Tag: Motley Fool

The National Australia Bank Ltd (ASX: NAB) share price has been a good performer in 2022, rising by 8% despite all of the volatility. But how much money could it make for me over the next year?

For starters, the bank is scheduled to hand in its 2022 financial year result next week, which will reveal how many billions of dollars of profit it has made, its costs, and the net interest margin (NIM).

I think that the NIM could be one of the most interesting statistics to look at because that will show how much lending profit the bank made. The loan interest rate that NAB lends money out at is the revenue side of the equation. But, there is a cost to the funding of those loans, such as the interest rate paid on savings accounts.

With banks increasing their loan rates faster than the pace of rate rises for savings accounts, their NIMs are expected to improve, particularly in FY23. It’ll be interesting to see if NAB gives some detailed information about how much more profit it could make in the new financial year thanks to the higher interest rates.

How much money could I make from NAB shares?

Let’s imagine I’m going to invest $5,000 at the current NAB share price.

Ord Minnett is one of the latest brokers to release a note on the bank. It’s positive on NAB shares, with an accumulate rating, and a price target of $33.70. That implies a possible rise of 6.4% over the next 12 months.

The broker likes it because of the benefit of rising interest rates.

But, we shouldn’t forget about the potential dividends either.

NAB could pay a final dividend of 78 cents per share and then, in FY23, the S&P/ASX 200 Index (ASX: XJO) bank share could pay a total dividend of around $1.80 per share according to the broker’s estimates. That would mean a possible dividend return of $2.58 per share over the next year or so.

In percentage returns, the dividend return would be 8.1%, excluding franking credits.

Added to the possible growth of the NAB share price of 6.4%, the total return could be 14.5% over the next year, excluding franking credits.

On an investment of $5,000, that would be a total return of $725.

It’s impossible to say what the return of the ASX 200 will be over the next year, or to the end of 2022. But, using the historical average return of approximately 10% per annum, this might suggest NAB shares could deliver a bit of outperformance from here.

Foolish takeaway

NAB is my preferred choice compared to the other major ASX 200 bank shares of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

I like NAB’s management team and I can see the progress the bank has made in turning things around. However, I believe it’s worthwhile watching the loan arrears for banks to see how much higher interest rates are hurting households.

The post How much could I expect to make in a year if I bought $5,000 of NAB shares right now? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• 3 ‘bullish’ ASX shares to buy as FOMO grips the market: expert
• If you invested $1,000 in NAB shares 5 years ago, here’s how much you’d have today
• Here’s how the NAB share price has fared in October
• Are NAB shares the most expensive of the big four banks?

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.

from The Motley Fool Australia https://ift.tt/7stO8iP

The Novonix Ltd (ASX: NVX) share price is in the green on Friday, gaining 2% at the time of writing. It comes after the company dropped an announcement to the ASX minutes before the market closed yesterday.

The release details additional information on the US$150 million grant offered to the tech favourite last month. It also outlines the company’s work to obtain the capital needed to expand its anode materials division.

Right now, the Novonix share price has gained 1.97% to trade at $2.59.

That’s compared to the S&P/ASX 200 Index (ASX: XJO)’s 0.1% fall and the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 0.44% slump.

Let’s take a closer look at the latest news from the battery technology and materials producer.

Novonix provides update on grant and financing opportunities

The Novonix share price is outperforming on Friday as market watchers likely catch up on yesterday’s announcement from the company.

It pertained to the US$150 million grant offered to the battery giant by the United States Department of Energy (DOE). The grant is intended to support the expansion of the Novonix Anode Materials division’s production of high-performance synthetic graphite anode materials.

The expansion project is currently expected to cost around US$1 billion between 2023 and 2025. It’s should see the division producing 75,000 additional tonnes of synthetic graphite anode materials annually.

As previously noted, any funds offered under the grant must be matched by their recipient.

Novonix is actively working to secure financing to support the remainder of the expansion project’s costs.

It’s seeking out further government funding opportunities. It might also be eligible for the DOE’s Loan Program Office Advanced Technology Vehicle Manufacturing program – which could provide debt support of up to 80% of the cost of a suitable project. But that’s not all. Novonix continued:

If the company requires further financial support for its planned expansion it will continue to explore opportunities such as customer support, commercial debt, strategic investment, and capital from the private and public markets.

