With earnings season now behind, it's time to focus on the second half of FY 2023.

And while the next few months are likely to be very successful for many companies, this may not be the case for all.

According to a note out of Morgans, its analysts believe that some ASX shares are expecting too much from the half. So much so, it suspects that they could fall short of guidance and is warning investors to be careful.

Which ASX shares could disappoint in the second half?

Morgans has warned that there are six ASX shares in particular that could be destined to disappoint in FY 2023.

These are energy company AGL Energy Limited (ASX: AGL), packaging giant Amcor (ASX: AMC), health and safety products company Ansell Limited (ASX: ANN), baby products retailer Baby Bunting Group Ltd (ASX: BBN), property listings company Domain Holdings Australia Ltd (ASX: DHG), and telco Superloop Ltd (ASX: SLC).

The broker highlights that with their guidance for the full year maintained after a soft first half, they will need a significant improvement in their performance in the second half. This is something that is far from guaranteed in the current environment. It commented:

Notable companies (DHG, AGL, AMC, BBN, ANN, SLC) missed forecasts in February. Still, they maintained their full-year guidance, setting the scene for potential earnings disappointment if operating conditions don't recover as planned.

Consensus industrial estimates suggest a second half earnings skew (49%:51%) which is curious given the economic backdrop and is at odds with the typical pre-COVID first half skew (56%:44%). More specifically, 49% of companies are expected to be skewed to 2H, well above the 25% in pre-COVID times. So if post-reporting earnings trends hold, small caps could be again vulnerable at the upcoming May 'confession' season.

The post Morgans warns that these ASX shares could disappoint in FY23 appeared first on The Motley Fool Australia.

The February earnings season saw plenty of ups and downs, as well as some insider buying among these S&P/ASX 200 Index (ASX: XJO) shares.

They've each seen directors trading in their company's stocks over the last week.

So, which ASX 200 directors were buying, and how much were they snapping up? Let's take a look.

6 ASX 200 directors buying their company shares

Insider buying is often taken as a sign those working behind the scenes at an ASX 200 company are bullish on its share price's future.

Thus, a barrage of director trades in Dexus Property Group (ASX: DXS) stock might have pricked the ears of market watchers. Particularly the $216,794 trade made by director Paula Dwyer, who snapped up 25,000 shares last Wednesday.

And Dwyer's wasn't the only insider to buy. Directors Elana Rubin and Rhoda Phillippo forked out $50,052 and $21,357 respectively for parcels of 5,813 shares and 2,500 shares over the course of the week.

AGL Energy Limited (ASX: AGL) has also seen recent insider buying, with director John Pollaers buying 10,000 shares for around $6.92 apiece.

Over at ASX 200 financials giant AMP Ltd (ASX: AMP), director Michael Sammells was on a share-buying spree. He snapped up 50,000 stocks in the company for around $1.09 apiece – sneaking in before it traded ex-dividend.

Meanwhile, Ansell Limited (ASX: ANN) director Debra Goodin bought 486 shares in the personal protective equipment manufacturer for a total of $12,959.34.

Director of hauling company Aurizon Holdings Limited (ASX: AZJ), Lyell Strambi, also got in on the insider buying action over the last week. He bought 5,952 shares for $3.36 each – a total of approximately $20,000.

And finally, Bendigo and Adelaide Bank Ltd (ASX: BEN) director David Foster bought 1,021 shares in the regional bank for $9.79 apiece – forking out $9,996 for the additional parcel.

The post 6 ASX 200 directors buying up their company shares in the past week appeared first on The Motley Fool Australia.

I don't think that day trading is an effective investment strategy. But I think it's possible to find attractive long-term investments, as well as ones that have been materially mispriced which could take a month, a year, or longer to re-price.

If I had $5,000 to invest today, these are three that I'd happily put my money into.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical is one of the most interesting fund managers. I don't think there are many ways to 'play' the growing superannuation theme, nor are there many investments that are focused on gaining exposure to the green investing theme. However, Australian Ethical could capture the benefits of both of these themes.

It offers funds to enable investors to align their investments with their ethics. Australian Ethical offers superannuation for people to use and that's the segment that's seeing significant growth.

Remember that people regularly contribute to their super thanks to mandatory superannuation contributions in Australia (as well as the tax-beneficial nature of superannuation). This provides attractive, regular inflows for the fund manager.

I also think this ASX share looks much better value after Australian Ethical's share price decline of 45% over the last six months. Certainly, ongoing exposure to superannuation should help drive underlying profitability higher in the coming years.

Ansell Limited (ASX: ANN)

Ansell is one of the world's largest manufacturers of safety gloves used for a variety of household, industrial, scientific, and medical purposes.

I think Ansell is one of the unsung global leaders on the ASX. The Ansell share price has dropped 36% since mid-June 2021. It benefited from huge demand during COVID-19 but now its valuation has come down to a more sustainable level.

In the FY23 half-year result, Ansell said that its sales of $835.3 million showed "strong growth in industrial more than offset by lower healthcare sales". This led to an overall decline in organic constant currency terms of 11.5%.

However, I think the 6.4% underlying industrial revenue growth bodes well for the business once it's not cycling against strong COVID demand.

Despite the sales decline, the earnings before interest and tax (EBIT) margin improved by 120 basis points (1.20%) in organic constant currency terms.

