory:

Weebit is moving closer to commercialisation within the embedded memory market with significant technical progress made over the quarter and ongoing discussions with potential partners and customers.

In parallel, we are progressing our development within the standalone market, where our ReRAM technology can address ongoing demand for increased and more efficient memory storage.

Weebit share price snapshot

The Weebit Nano share price is now up 57% year to date (YTD). Comparatively, the S&P/ASX 200 Index (ASX: XJO) is up 1.3% YTD.

Including today’s gain, the Weebit Nano market capitalisation is now $484 million.

More reading

• Here are 3 ASX small cap shares with exciting product launches in 2021
• Why the Weebit Nano (ASX:WBT) share price surged 12% today

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.

The post The Weebit Nano (ASX:WBT) share price is a wee-bit excited today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c7VDzR

The Fenix Resources Ltd (ASX: FEX) share price is trading nearly 2% higher at 26.5 cents a share today. The price bump follows the release of the company’s quarterly results.

The company has experienced significant growth over the previous 12-month period with the Fenix share price powering up close to 400% higher.

Here’s what we learned.

Everyone is loving iron ore

In its December quarterly activities report, Fenix advised that iron ore production is underway at Fenix’s Iron Ridge project in Western Australia.

Fenix estimates “approximately 60,000 tonnes of combined lump and fines product scheduled for early February”.

With the price of iron ore up around 79% for the year trading close to $170 a ton, that’s roughly a $10.2 million pile of iron ore before costs and fees are considered.

The Federal Government has been vocal about iron ore prices soaring and how this benefits the Australian economy, as discussed during the mid-year economic and fiscal outlook.

A strategic offtake agreement

During the December quarter, Fenix announced an offtake agreement with Sinosteel International Holding Company Limited.

This means that Fenix has sales arrangements that are now in place for 100% of the company’s projected iron production. Atlas Iron subsidiary Weld Range Iron Ore Pty Ltd has already staked 50% of production and sales for Iron Ridge.

Additionally, the Sinosteel deal also entitles Fenix to acquire an iron ore storage shed, truck unloading, and conveyor systems located at the Geraldton Port.

Port lease agreement

Importantly, Fenix has secured the access necessary to export the company’s iron ore products.

Also in today’s announcement, the company advised that during the December quarter, it had executed a port lease agreement and a port access and services agreement with Mid West Ports Authority (MWPS) for the export of iron ore products through the port of Geraldton. The agreement allowed Fenix to export 1.25 million tonnes per annum of iron ore.

More reading

• Here’s why the Australian Primary Hemp (ASX:APH) share price is rocketing 31% higher
• 2 outstanding blue chip ASX shares to buy right now
• What analysts expect from the Woolworths (ASX:WOW) first half result
• Maggie Beer (ASX:MBH) share price dips following record earnings
• Netflix is considering a stock-buyback program

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 is the Fenix Resources (ASX:FEX) share price higher today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2LMNDJD

The Australian Primary Hemp Ltd (ASX: APH) share price is rocketing higher today.

This comes after the company announced it has secured firm commitments through a placement to fund its growth strategy.

At the time of writing, the company’s shares are up an astonishing 16% to 44 cents.

It’s worth noting that during the opening minutes of trade, the Australian Primary Hemp share price reached a multi-year high of 62 cents.

Placement in detail

According to the release, Australian Primary Hemp welcomed the firm commitments to raise roughly $5.2 million through a strategic placement with an offer price of 32 cents per share price.

Under the placement, approximately 16 million ordinary shares will be issued with an offer price of 32 cents per share. This represents a steep discount of 36% on the current Australian Primary Hemp share price.

The company noted that the placement received strong support from new investors, existing institutional investors, and high-net worth investors.

Monies raised from the placement will complement its proposed $1 million share purchase plan. Together, the funds will be used to assist Australian Primary Hemp in driving its growth strategy and ongoing transformation process.

