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There’s quite a bit of variety when it comes to the pricing of ASX lithium stocks.

There’s market-leader Pilbara Minerals Ltd (ASX: PLS), which is currently asking $4.40 a share at the time of writing:

Then there are other lithium leaders like Liontown Resources Ltd (ASX: LTR). Liontown has a lower share price than Pilbara but is still well over $1 each – $1.36 a share at the present time.

Or Core Lithium Ltd (ASX: CXO). Core Lithium is asking just under $1 a share at present, but has been as high as $1.88 in the past 12 months.

But others have far lower share prices. Take popular lithium stock Sayona Mining Ltd (ASX: SYA). Right now, Sayona is going for 22 cents a share.

Fellow lithium company Anson Resources Ltd (ASX: ASN) is trading at 19 cents per share.

And you can pick up a single share of Latin Resources Ltd (ASX: LRS) for just 13 cents.

So these last three shares are the cheap ones, right? The shares you might choose if you want the maximum upside?

Well, no.

It’s a common misconception on the share market that a lower share price equates to a ‘cheaper’ price. Sure, you can buy more shares if a share price is lower. But that’s it.

A share price is a function of two things – a company’s market capitalisation, and how many shares it has on issue. The price of those shares is entirely determined by the company’s market cap. So when you see shares moving up and down in price, what you are really seeing is a company’s market capitalisation changing.

Low-price ASX lithium stocks aren’t cheap

Let’s say a company has one million shares on issue.

If the market wants to value that company at $1 million, it will give each of its shares a share price of $1. If the company does well over time, and the market decides it is now worth $2 million, then the shares will rise to $2 each.

But then say that same company decides to issue more shares, enough to double its share count. Now there are two million shares on issue. But if the market still thinks the company should be worth $1 million, then each share will be priced at 50 cents.    

So just because Latin Resources shares are 13 cents each, doesn’t mean that it is cheaper than another ASX lithium stock like Pilbara Minerals at $4.40. It just means that Pilbara has a greater market capitalisation, with proportionally fewer shares, than Latin Resources.

If the market decides to double the value of either Latin or Piblara, investors will enjoy exactly the same monetary gain.

Just because an ASX lithium stock’s share price is numerically lower doesn’t mean it has more potential to rise over time. The only thing that matters at the end of the day is how profitable a company is, and how much value the share market places on those profits.

The post At under 30 cents each, are these ASX lithium stocks cheap? appeared first on The Motley Fool Australia.

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More reading

• Should I dig in and buy Pilbara Minerals shares before the ASX 200 lithium miner reports on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why A2 Milk, BlueScope, NIB, and Pilbara Minerals shares are dropping today
• Why is the Core Lithium share price being trashed on Monday?
• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has dropped into the red on Tuesday. In afternoon trade, the benchmark index is down 0.25% to 7,333.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down a further 5% to $6.14. This morning, the team at Credit Suisse responded to this infant formula company’s half-year results by downgrading its shares to an underperform rating with a $5.10 price target. Its analysts have concerns that overall infant formula demand could fall materially in China in 2023.

Altium Limited (ASX: ALU)

The Altium share price is down 6% to $37.60. This follows the release of the electronic design software company’s half-year results after the market close on Monday. Although Altium’s earnings came in ahead of expectations, investors appear to be focusing more on its revenue, which was softer than consensus estimates.

CogState Limited (ASX: CGS)

The Cogstate share price was down 14% to $1.63 before being hurried into a trading halt. Management advised that the trading halt has been requested so the digital brain health assessments company can respond to a price query request from the ASX. Its shares are now down almost 30% in a week without any news.

Ingenia Communities Group (ASX: INA)

The Ingenia share price is down 13% to $4.03. This morning, this retirement and holiday communities developer released its half-year results and reported a 24% increase in earnings before interest and tax (EBIT) to $42 million. However, it expects a tough second half and has downgraded its EBIT growth guidance to between flat and 10%. This compares to its previous guidance of 30% growth.