Based on Commsec estimates, Ansell is valued at 16 times FY23's estimated earnings and 15 times FY24's estimated earnings. Earnings growth is expected again for the ASX share in FY25.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This is one of my favourite exchange-traded funds (ETFs) for achieving global diversification.

The idea behind this ASX ETF is that it is invested in a portfolio of 200 businesses that are among the world leaders when it comes to doing the right things in terms of environmental, social, and governance (ESG) factors.

It also excludes a variety of industries from the portfolio including fossil fuels, gambling, alcohol, weapons and other businesses of that nature.

I think it's quite a cheap ETF considering the exclusion process that it follows — its annual management fee is 0.59%.

Around 70% of the portfolio is invested in US-listed businesses, but countries like Japan, Switzerland, the Netherlands, Germany, the UK, and others also have a sizeable allocation.

Looking at the current portfolio, these are some of its biggest positions: Visa, Home Depot, Nvidia, Apple, Mastercard, and Toyota.

The post I'd invest $5,000 into these excellent ASX shares for the long term appeared first on The Motley Fool Australia.

It's that time of the year folks. The February earnings season is in full swing with S&P/ASX 200 Index (ASX: XJO) shares declaring dividends left, right, and centre, and there are several names set to trade ex-dividend this week.

Once the ex-dividend milestone passes, new investors in the companies will have missed out on their upcoming offerings. It also means the stocks will likely be trading in the red at one point in the week.

Let's take a look at some of the high-profile market giants gearing up to trade ex-dividend this week.

ASX 200 shares trading ex-dividend this week

Among the first to trade ex-dividend will be ASX 200 giant Wesfarmers Ltd (ASX: WES). And I've got bad news for anyone wishing to secure its upcoming dividend but isn't yet invested in the stock.

The retail-focused conglomerate trades ex-dividend this morning. It boosted its interim dividend 10% last week, declaring an 88 cent per share fully franked offering as part of its strong first-half earnings.

Glove and personal protective equipment manufacturer Ansell Limited (ASX: ANN) will also trade ex-dividend today. It declared a 20.1 US cent interim dividend last week – marking a 17% year-on-year drop.

Following in its footsteps on Tuesday will be ASX 200 shares Endeavour Group Ltd (ASX: EDV) and Computershare Limited (ASX: CPU).

The former boosted its interim dividend last week, declaring a fully franked 14.3 cent per share payout – a 14% improvement. The latter beat that. It offered a 30 cent per share unfranked interim dividend – a 25% increase on that of last year.

On Wednesday, shares in ASX 200 goliath Commonwealth Bank of Australia (ASX: CBA) will likely drop as the bank trades ex-dividend. It lifted its dividend by 20% to $2.10 per share last week. Though, that wasn't enough to stop the market bidding the bank's stock 5.7% lower.

AGL Energy Limited (ASX: AGL) will also trade ex-dividend on Wednesday after disappointing many with its half-year results. Its profits for the period tumbled 55% while its interim payout was halved to 8 cents per share.

ASX 200 electronics retailer JB Hi-Fi Limited (ASX: JBH) will pass the milestone on Thursday. JB Hi-Fi posted strong first-half earnings last week. It upped its interim dividend by nearly 21% to $1.97 per share, fully franked.

Finally, Friday will probably be a rough one for the share price of GUD Holdings Limited (ASX: GUD). Would-be shareholders will then miss out on GUD's 17 cent per share interim payout, declared last Wednesday.

The post 8 ASX 200 shares trading ex-dividend this week appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Ansell Limited (ASX: ANN)

The Ansell share price is down 8.5% to $25.71. Investors have been selling this health and safety products company's shares following the release of its half year results. Ansell reported a 17.2% decline in sales to $835.3 million and a 16.5% reduction in net profit after tax to $64.8 million. This was driven by weakness in the company's healthcare segment, which offset growth in the industrial segment.

Breville Group Ltd (ASX: BRG)

The Breville share price is down 6% to $20.38. This follows the release of the appliance manufacturer's half year results. Breville reported a 1.1% increase in revenue to $888 million and a 1.3% lift in net profit after tax to $78.7 million. The latter was ahead of consensus estimate of $74.2 million, but that hasn't stopped its shares from falling.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down a further 12% to $1.30. Investors have been selling this casino operator's shares since the release of a disappointing earnings update on Monday. Star revealed that competition in Sydney and regulatory issues have been weighing heavily on its performance.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 22% to $3.84. This morning, Temple & Webster released its half year results and reported a 12% decline in revenue and a 46.7% reduction in net profit after tax. This was due to the company cycling strong lockdown-boosted sales in the prior corresponding period. It is also worth noting that the company's result was in line with Goldman Sachs' estimates, despite what its share price may indicate.

The post Why Ansell, Breville, Star, and Temple & Webster shares are falling appeared first on The Motley Fool Australia.

The Ansell Limited (ASX: ANN) share price is in a world of pain on Tuesday following the release of its FY23 first-half results.

In the first hour of trading, shares in the glove manufacturer are down 8.3% to $25.75. The negative move makes Ansell one of only two healthcare shares in the S&P/ASX 200 Index (ASX: XJO) in the red today.

Let's unpack what happened in the first half for this top 100 ASX share.

