The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street's lead and taken a tumble on Wednesday. In afternoon trade, the benchmark index is down 0.3% to 7,314.1 points.

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

Origin Energy Ltd (ASX: ORG)

The Origin share price is up 13% to $7.91. This follows the release of an update on the takeover approach by a consortium comprising Brookfield Asset Management and MidOcean. Although the consortium has dropped its offer by 10 cents to $8.90 per share, this has come as a big relief to investors. There had been concerns that the consortium was going to walk away from talks.

Santos Ltd (ASX: STO)

The Santos share price is up 3.5% to $7.05. This follows the release of the energy producer's full-year results. Santos reported a 65% increase in revenue to US$7.8 billion and a 160% jump in underlying profit to US$2.5 billion. The latter was actually a touch short of expectations, but that hasn't stopped investors snapping up shares today.

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 9% to 65 cents. Investors have been buying this essential network service provider's shares after the release of its half-year results. Service Stream reported a 75.5% increase in revenue to $993.6 million and a 40.1% lift in underlying EBITDA to $55 million. This was driven by strong growth across all of its segments.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price has rebounded from a poor start and is up 4% to $58.17. This morning, this logistics solutions company reported a 35% jump in half-year revenue to $378.2 million and a 40% jump in underlying net profit after tax to $108.5 million. And while it has trimmed its full-year earnings guidance, it is still expected to be 19% to 29%.

The post Why Origin, Santos, Service Stream, and WiseTech shares are racing higher appeared first on The Motley Fool Australia.

S&P/ASX All Ordinaries Index (ASX: XAO) stocks may be down a collective 0.37% but these three ASX shares are heading higher after their 1H FY23 results were released today.

Let's take a look at what these companies reported.

Service Stream Ltd (ASX: SSM)

This ASX All Ordinaries stock is up 5.04% to 62.5 cents at the time of writing.

In its half-year results, Service Stream announced a strong financial performance underpinned by the successful integration of Lendlease Services (LLS). Highlights include a 75.5% boost to revenue at $993.6 million. Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) from operations came in at $55 million, up 40.1%. Adjusted net profit after tax (NPAT) is $17.1 million.

The telecommunications company said it has a solid balance sheet with a closing net debt of $91.2 million. Service Stream declared a fully franked interim dividend of 0.5 cents per share payable on 6 April.

McMillan Shakespeare Ltd (ASX: MMS)

This ASX All Ordinaries stock is up 5.24% to $13.65 at the time of writing.

The employee benefits provider also released its half-year results today. Highlights include a 5.7% increase to normalised EBITDA at $67.2 million and a 0.3% boost to normalised underlying net profit after tax and acquisition amortisation (UNPATA) at $40.4 million. If the United Kingdom business is excluded (given the company is considering exiting this market), UNPATA increased by 8.5%.

The company declared an interim fully franked dividend of 58 cents per share payable on 24 March. This is a 70% increase on last year's interim dividend.

Propel Funeral Partners Ltd (ASX: PFP)

This ASX All Ordinaries stock is up 0.91% to $4.44 at the time of writing.

The funeral services company says, "materially higher funeral volumes and stronger average revenue per funeral contributed to … continued growth in key financial and operating metrics in 1H FY23". Revenue is up 23.3% to $83.8 million, operating EBITDA is up 25.6% to $23.1 million, and operating NPAT is up 34.9% to $11 million. Propel says it has strong cash flow conversion and funding, with $44 million committed to five acquisitions over FY23 to date.

Propel Funeral Partners declared a fully franked interim dividend of 7.1 cents per share.

The post 3 ASX All Ordinaries stocks climbing on strong earnings updates appeared first on The Motley Fool Australia.

It's been an eventful week for ASX dividend investors, and not just because of the wipeout we saw on Wednesday.

Numerous companies in the S&P/ASX 300 Index (ASX: XKO) have seen their shares turn ex-dividend this week. And many others have started delivering dividend payments to shareholders' accounts.

On Monday, two more ASX 300 shares will be taking away entitlements to their upcoming dividend payments. 

In other words, investors will need to hold shares in these companies by the time the market closes today in order to be eligible to receive their latest dividends.

Let's check out these two ASX 300 shares going ex-dividend on Monday.

Qube Holdings Ltd (ASX: QUB)

Today will be the final day to get your hands on the latest dividend from this ASX 300 logistics company.

Qube recently handed in its FY22 results, declaring a final ordinary dividend of 3.3 cents along with a special dividend of 0.7 cents. These dividends are fully franked and will be paid on 18 October.

Qube's special dividend was fuelled by the $1.7 billion sale of its interests in the Moorebank Logistics Park, along with the company's positive earnings outlook.

In FY22, Qube achieved solid revenue and earnings growth through both organic and acquisitive avenues. Underlying revenue leapt 27% to $2.6 billion while underlying net profit after tax (NPAT) jumped 30% to $186 million.

These results were helped by higher volumes across most of the company's core markets, including containers, grain, steel, most mining bulk commodities, and general cargo.

Across the financial year, Qube declared total dividends of 7 cents, fully franked, up 17% from 6 cents in FY21.