The post Why A2 Milk, Altium, Cogstate, and Ingenia shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Is the A2 Milk share price good value after its post-results selloff?
• Why is the Altium share price sinking 6% today?
• 5 things to watch on the ASX 200 on Tuesday
• Altium share price on watch following strong first half growth
• Why A2 Milk, BlueScope, NIB, and Pilbara Minerals shares are dropping today

Motley Fool contributor James Mickleboro has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Tuesday has proven to be another big earnings season day, with plenty of S&P/ASX 200 Index (ASX: XJO) shares posting results. Sadly, however, not all have been met with enthusiasm.

Two ASX 200 consumer stocks are among those trading in the red today. Let’s take a closer look at the releases that have the market bidding them lower.

Right now, the ASX 200 is down 0.3% at 7,329.8 points.

2 ASX 200 consumer shares struggling after posting earnings

The Costa Group Holdings Ltd (ASX: CGC) share price is suffering on the back of the company’s full-year earnings, released this morning. Right now, the stock is down 2.04%, trading at $2.645.

It comes after the ASX 200 fresh produce company posted around $1.36 billion of revenue for 2022 – an 11.2% year-on-year improvement. However, its statutory net profit after tax (NPAT) slumped 10% to $47 million.

Last year saw the grower hit by severe weather events and inflation. Fortunately, both appear to be moderating in 2023.

Though, interim CEO Harry Debney expressed frustration over export market access, particularly to China and Japan.

Costa Group declared a 5 cents per share, 40% franked, final dividend – flat with that of the prior year.

Shares in ASX 200 vehicle accessories manufacturer ARB Corporation Limited (ASX: ARB) are also in the red on the release of the company’s first-half earnings, falling 1.28% to swap hands for $31.315 apiece.

It posted a 31.2% tumble in NPAT – coming in at $47.4 million. At the same time, its sales revenue fell 5.1% to $340.9 million. It declared a 32 cents per share fully franked interim dividend ­– down 17.9% on last year’s.

ARB posted lower sales last half amid challenges in fitting resource constraints and vehicle availability, lower export sales, the restructure of a major United States customer, and the timing of original equipment manufacturers (OEM) contracts.

Looking forward, it expects higher new vehicle sales, strong customer orders, and better recruitment opportunities to boost its aftermarket category. Meanwhile, OEM sales are tipped to be flat this financial year before growing again next financial year.

It also notes new and innovative products have been slated for release in 2023.

The post 2 ASX 200 consumer shares tumbling lower on earnings updates appeared first on The Motley Fool Australia.

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More reading

• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Hoping to pocket the next CBA dividend? Here’s what you need to do

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation and Costa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price has continued its slide on Tuesday.

In afternoon trade, the infant formula company’s shares are down 3.5% to $6.26.

This means that A2 Milk’s shares are now down 12% over the last two trading days.

Why is the A2 Milk share price being sold off?

Investors have been hitting the sell button this week in response to the company’s half-year results release.

In case you missed it, for the six months ended 31 December, A2 Milk reported an 18.6% increase in revenue to NZ$783.3 million and a 22.1% jump in net profit after tax to NZ$68.5 million. The latter was comfortably ahead of the consensus estimate of NZ$60.6 million.

So why the selling? This appears to have been driven by commentary around the China market and its margins in the ANZ segment.

Morgans has been looking at the result and has given its verdict. It commented:

While management believes that A2M is very well positioned over the medium term, it was quite cautious on the China IF industry for 2023. It said A2M is moving into an increasingly challenging period, with headwinds including the rolling impact of five consecutive years of a decline in the birth rate and the market wide transition of CL [Chinese label] IF product to the new GB standard.

We remain concerned that the transition to the new GB standard may cause disruption to sales/pricing and create inventory risks (write-downs) between the timing of new and old product (consumers perceive the stock as not being fresh). Given this uncertainty, A2M’s share price may be more volatile over this period.