Novonix was one of a handful of ASX-listed battery-focused companies to be selected to negotiate with the department to receive various grants. The negotiations are expected to take several months and will cover project details, costs, milestones, and access to the grant funds.

The tech favourite’s need for cash won’t surprise eagle-eyed market watchers.

Auditors recently warned the company’s dependence on raising cash to fund its expansion added to a “material uncertainty [potentially casting] significant doubt on the group’s ability to continue”.

Novonix share price snapshot

This year has been a disastrous one for the Novonix share price.

Despite reaching an all-time high last year, the tech stock has plunged 75% since the start of 2022. It’s also currently 70% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 10% year to date and 8% over the last 12 months.

The post Why is the Novonix share price gaining today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why has the Paladin Energy share price surged 11% in a month?
• 4 ASX 200 shares trading ex-dividend next week
• Planes, rains and automobiles: Fund names 3 ASX shares to back right now
• 5 things to watch on the ASX 200 on Friday
• Why did the South32 share price melt more than the market today?

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 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.

from The Motley Fool Australia https://ift.tt/OITzA0c

The Paladin Energy Ltd (ASX: PDN) share price has lifted 10.74% in a month, with the company’s gains surviving a rout in the materials sector and the broader market over the past few days.

Shares in the uranium explorer are currently trading at 82.5 cents apiece.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.45% over the week and has been consistently the worst-performing sector in the recent past. Zooming out, however, and it’s in the green with a 1.65% gain over the month.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has posted a small gain of 0.08% this week, and is up 6.07% over the month.

Some of Paladin’s peer companies in the materials sector have also performed well over the month. Here’s a snapshot of how they’ve performed.

• Stanmore Resources Ltd (ASX: SMR): +36.36%
• Karoon Energy Ltd (ASX: KAR): +20.43%
• Beach Energy Ltd (ASX: BPT): +7.86%

There have been several developments over the month that could be adding optimism to the Paladin share price. Let’s cover the highlights.

What’s going on with the Paladin share price?

Paladin posted its quarterly cash flow and activities reports for the quarter ending in September on 20 October.

The uranium explorer finished with a cash and cash equivalent balance of $163.44 million and has an estimated 68 quarters of funding available.

In its activities report, Paladin CEO, Ian Purdy gave an overview of its recent operational developments.

Purdy said:

It was pleasing to see restart activities commence at the Langer Heinrich Mine during the quarter. The attractiveness of Paladin as a counterparty and the quality of the offtake from the Langer Heinrich Mine continues to be reflected in the ongoing engagement we have with global power utilities, and we were pleased to secure an additional four tender awards for the supply of uranium concentrate.

With the combination of restart activities and a successful uranium marketing program Paladin is exceptionally well-positioned to benefit from the improving uranium market conditions.

Broker names Paladin as a buy

The company also received some positive coverage from a broker, naming it as a hot pick for investors interested in taking advantage of global emerging trends.

Red Leaf Securities chief John Athanasiou believes the European energy crisis makes Paladin a buy as the world weans itself off the dependence on Russian natural gas.

Athanasiou said:

The political momentum towards uranium as a clean and reliable energy source, particularly in Europe, is gathering pace. The uranium company owns a 75% stake in the Langer Heinrich mine in Namibia. The share price is highly correlated to the uranium price.

Athanasiou continued:

We expect increasing uranium prices to be reflected in an improving share price moving forward.

Paladin share price snapshot

The Paladin share price is down 6.25% year to date. The S&P/ASX 200 Index, on the other hand, is performing worse, with an 7.98% loss over the same period.

The company’s market capitalisation is around $2.45 billion.

The post Why has the Paladin Energy share price surged 11% in a month? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Novonix share price gaining today?
• 4 ASX 200 shares trading ex-dividend next week
• Planes, rains and automobiles: Fund names 3 ASX shares to back right now
• 5 things to watch on the ASX 200 on Friday
• Why did the South32 share price melt more than the market today?

Motley Fool contributor Matthew Farley 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.

from The Motley Fool Australia https://ift.tt/d8fpKgn

The AGL Energy Limited (ASX: AGL) share price was up and down in October, but finished the month slightly in the red.

The AGL share price descended 0.44% from $6.84 at market close on 30 September to $6.81 on 31 October. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted 6% in this timeframe. Since 31 October, AGL shares have risen nearly 4%.

Let’s take a look at how the ASX energy share fared in October.

What happened?

