Latest news with #JBHiFi
News.com.au
2 days ago
- Business
- News.com.au
Criterion: Companies have cash to splash and it's raining down on shareholders
Several big-name companies are tipped to announce share buybacks or special dividends this reporting season Share buybacks improve earnings per share and usually result in long-term share support JB Hi-Fi is tipped to pay a special dividend when it reports on Monday As local profit reporting unfolds in earnest next week, investors can expect a slew of companies to announce share buybacks or special dividends to soak up excess capital. To some investors, returning capital is a sign that management has run out of growth ideas - a strategic capitulation. To most, remitting the spare cash makes better sense than either hoarding it or pursuing a hare-brained acquisition. 'If a company doesn't have attractive investment opportunities and the balance sheet is starting to look lazy, a special dividend can make a lot of sense,' says Lazard Asset Management's Aaron Binsted. 'It also demonstrates that a board takes shareholder funds seriously and the market is more likely to support that company in future endeavours.' Don't stash the cash Share buybacks involve a company buying back its own shares and cancelling them, thus reducing the capital base and improving earnings per share. Boards often deploy buybacks when they think the market undervalues the shares. (Mind you, almost every board thinks that). In February Telstra (ASX:TLS) announced a $750 million buyback which it completed in June. Others including ResMed (ASX:RMD) and Corporate Travel Management (ASX:CTD) have buybacks in place. According to Sandstone Insights, capital returns usually result in share prices being supported well beyond the announcement date. 'There is an enduring impact on outperformance,' says head of investment strategy John Lockton. Buyback 'likely suspects' The owner of Afterpay and the Square terminals, Block, Inc (ASX:XYZ) is surfing the resurgence of buy-now pay later and Square's strong growth in the US. Block has a $4 billion buyback program – extended from $1 billion last year - but yesterday's quarterly disclosure shows the actual purchases have been at a far more languid rate. This also highlights that while a company might have announced a program, it's under no obligation to buy. With tapering capex, logistics house Brambles (ASX:BXB) could extend its recently-completed $600 million buyback. The beneficiary of favourable regulatory capital changes, annuities specialist Challenger (ASX:CGF) could start one. With insurers creaming it in, QBE Insurance (ASX:QBE) is in pole position to undertake its first-ever buyback. Earlier this year Suncorp Group (ASX:SUN) distributed the $4.1 billion proceeds of its banking operation to the Australia and New Zealand Banking Group (ASX:ANZ). There's a chance of a second helping. Special dividend candidates Discretionary retailers are among the most likely companies to declare a special dividend. Binsted notes that Super Retail Group (ASX:SUL) paid a special dividend in the last two financial year results 'and we suspect there may be a possibility for a third'. The company may have its high-profile corporate governance issues, but it has a solid balance sheet with tapering capex requirements. On Monday, JB HiFi (ASX:JBH) should post a bumper result – and perhaps pay a special div as it did last year. Media companies usually sound like they're down to their last dollar. But that's not the case at Nine Entertainment Company (ASX:NEC), which is heaving with $1.4 billion of proceeds from the sale of its Domain stake to Costar. Nine has flagged a shareholder return of 47-49 cents per share, but that accounts for only half the windfall. TPG Telecom (ASX:TPG) similarly is flush with $5.3 billion from the sale of its fixed asset business to Vocus. Pundits suggest TPG will return about half to shareholders. Great (earnings) Expectations In order to sweeten shareholder returns, companies need further earnings in the first place. That's not been the case over the last three years, with profits going backwards, Sandstone's Lockton expects current year earnings expectations to settle at 6%. This will be spurred by the tech sector with forecast 25-30% growth. For the time being at least, the market is willing to overlook the T – tariff – issue. Lockton says even if tariffs are disruptive, "there's a wall of interest rate cuts both in the US and Australia to save the day.' Enjoy the cash splash while it lasts.