And while Morgans believes that A2 Milk can achieve its FY 2026 sales targets, it has doubts over its ability to deliver on its margin goals. The broker adds:

A2M remains on track to achieve its ambition to grow sales to US$2bn by FY26. Management said that CL is tracking ahead of its target while EL, other nutritionals and emerging markets are a work in progress. Given EL (higher margin vs CL) is lagging and the business requires further investment, achieving an EBITDA margin of low-to-mid 20s now looks a stretch. A margin in the high teens now looks more achievable in this timeframe.

Morgans has retained its hold rating with a slightly improved price target of $6.45.

The post Is the A2 Milk share price good value after its post-results selloff? appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, BlueScope, NIB, and Pilbara Minerals shares are dropping today
• Why is the A2 Milk share price sinking 9% today?
• A2 Milk share price on watch amid double-digit sales and profit growth
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The All Ordinaries Index (ASX: XAO) is down 0.25% in early afternoon trade. But that’s not holding back this ASX All Ordinaries share. It’s rocketed a whopping 43% since the opening bell this morning.

Any guesses who?

If you said New Century Resources Ltd (ASX: NCZ), give yourself a gold star.

The mining company is shooting the lights out today following news of an off-market takeover offer.

What’s the takeover offer for the ASX All Ordinaries share?

Large-cap miner Sibanye Stillwater Ltd (NYSE: SBSW) has announced an off-market takeover offer to acquire up to 100% of New Century Resources, valuing the miner at $1.10 per share.

That, not coincidentally, is right about where the ASX All Ordinaries share is trading at the time of writing.

With an existing interest of 19.9%, Sibanye Stillwater is the largest shareholder in New Century Resources.

The company said it participated in New Century Resources’ December 2021 equity capital raising because that aligned with its strategy to increase its tailings retreatment and recycling presence globally.

At the time of the acquisition, Sibanye Stillwater’s CEO Neal Froneman said, “We look forward to supporting New Century to build a leading global tailings retreatment business, uniquely positioned to play a key role in green metal supply chains.”

Now, more than two years on, Sibanye Stillwater said it’s “concerned about the change in the strategic direction of New Century under current management”, adding that management has lost its focus on building a tailings asset management services business.

Citing the 59% six-month drop in the ASX All Ordinaries share (excluding today’s big increase) Sibanye Stillwater said the current strategy “has not been well received by shareholders and investors”.

It also did not support the proposed re-election of Nick Cernotta or Robert McDonald to the board at the Annual General Meeting on 9 November.

Sibanye Stillwater also aired its concerns about New Century’s balance sheet, saying the ASX All Ordinaries share might need to raise more funds, “which could result in a material dilution for existing New Century shareholders”.

The company set its offer price of $1.10 per share, in the absence of a competing proposal.

New Century Resources share price snapshot

As you can see in the chart below, the ASX All Ordinaries share remains well down over the past 12 months but, with today’s big boost factored in, is up 29% so far in 2023.

The post Guess which ASX All Ordinaries share just rocketed 43% on takeover news appeared first on The Motley Fool Australia.

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More reading

• Best & Less share price soars 10% on result, improving outlook
• CSL share price lower despite portfolio update
• How I’d invest $200 in ASX 300 shares each month to target a $20,570 second income
• Guess which ASX 200 share is surging 16% following a revenue upgrade
• 2 ASX 300 shares making big gains on results announcements

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Best & Less Group Holdings Ltd (ASX: BST) share price has jumped 10% after the discount apparel retailer reported its FY23 half-year result.

This huge gain compares to the S&P/ASX 200 Index (ASX: XJO) decline of around 0.5%.

The Best & Less share price opened higher at $1.72 and continued to rise through the morning.

Best & Less share price jumps despite tricky first half

Here are some of the highlights for the 26 weeks to 1 January 2023:

• Total revenue grew 13% to $324.8 million
• Pro forma/underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $22.1 million generated
• Pro forma/underlying net profit after tax (NPAT) of $13.7 million generated
• Net cash position of $14.7 million
• Interim dividend per share of 8 cents

The retailer explained that there was weaker consumer demand in the first half, so it reduced prices in key volume lines, which impacted its gross profit margin (which was 47.1% in the first half).

