However, the ASX 200 spent most of the day in red territory, only recovering late this afternoon to post a 0.16% gain for the day. That leaves the index at 8,831.3 points.

This volatile hump day for the ASX came after a nuanced morning up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, rising a happy 1.02%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn't so lucky, dropping 0.023%.

But let's return to the local markets now and dive a little deeper into what was happening amongst the various ASX sectors today.

Winners and losers

Despite the broader market's rise, a few sectors weren't lifted by the tide.

Leading those unlucky corners of the market were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was slammed, crashing 3.32% lower.

Mining stocks also had a day to forget. The S&P/ASX 200 Materials Index (ASX: XMJ) was hit relatively hard, slumping 1.04%.

Gold shares were no safe haven either, with the All Ordinaries Gold Index (ASX: XGD) tanking 0.72%.

Real estate investment trusts (REITs) landed on the wrong side of the ledger too. The S&P/ASX 200 A-REIT Index (ASX: XPJ) retreated 0.5% today.

It was all smiles everywhere else, though.

Leading the charge higher this Wednesday were communications stocks, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 2.23% surge.

Industrial shares also ran hot. The S&P/ASX 200 Industrials Index (ASX: XNJ) soared 0.99% this session.

Financial stocks found themselves in high demand as well, with the S&P/ASX 200 Financials Index (ASX: XFJ) galloping up 0.96%.

Energy shares staged a late recovery to finish higher. The S&P/ASX 200 Energy Index (ASX: XEJ) ended up bouncing 0.49%.

Consumer discretionary stocks joined the winners' party, as you can see from the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 0.34% jump.

We can say the same for its consumer staples counterpart. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) advanced 0.25% this hump day.

Utilities stocks came next, with the S&P/ASX 200 Utilities Index (ASX: XUJ) increasing by 0.18%.

Finally, healthcare shares got over the line, evidenced by the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 0.05% bump.

Top 10 ASX 200 shares countdown

Biotech stock Mesoblast Ltd (ASX: MSB) was our top performer this Wednesday. Mesoblast shares roared 5.68% higher this session to close at $1.86 each.

This move was despite no fresh news from the company.

Here's how the other top stocks tied up at the dock:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

This disappointing Tuesday session for the local markets followed a mixed start to the American trading week in the early hours of this morning.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't in a great mood after the weekend, losing 0.07% of its value.

However, things were far better for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC), which rose a healthy 1.11%.

But let us return to ASX shares now and take stock of how the different ASX sectors performed this Tuesday.

Winners and losers

The hardest-hit corner of the market today was gold stocks. The All Ordinaries Gold Index (ASX: XGD) was no safe haven, plunging 1.52%.

Energy shares were also left out in the cold, with the S&P/ASX 200 Energy Index (ASX: XEJ) sinking 1.31%.

Mining shares weren't much better. The S&P/ASX 200 Materials Index (ASX: XMJ) ended up tanking 1.16%.

Financial stocks found themselves in the firing line too, as you can tell from the S&P/ASX 200 Financials Index (ASX: XFJ)'s 0.48% dive.

Industrial shares were next. The S&P/ASX 200 Industrials Index (ASX: XNJ) dipped 0.17% this session.

Our last losers today were communications stocks, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) retreating 0.12%.

Turning to our winners now, it was consumer staples shares that were the stars. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was on fire today, shooting 1.14% higher.

Healthcare stocks had a great time of it too, evidenced by the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 0.87% surge.

We can say something similar for consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) soared 0.76% this Tuesday.

Real estate investment trusts (REITs) were in a similar boat, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) advancing 0.7%.

Utilities stocks weren't too shabby either. The S&P/ASX 200 Utilities Index (ASX: XUJ) bounced up 0.49%.

Finally, tech stocks got over the line, illustrated by the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 0.36% uptick.

Top 10 ASX 200 shares countdown

Property stock Ingenia Communities Group (ASX: INA) was our top share this Tuesday. Ingenia stock rocketed 9.67% higher today to close at $4.65 a share.

This came after the company provided an update on its ongoing acquisition process.