Sydney Morning Herald
31-07-2025
- Business
- Sydney Morning Herald
Bargain hungry Australians are shopping their hearts out
Forget the cost of living crisis, Australians opened their wallets and emptied their mattresses to embark on such a vigorous shopping spree in June that retail sales for the month have come in three times higher than expected. But this rush of retail blood isn't a display of stronger consumer confidence, instead the sales bump has come from left field. The 1.2 per cent boost in June's retail sales was much stronger than the May rise of 0.5 per cent and the April reading, which was flat. The catch here is that the buying bonanza has been almost entirely driven by bargain hunting for discretionary goods, propelled by clothing footwear and household items. Shares of electronics retailer JB Hi Fi, Harvey Norman, Nick Scali and Wesfarmers rose on the back of the retail data released on Thursday by the Australian Bureau of Statistics and even department store operator Myer's share price moved up on the news. Most of the retail categories, even food retailing, came in ahead of expectations in June. The one sector that didn't feel the love was eating out and takeaway food, with the sector turning negative ion June after a mildly positive reading in May. But the stronger sales number is a mixed blessing for retailers. While the increased demand and volume of sales is a positive, selling goods at discount is a surefire way of whittling down their profit margins. The other worry is that the big spend in June may not be repeated over the next couple of months, so any gains to be had are slowly unwound. What the data does support is that households have the money and the desire to spend on big ticket items as long as they believe they are receiving value. It also indicates that Australians have not been unduly phased by the international economic turmoil introduced by Trump's tariff attack. However, there will be questions asked about whether this strong buyer sentiment will impact the Reserve Bank of Australia's deliberations on whether there are any risks associated with cutting interest rates in August.
The Age
31-07-2025
- Business
- The Age
Bargain hungry Australians are shopping their hearts out
Forget the cost of living crisis, Australians opened their wallets and emptied their mattresses to embark on such a vigorous shopping spree in June that retail sales for the month have come in three times higher than expected. But this rush of retail blood isn't a display of stronger consumer confidence, instead the sales bump has come from left field. The 1.2 per cent boost in June's retail sales was much stronger than the May rise of 0.5 per cent and the April reading, which was flat. The catch here is that the buying bonanza has been almost entirely driven by bargain hunting for discretionary goods, propelled by clothing footwear and household items. Shares of electronics retailer JB Hi Fi, Harvey Norman, Nick Scali and Wesfarmers rose on the back of the retail data released on Thursday by the Australian Bureau of Statistics and even department store operator Myer's share price moved up on the news. Most of the retail categories, even food retailing, came in ahead of expectations in June. The one sector that didn't feel the love was eating out and takeaway food, with the sector turning negative ion June after a mildly positive reading in May. But the stronger sales number is a mixed blessing for retailers. While the increased demand and volume of sales is a positive, selling goods at discount is a surefire way of whittling down their profit margins. The other worry is that the big spend in June may not be repeated over the next couple of months, so any gains to be had are slowly unwound. What the data does support is that households have the money and the desire to spend on big ticket items as long as they believe they are receiving value. It also indicates that Australians have not been unduly phased by the international economic turmoil introduced by Trump's tariff attack. However, there will be questions asked about whether this strong buyer sentiment will impact the Reserve Bank of Australia's deliberations on whether there are any risks associated with cutting interest rates in August.
Yahoo
27-07-2025
- Yahoo
Urgent update over smartphone ‘fire risk'
An urgent update has been pushed to a range of Google phones due to the risk they could overheat and even cause fires. Product Safety Australia said incidents involving Google Pixel 6a devices have resulted in 'serious burn injuries'. A mandatory update has been pushed to a number of phones to reduce the risk, and devices only need to be updated rather than returned. The firmware update was released on 8 July, which included battery management features which mitigate the risk. Not all Pixel 6a devices are affected by the issue, and the new battery management system will be activated once affected devices reach 400 battery cycles. People whose phones are affected may be eligible for compensation from Google, and can check online to see if they can get a repair, cash payment or discount credit. The phones have been sold at major retailers across the country, including Telstra, Optus, JB Hi-Fi, Officeworks and Harvey Norman. The affected devices were sold between 16 June 2022 and 10 April 2025.
News.com.au
27-07-2025
- News.com.au
Urgent update for Google Pixel 6a to address risk of overheating, fire
An urgent update has been pushed to a range of Google phones due to the risk they could overheat and even cause fires. Product Safety Australia said incidents involving Google Pixel 6a devices have resulted in 'serious burn injuries'. A mandatory update has been pushed to a number of phones to reduce the risk, and devices only need to be updated rather than returned. The firmware update was released on 8 July, which included battery management features which mitigate the risk. Not all Pixel 6a devices are affected by the issue, and the new battery management system will be activated once affected devices reach 400 battery cycles. People whose phones are affected may be eligible for compensation from Google, and can check online to see if they can get a repair, cash payment or discount credit. The phones have been sold at major retailers across the country, including Telstra, Optus, JB Hi-Fi, Officeworks and Harvey Norman. The affected devices were sold between 16 June 2022 and 10 April 2025.