Despite that, the average sales price (ASP) was 9.5% higher than the prior corresponding period.

What else happened in the first half?

The company has been laying the foundations for the next phase of its growth while managing the impacts of the global supply chain uncertainty and inflationary environment.

Best & Less said it’s now focused on a number of growth priorities, including market share growth in baby, kids and womenswear, achieving above-market online sales growth, improving its store network and transforming its supply chain.

The business is expecting to open six new stores in the second half. It will have over 250 stores across Australia and New Zealand by the end of FY23.

Best & Less is still searching for a new permanent CEO, with the process “progressing well”. Jason Murray will remain as executive chair until a new CEO starts in the role.

What did management say?

The Best & Less executive Chair Jason Murray said:

While trading conditions were inconsistent in the first half, our team remained committed to delivering exceptional value and service for our customers. Our core non-discretionary and baby product lines continued to perform well, reflecting the strength of our differentiated value proposition of ‘twice the quality at half the price.’

Trading update

In the first seven weeks of trading in the FY23 second half, total sales were up 3.8%, with like-for-like sales growth of 3.9%. Sales growth can be helpful for the Best & Less share price. Like-for-like store sales growth was 7%, while online sales were down 23%.

Consumer shopping behaviour “continues to normalise”, with in-store traffic increasing. The supply chain stability is also improving. The company said its inventory position is “well positioned.”

It didn’t change its previous guidance which suggested that, assuming no material deterioration in economic conditions that impacts sales, it’s expecting to deliver a second-half underlying/pro forma NPAT of between $18 million to $20 million. That compared to $21.4 million in the second half of FY22, which included $1.6 million of NPAT from a 27^th trading week in that half.

Best & Less share price snapshot

While it is up strongly today, the share price is down around 50% since 22 February 2022.

The post Best & Less share price soars 10% on result, improving outlook appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d start building a second income this February, for $30 a week
• Top ASX dividend shares to buy in February 2023
• Why Best & Less, Evolution, Mineral Resources, and St Barbara shares are dropping

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The CSL Limited (ASX: CSL) share price is trading lower on Tuesday afternoon.

At the time of writing, the biotherapeutics giant’s shares are down slightly to $298.06.

What’s going on with the CSL share price?

The CSL share price is trading slightly lower today amid broad market weakness.

This weakness appears to have offset the release of a positive announcement relating to CSL’s product portfolio.

According to the release, the European Commission has granted conditional marketing authorisation for HEMGENIX (etranacogene dezaparvovec).

This is for the first gene therapy option for the treatment of severe and moderately severe Hemophilia B (congenital Factor IX deficiency) in adults without a history of Factor IX inhibitors by a single infusion.

This follows approval by the US Food and Drug Administration for HEMGENIX for the same indications in November.

But wait there’s more…

Another positive that CSL has announced relates to the garadacimab or CSL312 therapy, which is currently undergoing phase 3 clinical trials.

Garadacimab is CSL’s investigational monoclonal antibody that is being developed as a long-term prophylactic treatment for patients with hereditary angioedema (HAE).

The good news is that results from the trial, the first to investigate targeting activated Factor XII (FXIIa) to prevent HAE attacks, showed that once-monthly subcutaneous injections significantly reduced the attack rate compared to placebo.

Based on these results, CSL will proceed with regulatory submissions to global health authorities later this calendar year for full approval of garadacimab.

This could be a very big positive for CSL’s future. Goldman Sachs has recently suggested that garadacimab could end up being a “pipeline in a product” thanks to multiple end use possibilities. It commented:

CSL312 is a humanised anti-factor XIIa monoclonal antibody in development for multiple indications including as a subcutaneous therapy for HAE, with the potential for administration every 4 weeks (vs. every 2-3 days for Haegarda). Given its early position in the coagulation cascade, there is also potential application in various other disorders (including fibrosis, cardiovascular and inflammatory indications).

