Tag: Stock pick

Block Inc (ASX: XYZ) shares are ending the week with a bang.

At the time of writing, the payments giant’s shares are up 30% to $96.60.

This follows the release of its fourth-quarter and full-year results this morning.

Block shares rocket on results day

For the three months ended 31 December, Block reported a 24% increase in gross profit to US$2.87 billion.

This was driven by a 33% lift in Cash App gross profit to US$1.83 billion and a 7% increase in Square gross profit to US$993 million.

For the 12 months, gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion.

FY 2025 adjusted operating income came in at US$2.08 billion, representing a 20% margin.

But there was something else that gave Block shares a huge lift today. Job cuts.

What was announced?

Block has announced that AI tools are making it possible to undertake a major reduction in its head count. Block’s founder and CEO, Jack Dorsey, explained:

Today we shared a difficult decision with our team. We’re reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation. I want to use this letter to explain why I believe this is the right path for our company, and what Block looks like going forward.

The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week. I don’t think we’re early to this realization. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively.

Outlook

Looking ahead, the company is guiding to gross profit of US$12.2 billion, which represents 18% annual growth.

This is expected to be achieved with an operating income margin of 26%.

The company’s COO and CFO, Amrita Ahuja, commented:

We’re executing well on our growth strategies across the business. At Investor Day we shared our preliminary view of gross profit for 2026, which called for 17% year-over-year gross profit growth. We now expect to deliver gross profit growth of 18% year over year in 2026, to $12.20 billion. We are focused on sustaining momentum and we plan to continue to invest in significant long term growth initiatives across our agentic AI infrastructure, proactive intelligence products, high ROI go to market expansion, Neighborhoods, and high return on capital lending products.

The post Why are Block shares rocketing 30% on Friday? appeared first on The Motley Fool Australia.

More reading

• Block Q4 2025 earnings: Profit jumps as AI transformation begins
• 5 oversold ASX shares to buy before the end of February
• 3 beaten down ASX shares I’d load up on at these prices
• Here are the top 10 ASX 200 shares today
• Are these ASX shares too cheap to pass up?

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. 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.

Cleanaway Waste Management Ltd (ASX: CWY) reported its first-half results this week, and on the back of an increase in underlying profit, the company boosted its dividend payout by almost 20%.

The analyst teams at Macquarie, Barrenjoey and Morgans have all had a look at the result, and all three believe the shares are currently trading at a discount.

Results beat expectations

We’ll get to where they think the shares will go later, but first, let’s have a look at the profit result.

Cleanaway this week reported first-half revenue of $2.205 billion, up 13.7%, driven by the strong performance of its solid waste segment, the company said.

Profit from operations fell 21.2% to $137.2 million, with this result including $91 million in one-off items, while underlying net profit was 17.8% higher at $109.7 million.

Cleanaway also boosted its interim dividend by 19.6% to 3.35 cents per share, fully franked.

Cleanaway Managing Director Mark Schubert said regarding the result:

We are pleased to upgrade our FY26 underlying EBIT guidance to between $480 million and $500 million following a robust first half and outlook. This upgrade to guidance demonstrates both the underlying strength of our business and the delivery on commitments we have made to shareholders to build a stronger, more profitable business. We have a track record of growing revenue, expanding margins, improving capital efficiency, and returning value to shareholders, and we have a strategy and plan to continue this performance in the years ahead. Our refreshed strategy is designed to deliver strong and growing free cash flow.

The previous EBIT guidance range was for earnings of $470 to $500 million.

Mr Schubert said the new strategy would deliver “at least” $35 million in annualised cost savings from FY27, “with initial benefits of $15 million to be realised in the second half of FY26”.

Cleanaway shares looking cheap

Now to the brokers, and Barrenjoey is the least bullish on the company, with a neutral rating and a 12-month price target of $2.80 on Cleanaway shares, compared with $2.55 currently.

Barrenjoey said the company’s EBIT of $228 million was 3% ahead of consensus expectations, but it had reduced its price target to $3 due to changes in cash flow forecasts.

Over at Morgans, they have a price target of $3.11 on Cleanaway shares, saying the result was a mixed bag and the next catalyst for the shares would be Cleanaway’s investor day, which will be held in April.

Morgans said the strong performance of the solid waste services division, which contributes about 75% of earnings, was a positive.

And lastly, the Macquarie team has the most bullish price target on Cleanaway shares at $3.40.