The company also returned a further $400 million to shareholders through an off-market share buyback. 

Based on current prices, Qube shares are spinning up a trailing dividend yield of 2.5%. With the benefit of franking credits, this yield bumps up to 3.5%.

Service Stream Limited (ASX: SSM)

Service Stream is the other ASX 300 share going ex-dividend on Monday. 

The network services business released its FY22 results last month, resuming dividend payments by declaring a fully franked final dividend of 1 cent. It will be paid on 5 October.

In what Service Stream described as a "transformational year", the company delivered total revenue of $1.6 billion, up 95%, amidst a challenging operating environment.

While undoubtedly eye-catching at first glance, this near-doubling in revenue was driven by the acquisition of Lendlease Services. 

Last year, Lendlease Group (ASX: LLC) sold its services business to Service Stream for $310 million. The acquisition was completed on 1 November 2021, so Service Stream's FY22 results include 8 months' contribution from the deal.

Excluding Lendlease Services, Service Stream grew its legacy revenue by 3% across the year to $827 million.

Across the group, earnings before interest, tax, depreciation, and amortisation (EBITDA) from operations lifted 14% to $91 million. However, adjusted NPAT went backwards, falling 19% to $31 million.

Nonetheless, the ASX 300 share said its strong post-acquisition operating and cash flow results supported a resumption in dividends.

Prior to this, the last time Service Stream paid a dividend was in the first half of FY21. 

Service Stream shares are currently sitting on a trailing dividend yield of 1.3%, which grosses up to 1.9% including franking credits.

The post These ASX 300 shares are trading ex-dividend on Monday appeared first on The Motley Fool Australia.

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

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down 6% to $19.72. Investors have been selling this debt collector's shares after it announced customer remediation plans. Credit Corp realised that it has charged people interest that it shouldn't have done. The total refund is expected to be $4 million at the most.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down 12% to $7.29. This follows the release of the drinks company's full year results for FY 2022. Endeavour reported flat revenue of $11.6 billion and an 11.2% increase in net profit after tax to $495 million. This was in line with consensus estimates. The decline appears to have been triggered by a weakening trading trend into early FY 2023 for its retail segment.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 8% to $3.49. This follows the release of another disappointing result from the ecommerce company. Kogan reported an 8% decline in revenue to $718.5 million and $2.9 million net loss. The company also revealed that its active customers had slipped back under 4 million.

Service Stream Limited (ASX: SSM)

The Service Stream share price is down over 16% to 85.2 cents. This morning the essential services company reported a 94.5% increase in revenue to $1,563.8 million but a 19.4% decline in adjusted net profit after tax to $31.4 million. Service Stream's top line was boosted by the acquisition of Lendlease Services late last year.

The post Why Credit Corp, Endeavour, Kogan, and Service Stream shares are dropping appeared first on The Motley Fool Australia.

The Service Stream Limited (ASX: SSM) share price is tanking after the company released its full-year FY22 preliminary results today.

Service Stream shares opened the session on Tuesday at 94 cents each. They then dipped as low as 82 cents in early trading — a 19.6% decline on the closing price of $1.02 yesterday.

The Service Stream share price has recovered a little to 85.2 cents at the time of writing.

Service Stream share price dives on 20% profit decline

The key metrics are as follows:

• Total group revenue of $1,563.8 million, up 94.5% on the prior corresponding period (pcp)
• Revenue from ordinary activities of $1,516.5 million, up 88.6% pcp
• Loss from ordinary activities of (36,324,000), down 224.1% pcp
• Adjusted net profit after tax (NPAT) of $31.4 million, down 19.4% pcp
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) from operations of $91.1 million, up 13.7% pcp
• Generated $98.7 million of operating cash flow before interest and tax (OCFBIT), up 24% pcp
• EBITDA to OCFBIT cash conversion of 108%
• Net debt of $81.3 million and closing net leverage of 1.52 times as at 30 June
• Final dividend of 1 cent per share declared (fully franked).

The essential services provider described FY22 as "challenging" but also "transformational" due to its acquisition and "successful" integration of Lendlease Services.

What else happened in FY22?

Service Stream announced the Lendlease Services acquisition on 21 July 2021 along with a $185 million capital raising to fund the purchase. Service Stream completed the deal on 1 November 2021.

The company said:

The subsequent integration program, including the realisation of $17m in targeted synergies, continues to be delivered over the 18-24 month period with the business making solid progress during the year. Profit contribution across the acquired business was in line with diligence expectations…

The company said its "balance sheet remains in a strong position, with significant headroom to support future growth".

Service Stream said "strong post acquisition cashflows" meant the company could resume paying dividends. The company ceased paying dividends in August 2021 to help fund the Lendlease acquisition. It did not pay a final dividend for FY21 nor an interim dividend for FY22.

The ex-dividend date is 19 September and shareholders will receive their payments on 5 October.

What did management say?

Service Stream Chair Brett Gallagher said:

The Board have been delighted by the way in which Management has navigated the business through the headwinds of the FY22 financial year and managed the acquisition of Lendlease Services. It is pleasing that the fundamentals of our business remain robust and performance over this transformational year enables the resumption of dividends.