This included investment in capital equipment purchases, marketing and sales costs, general capital working requirements, and strengthening the balance sheet.

Australian Primary Hemp revealed that it is seeking to transition its business into a branded, value-added health and wellness company.

To be an eligible shareholder for the share purchase plan, you needed to be on the company’s register by last night.

For those who were lucky enough, the offer period of the share purchase plan closes on February 10, 2021.

Management commentary

Australian Primary Hemp managing director and CEO, Mr. Neale Joseph, touched on the placement, saying:

We are highly encouraged by the level of support investors have shown for APH.

There are significant tailwinds and growing consumer demand for high-quality, plant-based ‘superfoods’, particularly hemp-based products. This growing demand is reflected in the retail distribution agreement we have recently secured with Woolworths and 7-Eleven, which will see our Mt. Elephant brand of health and wellness products made available to consumers across Australia.

About the Australian Primary Hemp share price

The Australian Primary Hemp share price has performed quite well over the last 12 months, gaining over 170%.

Its shares took a tumble during COVID-19 where they were swapping hands for as little as 4.9 cents in March.

However, since then, the Australian Primary Hemp share price took a turn to march higher over the last 9 months.

More reading

• Why is the Fenix Resources (ASX:FEX) share price higher today?
• 2 outstanding blue chip ASX shares to buy right now
• What analysts expect from the Woolworths (ASX:WOW) first half result
• Maggie Beer (ASX:MBH) share price dips following record earnings
• Netflix is considering a stock-buyback program

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

The post Here’s why the Australian Primary Hemp (ASX:APH) share price is rocketing 31% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3o49n0C

If you want to build a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

Blue chip shares tend to be companies that are well-known, long-established, and have strong financial positions. 

With that in mind, listed below are two ASX blue chip shares that come highly rated:

Goodman Group (ASX: GMG)

The first blue chip to look at is Goodman Group. It is an integrated commercial and industrial property group which has generated consistently strong returns for investors over the last decade.

This has been driven by the diversity of its portfolio and its exposure to quick growing markets such as ecommerce. Pleasingly, the latter market has resulted in strong demand from blue chip customers such as Amazon, DHL, and Walmart. And given the way the pandemic is accelerating the shift to online shopping, these properties look set to be in strong demand for a long time to come.

One broker that is very positive on Goodman Group is Morgan Stanley. It has been pleased with its development work in recent months, its sky high occupancy rates, and the yields it is commanding. As a result, it has an overweight rating and $20.90 price target on its shares. This compares to the latest Goodman share price of $17.56.

Ramsay Health Care Limited (ASX: RHC)

Another ASX blue chip share to consider is Ramsay Health Care. Trading conditions were tough for the private hospital operator in 2020 because of the pandemic, but things are certainly improving now.

In fact, a note out of Goldman Sachs this week reveals that it believes Ramsay is trading largely as normal in Australia now. It commented: “Contrary to many other hospital groups globally, most of RHC’s core market has been operating largely unencumbered since July, and entirely without volume limitations since end-November.”

This is a big positive given that almost two-thirds of its earnings are generated in the local market.

In light of this, a significant backlog of surgeries, and its belief that Ramsay is well-placed for solid earnings growth over the coming years, Goldman Sachs upgraded its shares to a conviction buy rating.

The broker has a price target of $70.00 on its shares. This compares to the latest Ramsay share price of $63.31.

More reading

• Why Data#3, JB Hi-Fi, Ramsay, & Zip shares are charging higher
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Ramsay Health Care (ASX:RHC) share price on watch after broker upgrade
• 5 things to watch on the ASX 200 on Monday
• 2 ASX 50 shares to buy

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

The post 2 outstanding blue chip ASX shares to buy right now appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3p4zSnZ

With earnings season on the horizon, I thought I would start to take a look at what is expected from some of Australia’s most popular companies.