AGL shares leapt 7% between market close on 30 September and 6 October.

A broker note out of Credit Suisse may have provided a boost to the AGL share price in early October. Analysts upgraded the company’s share price to outperform with an $8.20 price target. Credit Suisse believes AGL’s cash flow will stay strong amid the company’s plan to exit coal in 2035.

Meanwhile, four of AGL’s directors snapped up a total of 71,500 shares in early October at between $6.60 and $6.89 apiece. This may have been seen as a sign of confidence in the company.

However, AGL shares fell 11.61% between market close on 6 October and 21 October. News of a potential showdown at the company’s AGM appeared to impact the AGL share price on 7 October. The AGM board recommended shareholders vote against three of four candidates nominated by Galipea Partnership.

Meanwhile, AGL also updated investors on its decarbonisation plans. AGL said there had been “sustained political and social momentum for faster decarbonisation” around the world in the last 12 months. The company said decarbonisation presents a “meaningful growth opportunity for the company”.

AGL is planning to close the Loy Yang A power station by the end of FY35, a decade earlier than planned. The company also aims to close the Liddell power station in April 2023 and Bayswater power station between 2030 and 2033.

AGL plans to have 5GW of new renewables by 2030.

Morgans has recently placed a buy recommendation on AGL shares with an $8.81 price target. This implies an upside of 24% on the current share price of $7.11

In comments on The Bull in late October, investment advisor Jabin Hallihan said:

The company is exiting coal-fired generation by 2035, accelerating the closure of the Loy Yang A power station by 10 years. It’s also delivering positive near term earnings.

AGL will hold its annual general meeting on 15 November.

AGL share price snapshot

The AGL share price has soared 28% in the past year, while it has risen 15% in the year to date.

For perspective, the ASX 200 has lost about 7% in the past year.

AGL has a market capitalisation of about $4.8 billion based on the current share price.

The post How did the AGL share price perform against the ASX 200 in October? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is there going to be a gunfight at the AGL corral?
• What’s going on with the AGL share price today?
• Why did the AGL share price outperform the ASX 200 on Friday?
• Why AGL, Mirvac, PeopleIn, and SkyCity shares are charging higher
• Why the AGL share price can surge 35%: Morgans

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/Plm2fFx

All eyes will be on Westpac Banking Corp (ASX: WBC) shares on Monday.

That’s because Australia’s oldest bank is scheduled to release its full year results on that day.

Ahead of the release, let’s take a look at what analysts are expecting the banking giant to report for FY 2022.

What is the market expecting from Westpac’s FY 2022 results?

According to a note out of Goldman Sachs, its analysts expect the bank to report a 10.3% decline in total revenue to $18,866 million. This reflects reductions in net interest income, life insurance income, and wealth management income.

In respect to net interest income, Goldman is expecting a 19-basis points year over year decline in Westpac’s net interest margin (NIM) to 1.85%. This will offset a 7.6% increase in its average interest earnings assets, driving a 2.2% reduction in net interest income to $16,350 million.

This is ultimately expected to lead to a 4% decline in cash earnings (before one-offs) to $5,140 million and a final dividend of 62 cents per share. The latter brings Westpac’s full year dividend to $1.23 per share, up from $1.18 per share in FY 2021.

NIM on watch

One thing that the market will be watching closely on Monday is the bank’s NIM.

Although Goldman expects Westpac’s NIM to fall to 1.85% in FY 2022, recent cash rate rises mean that its margin outlook has improved materially. This bodes well for the bank given its growing interest earning assets.

Goldman is expecting Westpac’s second half NIM to come in at 1.86%, after which it is forecasting an improvement to 1.96% in FY 2023.

As a result, commentary around the bank’s exit NIM may prove to be the most important part of Monday’s result. If the market believes it can hit 1.96% in FY 2023, the Westpac share price could respond very positively. Conversely, any downbeat NIM talk could weigh it down.

Are Westpac shares good value?

Goldman Sachs is very positive on Westpac’s shares and has put them on its conviction list.

It currently has a conviction buy rating and $27.07 price target. Based on the current Westpac share price of $23.79, this implies potential upside of almost 14% for investors.

In addition, Goldman expects a fully franked 5.8% dividend yield in FY 2023, bring the total potential return closer to 20%.