The Board remains confident that our specialist capabilities and service offerings uniquely position the business across a stable and dependable client base of utility, telecommunications and road asset owners and operators.

What's next?

Today's results are preliminary and unaudited. The company explained: "Due to unforeseen and significant COVID-19-related disruptions to a significant number of personnel, certain audit processes and procedures are still to be finalised before the Company releases its audited FY22 full-year accounts to the ASX. Service Stream expects audited accounts to be released on Friday 26 August 2022."

Looking ahead to FY23, managing director Leigh Mackender said:

The Group is confident of delivering further revenue and profit growth during FY23 on the back of a full-year's contribution from Lendlease Services, subject to successfully navigating any extreme adverse weather events and effectively managing continuing labour / resource challenges, supply chain impacts or other major market disruptions.

In support of our strategy for continued growth and diversification, the priorities for the coming year include finalising the Lendlease Services integration, realising remaining business synergies and securing organic growth opportunities across each of the Group's core markets.

Service Stream share price snapshot

The Service Stream share price is up more than 6% year to date and down 4% over the past 12 months.

The post Service Stream share price crashes 19% on 'challenging' FY22 appeared first on The Motley Fool Australia.

The Service Stream Ltd (ASX: SSM) share price sunk into the red during Thursday afternoon trade as the telecommunications company reported its FY21 earnings.

Service Stream shares closed the day at 86 cents a piece, a 2.82% drop on the day.

Let's investigate a little further.

Service Stream share price sinks despite strong profit and earnings growth

• Revenue of $804.2 million, a 13.4% increase from the year prior
• EBITDA growth of 25.9% year on year to $80.1 million
• Adjusted net profit after tax (NPAT) of $38.9 million, which signifies a 33.8% growth from a year ago
• Net cash recorded a loss of $3.9 million compared to FY20
• FY21 interim dividend of 2.5 cents per share, no final dividend announced.

What happened in FY21 for Service Stream?

In what should potentially be a positive for the Service Stream share price, the company grew revenue by about 13% year on year to $804.2 million.

It also recognised a 26% growth in EBITDA to $80 million, which came through to an NPAT of around $39 million. This represents a 34% year on year growth pattern.

In terms of its divisions, Service Stream's utilities segment grew revenue by $27.5 million to just over $411.5 million. This was split between Comdain infrastructure revenue of $320 million and metering and technical services revenue of $92 million. COVID-19 had a material impact on its utilities division, as per the company's report.

However, in its telecommunications division, revenue contracted by $152 million, a 28% year on year decrease. The down-step resulted from a decrease in both activation and wireless revenue, down 30% and 14% respectively from FY20.

Service Stream also generated about $74 million in "operating cash flow before interest and tax (OCFBIT)". This represents an "outstanding EBITDA to OCFBIT conversion ratio of 99%", according to the company.

The telco company left FY21 with $50.6 million in cash and $35 million of debt. Finally, the board declared that there would be no final dividend for FY21. This point could weigh on the Service Stream share price.

The decision is due to the Lendlease Services acquisition from 21 July to "ensure the group maintains a strong balance sheet".

What did management say?

Service Stream chair Brett Gallagher said:

Although earnings related to the Group's telecommunication division reduced during the year, the fundamentals of Service Stream remained strong, reinforcing the resilience of our business model and the nature of the Group's operations supporting essential infrastructure across the country.

Regarding Lendlease, Gallagher concluded:

The Board is also pleased that despite a challenging year, Management has maintained its focus on executing the Group's Strategy, and is delighted with the acquisition of Lendlease Services which will create a broader portfolio of operations across the wider infrastructure services market.

What's next for Service Stream?

Service Stream expects "post-acquisition pro forma FY22 EBITDA" to be in the range of $120 million -$125 million.

The company's "standalone earnings" are expected to "rebase below FY21". This would be in line with the "telecommunication contracts secured in FY21".

Moreover, it expects lockdowns "should diminish as vaccination rates increase". However, it remains cautious on making forecasts with the current state of the economy affected by COVID-19.

The Service Stream share price has had a difficult year to date, posting a loss of 51% since January 1. This has lagged the S&P/ASX 200 index (ASX: XJO)'s climb of 14% this year to date.

The post Service Stream (ASX:SSM) share price slides despite 34% profit growth in FY21 appeared first on The Motley Fool Australia.

The Service Stream Limited (ASX: SSM) share price is gaining today following the opening of the company's retail entitlement offer.

Service Stream released its retail offer booklet before the ASX opened this morning.

As part of the retail offer, eligible Service Stream shareholders will be able to purchase 1 share for every 3 shares they already own, paying 90 cents per share for the extra holding.

Right now, the Service Stream share price is 94 cents – 1.08% higher than its previous close.

Service Stream is a provider of telecommunication and network services.

Let's take a closer look at today's news from Service Stream.

Retail entitlement offer

The Service Stream share price is gaining today following the company announcing its retail entitlement offer was open as of 10am this morning. 