Ansell share price descends amid 17% fall in sales

• Sales dived 17.2% compared to the prior corresponding period, reducing to $835.3 million
• Earnings before interest and tax (EBIT) of $91.5 million, down 17.6%
• Net profit after tax (NPAT) came in at $64.8 million, down 16.5%
• Earnings per share (EPS) weakened 16.5% to 50.6 US cents
• Operating cash flow improved to $3.5 million compared to a $22.1 million outflow
• Interim dividend of 24.24 US cents per share declared, down 17.1%

The popular glove maker recorded weaker metrics across the board for the December ending period.

It appears the woeful result stems from significantly reduced sales in the company's Healthcare segment. In the first half, healthcare sales declined 21.9% to $467 million. Expected destocking and price reductions weighed on this area of the business.

In contrast, Ansell's Industrial segment recorded sales growth of 6.4% year-on-year — tallying up $368.3 million in sales.

What did management say?

Managing director and CEO Neil Salmon unpacked the half-year performance which is impacting the Ansell share price, stating:

We saw destocking trends previously evident primarily in medical end markets extend more broadly into other markets with impacts on our Exam/SU products sold into industrial settings and Life Sciences. This was due to a combination of customers becoming cautious on economic conditions while growing more comfortable to reduce inventory as supply chain pressures have eased and product availability has broadly improved.

Furthermore, the executive named the strengthening US dollar as a contributor to the company's reduced EBIT in the first half.

Turning to the positives, Salmon told shareholders the difficult conditions have not discouraged continued investment in expansion, as well as research and development. Pleasingly, Ansell's construction of its India facility remains on track.

What's next?

Looking forward, management is confident growth momentum will continue for its industrial unit into the second half. Although, this could be offset by a delayed moderation of destocking under the healthcare unit.

Additionally, Ansell could see pressure on surgical glove demand in the second half as improved competitor supply comes to market.

For these reasons, the management team has revised Ansell's EPS guidance for FY23. Previously, the range was between US$1.15 to US$1.35 per share. However, the revised range is now between US$1.10 and US$1.20 per share — a 4% and an 11% reduction on the bottom and top ends respectively.

Ansell share price snapshot

Ansell shares had been holding up fairly well prior to today. Excluding today's move, the Ansell share price was up roughly 9% over the past year compared to the 3% gain in the benchmark index.

However, after today's disappointing move, the global glove manufacturer is barely in the green compared to a year ago.

The post Ansell share price slumps 8% as healthcare sales fail to cough up appeared first on The Motley Fool Australia.

Could this embattled S&P/ASX 200 Index (ASX: XJO) healthcare share be a buy right now? Fundies seemingly think so, tipping the glove manufacturer to do big things in the future.

It follows a rough couple of years for the Ansell Limited (ASX: ANN) share price. The stock tumbled 9.4% over 2021 before dumping another 10.4% last year. It currently trades at $28.17.

Comparatively, the ASX 200 gained 13% in 2021 and slipped 5.4% over 2022.

So, what has experts talking about the stock in 2023? Let's take a look.

Is this ASX 200 healthcare share a 2023 buy?

Interestingly, while Ansell falls among healthcare shares, it could also be described as an industrial company. That's because it mainly produces gloves and other personal protective equipment.

Perhaps unsurprisingly, then, the company's earnings took off during the COVID-19 pandemic, driving the Ansell share price to a record high in June 2021.

And while its inflated financial year 2021 earnings didn't stick around for financial year 2022, the market reacted positively to news its revenue reached US$1.9 billion last fiscal year, with Macquarie experts reportedly seeing "solid underlying trends".

Indeed, many experts tip the ASX 200 healthcare share's future to be bright. Allan Gray managing director and chief investment officer Simon Mawhinney believes it offers both defensive earnings and good value, saying:

Even though [Ansell] is somewhat exposed to economic cycles, for the most part, they are non-discretionary spends.

[I]mportantly, the share price that you pay today is low relative to earnings. We think you buy a company like Ansell for around 14 times earnings and those earnings, we think, will grow at low single digit percentages.

If you contrast that with the stock market perhaps if we're lucky, a similar growth rate in earnings, but a good 30% or so more expensive.

The ASX 200 healthcare share also looks like a good opportunity on a technical basis, according to Fairmont Equities managing director and founder Michael Gable. He recently flagged the stock as a buy, saying via The Bull:

The share price has been trending higher since June 2022 and breached resistance at $28 in late October. The technical chart remains bullish … the stock is in a strong uptrend, with no signs of weakness.

The post Is this share the ASX 200's best healthcare buy? appeared first on The Motley Fool Australia.

The Motley Fool readers will be well familiar with the advice that it's a dangerous game trying to pick the bottom.

That's why the best alternative might be to try to hop on ASX shares that have just started rising.

If the underlying business is thriving, the upwards stock price momentum could continue, and it may end up a fruitful investment for those who got in early.

Taking this philosophy, one expert this week earmarked two ASX shares that he would buy right now:

Throwing down the gauntlet

Protective glove maker Ansell Limited (ASX: ANN) has been a painful stock to own for long-term investors, but it has shown signs of life in recent times.

Over the past six months, the share price has spiked up more than 20%.