The post Own Westpac shares? What to expect from next week’s FY22 results appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• The Westpac share price soared 17% in October, what’s next?
• Up 14% in a month, why the ANZ share price can keep delivering: Citi
• 5 things to watch on the ASX 200 on Tuesday
• Here’s how the NAB share price has fared in October

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WtJeTK8

It might be a good thing that the BWX Ltd (ASX: BWX) share price remains halted today.

That’s because the personal care products company has become the latest victim of a cyberattack.

What’s going on with this ASX All Ords share?

This morning, BWX revealed that its Flora & Fauna business has identified that a malicious code unlawfully inserted into its website may have resulted in customer credit card numbers and expiry dates being transmitted to an unauthorised third-party.

The release notes that approximately 2,500 customers, who transacted on the Flora & Fauna website between 13 August 2022 and 29 September 2022, may have been impacted by the cyberattack.

BWX highlights that only credit card numbers and expiry dates appear to have been transmitted to the unauthorised third party. No other personal information, such as customer names, CVV codes, passwords, or other information entered at checkout have been accessed.

What remains unclear, though, is what changed on 29 September to stop the code and how long the company has known about the attack.

‘Considerable concern’

BWX’s CEO, Rory Gration, commented

We apologise to our Flora & Fauna customers who will experience considerable concern due to this cyber incident. We take the privacy and security of customer data very seriously and we want to assure our customers that we acted promptly to identify, isolate and remove the malicious code on the Flora & Fauna website, as well as taking additional steps to upgrade security on the Flora & Fauna website. We have notified potentially affected customers of the breach, explained steps they can take to limit risk to their information and will ensure affected customers are provided with appropriate information and support.

Why is the BWX share price suspended?

The BWX share price has been out of action since August at the company’s request.

This is because it is taking BWX an alarming amount of time to prepare its audited accounts after identifying irregularities in its financial reports.

The company recently extended its suspension, explaining:

BWX advises that this timeline has been extended, with the release of audited accounts – including certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of intangible assets – expected in mid-November 2022. The Board considers it imperative that the audit and any adjustments are completed accurately, which necessitates additional time.

The post Another ASX All Ords company has just been hit with a cyberattack. Here’s the lowdown appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• CSR share price rockets higher on profit and dividend boost
• 5 big ASX announcements making news this week
• Magellan share price hits multi-year low following $2.4b horror month for outflows
• Block share price jumps 10% on Q3 beat
• Tesla sees a China slowdown, but this Nasdaq stock is faring much worse

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 BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MacmW3f

The CSR Limited (ASX: CSR) share price is soaring in early trade on Friday, up 4.8% at the time of writing having opened 8% higher.

Shares in the S&P/ASX 200 Index (ASX: XJO) building products producer closed yesterday trading for $4.53 and are currently trading for $4.75 apiece.

This comes following the release of the company’s half-year results for the six months ending 30 September.

Here are the highlights.

CSR share price takes off on 27% profit lift

ASX 200 investors are bidding up the CSR share price after the company reported a 27% year-on-year increase in net profit after tax (NPAT) of $110 million before significant items for the six-month period.

Trading revenue increased 14% from the prior corresponding half-year to $1.3 billion.

And earnings before interest and tax (EBIT) before significant items came in at $171 million, an increase of 29%. EBIT in the company’s building products and property segments were both higher year on year, while EBIT in its aluminium segment was slightly lower, impacted by higher raw material and input costs.

The CSR share price is also likely getting a boost from the company’s declaration of an interim dividend of 16.5 cents per share, fully franked. That’s up 22% from the interim dividend paid in the prior corresponding period.

CSR also reported it’s now purchased $22 million in shares in its $100 million on-market share buyback, announced on 30 June.

What did management say?

Commenting on the half-year results that look to be giving the CSR share price a boost today, CEO Julie Coates lauded the business’s strong performance in an inflationary environment.

Coates added:

Cost, supply chain and labour pressures are supporting adoption of CSR systems like Hebel lightweight aerated autoclaved concrete as faster build times and reduced labour requirements are becoming increasingly valuable to builders. Our upgraded Hebel manufacturing facility has significant capacity to deliver into this growing demand.

Investing in our property assets and our market leading development capability is a core part of our strategy. Future earnings will be supported by the independent valuation of CSR’s Property assets with development potential, which has increased in value on an “as is” basis to $1.5 billion.

What’s next?

For some insight as to where the CSR share price could be heading over the full year, the company said it “has entered the second half with good momentum”.