The retail entitlement offer is the final piece of the company's capital raising puzzle. It follows a $130 million institutional entitlement offer and placement that successfully closed on 22 July.

The retail entitlement offer is expected to raise another $55 million. It's set to close at 7pm on 9 August.

To be eligible for the retail entitlement offer, Service Stream shareholders must have been a registered shareholder as of 23 July and live in Australia or New Zealand.

The company is raising the cash to purchase Lendlease Group's (ASX: LLC)  non-core services business for $310 million.

The Lendlease Services business provides services across the telecommunication, utilities, and transport sectors.

Service Stream's acquisition of Lendlease Services was announced on 21 July.

Service Stream share price snapshot

The Service Stream share price is badly in need of today's gains.

Right now, it is 47% lower than it was at the start of 2021. It has also fallen 48% since this time last year.

The company has a market capitalisation of around $381 million, with approximately 416 million shares outstanding.

The post Here's why the Service Stream (ASX:SSM) share price is gaining today 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 sinking:

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 3% to $11.22. There may be a couple of catalysts for the weakness in this ecommerce company's shares today. One is the ACCC revealing that it plans to look into online marketplace practices. The other is a broker note out of Credit Suisse. Although the broker has retained its outperform rating, it has slashed its price target by 15% to $15.21. This was in response to Kogan's business update yesterday.

Service Stream Limited (ASX: SSM)

The Service Stream share price has fallen 1.5% to 94.5 cents. This morning the essential network services company revealed that it successfully completed its placement and institutional entitlement offer to raise $130 million at 90 cents per new share. It will now seek to raise a further $55 million from retail shareholders. These funds will be used to acquire the Lendlease Group (ASX: LLC) Services business.

Whispir Ltd (ASX: WSP)

The Whispir share price is down 1.5% to $2.78. This is despite the company being the subject of a positive broker note this morning. According to a note out of Ord Minnett, its analysts have responded to Whispir's quarterly update by retaining their buy rating and lifting their price target to $4.30. Though, with its shares rising strongly yesterday, some investors may be taking profit today.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 7.5% to $7.00. Investors have been selling the buy now pay later provider's shares following the release of its fourth quarter update. Although Zip reported a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million, this was still short of the market's lofty expectations.

The post Why Kogan, Service Stream, Whispir, & Zip shares are sinking appeared first on The Motley Fool Australia.

The Service Stream Limited (ASX: SSM) share price has come out of a trading halt today following a successful placement and institutional entitlement offer.

During afternoon trade, the essential network services provider's shares are down 4.17% to 92 cents.

What's driving the Service Stream share price lower?

A catalyst for today's fall in Service Stream shares is that investors may be concerned about an impending share dilution.

According to its release, Service Stream advised that it has successfully received commitments to raise roughly $130 million (before costs). The placement gathered support from institutional and sophisticated investors from Australia and overseas.

Approximately 144 million new ordinary Service Stream shares will be issued at a price of 90 cents apiece to successful applicants. Those funds are expected to settle on Friday 30 July 2021.

In addition, the company is conducting a retail entitlement offer to raise a further $55 million. This component will be opened up to everyday investors next week on Tuesday 27 July 2021.

Under the retail offer, eligible shareholders can apply for 1 Service Stream share for every 3 Service Stream shares owned. A top-up facility will also be available for investors who take up their full entitlement, up to a maximum of 100% in excess.

The proceeds from the equity raising will be used to partly fund the acquisition of Lendlease Services. The enterprise value has been agreed for a price of $310 million, less adjustments for debt and debt-like items.

While this represents a shortfall, Service Stream will fund the remaining amount through its expanded debt facilities and available cash.

Service Stream share price summary

It's been a tough ride for Service Stream shareholders, with the company's shares falling by almost 50% year to date. Looking at a longer time frame, the Service Steam share price is down also 50% since this time last year.

Based on today's price, Service Stream presides a market capitalisation of around $378.5 million, with roughly 410 million shares outstanding.

The post Why the Service Stream (ASX:SSM) share price is heading south today appeared first on The Motley Fool Australia.

The Service Stream Limited (ASX: SSM) share price isn't going anywhere today. This comes after the essential network services provider entered into a trading halt early this morning on the ASX.

Looking at yesterday's market close, Service Stream shares last traded at 96 cents.

Why did Service Stream put a halt on its shares?

In today's statement, Service Stream advised it is launching a capital raise to acquire 100% of Lendlease Services Pty Ltd.

A subsidiary of parent company, Lendlease Group (ASX: LLC), the Services business is a leading provider of essential network services across telecommunications, utilities and transportation sectors. This includes wireless and fixed-line network infrastructure, maintenance of electricity, water, and industrial assets, as well as roads and tunnels.

To fund the $310 million acquisition, Service Stream is seeking to undertake a capital raise of $185 million. This will consist of a $123.1 million fully underwritten 1-for-3 entitlement offer and a $61.9 million fully underwritten placement. All shares under the offer will be issued at 90 cents apiece, with approximately 205.6 million new ordinary shares being added.