Earlier today I looked at Coles Group Ltd (ASX: COL). You can read about that here. Whereas on this occasion, I’m going to take a look at its rival Woolworths Group Ltd (ASX: WOW).

What is expected from Woolworths in the first half of FY 2021?

Due to the favourable changes in consumer spending because of COVID-19, expectations are high for Woolworths in FY 2021.

However, one leading broker that suspects the retail giant could fall short of expectations is Goldman Sachs. In light of this, it will come as no surprise to learn that it has a neutral rating on the Woolworths share price.

According to a broker note, Goldman is expecting Woolworths to deliver total revenue of $35,789.7 million in the first half. This will be a 10.1% increase on the prior corresponding period.

Its analysts expect this to be driven by a 10.9% lift in Australian Food sales to $23,520.1 million, a 17.6% jump in Endeavour Drinks sales to $5,616.2 million, a 15.3% increase in Big W sales to $2,477.6 million, and a 1.1% rise in NZ Supermarket sales to $3,403.6 million.

Partially offsetting this will be its Hotels business, which has struggled during the pandemic from closures and social distancing restrictions. Goldman is forecasting a 25.5% decline in sales to $684.7 million.

What about its earnings?

While Goldman is actually ahead of the consensus by 0.9% on its sales estimates, it sits well and truly behind the consensus on its earnings estimates.

The broker doesn’t expect its margins to be as strong as the market is forecasting. It is expecting a net profit of $1,030.2 million for the first half. This will be up 5.3% on the prior corresponding period but is 4.7% lower than the consensus estimate of $1,080.6 million.

It is a similar story for Woolworths’ interim dividend, which Goldman is expecting to come in at 48.8 cents per share. This compares to the consensus estimate of a 54 cents per share interim dividend.

Is the Woolworths share price a buy?

As I mentioned above, as things stand, Goldman Sachs is sitting on the fence with this one. It has a neutral rating and $39.90 price target on Woolworths shares.

This compares to the latest Woolworths share price of $39.54.

More reading

• CV Check (ASX:CV1) share price flat on results update
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• Why the Pure Foods (ASX:PFT) share price popped today
• How to invest in ASX shares in a post-COVID world 
• 5 ways to lose your money forever

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

The post What analysts expect from the Woolworths (ASX:WOW) first half result appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/35WlPcC

The Maggie Beer Holdings Ltd (ASX: MBH) share price has had a massive year, jumping up more than 160% in the past 12 months.

Shares in the Maggie Beer Group – which encompasses Maggie Beer products, Paris Creek Farms and Saint David Dairy brands – went up 3.5% yesterday on a positive trading update, but flopped more than 8% in opening trade today. At the time of writing, the Maggie Beer share price has regained some lost ground, now trading at 42 cents, down 1.8%.

Let’s take a closer look at what’s happening.

What did the Maggie Beer quarterly release say?

In yesterday’s release, the company said it had achieved record sales and booming growth across multiple initiatives during the first half of FY21. E-commerce sales increased by 167%, net sales powered up 20%, and the cash position has increased $1.2 million compared to the prior corresponding period.

Commenting on the progress, Maggie Beer Group CEO Chantale Millard said:

It is fantastic for the group to have such a strong start to FY21 and the team have done a tremendous job managing the growth over the past 6 months. We are looking forward to continuing this trend, by supplying premium Australian products to our consumers.

Maggie Beer presently holds a cash balance of $6.3 million following the $1.2 million gain realised in the first half of FY21.

Coles partnership helps along the way

Following the announcement of a partnership with Coles Group Ltd (ASX: COL) last August, the Maggie Beer share price has continued to find its way upward. Coles agreed to launch a range of plant-based meals across approximately 400 Coles locations nationwide.

The day this news was announced, the Maggie Beer share price jumped 23%.

Capitalising on growth opportunities 

According to yesterday’s update, Maggie Beer will continue to focus on growth as we enter 2021. The company’s market cap has reached $86.1 million and the company has roughly 207 million shares outstanding.