It pointed to strong demand for building products and underlined its ability to manage the current inflationary period across its product categories.

Without offering a specific guidance range, CSR stated it “expects to deliver a strong group result for YEM23”.

CSR share price snapshot

Despite today’s boost, the CSR share price remains down 21% for the calendar year. That compares to a year-to-date loss of 10% posted by the ASX 200.

The post CSR share price rockets higher on profit and dividend boost appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 14% in a month, why the ANZ share price can keep delivering: Citi

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.

from The Motley Fool Australia https://ift.tt/wVfJGlS

It’s been another big week of news on the ASX, with many of the market’s inhabitants releasing some major announcements.

Looking beyond the market, there’s also been plenty of news from central banks.

The Reserve Bank of Australia upped the benchmark interest rate by 0.25% on Tuesday, taking it to 2.85%. Then, on Thursday, the US Federal Reserve hiked rates another 0.75% – leaving the nation’s cash rate at 3.75% to 4%. Both hikes were in response to soaring inflation.

Inflation was also the talk of the town on the Aussie bourse this week after an S&P/ASX 200 Index (ASX: XJO) giant posted a quarterly update. Let’s get stuck into it.

5 ASX announcements making news this week

Woolworths’ earnings disappoint

The Woolworths Group Ltd (ASX: WOW) share price slumped yesterday when the supermarket operator posted its September quarter update, detailing a 1.8% increase in group sales.

Its BIG W and Australian business-to-business legs’ growth managed to offset a decline in sales at its Australian and New Zealand food businesses. Much of the drop was due to the cycling of COVID-19 lockdowns in the prior comparable period.

Woolworths CEO Brad Banducci also commented:

Inflation continued to accelerate in Q1 … We continue to see early signs of customer purchasing habits changing, but it remains unclear how much of this relates to cost-of-living pressures compared to COVID normalisation.

Another regulatory blow for EML

The share price of EML Payments Ltd (ASX: EML) also suffered this week, plummeting 35% on Monday. Its fall came after the former ASX 200 fintech announced it had agreed to pause the onboarding of new users to its United Kingdom subsidiary, Prepaid Financial Services, amid regulatory concerns.

The issues raised were said to be similar to the (still unresolved) concerns brought about by the Central Bank of Ireland in 2021. They related to the company’s compliance with anti-money laundering and counter-terrorism financing laws.

Nitro catches a winning takeover curveball

After months of courtship and two takeover bids, the Nitro Software Ltd (ASX: NTO) board has finally recommended a potential buyer’s offer. However, it wasn’t posed by the suitor previously chasing the company.

Canada’s Alludo’s $2 per share takeover offer was 11% higher than the $1.80 bid Potentia Capital offered on Friday. Potentia has been chasing Nitro since August when it posted its initial $1.58 bid.

Lithium drives IGO’s earnings higher

Good news for ASX lithium fans – IGO Ltd (ASX: IGO) announced its lithium business’ sales revenue more than doubled quarter-on-quarter to come in a $1.8 billion over the three months ended 30 September.

That helped the company report a 136% increase in after-tax profits, coming in at $253 million, and a 54% jump in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), reaching a record $398 million.

Tiny lithium mining share surges 81% amid exploration news

Finally, a win for the little guys. The share price of $110 million lithium explorer Winsome Resources Ltd (ASX: WR1) exploded this week. It has gained 80.8% since the close of trade on Friday, and is currently trading at 85 cents apiece.

The surge followed last week’s announcement of positive drilling results at two of the ASX company’s Canadian projects.

This week, it provided additional data on numerous drill holes and an investor presentation. The releases seemingly spurred the market’s interest in the stock once more.

But that wasn’t the end of the drama. The lithium share was halted following an ASX query on Wednesday.

It returned to trade this morning on an update pertaining to its previously released presentation. Additionally, the company responded to the ASX’s ‘please explain’, saying:

With this series of encouraging exploration results being made public, there appears to be a recognition that WR1’s market capitalisation is low when compared with many of its peers in the lithium exploration market.

The post 5 big ASX announcements making news this week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman says Woolworths share price pullback provides ‘a value entry point to a quality player’
• 5 things to watch on the ASX 200 on Friday
• Why Bravura, Domino’s, Lendlease, and Woolworths shares are sinking
• Leading fund manager names the 3 ASX stocks that drove its returns higher in October
• 3 ASX 200 directors buying up their company shares this week

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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VH6tnxJ

The Magellan Financial Group Ltd (ASX: MFG) share price is on course to end the week in the red.