Macquarie said the valuation was looking attractive given the company’s growth prospects and, “visibility is improving as conditions firm, efficiency gains momentum and cost-out accelerates”.

The post This waste management company should deliver double-digit returns according to three brokers appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• This ASX 200 stock just boosted its dividend by 20%
• Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance
• This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away?

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This S&P/ASX 200 Index (ASX: XJO) stock has slumped hard. Over 12 months, Treasury Wine Estates Ltd (ASX: TWE) shares have plunged 58% at the time of writing.

Over the past year, the ASX 200 stock has hit multi-year lows amid earnings guidance withdrawals, paused interim dividends, and major write-downs that shook investor confidence.

Is there more drama to come from the owner of Penfolds, 19 Crimes, and Lindeman’s, or are things starting to look up?

Bad news show

Earlier this month, Treasury Wine reported a statutory net profit after tax (NPAT) loss of $649.4 million. That’s down from a $221 million profit in H1 FY 2025.

The half-year loss blew out after the company booked a $751 million post-tax hit, driven by non-cash impairments tied to its US assets.

It sent the price of the $3.8 billion ASX 200 share lower as shareholders reassessed a strategy that was once built on premium wine growth and global brand strength.

Portfolio of luxury wines

On the surface, the ASX 200 company has real strengths. Its portfolio of premium and luxury wines still resonates in markets worldwide. Strength in brands and margins when conditions normalise underpins the bull thesis.

This downturn could represent a compelling entry point for contrarian buyers who believe in the long-term wine category and this premium ASX 200 stock’s place in it. 

No dividend, first time in decade

But there are real risks that make value investors nervous. The shift away from dividend payouts, the suspension of guidance, and weak demand in key markets underline deeper structural issues.  

Especially the decision to suspend the ASX 200 stock’s dividend didn’t go down well with investors. That means that FY 2026 will be the first year in more than a decade that stockholders won’t receive two dividends from the global wine company.

The board of Treasury Wine said its near-term focus is on market execution, cash flow, and accelerating the benefits from its Project Ascent program. This aims to achieve $100 million in annual cost savings over two to three years.

The company forecasts better earnings in the second half of FY 2026.

What next for the ASX 200 shares?

Analysts have responded differently, with some maintaining hold ratings and modest price targets that sit well below past highs.

Morgans has stuck with its hold rating on Treasury Wine Estates after sizing up its 1H FY26 result. And it wasn’t exactly impressed.

Morgans added:

TWE reiterated that 2H26 EBITS is expected to be higher than the 1H26. It is too early to call whether TWE can grow earnings in FY27.

We think this will not occur until FY28 given the priority to reduce customer inventory in the US and China.

It will take time for new management to deliver more acceptable returns and for TWE to rebuild credibility with the market.

Still, Morgans nudged its 12-month price target up from $5.25 to $5.30 a share, implying potential upside of 15% from current levels.

The post This ASX 200 premium stock crashes 58% – bargain or value trap? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ords shares at 52-week lows: Are they a buy?
• I’m listening to Warren Buffett and buying cheap ASX shares
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why I think these quality ASX 200 shares are trading at a discount

Motley Fool contributor Marc Van Dinther 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mesoblast Ltd (ASX: MSB) shares are bouncing around in morning trade on Friday.

At one stage, the biotech stock was up almost 9% to $2.63.

But those gains didn’t last and its shares are now down 3% to $2.33.

What’s going on with Mesoblast shares?

Investors have been buying (and then selling) the biotech stock following the release of its half-year results and an operational update.

According to the release, for the six months ended 31 December 2025, Mesoblast reported total revenue of US$51.3 million. This is up sharply from US$3.2 million in the prior corresponding period.

The company’s Ryoncil product generated gross sales of US$57 million and net revenue of US$48.7 million after adjustments. The product also delivered gross profit (excluding amortisation) of US$44.2 million during the half.

While the company still reported a net loss of US$40.2 million, this was an improvement on last year’s US$47.9 million loss.

Mesoblast also ended the period with US$130 million in cash and entered into a US$125 million five-year non-dilutive credit facility, strengthening its balance sheet.

Commercial rollout gathering pace

Operationally, the rollout of Ryoncil continues to build momentum.

To date, 49 transplant centres have been onboarded, with a target of 64 centres representing 94% of US transplants. Coverage now extends to 280 million US lives, supported by federal Medicaid and commercial payers.