The post CSL share price lower despite portfolio update appeared first on The Motley Fool Australia.

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• ‘Long-term value’: Expert names 2 ASX 200 shares to buy for years to come
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• Brokers name 3 ASX shares to buy now
• Top broker says CSL shares will hit $350, buy now
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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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Gaining a second income from ASX shares is a relatively easy concept to get one’s head around. Many ASX shares pay dividends. Dividends are cash payments made to the shareholders of the company, from the company. They can be an important source of income for anyone seeking passive cash flow.

But getting to a point where ASX shares can pay you a yearly income of $20,570 or more is the hard part.

Let’s take an ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) holds a broad swathe of the Australian share market, investing in the largest 300 shares listed on the ASX.

That’s everything from Commonwealth Bank of Australia (ASX: CBA) to Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Limited (ASX: HVN).

This index fund holds dozens and dozens of dividend-paying shares. As such, it can pass any dividends it receives straight through to its investors.

Over the past 12 months, this ETF has paid out a total of $6.26 in dividend distributions per unit. At the current pricing, that gives this fund a trailing distribution yield of 7.04%.

So say that an investor bought this ETF at the current pricing a year ago. They would have received just over $7 in passive income for every $100 invested.

But how much would said investor need to have in this ETF to gain a second income of $20,570 over the past 12 months?

How long does it take to build a second income from ASX shares?

At that 7% yield, it would have taken a lump sum of just over $292,200 to generate $20,570 in passive dividend income.

Now, that might seem like a lot (and it is). But here’s how consistent investing could get you there.

The Vanguard Australian Shares Index ETF has generated an average return of 9.21% per annum since its inception back in 2009. That’s assuming all dividend distributions are reinvested.

So let’s assume this rate of return continues (which is never guaranteed). At this return, an investor would get to $292,200 if they invested $1,000 per month for just over 13 years. And reinvested all dividend distributions, of course.

If our investor was able to up the ante and invest $1,500 per month, this would cut our timeframe down to 10 years. Then, you can stop reinvesting those dividends and hopefully enjoy at least $20,570 every year in passive income.

Gaining a second income from ASX shares takes a lot of time, money, and discipline. But it can be done.

The post How I’d invest $200 in ASX 300 shares each month to target a $20,570 second income appeared first on The Motley Fool Australia.

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More reading

• Banking on term deposits to retire rich? I’d buy ASX 200 dividend shares instead
• Vanguard Australian Shares Index ETF: Short-term pain for long-term gains
• How I’d generate a $30,000 retirement income from the Vanguard Australian Shares Index ETF
• 2 ASX stocks I’d buy in February for lifelong passive income
• How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Johns Lyng Group Ltd (ASX: JLG) is the best-performing ASX 200 share on the market so far today.

This follows the release of the integrated building services company’s 1H FY23 results this morning.

The Johns Lyng share price opened at $6.01, up 7.3% on yesterday’s close. It ascended to an intraday high of $6.51 about an hour after the market open. It is now trading at $6.48, up 15.7% for the day.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.6% today.

The company’s results included an 11% upgrade to forecast revenue and a 5.5% upgrade to forecast earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the full-year FY23.

The company now expects $1.146 billion in revenue and $111.1 million in EBITDA for FY23.

Why are Johns Lyng shares leading the ASX 200 today?

Here is what the company reported for the six months ending 31 December 2022:

• Sales revenue of $635.6 million, up 71% on the prior corresponding period of 1H FY22 (pcp)
• EBITDA of $59.4 million, up 63% pcp
• Net profit after tax (NPAT) of $34.1 million, up 84% pcp
• Earnings per share (EPS) of 9.68 cents, up 88% pcp
• Fully franked interim dividend of 4.5 cents per share, up 67% pcp

Johns Lyng will pay its interim dividend to shareholders on 14 March.

What else happened in FY22?