Here's how the other high-flyers landed their planes this session:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

After yesterday's drop, it seemed investors were in the mood to keep selling this morning when the market opened sharply lower. However, the ASX 200 spent much of the day recovering, and only ended up closing with a loss of 0.094%. That leaves the index at 8,719.7 points.

This wild day on the Australian markets came after a gloomy mid-week session on the American markets this morning.

The Dow Jones Industrial Average Index (DJX: .DJI), in a strange coincidence, exactly matched today's showing from the ASX, falling 0.094%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was far more decisive, dropping a hefty 1.88%.

Let's get back to the local markets now and take a look at how today's trading conditions percolated down into the various ASX sectors.

Winners and losers

Despite the market's slight loss, we saw many corners of the market do quite well.

First though, let's get the red sectors out of the way.

Leading the losers this Thursday were mining stocks. The S&P/ASX 200 Materials Index (ASX: XMJ) was hit hard, tanking by a nasty 3.95%.

Tech shares had a day to forget too, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) crashing 3.41%.

Gold stocks were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) cratered by 2.88%.

Real estate investment trusts (REITs) were a little tamer, though, as you can see by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.74% slump.

Our last losers this Thursday were energy shares. The S&P/ASX 200 Energy Index (ASX: XEJ) was set back by 0.04% today.

Let's turn to the winners now. Leading said winners this session were consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) rocketing up 3.47%.

Financial shares also had a strong day. The S&P/ASX 200 Financials Index (ASX: XFJ) soared 2.19%.

We can say the same for utilities stocks, evidenced by the S&P/ASX 200 Utilities Index (ASX: XUJ)'s 2.09% surge.

Communications shares also ran hot. The S&P/ASX 200 Communication Services Index (ASX: XTJ) jumped 1.54% today.

Healthcare shares didn't miss out, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) lifting 0.68%.

Nor did consumer discretionary stocks. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) bounced up 0.63% this Thursday.

Finally, industrial shares finished comfortably ahead, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.28% improvement.

Top 10 ASX 200 shares countdown

Financial services stock Generation Development Group Ltd (ASX: GDG) was our winner this session. Generation shares exploded 17.16% higher today, closing out at $3.14 each.

There wasn't any news from Generation that easily explains this. However, the company has been bouncing back with a vengeance after recently hitting a 52-week low.

Here's how the other high flyers landed their planes:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

What did Orora report?

• Revenue: Cans revenue up 13.3% to $880 million; Saverglass revenue up 0.8% to €617.2 million; Gawler revenue flat at $284.5 million
• Underlying NPAT: $142.2 million, down 6% from FY25
• EBITDA: $420.3 million, broadly flat year on year
• Underlying EPS: 11.4 cents, unchanged from prior year
• Net debt: $481.1 million; cash realisation at 98.3%
• Share buyback: 56 million shares repurchased for $118 million in FY26

What else do investors need to know?

Orora's Cans division enjoyed strong demand, with 6.3% volume growth thanks to capacity expansion and ongoing customer preference for cans. The company's large-scale Rocklea expansion neared completion, adding further production capacity to the network. In contrast, the Glass business—comprising Saverglass and Gawler—continued to face softer consumer demand, disrupted export markets, and adverse price/mix effects.

A key development was the €450 million non-cash impairment of the Glass business, reflecting ongoing geopolitical, trade, and market pressures. Saverglass did achieve volume and market share growth, but this was tilted toward lower-margin products. Gawler's operational shift from three furnaces to two delivered efficiency gains despite subdued market conditions.

What did Orora management say?

Managing Director & Chief Executive Officer Brian Lowe said:

While FY26 was certainly a challenging year, it demonstrated the strength of our Cans business, the resilience of our people and our willingness to act when performance does not meet expectations. We enter FY27 having largely completed our Cans capacity expansion program and with a clear plan to improve performance in Glass. Our responsibility now is execution: improving safety, delivering consistently for customers and converting our investments and market positions into stronger earnings, cash flow and shareholder returns.

What's next for Orora?