Importantly, 84% of patients in real-world settings have been able to complete the initial 28-day treatment regimen and remain alive, consistent with prior clinical experience.

Growth pipeline progressing

Beyond Ryoncil, the company continues advancing its second-generation product, rexlemestrocel-L.

A confirmatory Phase 3 trial in chronic low back pain is nearing completion of its 300-patient enrolment target, while the company plans to move toward full FDA approval for its chronic heart failure program next quarter.

Outlook

Mesoblast advised that it believes it is well-placed to continue growing revenue over the remainder of the financial year. It has guided to full-year FY 2026 Ryoncil net revenue of between US$110 million and US$120 million.

It is possible the market was expecting stronger growth in the second half and have been selling Mesoblast shares today to reflect this.

Commenting on its performance and outlook, Mesoblast’s chief executive, Dr Silviu Itescu, said:

Today we report strong operational and financial performance for the first half of FY2026, a period that marks an important inflection point in Mesoblast’s evolution from clinical development to sustainable commercial execution. Sales momentum for Ryoncil continued to build, driving meaningful revenue and reinforcing the product’s value in addressing significant unmet medical need and the strength of our commercial strategy.

Importantly, we have improved the Company’s financial position with positive cash flow generated from Ryoncil sales, disciplined cost management, and a strategic refinancing, providing greater flexibility to support expansion and late-stage clinical programs. As we enter the second half of FY2026, we remain focused on accelerating commercial uptake, advancing regulatory and label expansion opportunities, and maintaining financial discipline to deliver sustainable long-term shareholder value.

The post What’s going on with Mesoblast shares today? appeared first on The Motley Fool Australia.

More reading

• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026
• 2 ASX shares tipped to storm higher this year
• Why this ASX healthcare share could double its value in 2026
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares forecast to soar 100% (or more) in 2026

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.

Wilsons Advisory has this week launched its Australian Equity Focus Portfolio, an in-house effort to outperform the S&P/ASX 200 Index (ASX: XJO) over a rolling three to five-year period.

The Wilsons team said they’re looking to invest “across the spectrum of sectors and styles, however, stock selection typically reflects a bias towards reasonably priced, high-quality businesses with sustainable growth, consistent with our investment philosophy”.

Looking to beat the market with quality companies

That investment philosophy is based around five core principles, with the first being that earnings are the primary driver of shareholder returns.

The team is also looking for “high-quality businesses with strong competitive advantages, high returns on capital, and robust balance sheets, which tend to outperform over the long run”.

They will also be keeping an eye on the macroeconomic outlook, which “informs sector tilts and stock selection”.

The Wilsons team said regarding their approach:

Our portfolio construction process combines bottom-up fundamental analysis with top-down sector and commodity views. It is designed to ensure that stock and sector weightings directly reflect our level of conviction, with capital systematically allocated toward our highest-conviction ideas. For Industrials, position sizing is primarily driven by bottom-up stock conviction rankings, based on a rigorous assessment of business quality, valuation and momentum (with an emphasis on earnings). This is overlaid with top-down sector tilts where applicable, which can scale final position sizes up or down. For Resources, we adopt a top-down starting point, forming views on relative commodity attractiveness before assessing preferred exposures within each commodity based on company-specific fundamentals.

Mining looking strong

The Wilsons team said at the moment they are positive towards the resources sector for a number of reasons, including resilient global growth, a softer US dollar, government policy that is looking to onshore production, and structural demand tailwinds such as the energy transition.

They added:

Within the commodity complex, we are particularly positive towards base metals (copper, aluminium), gold, and critical minerals (rare earths), where we see favourable supply/demand dynamics and supportive medium-term pricing. We remain neutral on energy and modestly underweight iron ore, reflecting less attractive supply/demand dynamics.

The Wilsons portfolio is underweight on banks versus the ASX 200, albeit they are looking more favourably on the sector following the reporting season, and the portfolio has no exposure to retail and domestic cyclicals.

As the Wilsons team said:

As we have written about previously, the monetary policy backdrop has become increasingly challenging for companies exposed to domestic consumer spending, with the RBA having raised rates in February and markets fully pricing at least one further hike later this year. This environment presents risks to retailer earnings and valuations at a time that valuations are already relatively full – particularly for high-quality large cap exposures.

Now to the top 10 companies, and BHP Group Ltd (ASX: BHP) tops the list followed by Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), Santos Ltd (ASX: STO), Evolution Mining Ltd (ASX: EVN), Brambles Ltd (ASX: BXB), and finally Woolworths Group Ltd (ASX: WOW).