In morning trade, the struggling fund manager’s shares are down 3% to a multi-year low of $9.52.

This latest decline means that the Magellan share price is now down 50% in 2022.

Why is the Magellan share price falling?

Investors have been hitting the sell button on Friday after the fund manager released its latest funds under management (FUM) update.

According to the release, Magellan continued the trend of bleeding funds during the month of October.

After reporting net outflows of $3.6 billion in September, Magellan followed this up with net outflows of $2.4 billion in October. This comprised net retail outflows of $0.4 billion and net institutional outflows of $2 billion.

However, with both the Australian dollar continuing to soften and global markets having a very strong month in October, the company’s FUM actually managed to increase a fraction during the month.

The release reveals that at the end of the period, Magellan’s FUM stood at $51.0 billion. This is up from $50.9 billion at the end of September.

Magellan’s $51.0 billion of FUM comprises retail FUM of $20.5 billion (up from $19.8 billion) and institutional FUM of $30.5 billion (down from $31.1 billion). It is also based on an AUD/USD exchange rate of 0.63945. The latter is down from 0.64295 a month earlier.

As a comparison, a year ago, Magellan’s FUM was $114.8 billion at an AUD/USD exchange rate of 0.7511. That’s a 55% decline in the company’s FUM before taking currency benefits into account. Oh, how the mighty have fallen!

The post Magellan share price hits multi-year low following $2.4b horror month for outflows appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could something big be going down at Magellan?
• How to find wealth compounders inside the ASX 200 right now
• Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022?
• Magellan share price sinks again despite ‘$100 billion’ outlook
• 5 things to watch on the ASX 200 on Thursday

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 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.

from The Motley Fool Australia https://ift.tt/M0sZpEl

The Block Inc (ASX: SQ2) share price is on course to end the week on a very positive note.

In morning trade, the payments company’s shares are up 10% to $96.33.

Why is the Block share price racing higher?

Investors have been bidding the Block share price higher this morning following the release of the company’s third quarter update.

For the three months ended 30 September, Block’s gross payment volume came in at US$54.4 billion, up from US$52.5 billion in the second quarter and from US$45.4 billion in the prior corresponding period.

This led to Block recording total net revenue of US$4.52 billion for the period, which was up 17% over the prior corresponding period and ahead of the consensus estimate of US$4.47 billion.

Excluding bitcoin and buy now pay later (BNPL) revenue, Block’s revenue was up 25% to US$2.54 billion. Bitcoin revenue came in at US$$1.76 billion and BNPL revenue was US$210 million for the quarter.

Growing even quicker was the company’s gross profit. Block reported a 38% increase in gross profit to US$1.57 billion. This was driven by a 51% lift in Cash App gross profit to US$774 million and a 29% increase in Square gross profit to US$783 million.

This ultimately led to Block reporting adjusted EBITDA of US$327 million and a net loss of US$15 million. These are big improvements on the EBITDA of US$187 million and net loss of US$208 million that were recorded in the second quarter.

On the very bottom line, Block’s third quarter adjusted earnings per share came in at US$0.42, well ahead of the US$0.23 consensus estimate. This helps explain why the Block share price is having such a strong morning despite another tech selloff on Wall Street last night.

Management commentary

Block’s management spoke briefly about a few highlights from the quarter. It commented:

In the third quarter of 2022, we generated gross profit of $1.57 billion, up 38% year over year. Cash App generated gross profit of $774 million, up 51% year over year, and Square generated gross profit of $783 million, up 29% year over year.

Cash App Card has significant momentum and has scaled to more than 35% of our monthly actives: In September, there were nearly 18 million Cash App Card actives, up more than 40% year over year with weekly and daily actives increasing at an even more rapid rate during the same period.

Our software point-of-sale solutions are purpose-built for specific verticals and have experienced strong growth: In the third quarter, Square for Restaurants, Square for Retail, and Square Appointments cumulatively grew gross profit more than 45% year over year.

The post Block share price jumps 10% on Q3 beat appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How are ASX 200 tech shares faring after the overnight NASDAQ plunge?
• Why did the Block share price just tumble 7%?
• Why is the Zip share price up 5% on Tuesday?
• Here are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1j4uMY9