"The share price has been trending higher since June 2022 and breached resistance at $28 in late October," Fairmont Equities managing director Michael Gable told The Bull.

"The technical chart remains bullish, which is another positive for the stock. The stock is in a strong uptrend, with no signs of weakness."

While Gable is keen on Ansell as a buy, that view is not unanimous among his peers.

According to CMC Markets, four out of eight analysts currently covering the $3.6 billion company rate the stock as a hold. Three do consider it a strong buy, while one says Ansell is a moderate sell.

Gold is back, baby

Last year was remarkable in that both stocks and bonds suffered, even though traditionally, they are seen as counterweights to each other.

To top off the disaster, the ultimate 'safe haven' of gold also struggled for most of the year.

But with a global recession looming, the last couple of months has seen a revival for the precious metal.

This is why Gable rates miner Evolution Mining Ltd (ASX: EVN) as a buy.

"We're bullish about the outlook for gold in volatile and uncertain times across the globe," he said.

"Evolution is one of the biggest gold miners on the ASX."

Similar to Ansell, the Evolution share price is on an upward swing. 

"The share price has risen from $1.81 on October 21, 2022, to trade at $3.33 on January 12, 2023," said Gable.

"We expect the upward trend to continue. In our view, any short-term weakness presents a buying opportunity."

The post 'No signs of weakness': Expert names 2 ASX shares to buy just starting their rise appeared first on The Motley Fool Australia.

If you're finding it difficult to think of investment ideas at the moment, you're not the only one.

With so much turmoil in the world, even professional investors and the businesses themselves are grappling with uncertainty and low conviction.

This might mean it could be worthwhile clearing your mind. 

And what better way to start from a clean slate than start considering ASX shares that you have never even read about, let alone considered buying.

Here's a pair of outside-the-square buy recommendations:

The world is changing, once again

After the Fukushima nuclear disaster in 2011, that type of energy seemed to fall out of favour around the world. Germany, for example, accelerated its plans to shut down its nuclear power plants.

But now, 11 years later, Russia's invasion of Ukraine has triggered a rethink.

Continental Europe, facing a dire energy shortage from rapidly reducing its dependence on Russian gas, is reconsidering the value of nuclear power.

"The political momentum towards uranium as a clean and reliable energy source, particularly in Europe, is gathering pace," Red Leaf Securities chief John Athanasiou told The Bull.

Therefore he recommends buying shares in uranium producer Paladin Energy Ltd (ASX: PDN).

"The uranium company owns a 75% stake in the Langer Heinrich mine in Namibia. The share price is highly correlated to the uranium price."

The Motley Fool's Matthew Farley agreed that Paladin shares are a buy.

"I believe that we're in the very early stages of witnessing a revival of nuclear energy and that the potential of these shares hasn't yet been priced in by the market."

Athanasiou believes Paladin's valuation will rise with uranium demand.

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

Nothing better than pricing power during rampant inflation

Disposable protective glove maker Ansell Limited (ASX: ANN) probably underperformed during the COVID-19 pandemic, considering its huge business in healthcare supplies.

But Athanasiou reckons the stock price's primed for a revival in the face of tougher economic times.

"During inflation, companies with pricing power tend to outperform," he said.

"Ansell, a leading manufacturer of protective industrial and medical gloves, has been able to pass on increasing production costs without any material impact on demand."

The Ansell share price is down almost 20% so far this year.

But because of its pricing power over its products, Athanasiou is optimistic.

"We're expecting the share price to outperform."

Ansell is polarising in the wider professional community. According to CMC Markets, five out of 13 analysts currently rate it as a buy, while seven recommend the stock as a hold.

The post 2 ASX shares to buy that you haven't even thought about: expert appeared first on The Motley Fool Australia.

At a time of rising inflation, there is one key metric that investors should research before buying a new ASX share, says Prasad Patkar, head of qualitative investments at Platypus Asset Management.

In an article published by the Australian Financial Review (AFR) today, Patkar says it's pricing power.

Patkar said:

If you are only allowed to look for one metric to assess the quality of a business, it would be sustainable pricing power. It is an attribute of particular import today when rising input costs are eroding margins for those who don't possess pricing power.

Analysts grill ASX companies on their pricing power

JP Morgan strategist Jason Steed said price increases were a hot topic during reporting season.

There was a marked increase in the number of questions on price increases in conference call transcripts. Analysts wanted to understand the capacity each company had to raise prices to offset rising costs. Steed said: "Through the season, focus on the topic of price increases hit an all-time high."

A company's ability to raise its prices is important for ongoing profitability.

Rising inflation means many companies are paying more for the inputs into their products and services. So, they need to be able to raise customer prices to help offset or overcome those cost increases.

The ability to raise prices also means companies can take advantage of inflation to an extent, with both business-to-business customers and consumers aware and somewhat accepting that 'everything is going up'.

Which ASX shares have pricing power?

Patkar said businesses with pricing power include REA Group Limited (ASX: REA), Pro Medicus Limited (ASX: PME), ARB Corporation Limited (ASX: ARB), and IDP Education Ltd (ASX: IEL).

Patkar elaborated:

It is not a discretionary purchase for the customer. The product or service offered is superior to that of competition and is backed by reputation or brand. The cost to switch between competitors is usually high and not worth the hassle or risk.