The post In Wilsons Advisory’s ideal portfolio, what are the 10 top stock picks? appeared first on The Motley Fool Australia.

More reading

• If I could only buy and hold a single ASX stock, this would be it
• 5 things to watch on the ASX 200 on Friday
• 35 ASX All Ords shares with ex-dividend dates next week
• Why I’m still backing ASX growth shares for the long run
• Buy, hold, sell: Flight Centre, WiseTech, and Woolworths shares

Motley Fool contributor Cameron England 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 Goodman Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Coles Group Ltd (ASX: COL) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $22.19. In morning trade on Friday, shares are changing hands for $20.50, down 7.6%.

For some context, the ASX 200 is just about flat at this same time.

This follows the release of Coles’ half-year results, covering the 27 weeks to 4 January (H1 FY 2026).

Here’s what we know.

Coles share price tumbles on profit decline

The Coles share price is under heavy pressure today despite the supermarket reporting broadly strong growth figures.

That includes a 2.5% year-on-year increase in sales revenue to $23.6 billion.

Supermarkets sales revenue of $21.37 billion was up 3.6%, although revenue from the company’s liquor division slipped 3.2% to $1.94 billion.

Online shopping showed further growth, with supermarkets eCommerce sales up 27% year on year amid increasing digital engagement.

And earnings before interest, taxes, depreciation and amortisation (EBITDA) – excluding significant items – of $2.21 billion was up 7.8% from H1 FY 2025.

On the bottom line, the supermarket reported net profit after tax (NPAT) – excluding significant items – of $676 million, up 12.5%.

But the Coles share price could be under pressure today with NPAT, including significant items, of $511 million, down 11.3% year on year.

The significant items for the six months come to $235 million, or $165 million after tax. These were recorded as a result of the September Federal Court judgment relating to Fair Work proceedings involving historical underpayment of employees.

On the passive income, management declared a fully-franked interim dividend of 41 cents per share, up 10.8% from last year’s interim payout.

If you’d like to bank the interim Coles dividend, you’ll need to own shares at market close on 9 March. Coles stock trades ex-dividend on 10 March. You can then expect to receive that passive income payout – representing a 2% return at current levels – on 30 March.

What did management say?

Commenting on the half-year results, Coles CEO Leah Weckert said, “We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024.”

As for the second half of FY 2026, Weckert said:

As we look ahead, we are well positioned, with a strong balance sheet and cash flow generation, to continue to invest in areas that will strengthen and expand our core customer proposition and deliver value for shareholders.

As at 4 January, Coles held cash and cash equivalents of $598 million.

With today’s intraday losses factored in, the Coles share price remains up 1.6% over 12 months, not including dividends.

The post Why is the Coles share price crashing 8% on Friday? appeared first on The Motley Fool Australia.

More reading

• Coles Group shares: Profit jumps, Supermarkets excel
• 5 things to watch on the ASX 200 on Friday
• 35 ASX All Ords shares with ex-dividend dates next week
• Here’s the share price I would buy Coles stock at
• Why it’s a great time to buy these ASX 200 shares in these rocky times

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.

South32 Ltd (ASX: S32) shares have come out of the blocks fast this year. They have blasted 30% higher in the first two months of the year to $4.60, at the time of writing.

After drifting through much of the past two years, South32 shares have flipped the script and delivered one of the stronger performances among large-cap miners on the S&P/ASX 200 Index (ASX: XJO).

Investors who were growing impatient are suddenly being rewarded as the market re-rates the diversified miner on the back of improving operations and firmer commodity prices. Now the question is: Can South32 shares keep the rally going?

No hype, real substance

The rally hasn’t come from hype. It has come from execution. South32 has tightened costs, delivered solid production across key assets, and reassured the market that guidance remains intact. The miner has backed it up with strong half-year financial results and solid production numbers, giving the rally real substance.

Copper, silver, and gold have smashed through to fresh record highs this year. The surge in commodity prices has powered South32 shares toward a multi-year high earlier this month. In the past 6 months, the ASX 200 mining stock has seen its value increase by a massive 71% to $20.5 billion.

Controlling cyclical miner

It’s not just macro tailwinds at play. Manganese volumes have impressed, alumina output has stabilised, and aluminium performance has been resilient despite a choppy macro backdrop. When a cyclical miner shows it can control what it can control, the market tends to pay attention. For a diversified producer like South32, stronger pricing flows directly into margins and cash generation.

