ASX 200 rises, Challenger and James Hardie up on results

The ASX 200 had a positive day as Challenger and James Hardie reported.
The post ASX 200 rises, Challenger and James Hardie up on results appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) went up by 0.3% to 7,563 points.

Here are some of the highlights from the ASX today:

James Hardie Industries plc (ASX: JHX)

The James Hardie share price went up 3% today after releasing its result for the first quarter of FY22.

In the first three months of the financial year, to 30 June 2021, it saw total net sales increase by 35% to US$843.3 million. Net profit surged 1,191% higher to US$121.4 million. Global adjusted earnings before interest and tax (EBIT) increased 45% to US$180.5 million with the adjusted EBIT margin rising 150 basis points to 21.4%.

The North American and Asia Pacific divisions were what drove the EBIT higher. The North America division saw adjusted EBIT grow 29% to US$169.3 million and Asia Pacific adjusted EBIT rose 50% to A$50.4 million.

James Hardie CEO Dr Jack Truong said:

I am very pleased that this first quarter marked our ninth consecutive quarter of delivering growth above market and strong returns. In our investor day at the end of May, we described our three critical initiatives for FY22 through to FY24: One, market directly to homeowners to accelerate demand creation, two, penetrate and drive profitable growth in existing and new segments and, three, commercialise global innovations by expanding into new categories. Further, we discussed our focus on driving a high value product mix in all three regions.

The company raised its guidance for FY22. It’s now expecting adjusted net income to be between US$550 million to US$590 million, up from the previous guidance of US$520 million to US$570 million. That compares to FY21 adjusted net income of US$458 million.

The James Hardie share price was one of the better performers in the ASX 200.

Challenger Ltd (ASX: CGF)

The Challenger share price went up more than 1% after the annuity business released its FY21 result.

It said that group assets under management (AUM) grew by 29% to $110 billion, with life book growth of 14% and funds management net flows of $16 billion.

The company said that its profit was within its guidance range. Normalised net profit before tax was $396 million, down 22%, reflecting a proactive decision to maintain more defensive portfolio settings during the pandemic.

It generated a statutory net profit after tax of $592 million, which included positive investment gains.

Challenger said that it has a strong capital position, with Challenger Life having $1.6 billion of excess regulatory capital.

The full year dividend was increased by 14% to 20 cents per share.

Challenger managing director and CEO Richard Howes, said:

This year, we have taken decision action to set up the business for future growth – executing our strategy to diversify revenue, repositioning our investment portfolio and strengthening our balance sheet.

Following our decision to reposition the investment portfolio during the early stages of the pandemic, as flagged, we gradually deployed significant cash balances into higher returning assets throughout the year, with the full benefits to be realised next year.

Mr Howes also announced his intention to retire, set for March 2022. 

Megaport Ltd (ASX: MP1)

Megaport was another ASX 200 share to report its result to investors today. The Megaport share price increased by 3%.

It said that annual revenue increased by 35% to $78.28 million, whilst customers went up 24% to 2,285.

Monthly recurring revenue (MRR) for the month of June 2021 was $7.5 million, an increase of 32% year on year.

Megaport said that it generated a profit after direct network costs during the year of $42.1 million, an increase of 43% year on year. It achieved breakeven earnings before interest, tax, depreciation and amortisation (EBITDA) in June 2021.

The Asia Pacific region saw a profit after direct network costs margin of 73%.

However, the bottom line for the year was a net loss of $55 million. It finished with a cash position of $136.3 million.

It’s planning to continue to invest for growth of its market share, invest in its product and service, and invest in its people.

The ASX 200 company also announced the acquisition of InnovoEdge for up to US$15 million, including US$7.5 million of cash. It was described as an AI-powered, multicloud and edge application orchestration company. 

The post ASX 200 rises, Challenger and James Hardie up on results appeared first on The Motley Fool Australia.

Should you invest $1,000 in Megaport right now?

Before you consider Megaport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Megaport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here are the top 10 ASX shares today

These 3 ASX 200 shares were the most traded this Tuesday

Why ASX lithium shares are surging to new highs today

Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher

ASX 200 midday update: James Hardie hits record high, Pilbara Minerals rockets

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!