The remaining $123 million shortfall for the transaction will be sourced from the company's expanded debt facilities and available cash.

Service Stream expects the takeover to be highly accretive to Service Stream shareholders. Earnings per share (EPS), excluding one-off costs are forecasted to increase by around 30% on an FY22 pro forma basis.

The combined group FY22PF (pro forma) revenue is forecasted to reach roughly $1.7 billion. Furthermore, earnings before interest, tax, depreciation and amortisation (EBITDA) for FY22PF is estimated to be $120 million to $125 million.

The acquisition has received pre-approval from the Australian Competition and Consumer Commission (ACCC) and is not subject to any further regulatory approvals.

Service Stream managing director, Leigh Mackender said:

The acquisition is highly complementary to Service Stream's existing business, expanding our utility operations, delivering an established transportation infrastructure division and enhancing Service Stream's contracted operations within the telecommunications sector.

The Acquisition will further diversify Service Stream's revenues, bolster the scale and depth of our operations and expand the Group's immediate and future addressable markets to support ongoing growth.

About the Service Stream share price

Over the last 12 months, Service Stream shares have failed to take off, resulting in losses of almost 50%. The company's share price is near its 52-week low of 83 cents reached in May.

Service Stream presides a market capitalisation of about $393 million, with 410 million shares currently on its books.

The post Here's why the Service Stream (ASX:SSM) share price is halted appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 today:

Kogan business update

The Kogan.com Ltd (ASX: KGN) share price is bouncing around today following the release of a business update. According to the release, Kogan expects to report full year gross sales of $1,177.7 million and adjusted EBITDA of $61.1 million. This represents year on year growth of 52.5% and 23.1%, respectively. While the latter was a sharp slowdown on its first half growth, it was in line with the guidance given in May. Management also revealed that its inventory issues have been easing.

Altium shares sink

The Altium Limited (ASX: ALU) share price is sinking on Wednesday. This appears to have been driven by news that Autodesk has walked away from takeover talks. The US software giant told Reuters: "We are not commenting on matters with Altium but can confirm that acquisition discussions have ceased at this time." Investors appear to have been expecting Autodesk to return with an improved offer after Altium rejected its $38.50 per share proposal.

Lendlease sells services business

The Lendlease Group (ASX: LLC) share price is rising today after the international property and infrastructure company announced the sale of its Services business. According to its release, Lendlease has entered into an agreement with Service Stream Ltd (ASX: SSM) to sell the business for $310 million. Management advised that the sale aligns with its strategy to be more focused on the areas where its competitive edge is the strongest.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Pilbara Minerals Ltd (ASX: PLS) share price with a 5.5% gain. A number of lithium shares are pushing higher today. The worst performer on the ASX 200 has been the Altium share price with a 3.5% decline. This follows the collapse of takeover talks with Autodesk.

The post ASX 200 midday update: Kogan FY 2021 update, Altium sinks 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 racing higher:

iSentia Group Ltd (ASX: ISD)

The Isentia share price has surged 140% higher to 16.5 cents. Investors have been fighting to get hold of the media intelligence company's shares after it announced the receipt of a takeover offer. According to the release, UK-based Access Intelligence has tabled a 17.5 cents per share offer, which represents a 157% premium to its last close price. Access Intelligence provides software products that address the fundamental business needs of customers in the public relations, marketing, and communications industries. The Isentia board is recommending the offer.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price has jumped 6% to $29.15. The catalyst for this appears to have been a broker note out of Macquarie this morning. According to the note, Premier Investments' guidance for FY 2021 is ahead of the broker's expectations. In response, Macquarie has reiterated its outperform rating and $31.00 price target on the company's shares.

ResMed Inc. (ASX: RMD)

The ResMed share price has stormed 7% higher to $30.33. Investors have been buying the sleep treatment focused medical device company's shares following favourable industry news. That news is that rival Philips has been forced to recall 3.5 million ventilation devices for treating sleep apnoea due to potential health risks.

Service Stream Limited (ASX: SSM)

The Service Stream share price is up 3% to 93.2 cents following the release of a business update. That update reveals that the essential network services provider continues to expect its second half operating earnings to be in line with its first half results. Investors may be relieved that there has been no further deterioration in its performance since its last update.

The post Why Isentia, Premier, ResMed, & Service Stream shares are racing higher appeared first on The Motley Fool Australia.

Service Stream Ltd (ASX: SSM) shares are charging higher in morning trade. At the time of writing, the Service Stream share price is trading 4.97% higher at 95 cents.

This will come as welcome news to shareholders, who've watched their shares tumble by around 50% over the past 12 months.

Let's take a look at the ASX telecommunications and utilities company's latest business update.

What was announced?

The Service Stream share price is gaining after the company confirmed its guidance, stating that its second-half earnings before interest, taxes, depreciation and amortisation (EBITDA) will be "in-line with" its first-half results. The company will provide more detailed results and outlook when it releases its full 2021 financial year results on 26 August.

Having received an increased number of enquiries from shareholders about the company's growth outlook, and the recent performance of the Service Stream share price, the board opted to update the market prior to entering a blackout period, commencing today.