Capital management has also helped sentiment. The ASX mining stock has maintained a disciplined balance sheet and continued returning cash to shareholders through dividends and buybacks. In a market where investors are demanding both growth and yield, that combination is powerful.

It reinforces the idea that this is not a speculative turnaround, but a business with tangible cash flow underpinning it.

Geopolitical challenges

Still, risks haven’t vanished. Commodity stocks like South32 shares remain at the mercy of global growth. A slowdown in China or a broader industrial downturn would quickly pressure metals prices and earnings expectations.

Operationally, asset-specific challenges remain, including power and geopolitical risks at certain offshore operations. Mining is never a straight-line business, and volatility is part of the package.

What next for South32 shares?

Valuation is another consideration. After a strong run for South32 shares, the easy gains may already be behind the stock. The market is now pricing in continued operational stability and supportive commodity markets. Any stumble in production or softer pricing could see momentum cool just as quickly as it heated up.

So is there more upside? There could be, particularly if base metal demand remains resilient and South32 continues to execute cleanly. Most analysts are still keen on South32 shares with a buy or strong buy rating. They have set an average 12-month price target of $4.80, a modest 4% upside.

Due to the recent share price surge, Morgans recently downgraded South32 shares to an accumulate rating (from buy) with an unchanged price target of $5. This points to a potential gain of roughly 9% over 12 months at current levels.

The post Can South32 shares keep it going after stellar start in 2026? appeared first on The Motley Fool Australia.

More reading

• 35 ASX All Ords shares with ex-dividend dates next week
• Should you buy South32 and Fortescue shares amid strong commodity prices?
• Buy, hold, sell: Fortescue, Solstice, and South32 shares
• Buy, hold, sell: ANZ Bank, Breville, South32 shares
• The 3 ASX shares I’d buy and hold into 2026

Motley Fool contributor Marc Van Dinther has positions in South32. 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.

The Alcoa Corporation CDI (ASX: AAI) share price is in focus as the company announces a quarterly dividend of US 10 cents per CDI, payable on 26 March 2026, with a record date of 10 March.

What did Alcoa report?

• Quarterly dividend of US 10 cents per CDI, unfranked
• Dividend ex-date: 9 March 2026
• Record date for eligibility: 10 March 2026
• Payment date: 26 March 2026
• Payments default to Australian dollars but other currencies available on request
• Non-resident withholding tax of 30% applies unless eligible for a reduced treaty rate

What else do investors need to know?

Alcoa advises CDI holders to ensure their payment instructions are up to date to avoid potential delays. Holders in Australia, New Zealand, the UK, or US must provide direct credit details, otherwise dividend payments will be withheld until valid banking information is received.

For those residing outside these countries, payments will be made by cheque in Australian dollars unless alternative global wire instructions are received. Alcoa also reminds investors that non-resident withholding tax will be deducted according to US tax law, with the standard rate set at 30% unless a valid tax treaty certification is in place.

What’s next for Alcoa?

Looking ahead, Alcoa CDI holders can update their currency preferences and banking details until 10 March 2026 to ensure smooth dividend reception. The AUD equivalent for this dividend will be announced by 20 March 2026.

Alcoa continues to emphasise its commitment to consistent shareholder returns by maintaining regular quarterly payments while supporting its operational and financial strategies.

Alcoa share price snapshot

Over the past 12 months, Acola shares have risen 68%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Alcoa announces March 2026 dividend appeared first on The Motley Fool Australia.

More reading

• Neuren Pharmaceuticals earnings: Profits up, pipeline builds in 2025
• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026
• Harvey Norman posts 1H26 result
• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Dateline Resources Ltd (ASX: DTR) share price is charging higher on Friday after the company unveiled a new US heavy rare earths acquisition.

At the time of writing, the gold and rare earths developer’s shares are up 8.57% to 38 cents.

That means the stock has now climbed more than 60% since the start of 2026. It extends an already strong run for the small-cap resources company.

So, what did Dateline announce?

Dateline locks in US heavy rare earths project

This morning, Dateline revealed it has acquired the Music Valley heavy rare earth elements project in California.

The project comprises 57 claims covering 1,140 acres in Riverside County, around 8 miles southeast of Twentynine Palms.

According to the company, historical United States Geological Survey work has identified heavy rare earth mineralisation in the area. Reported rock chip results ranged from 6.69% to 15.04% total rare earth oxides, including high levels of yttrium and dysprosium grades.