Companies like REA, Seek Limited (ASX: SEK), and Carsales.com Ltd (ASX: CAR) have consistently increased their prices almost every year over the past decade.

REA put its prices up nationally by an average of 8%, according to the article.

The CEO of Ansell Limited (ASX: ANN), Neil Salmon, said they had upped prices without much fuss:

We've seen good receptivity to those price increases and that's why I remain confident that we should be able to fully pass through the inflation effects we see in the rest of our business.

The challenge is getting the balance right. Some companies will lose demand if they raise their prices too much. So it depends on how popular their products and services are and how necessary each customer deems them to be.

Wilsons Advisory told its clients that Cleanaway Waste Management Ltd (ASX: CWY), Telstra Corporation Ltd (ASX: TLS), Lottery Corporation Ltd (ASX: TLC), CSL Limited (ASX: CSL), Resmed Inc (ASX: RMD), and James Hardie Industries plc (ASX: JHX) have significant pricing power to help them offset rising costs.

Some companies protect themselves from rising inflation through contract arrangements with built-in CPI-linked price increases. According to the AFR, 68% of the revenue of Transurban Group (ASX: TCL) is protected this way.

Sustainable and temporary pricing power

In assessing a company's pricing power, Patkar says investors need to differentiate between sustainable and temporary pricing power.

Patkar said: "When demand went through the roof post COVID and supply couldn't keep up, everyone seemed to have pricing power. In a shortage, you can take price almost at will."

Businesses with sustainable pricing power "can take price steadily and regularly because the value they
add to customers is so much larger than the price they charge for it".

Right now, some companies are taking advantage of unprecedented demand in their sectors to raise prices. However, this demand might be temporary.

In Australia, the cost of building a residential house has risen substantially due to supply chain issues, extra demand from tens of thousands of HomeBuilder projects, inflation, and a lack of skilled labourers.

According to the quarterly CoreLogic Cordell Construction Cost Index, the cost of building a house has risen by 10% over the 12 months to June 2022 — the highest increase since the GST was introduced in 2000.

Such demand pressure has allowed building materials manufacturer Boral Limited (ASX: BLD) to bring forward its annual price increase to August. This is on top of extra price rises earlier in 2022 for products like cement and concrete.

Boral CEO Zlatko Todorcevski said:

These are some of the largest pricing increases by geography and by product line that we've put in the market over the past five years. And I think that's appropriate. I think it's reflective of the inflationary environment we're facing.

Big price rises or little price rises?

Some companies with pricing power raise prices in large chunks, while others prefer a steadier approach.

According to the AFR, examples of companies undertaking double-digit price increases include Brambles Limited (ASX: BXB). The cost of hiring CHEP pallets in the United States in 2H FY22 rose by 17%.

ARB says it prefers to do small but frequent price increases given rising inflation is expected to continue into 2023.

ARB says monthly demand for its products has been four times pre-COVID levels. This puts them in a good position to raise prices.

The post Looking to buy ASX shares? Expert reveals 'one metric to assess the quality of a business' appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) tumbled for a second consecutive session today to close under 6,900 points for the first time in six weeks. The index closed Thursday's trade 2.02% lower at 6,845.60 points.

It came as a number of shares including Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), and Blackmores Ltd (ASX: BKL) traded ex-dividend.

But it wasn't all bad. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) closed in the green, having gained 1%.  

Today's worst-performing sector was the S&P/ASX 200 Materials Index (ASX: XMJ), tumbling 4.8%. It was weighed down by the market's largest participant, BHP Group Ltd (ASX: BHP), which plummeted 7.6% as it traded ex-dividend.

It also followed a bad night for base metals, with all majors except nickel dropping. Meanwhile, gold futures slipped 0.6% to US$1,726.20 an ounce and iron ore futures lifted 0.3% to US$104.76 a tonne.

All in all, only one of the ASX 200's 11 sectors closed higher on Thursday. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

The A2 Milk Company Ltd (ASX: A2M) share price recorded the biggest gain of the ASX 200 today, lifting 2.7%. Find out more about what the company has been up to lately here.

Today's biggest gains were made by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

After closing 8.6% higher yesterday, the Ansell share price is currently down 0.5% in early afternoon trading.

Yesterday, ASX investors were clearly pleased with the company's full-year financial results.

Today, media reports have emerged that the health and safety products company has been accused in a United States court of "knowingly profiting" from slave labour.

First, a quick recap of the FY22 results.

Ansell share price leapt higher despite profit fall

Ansell's full-year revenue of US$1.95 billion was down 3.7% from the prior year. Operating profits took an even bigger slide, down 35.7% to US$158.7 million.

The company said the declines were primarily driven by less demand from COVID-19 related safety products.

Earnings per share (EPS) for FY22 of US$1.25 per share were within guidance, with Ansell forecasting EPS in the range of US$1.15 to US$1.35 for FY23.

The Ansell share price gained, as the results exceeded market expectations, with analysts pointing to potential revenue growth in FY23.

Which brings us to…

Allegations of slave labour at Malaysian factory

The Ansell share price looks to be coming under pressure today following media reports workers at one of its third-party suppliers endured slave labour conditions in a factory owned by Malaysian-based Brightway.

As ABC News reported, the case was just lodged in a United States court by 13 people who worked in the factory.