Johns Lyng said “a record volume of business as usual (BaU) and catastrophe (CAT) work” drove its strong earnings growth and forecast upgrades.

In its statement, the company said:

The depth of our relationships with our insurance counterparties and the growth in our Strata
network underpins the future growth prospects of the IB&RS [insurance building and restoration services] division.

The results are even more impressive when you consider they exclude commercial construction, which the company has chosen to scale back so it can focus on large insurance building projects.

Johns Lyng’s acquisition of United States company Reconstruction Experts in January 2022 bore its first fruit during the half, contributing to the company’s boosted CAT revenues.

Reconstruction Experts focuses on insurance-related repairs to residential, commercial, and industrial properties. During the half, it helped residents affected by Hurricane Ian.

Johns Lyng ascended from the S&P/ASX 300 Index (ASX: XKO) to the ASX 200 during the half.

The company now has a market capitalisation of $1.46 billion.

What did management say?

Group CEO Scott Didier AM said:

These results demonstrate the robustness of our business model and give us the confidence to
upgrade forecast Group Sales Revenue to $1.146 billion and EBITDA to $111.1 million.

We are seeing a continuing and growing trend in our CAT business whereby the value and
duration of these events continue to increase and have a multi-period and indeed multi-year impact
on our business.

Although the financial contribution from CAT events is pleasing and growing, the bedrock of JLG’s
earnings is our IB&RS BaU work.

These earnings have an annuity style profile, and we see significant further growth as we build out our footprint and leverage our service offerings — particularly in our expanding Strata business.

Recent history of this ASX 200 share

The Johns Lyng share price is up 9.6% in the year to date compared to a 5.3% bump for the ASX 200.

Over the past 12 months, this ASX 200 share has fallen 14.5% compared to a rise of 1.1% for the index.

The post Guess which ASX 200 share is surging 16% following a revenue upgrade appeared first on The Motley Fool Australia.

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More reading

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• How to create a second income from ASX growth shares
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• Top ASX growth shares to buy in February 2023

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 300 Index (ASX: XKO) might be down in the dumps today, but shares in these constituent companies are soaring higher after they posted first-half earnings.

Right now, the index is 0.46% lower at 7.317.6 points.

2 ASX 300 shares jumping on first-half earnings

First up, shares in Judo Capital Holdings Ltd (ASX: JDO) are leaping higher today after the ASX 300 bank revealed a 322% increase in pre-tax profits for the first half, coming in at $53.2 million compared to $12.6 million in the prior period.

The stock reached an intraday high of $1.60 on Tuesday – an 11.1% gain.

The small-to-medium businesses-focused lender also revealed a 3.56% underlying net interest margin – a 72 basis points improvement.

Meanwhile, its gross loans and advances lifted 23% to $7.5 billion and its net interest income soared 69% to $163 million.

Judo CEO and co-founder Joseph Healy dubbed the outcome “another black belt result”, continuing:

We remain on track to achieve our FY23 guidance and our key business metrics at scale.

With a low ratio of customers per banker, we understand our customers in a way that other banks simply can’t replicate. This provides our business with a strategic hedge that will enable our business to continue growing regardless of the operating environment.

Joining the bank share in the green is ASX 300 mining services group Perenti Ltd (ASX: PRN). Its share price peaked at $1.225 today – a 7.9% gain.

The company posted $1.4 billion of revenue for the first half of financial year 2023 – a 20.6% year-on-year increase.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) also lifted 39% to $281.2 million and net profit after tax (NPAT) rose 75% to $61 million.

Perenti upgraded its full-year guidance on the back of the strong half. It now expects to post between $2.8 billion and$2.9 billion of revenue and between $250 million and $265 million of earnings before interest and tax for financial year 2023.

The post 2 ASX 300 shares making big gains on results announcements appeared first on The Motley Fool Australia.

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More reading

• Why Inghams, Kelsian, Nuix, and Perenti shares are racing higher
• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• 10 ASX stocks to buy before they report this earnings season: Goldman

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Judo Capital. 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 Scott Phillips.

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