Australia Markets closed

Here’s why the Challenger share price is rocketing today

Tom Richardson
ASX shares rise

Challenger Ltd (ASX: CGF) shares jumped 10% to $7.15 today after the annuities manager posted a net profit of $308 million on a return on equity of 15.8% for the financial year ending June 30 2019.

The statutory profit was down $15 million or around 3% with the “adjusted” net profit before tax of $548 million marginally up $1 million on the prior year.

The Challenger share price is probably rising today as the profit beat analysts’ modest expectations and as the annuities manager stuck to guidance for FY 2020 net profit before tax between $500 million to $550 million, which would represent a result of flat to marginally down on the prior period.

Challenger’s CEO, Richard Howes, said: “While significant disruption has clearly impacted our results in 2019, our outcomes demonstrate the strength of the franchise we’ve built. Our market leading brand, diverse distribution channels and compelling product offering underpin our performance.”

In other news today rival Sydney-based financial services giant Magellan Financial Group Ltd (ASX: MFG) confirmed it’s not looking to an alternative annuities type product for income seekers in retirement. Magellan grew its earnings per share 75% to $2.13 over FY 2019.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more


More reading

Motley Fool contributor Tom Richardson owns shares of Magellan Financial Group. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019