The workers allege that Ansell and US surgical and medical instruments manufacturer Kimberly-Clark "knowingly profited" off their exploitation, as the companies had contracted the factory to make latex gloves.

Allegations include excessive recruitment fees, passport confiscation, abuse, excessive work, and abysmal living and working conditions.

ABC reported that Ansell had not responded to questions about whether it was still using Brightway as a supplier. Brightway products have already been banned in the US over prior labour violations.

Ansell stated it did engage in business with Brightway.

According to a company spokesperson:

Brightway is an independent third-party supplier who has manufactured and provided finished goods to Ansell and other purchasers.

Brightway products have never represented more than a very small percentage of total Ansell purchases from third parties, and it has been one of many direct suppliers to Ansell.

Ansell share price snapshot

Despite yesterday's bounce, the Ansell share price is down 17% in 2022. That compares to a year-to-date loss of around 8% posted by the S&P/ASX 200 Index (ASX: XJO).

The post Why is the Ansell share price under pressure on Wednesday? appeared first on The Motley Fool Australia.

Tuesday was another rough session for many S&P/ASX 200 Index (ASX: XJO) shares as the index traded in the red for a second consecutive day. The ASX 200 closed 1.21% lower at 6,961.8 points today.

That was despite a strong performance from S&P/ASX 200 Energy Index (ASX: XEJ) shares. The sector recorded a 1.3% gain on Tuesday after oil prices retreated slightly and ahead of earnings from Worley Ltd (ASX: WOR), set to be released tomorrow, and Whitehaven Coal Ltd (ASX: WHC), dropping on Thursday.

The Brent crude oil price fell 0.2% to US$96.48 a barrel overnight while the US Nymex crude oil price slipped 0.6% to US$90.23 a barrel.

On the other end of the market, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) dumped 3.8%, weighed down by shares in drinks and hospitality company Endeavour Group Ltd (ASX: EDV). The company's stock plummeted 12.3% on the back of its full-year earnings.

At the end of Tuesday's session, two of the ASX 200's 11 sectors were trading in the green.

But which share was crowned today's best performer? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's best-performing ASX 200 share was Altium Limited (ASX: ALU). Stock in the software tech company gained around 20% following the release of monster financial year 2022 earnings. Find out more about the company, including how brokers responded to its earnings, here.

Today's biggest gains were made by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:

Altium Limited (ASX: ALU)

The Altium share price has rocketed 20% higher to $35.99. This follows the release of the electronic design software company's full year results which smashed expectations. Altium was guiding to revenue of US$213 million to US$217 million with an EBITDA margin at the lower end of 34% to 36%. However, it delivered revenue of US$220.8 million and an EBITDA margin of 36.7%. The team at Bell Potter were particularly impressed.

Ansell Limited (ASX: ANN)

The Ansell share price is up over 8% to $27.30. Investors have been buying this health and safety products company's shares following the release of its full year results. Ansell reported a 3.7% decline in sales revenue to US$1.95 billion and a 32.1% drop in EBIT to US$228.1 million. While not great on paper, this was better than the market was expecting from Ansell.

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price is up 6% to $12.12. This morning this engineering company released its full year results and revealed 1.2% decline in revenue to $1.93 billion but an 11% lift in net profit after tax to $52.2 million. This result was driven by record maintenance and industrial services revenue, which grew 19.4% to $1.17 billion.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 3% to $3.27. This follows the release of a full year result which revealed stunning profit growth in FY 2022. Thanks to sky high lithium prices and strong production, the company reported EBITDA of $814.5 million for the 12 months. This was up from just $21.4 million a year earlier.

The post Why Altium, Ansell, Monadelphous, and Pilbara Minerals shares are charging higher appeared first on The Motley Fool Australia.

The Ansell Limited (ASX: ANN) share price is taking off following the release of the company's full-year earnings.

The S&P/ASX 200 Index (ASX: XJO) stock has continued on an upwards trajectory after opening 1.5% higher at $25.52.

At the time of writing, the Ansell share price is $27.57, 9.67% higher than its previous close.

Let's take a closer look at today's news from the personal protection and safety solutions provider.

Ansell share price rockets 10% on earnings

As The Motley Fool Australia reported earlier, Ansell posted US$1.95 billion of revenue and US$158.7 million of operating profit for financial year 2022.

Those figures mark respective year-on-year declines of 3.7% and 35.7%, mainly due to waning demand born from COVID-19.

Its earnings per share (EPS), meanwhile, came in within guidance at US$1.252 per share. That's bolstered to US$1.386 when adjusted for costs arising from the company's exit of Russia. Its decision to abandon operations in the nation brought a 13.4 US cent impact to its EPS.

Such a result has seemingly impressed the market. It's bid the Ansell share price to a multi-week high on the back of the company's announcement. The results also appear to have pricked the ears of experts.

Macquarie's David Bailey was quoted by The Australian as saying the company's financial year 2022 earnings embody "solid underlying trends".

The publication said the company's statutory result was in line with expectations, while its adjusted earnings were ahead. The expert continued, courtesy of The Oz:

For [financial year 2023], we see commentary ex-Russia and [foreign exchange] as highlighting improved trends and a basis for growth into [financial year 2024].

Ansell posted guidance of between US$1.15 and US$1.35 of EPS for financial year 2023.