Maggie Beer expects its cash holdings to increase further when incoming third quarter payments quarter for the second quarter trading period are received.

Said Ms Millard: “With our strong cash and balance sheet position, we are well-placed to capitalise on our growth opportunities.”

More reading

• Netflix is considering a stock-buyback program
• Why the Botanix (ASX:BOT) share price rocketed 22% to a record high today
• Here’s a fantastic ETF that ASX investors need to know about
• Top brokers name 3 ASX shares to buy today
• Why the Smartpay (ASX:SMP) share price has stormed to an all-time high

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 Maggie Beer (ASX:MBH) share price dips following record earnings appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2LN110k

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.

Netflix Inc (NASDAQ: NFLX) shares surged in after-hours trading on Tuesday following the company’s strong fourth-quarter update. Not only did Netflix report better-than-expected revenue and subscribers, but it also said it’s on pace to become sustainably cash flow positive in the near future. Indeed, management is so confident in this outcome that it’s already considering putting some excess cash flow to use in a share-repurchase program.

Here’s a look at the key takeaways from the streaming-giant’s fourth-quarter results.

Netflix Q4 earnings: The raw numbers

Metric	Q4 2020	Q4 2019	Change
Revenue	$6.64 billion	$5.47 billion	21.5%
Earnings per share	$1.19	$1.30	(8%)
Subscribers	203.7 million	167.0 million	21.9%

Source: Netflix fourth-quarter shareholder letter. Table by author.

Netflix’s fourth-quarter revenue rose 22% year over year to $6.64 billion, surpassing analysts’ average estimate for revenue of $6.63 billion. Earnings per share (EPS) of $1.19 was below analysts’ view for $1.30, but the company’s reported earnings-per-share figure notably included a $258 million non-cash charge from currency remeasurement on the company’s euro-denominated debt. Quarterly net income would have been nearly 50% higher without this non-cash unrealized loss.

The quarter was fueled by a 22% year-over-year increase in subscribers. Netflix added 8.51 million paid members during the quarter, well ahead of management’s guidance for 6 million net additions. 

Highlighting Netflix’s incredible momentum for the full year of 2020, the company managed to add a record 37 million new members during the year.

Big cash flow is on the horizon

While Netflix’s financial results and subscriber performance were notable, the star of the quarter was management’s commentary on cash flow: “We believe we are very close to being sustainably [free cash flow] positive. For the full year 2021, we currently anticipate free cash flow will be around break even (vs. our prior expectation for -$1 billion to break even).”

Free cash flow, which is equal to cash generated from operations less capital expenditures, is the cash that a business generates after all operating and investment activity is accounted for. It represents the cash that can be used to pay off debt, repurchase shares, make acquisitions, or even pay dividends.

Netflix has long been known for burning through its cash as it spends heavily on content creation. Big spending on content has led the company to repeatedly turn to debt markets to raise capital. But Netflix’s higher sales and greater economies of scale today mean that those days may be over soon. Management explained:

Combined with our $8.2 billion cash balance and our $750m undrawn credit facility, we believe we no longer have a need to raise external financing for our day-to-day operations. Our 5.375% February 1, 2021 bonds mature in Q1. We plan on repaying the bond at maturity out of cash on hand, as we are currently well above our minimum cash needs.

Even more, the company said it will be exploring the idea of using some of its excess cash to repurchase shares.

Shares of the growth stock soared as much as 13% in after-hours trading on Tuesday as investors applauded Netflix’s improving financial position.

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

More reading

• Netflix has a lot to prove to investors this week
• Netflix just lost nearly 1 billion hours worth of content
• Netflix earnings: 3 trends to watch
• FAANG stocks make their case to lead the Nasdaq in 2021
• The top streaming stocks to buy in 2021

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

The post Netflix is considering a stock-buyback program appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/2M74G9a