市场见解

Woolworths (ASX:WOW) share price rising on earnings boost

The Woolworths (ASX:WOW) share price is on the move after the company released its HY results this morning. Here’s the rundown.
The post Woolworths (ASX:WOW) share price rising on earnings boost appeared first on The Motley Fool Australia. –

response to asx share price represented by hands holding up the word wow

Woolworths Group Ltd (ASX: WOW) shares are on the rise today after the supermarket giant released its half-year results for the period ended 3 January 2021 (HY21) this morning. At the time of writing, the Woolworths share price has jumped 1.15% to $39.54.

Let’s take a look at how Woolworths has been performing.

What’s driving the Woolworths share price?

The Woolworths share price is on the move after the company reported total revenue from continuing operations of $35.8 billion for the period. This compares to $32.4 billion for the half-year ended 5 January 2020.

Woolworths also posted a gain in gross profit which jumped from $9.6 billion in HY20 to $10.5 billion in HY21.

Earnings before interest and tax were $2.1 billion, which is up from HY20’s $1.8 billion.

Basic earnings per share (EPS) came in at 90.5 cents, a 28.1% leap from the 70.6 cents posted for HY20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 8.7% at $3.4 billion for HY21.

At the end of the period, the business held $2.1 billion in cash and cash equivalents. The prior corresponding period (pcp) posted $1 billion.

Woolworths advised that coronavirus has had a material impact on results. 

While the company reported strong group sales growth of 10.6% for HY21, this was offset by $277 million spent on incremental COVID-19 costs.

The board declared an interim dividend for the period of 53 cents per share, fully franked.

CEO commentary

Woolworths Group CEO Brad Banducci commented on the HY21 results and said:

H1 sales growth was strong across all Group businesses, with the exception of Hotels, with record Christmas trading. Group sales increased by 10.6% in H1 (Q2: +9.0%) with Australian Food, BIG W and Endeavour Drinks all reporting sales growth well above trend. Sales growth in New Zealand Food slowed in Q2 with lower market growth rates impacted by a reduction in international tourism. In Hotels, sales trends improved over the half but growth was below the prior year due to continued COVID-related operating restrictions.

Despite incremental COVID costs of $277 million and the Hotels EBIT being well below the prior year, H1 Group EBIT1 grew by 10.5% to $2,092 million, with NPAT1 up 15.9%. BIG W’s profit improvement was a particular highlight with EBIT of $133 million, up 166% on the prior year.

Woolworths share price snapshot

Over the past year, the Woolworths share price has fallen by 7.3%. Whilst having mostly recovered from their May 2020 lows of around $32, Woolworths shares are yet to reach their pre-COVID highs of around $43.

Based on the current Woolworths share price, the company has a market capitalisation of around $50 billion with 1.3 billion shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Woolworths (ASX:WOW) share price rising on earnings boost appeared first on The Motley Fool Australia.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!