The board also stated it is "aware of an article that appeared in The Australian Financial Review on 10 June 2021 speculating about Service Stream's potential involvement in a sale process in relation to the services division of Lendlease Corporation Limited". The company reiterated that it considers external growth opportunities, but was not in a position to comment about speculation on specific businesses which might be under assessment.

Management wrote that it is "acutely aware of the fall" in the Service Stream share price, stating the company remains focused on its fundamental business model. That includes diversifying its revenues from the current bias towards telecommunications across broader essential infrastructure.

In an update on its utility business segment, the company stated it expects approximately 10% revenue growth from Comdain. That's below the 15% growth it forecast at the half-year, largely due to floods and rain along the east coast delaying some project works. It said Comdain has a "strong backlog of secured work" heading into the new financial year.

Revenue from Service Stream's telecommunications segment is down, following the completion of the national broadband network construction operations in the 2020 financial year.

Service Stream share price snapshot

Despite gaining strongly in morning trade, Service Stream shares remain down almost 50% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) has gained 31% in that same time.

Year to date, the Service Stream share price has remained under pressure, down 47% so far in 2021.

The post Why the Service Stream (ASX:SSM) share price is surging 5% today appeared first on The Motley Fool Australia.

The Service Stream Limited (ASX: SSM) share price sank to a new 52-week low on Tuesday. Shares in the Aussie network service provider fell 4.1% to close at $0.94 per share. That's the lowest level in the last 12 months as the company's tough start to the year continues.

Why is the Service Stream share price under pressure?

Service Stream has been sliding in value this year and closed with a $402.2 million market capitalisation on Tuesday afternoon. It means the Service Stream share price has now slumped 56.5% in the last 12 months in a tough period for shareholders.

A soft half-year financial result in February saw shares in the utilities and telecommunications company fall 20 per cent in one day. Service Stream's earnings reported a 17.7% drop in revenue to $409.9 million. That saw group profits fall 40.5% as the company booked a $16.2 million net profit after tax.

A 37.5% dividend cut to 2.5 cents per share didn't help matters as investors sold down. The coronavirus pandemic has disrupted asset construction, operations and maintenance and impacted negatively on the group's financials.

That has been reflected in the Service Stream share price woes in 2021. Yesterday saw the broader Aussie share market get smashed as investors got spooked by recent highs, as well as concerns over heightened inflation and higher interest rates.

The S&P/ASX 200 Index (ASX: XJO) closed 1.1% lower at 7,097.00 points on Tuesday. The Service Stream share price was caught in the carnage and sank lower, albeit it is no longer inside the ASX 200. That was despite no new announcements from the company since 14 April and having traded ex-dividend on 25 March 2021.

The current 52-week low is tough for investors to swallow after recent losses. However, management did provide some hope in its February half-year result. Service Stream noted a "strong pipeline of organic growth opportunities" with a view to developing long-term performance.

The post Service Stream (ASX:SSM) share price sinks to new 52-week low appeared first on The Motley Fool Australia.

The blue-chip nature of ASX 200 shares means that small to mid-cap shares are often overlooked for dividends. 

These ASX shares will be going ex-dividend this week. This means that investors who own or purchase the company's shares before the ex-dividend date will receive its next dividend payment. The ex-dividend date will typically see the company's share price open weaker to reflect the dividend paid. The larger the dividend paid, the greater the share generally falls on the ex-dividend date. 

Briscoe Group Ltd (ASX: BGP) 

Briscoe is a New Zealand based sporting and homeware retailer. The company announced solid earnings growth for the full year ended 31 January 2021 with revenue up 7.5% to NZ$701 million while net profit after tax increased 17% to $73 million. Briscoe will be going ex-dividend on Tuesday 23 March, for 13.5 cents per share. At its last closing price on Friday of $4.05, this represents a yield of 3.33%. 

Cash Converters International Ltd (ASX: CCV)

Cash Converters will be going ex-dividend on Wednesday 24 March, paying a distribution of 1 cent per share. This represents a yield of approximately 4%.

The embattled second-hand retailer and financial services provider has struggled against more tech-enabled competitors. The company's 1H21 report saw a 31% decline in revenues to $98.4 million while operating net profit after tax declined 28% to $7.7 million. 

Lindsay Australia Ltd (ASX: LAU) 

Lindsay is an integrated transport, logistics and rural supply company with an extensive east coast network. The Lindsay share price has been in a steady decline since 2015, losing more than 25% in value. From an earnings perspective, the company has had relatively stable cash flows and dividends. Its most recent 1H21 report highlighted a 12.1% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $26.1 million, reflecting continued cost controls and improving operational efficiency. 

The company will be going ex-dividend on Thursday 25 March for an interim fully franked dividend of 1.2 cents. This represents a yield of approximately ~3.2%. 

Vita Group Limited (ASX: VTG) 

Vita Group shares took a 30% dive on 11 February when Telstra Ltd (ASX: TLS) announced that it would transition its Telstra branded retail store network to a full corporate ownership model. This means that the current dealer agreement with Telstra will end by 30 June 2025. 