Today's gains included, the Ansell share price is 16% lower than it was at the start of 2022. It has also fallen 31% since this time last year.

The post Ansell share price surges 10% as full-year revenue comes in at US$1.9b appeared first on The Motley Fool Australia.

The Ansell Limited (ASX: ANN) share price is in focus after the company released its full-year earnings this morning.

Stock in the personal protection and safety solutions provider last traded at $25.14.

Ansell share price on watch as profit drops

Here are the key takeaways from Ansell's financial year 2022 earnings:

• Sales revenue came to US$1.95 billion ­– 3.7% lower than that of the prior comparable period (pcp)
• Earnings before interest and tax (EBIT) fell 32.1% to US$228.1 million
• Statutory earnings per share (EPS) came to 125.2 US cents – 32.1% lower and 0.2 US cents above the low end of its guidance – while adjusted EPS came to 138.6 US cents, a 27.9% fall
• Operating profit fell 35.7% to US$158.7 million
• Operating cash flow lifted 131.7% to US$114 million
• Declared 31.2 US cent final dividend, bringing its full-year payout to 55.45 US cents  

The company's falling sales were mainly a result of lower demand for COVID-19-related personal protective equipment (PPE).

Its healthcare global business unit saw US$1.19 billion of revenue, while its industrial global business unit brought in US$763 million.

Its EBIT's slump was most pronounced in the first half and came as the company sold high-cost inventory at lower prices amid adverse plant performance and higher freight costs.

Finally, it recognised US$17 million of one-off expenses from its decision to stop its Russian commercial and manufacturing operations.

What else happened in FY22?

There was plenty happening in Ansell's corner in financial year 2022.

It welcomed a new CEO and managing director in September. Neil Salmon stepped up to the top job following Magnus Nicolin's retirement.

Of course, investors will likely remember the 14% crash experienced by the Ansell share price when the company slashed its guidance in January.

The stock also slumped 1% on the release of the company's half-year earnings.

What did management say?

Salmon commented on Ansell's full-year results, saying:

I am pleased to report that Ansell delivered second half results in line with revised expectations communicated at the half year … Overall, financial year 2022 was a challenging year for the business.

Although I am not satisfied with our overall financial performance in financial year 2022, we nevertheless achieved significant accomplishments against many of our strategic priorities during the year thanks to our hard-working and dedicated Ansell employees and I believe these will be important contributors to our future success.

What's next?

The company expects to post EPS of between 115 US cents and 135 US cents in financial year 2023.

It notes the external environment remains supportive for continued demand for its products. That's expected to drive volume growth in its businesses. Meanwhile, its sales are expected to decline as prices normalise for exam and single-use items.

The company plans to offset expected headwinds from higher raw material, energy, and salary costs with price increases and cost savings.

Ansell share price snapshot

The Ansell share price has had a rough trot as of late.

It has slipped 23% since the start of 2022. It has also fallen 38% since this time last year.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped 7% year to date and 6% over the last 12 months.

The post Ansell share price in focus as FY22 profit tumbles 36% appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

Ansell Limited (ASX: ANN)

The Ansell share price is up 3% to $24.74. This morning the health and safety products company announced its plans to be net zero by 2040. In addition, the company's shares were upgraded by Macquarie to outperform with a $27.85 price target. While the broker acknowledges that its earnings are under pressure due to softening COVID-related demand, it appears to believe Ansell's shares have been oversold this year.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 5% to $1.07. This morning this embattled payments company revealed that it received takeover interest last month. And while these talks have now ended without a deal being reached, investors appear to believe that this may not be the end of the matter.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is up over 5% to $11.73. Investors have responded positively to news that Suncorp is selling its banking operations to Australia and New Zealand Banking Group Ltd (ASX: ANZ) for $4.9 billion. Suncorp advised that it expects to return the majority of the proceeds from the sale to shareholders.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 5% to $5.89. The catalyst for this was the coal miner releasing its fourth quarter update today. That update reveals that Whitehaven Coal achieved a record average coal price of A$514 per tonne for the three months. As a result of these strong prices, the company expects to report FY 2022 EBITDA of approximately $3 billion. This is up materially from $0.2 billion in FY 2021.

The post Why Ansell, EML, Suncorp, and Whitehaven Coal shares are charging higher appeared first on The Motley Fool Australia.

It's not an easy job to run an ASX-listed company.

You have the financial fate of thousands of investors, creditors and staff in your hands. That's a massive load of responsibility few of us would ever feel.

But does that justify their high take-home pay?

It's the perennial "pub test" that the corporate world grapples with.

Many Australians feel that no one's skill and expertise is worth tens of millions of dollars each year.

But we accept that elite athletes earn huge salaries because they possess a rare skill. So why is the Average Joe so contemptuous about people who use their brains receiving just as much?

Is there a bias towards physical prowess over the intellectual?

While we mull over these issues, the Australian Council of Superannuation Investors this week released its latest annual list of the 10 highest-paid chief executives in the S&P/ASX 100 (ASX: XTO).

The rankings are based on "realised pay" in the 2021 financial year.

Bonuses out of control?

Afterpay co-founders Anthony Eisen and Nick Molnar set a joint record, taking home more than $100 million each. This massive payday happened after they exercised their $1 options when the actual share price was almost $90 last year.

