How has the Fortescue (ASX:FMG) share price performed since reporting results?

The ASX miner's shares slumped on Friday, in contrast to their post FY21 reporting bounce…

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The Fortescue Metals Group Limited (ASX: FMG) share price fell hard on Friday, finishing the day down 11.48% to $15.27 per share.

The S&P/ASX 200 Index (ASX: XJO) struggled as well, though not nearly to the same extent, falling 0.76%.

The Fortescue share price came under pressure as iron prices retreated another 8% overnight Thursday to US$107.21 (AU$146.86) per tonne. That's a far cry from the US$212 that same tonne of iron ore was fetching on 30 July.

With ASX 200 iron ore miners in the spotlight, we take a brief review of Fortescue's strong results for the full 2021 financial year (FY21) below. And we look at how its shares have performed since reporting.

A man wearing thick rimmed black glasses and a business shirt with red suspenders sits at his desk sorting through the earnings report of Nickel Mines

Image source: Getty Images

What FY21 results did the ASX 200 miner report?

Investors were keeping a close eye on the Fortescue share price on 30 August, the day the company released its FY21 results.

Among the core results impressing analysts were revenues of US$12.8 billion. That was up 74% from the US$12.8 billion reported the prior year.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at US$16.4 billion, up 96% from FY20. And net profit after tax (NPAT) soared 117% year-on-year to US$10.3 billion.

The strong results saw Fortescue declare a final dividend of $2.11 per share, fully franked. That brought the full-year dividend to $3.58 per share, an increase of 103% from FY20.

Commenting on the year gone by and the year ahead, Fortescue's CEO Elizabeth Gaines said:

Through the Iron Bridge Magnetite project and Fortescue Future Industries, we are investing in the growth of our iron ore operations, as well as pursuing ambitious global opportunities in renewable energy and green industries.

How has the Fortescue share price performed since reporting?

The strong results delivered before market open on 30 August saw the Fortescue share price gain 6.6% on the day.

While it's had a few up days since then, the trend has largely been lower, in line with tumbling iron ore prices. By the close of trading on Friday, Fortescue's share price was down 23.6% since reporting.

By comparison, the ASX 200 is down 1.3% over that same period.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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