Heavy rare earths such as dysprosium and terbium are used to enhance magnet strength and heat resistance in electric vehicles, wind turbines, defence systems, and advanced electronics.

Dateline said it plans to undertake mapping, geochemistry, and geophysics to define drill targets at Music Valley.

Expanding its US critical minerals footprint

The acquisition is part of a wider strategic push in North America.

As part of the transaction terms, Dateline has also completed a US$1.05 million investment in Fermi Critical Minerals Inc. Fermi is raising capital to advance uranium and rare earths projects in Wyoming and Colorado.

Dateline Managing Director Stephen Baghdadi said the deal gives the company direct exposure to heavy rare earths mineralisation in California, while also expanding its footprint across uranium and rare earths assets in the United States.

The planned work program at Music Valley will be funded from Dateline’s existing cash balance.

The company already owns 100% of the Colosseum Gold-REE Project in California, located near the Mountain Pass rare earth mine. The addition of Music Valley broadens Dateline’s asset base and strengthens its exposure to US-based rare earths and uranium opportunities.

Foolish Takeaway

Rare earths have become strategically important due to their role in electrification, renewable energy, and defence technologies. And with geopolitics heating up, Western governments are increasingly looking to diversify supply chains away from China.

Dateline’s latest move strengthens its exposure to the growing strategic focus on securing reliable alternative rare earths supply chains.

While investors have responded positively, Music Valley remains an early-stage exploration project. Its ultimate value will depend on successful drilling, resource definition, and the company’s ability to advance the project beyond exploration.

The post Dateline shares surge again after major US rare earths deal appeared first on The Motley Fool Australia.

More reading

• Up 116% in 6 months, guess which ASX All Ords gold stock is rocketing again today on big US news

Motley Fool contributor Aaron Teboneras 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.

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is in focus after the company posted a 15% rise in 2025 DAYBUE royalties to A$65 million and a profit after tax of A$30 million.

What did Neuren Pharmaceuticals report?

• 2025 royalty income from DAYBUE® was A$65 million, up 15% from 2024
• Net profit after tax came in at A$30 million
• Cash and short-term investments stood at A$296 million at year end
• Completed A$50 million share buy-back; new buy-back program starts March 2026
• DAYBUE net sales reached US$391 million, up 12% year on year
• Cumulative DAYBUE income since launch now A$510 million

What else do investors need to know?

Neuren’s partnership with Acadia Pharmaceuticals continues to deliver, with DAYBUE gaining approval for the new powder formulation (DAYBUE STIX) and a growing patient base in the US. Acadia’s guidance for 2026 points to net sales of US$460–490 million, with potential Neuren royalties of A$70–77 million.

Development is progressing on Neuren’s second drug, NNZ-2591, with the Koala Phase 3 trial in Phelan-McDermid syndrome now underway and FDA Fast Track designation secured. Neuren has also expanded its clinical pipeline and added the rare SYNGAP1-related disorder to its targets.

What did Neuren Pharmaceuticals management say?

Neuren CEO Jon Pilcher said:

In 2025 we achieved a critical milestone for Neuren’s value creation strategy with the commencement of our Koala Phase 3 clinical trial of NNZ-2591 in Phelan-McDermid syndrome. There is so much to look forward to this year as we continue to execute that program towards a New Drug Application and in parallel advance NNZ-2591 for Pitt Hopkins syndrome and HIE. All of this is self-funded by our growing revenue from DAYBUE, which has now reached A$510 million since launch in 2023. We are very excited to watch the impact of the recent launch of DAYBUE STIX in the US as a potentially attractive new option for Rett syndrome patients and their families.

What’s next for Neuren Pharmaceuticals?

Looking ahead, Neuren expects ongoing revenue growth from DAYBUE, especially with the broader US rollout of DAYBUE STIX and new regional market opportunities. The company remains well-funded to back its clinical programs, including the pivotal Phase 3 trial for NNZ-2591 and further indications.

A new share buy-back will launch in March 2026, with management highlighting confidence in Neuren’s outlook and financial strength. Investors can watch for updates on European regulatory decisions, Japanese trial results, and further pipeline progress throughout the year.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, Neuren shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Neuren Pharmaceuticals earnings: Profits up, pipeline builds in 2025 appeared first on The Motley Fool Australia.

More reading

• Alcoa announces March 2026 dividend
• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026
• Harvey Norman posts 1H26 result
• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.