"Even without their windfall, a new record high would have been set by CSL's Paul Perrault (who also set the last record in FY20) with realised income of $58.9 million."

The take-home pay for CEOs has ballooned significantly after an initial COVID-19 pandemic dip, according to ACSI.

The organisation attributed this to a return of large bonuses. The proportion of bonuses out of total pay increased from 31% to 76.7%, setting a new record.

"After their lowest year on record, big bonuses have… hit new heights," said ACSI executive manager Ed John.

"That's why investors, and ACSI, will be scrutinising closely the results-reporting season to see if this concerning trend of bonus 'catch-up' continues."

John insisted that bonuses should not be awarded for business-as-usual performance but be a genuine reward.

"Payments to senior executives have to be aligned with value created for shareholders and reflect true outperformance," he said.

"This year's outcomes will be judged against a backdrop of difficult financial markets and an uncertain economic outlook."

The post $264 million! The 10 highest-paid CEOs on the ASX appeared first on The Motley Fool Australia.

Tax-loss selling is a phenomenon that's seen each June, which accelerates in the second half of the month.

The idea is that investors sell their worst-performing ASX shares before the end of the financial year arrives. They're willing to cop the capital loss to cancel out their tax liability from their wins.

This means that sometimes stocks that have already fared poorly during the financial year can spiral down even further in June, as demand plummets and supply soars.

And this could present some juicy bargains, according to a recent Market Matters report.

"[Tax loss-selling] can often send already depressed stocks down into oversold/deep value areas, which can be attractive for the well-informed investor," read the document.

"The key is determining the difference between value and a company simply in trouble."

As such, the report presented three examples of "quality" ASX shares that could see their valuations plummet but may present excellent opportunities to buy:

'Things are as bad as they can get'

ARB Corporation Limited (ASX: ARB) is a 4-wheel drive accessories provider, which has seen its share price plunge 46% since the start of the calendar year.

According to the Market Matters report, the company has been struck down by "a trifecta" of headwinds in the new car market — shortages of staff, supply chain constraints and slowing sales.

"When we combine this with margin contraction due to rising commodity [prices], the picture has looked bleak for ARB, which has clearly been reflected by its share prices fall."

But it's a retailer that Market Matters continues to like.

"It's starting to feel like things are as bad as they can get for ARB," read the report.

"It's now trading on 19.6x FY22 earnings compared to a 5-year average of 27.5x… This is one retailer we like into excessive weakness."

At the time of writing the report ARB shares were around $31, with the Market Matters team declaring it would pounce when it fell to $30.

The ARB share price ended Tuesday afternoon at $28.39.

Half the price it was a year ago

Medical and industrial glove maker Ansell Limited (ASX: ANN) has seen its valuation plummet 46% over this financial year.

The market has been disappointed with the company's post-COVID performance.

"Who would have thought the stock would be trading well under its 2020 highs in today's new health & safety world?" read the Market Matters report.

"January's major downgrade courtesy of rising cost and falling margins hasn't been forgotten — and for MM to be interested another leg lower is required."

The document advised that Ansell shares are already "fairly cheap" trading on 15.5 times price-to-earnings valuation but would prefer a tax-loss selling dip to under $23 before picking it up.

The stock finished Tuesday at $23.06.

'A quality, monopolistic business'

Real estate classifieds site REA Group Limited (ASX: REA) has made many investors wealthy over the past couple of decades.

But the stock price has suffered in recent months.

"REA has corrected 42% from its mid-2021 high and is currently down 35% for the financial year after finding itself in two unpopular naughty corners — i.e. property and growth high valuation names."

The Market Matters team reminded investors this is "a quality, almost monopolistic-style business", with "useful pricing power".

"But it currently is in the wrong place at the wrong time," read the report.

"The question is when has real value been restored – it's still not cheap per se, trading on an estimated valuation of 35.2x for 2022."

The Market Matters crew admitted they are still reluctant about increasing their exposure to the technology sector.

"But a little lower and it will become compelling… MM likes REA into weakness under $100."

REA closed on Tuesday at $103.44.

The post 3 ASX shares to pounce on after tax-loss selling: report appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Ansell Limited (ASX: ANN)

The Ansell share price is down over 3% to $26.02. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded this health and safety products company's shares to an underperform rating with a $24.00 price target. The broker believes input costs could weigh on Ansell's margins.

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price is down 3% to $66.90. Investors may be nervous ahead of the pizza chain operator's investor update on Monday. This update is focused on its Asian operations but could include a trading update for the whole company.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is down a massive 63% to 35.2 cents. This has been driven by the gold and lithium explorer's shares going ex-dividend this morning for its in-specie dividend. This dividend relates to the demerger of the company's lithium operations. Eligible shareholders will be receiving 1 Leo Lithium share for every 1.4 Firefinch shares they own.

Healius Ltd (ASX: HLS)

The Healius share price is down 8.5% to $3.81. Investors have been selling this healthcare company's shares following the release of a trading update. That update revealed that trading conditions have been tough in the second half. As a result, during the first five months of the half, Healius has generated just under $100 million of EBIT. This compares to first half EBIT of $376 million.

The post Why Ansell, Domino's, Firefinch, and Healius shares are dropping appeared first on The Motley Fool Australia.