A significant proportion of Vita's earnings are derived from its retail Telstra stores. In its 1H21 results, $307.8 million of its $323.7 million revenue came from information and communication technology (ICT) channels. Vita Group CEO Maxine Horne said the company "has been investing in the very attractive category of skin health and wellness for some time, thus creating a new growth opportunity for the group". 

Vita Group will be going ex-dividend on Thursday 25 March, for an interim dividend of 5.6 cents. Its recent share price decline to 95 cents has propped up the yield to approximately 6%. 

Service Stream Ltd (ASX: SSM) 

Service Stream provides end-to-end life-cycle services such as design, construction and maintenance to utility and telecommunication asset owners, operators and regulators in Australia.

A reduction in telecommunication works in 1H21 resulted in a 17.7% decline in revenues to $409.9 million. Service Stream expects subdued trading conditions and COVID-19 related impacts to continue into the second half, with results approximately in-line with the first half.

The market has not been impressed by historically weaker earnings from Service Stream. The Service Stream share price is down more than 30% year-to-date, sitting at around 3-year lows. The company will be going ex-dividend on Thursday 25 March for an interim dividend of 2.5 cents.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is off its intraday low but still trading lower for the day. The benchmark index is currently down 0.3% to 6,726.1 points.

Here's what is happening on the market today:

Tech shares act as a drag

Australian tech shares including Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) are acting as a drag on the ASX 200 on Friday. This follows a selloff of US tech stocks overnight after bond yields surged to new 14-month highs. Positively, though, with US futures pointing higher, many tech shares are now recovering from their lows for the day.

Fortescue raises US$1.5 billion

The Fortescue Metals Group Limited (ASX: FMG) share price is edging lower today after revealing the successful completion of a US$1.5 billion bond offering. This was more than double what the company was seeking to raise. It upsized the offering due to strong demand. The proceeds will be applied to the repayment of its US$750 million 2022 Senior Unsecured Notes and general corporate purposes. The latter could include the repayment of debt.

AGL Portland Smelter update

The AGL Energy Limited (ASX: AGL) share price is pushing higher today after announcing that it has finalised a new agreement to supply a proportion of the electricity requirement of the Portland Smelter aluminium smelter. The agreement will take effect from 1 August 2021 when the existing supply contract ends and then run until July 2026. The energy company revealed that the new contract is for a volume of 275 MW and represents a mutually beneficial outcome in respect to commercial terms.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the News Corporation (ASX: NWS) share price with a 3% gain on no news. The worst performer has been the Service Stream Limited (ASX: SSM) share price with a 4% decline. Today is the final day that the essential network services company's shares will be included in the ASX 200. They will be dumped out of the index at Monday's rebalance.

The post ASX 200 down 0.3%: Afterpay & Zip lower, AGL signs Portland Smelter deal appeared first on The Motley Fool Australia.

After Friday's market close, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices.

The updated list could potentially move the prices of some shares as fund managers seek to readjust their portfolios. In addition, exchange-traded funds (EFT's) will also see changes across the broader indices.

Here is a brief summary of the most well-known shares on the ASX that were added or removed on the S&P/ASX Indices.

Australia's top 100 companies remained stable with no changes to their retrospective benchmark this quarter. However, it was a different story for the remaining indices.

S&P/ASX 200 Index changes

The S&P/ASX 200 Index (ASX: XJO) added a few new companies, mostly within the mining sector, as a result of growing consumer confidence. This saw iron ore developer Champion Iron Ltd (ASX: CIA), along with nickel producer Nickel Mines Ltd (ASX: NIC) and lithium miner Pilbara Minerals Ltd (ASX: PLS) added into the benchmark.

In addition, electronic products company Codan Limited (ASX: CDA) and investment platform provider HUB24 Ltd (ASX: HUB) were also included.

They replaced Bravura Solutions Ltd (ASX: BVS), Smartgroup Corporation Ltd (ASX: SIQ), Service Stream Limited (ASX: SSM) and Tassal Group Limited (ASX: TGR).

S&P/ASX 300 Index changes

There was a number of swaps within the S&P/ASX 300 Index (ASX: XKO), particularly relating to some companies that have taken centre stage recently. The most notable businesses that joined the list were furniture retailer Adairs Ltd (ASX: ADH), artificial intelligence company Brainchip Holdings Ltd (ASX: BRN), and subscription-based meal kit provider Marley Spoon AG (ASX: MMM).

Leaving the ASX 300 index are ELMO Software Ltd (ASX: ELO), Freedom Foods Group Ltd (ASX: FNP), Kathmandu Holdings Ltd (ASX: KMD), Macmahon Holdings Limited (ASX: MAH), and Superloop Ltd (ASX: SLC) among others.

What does this mean?

While the changeover will take place on 22 March 2021, the news could boost or put pressure on the affected shares. Most fund managers are required to adhere to their strict guidelines, which allow them to buy shares only within a certain index. On the other hand, EFTs usually pick up and/or dump the appropriate shares to keep in line with the benchmark.

The post ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300 appeared first on The Motley Fool Australia.

Just 3 months after listing, Nuix Ltd (ASX: NXL) will enter the S&P/ASX 200 Index (ASX: XJO).

After an initial public offering at $5.31 per share, the data analytics provider floated in early December and immediately became a market darling.

It rose as high as $11.86 in January. But it's since sunk to $5.51 after investors savaged its half-yearly result.

But now that Nuix will join the elite 200 from 22 March, all eyes will be on the share price again. This is because index funds that follow the ASX 200 will be forced to buy into the stock, pushing demand upwards.

The same goes for Hub24 Ltd (ASX: HUB), which was also announced as a new entrant to the ASX 200 this month.

The Hub24 share price has had an up-and-down year but still sits slightly down year-to-date. No doubt the fintech is looking forward to a potential boost from index funds.

S&P Dow Jones Indices on Friday also announced 4 other companies would make it into the ASX 200 this month:

• Codan Limited (ASX: CDA)
• Champion Iron Ltd (ASX: CIA)
• Nickel Mines Ltd (ASX: NIC)
• Pilbara Minerals Ltd (ASX: PLS)

The ASX companies kicked out from the 200

If 6 companies enter the 200, then 6 must come out.

Unfortunately, these were the businesses that couldn't grow quite enough to remain in the club:

• Bravura Solutions Ltd (ASX: BVS) 
• GWA Group Ltd (ASX: GWA)
• Sandfire Resources Ltd (ASX: SFR)
• Smartgroup Corporation Ltd (ASX: SIQ)
• Service Stream Limited (ASX: SSM)
• Tassal Group Limited (ASX: TGR)

The Bravura Solutions share price has tumbled almost 17% so far this year, and its demotion out of the ASX 200 will not help.

Fellow technology business Service Stream has suffered even more, taking a 33% haircut off its share price year-to-date. The Motley Fool reported last week it's one of the most shorted stocks on the ASX.

The ASX 200 is a group of the 200 largest companies on the bourse. Membership is updated quarterly.

The above additions and removals will occur before market open on Monday 22 March.

The post Why Nuix, Hub24 shares are on watch appeared first on The Motley Fool Australia.

On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week in a positive fashion. The benchmark index rose 0.8% to 6,766.8 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower this morning following a mixed finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 3 points lower this morning. On Wall Street on Friday night, the Dow Jones climbed 0.9%, the S&P 500 rose 0.1%, and the Nasdaq index dropped 0.6%.

Tech shares could fall

It could be a difficult day for ASX tech shares including Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) after a poor finish to the week on the tech-heavy Nasdaq index. This was driven by surging bond yields. The US 10-year treasury yield climbed to 1.625%, which is its highest level in over a year. As the local tech sector tends to follow the Nasdaq's index's lead, this doesn't bode well for today's trading session.

Oil prices drop

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price fell 0.6% to US$65.61 a barrel and the Brent crude oil price dropped 0.6% to US$69.22 a barrel.

Gold price softens

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price softened on Friday. According to CNBC, the spot gold price dropped 0.15% to US$1,719.80 an ounce. Despite this decline, the gold price still had its best week in seven weeks.

Quarterly rebalance

S&P Dow Jones Indices has announced its March 2021 Quarterly Rebalance. Six new companies will be added to the illustrious index on 22 March. Two companies joining the index are electronics products company Codan Limited (ASX: CDA) and investment platform provider Hub24 Ltd (ASX: HUB). The companies leaving the index include the underperforming Bravura Solutions Ltd (ASX: BVS) and Service Stream Limited (ASX: SSM).

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week on a high. The benchmark index is currently up 0.95% to 6,777.5 points.

Here's what has been happening today:

Tech shares back on form

ASX tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are pushing higher on Friday following a strong night of trade on the tech-heavy Nasdaq index. It rose 2.5% overnight thanks to solid gains from a number of tech giants such as Amazon and Facebook. This positive form has transferred to the ASX tech sector, leading to the S&P/ASX All Technology Index (ASX: XTX) rising 2.2%.

Westpac APRA update

The Westpac Banking Corp (ASX: WBC) share price is edging lower despite announcing that APRA has closed its investigation into matters related to the AUSTRAC proceedings. The regulator revealed that after carefully considering the results of ASIC's investigation, it has decided to close its investigation. However, the $1 billion operational risk capital add-on will remain in place until Westpac completes its remediation under a court enforceable undertaking to APRA's satisfaction.

Qantas shares underperform

The Qantas Airways Limited (ASX: QAN) share price is trading flat today despite being the subject of a couple of positive broker notes. This follows the Federal Government's announcement of a $1.2 billion stimulus program to support the domestic travel market. Goldman Sachs responded by reiterating its buy rating and $6.38 price target, whereas Citi upgraded Qantas' shares to a buy rating with a $6.14 price target.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Service Stream Limited (ASX: SSM) share price with a 6% gain. This is despite there being no news out of the essential network services provider. Though, with its shares falling heavily this year, some investors may believe they have been oversold. The worst performer has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 3% decline. This may be due to profit taking after a strong gain on Thursday.

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