Looking ahead to FY27, Orora expects continued growth in its Cans business, with volume increases of 4–6% and higher EBIT predicted due to major network expansions. The Glass division is focused on six clear priorities to lift EBIT by over €30 million by FY30, but management warns that Saverglass EBIT will remain under pressure in the short term due to ongoing external challenges.

The company will keep a sharp eye on economic and geopolitical risks, especially US tariffs and Middle East disruptions, with benefits from Glass turnaround initiatives expected to build later in FY27 and beyond. Continued execution of sustainability initiatives and disciplined capital management remain top priorities.

Orora share price snapshot

Over the past 12 months, Orora shares have declined 34%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Orora FY26 earnings: Cans strong, Glass under pressure appeared first on The Motley Fool Australia.

After reviewing companies' results, brokers have reduced their ratings on numerous ASX shares.

Let's see a sample.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $5.23, down 1.2% today and up 123% over 12 months. 

Over the past month, this ASX 200 lithium share has ripped 23% higher.

Morgans downgraded PLS shares from hold to trim after the miner's FY26 results.

The broker commented:

PLS delivered an in-line FY26 Underlying EBITDA result and surprised with a maiden 5cps fully franked final dividend (22% FCF payout).

We view PLS as fairly valued at current levels, with its premium to peers already reflecting the company's best-in-class execution, balance sheet and growth optionality.

Depleted lithium inventories leave scope for short-term upside, though we see the medium-term outlook as more volatile given uncertainty around supply and demand drivers.

The broker retained its 12-month price target of $4.60, which implies a 12% downside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $12.31, down 2.1% today and up 64% over 12 months. 

Over the past month, this ASX 200 energy share has jumped 29%.

Morgans downgraded Paladin Energy shares from buy to accumulate due to recent share price strength.

Following the uranium miner's FY26 report, the broker increased its target price to $14.10.

This suggests a potential 15% upside ahead.

Morgans said:

Cash is starting to flow — PDN delivered positive operating cash flow for the first full year since the restart, generating US$38m in FY26 and marking the transition from ramp-up story to steady-state and cash-generating producer.

Guidance beaten across the board — Langer Heinrich Mine (LHM) exceeded FY26 production, sales and cost guidance, providing further evidence that the operation can sustainably deliver and continues to build momentum as it enters more steady state operations.

Lovisa Holdings Ltd (ASX: LOV) 

The Lovisa share price is $27.14, down 1.7% today and down 34% over 12 months. 

Over the past month, this ASX retail share has soared 27%.

Morgans downgraded Lovisa shares, on valuation grounds, from buy to accumulate after the retailer's FY26 report.

The broker reduced its 12-month price target to $31.

This implies a potential 14% upside ahead.

Ora Banda Mining Ltd (ASX: ORA)

The Ora Banda share price is $1.59, down 1.9% today and up 84% over 12 months. 

Over the past month, this ASX 200 gold share has ripped 42% higher.

MA Financial Group downgraded Ora Banda shares to a hold rating after the miner's FY26 report.

The broker raised its 12-month price target from $1.40 to $1.60.

This implies a potential 1% upside ahead.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $23.47, down 2.8% today and up 85% over 12 months. 

Over the past month, this ASX 200 copper share has leapt 22%.

The Sandfire Resources share price struck a new record of $25 on the back of its FY26 report yesterday.

Morgans downgraded Sandfire Resources shares from accumulate to hold with a $23 target.

This indicates the stock is fully valued now.

The broker commented:

SFR resumed dividends with a 35cps final dividend (+86% vs expectations) and we see scope for this to build further as its cash balance continues to grow with no drawn debt, supported by a favourable base metals price environment.

SFR's asset quality, management quality and balance sheet strength, alongside emerging growth optionality, underpin its case as a core copper exposure for long-term investors, though the stock appears fully valued at current prices.

Scentre Group (ASX: SCG)

The Scentre share price is $3.57, down 1.4% today and down 12% over 12 months. 

Over the past month, this ASX 200 real estate investment trust (REIT) has fallen 8%.

Jarden downgraded Scentre shares to a hold rating after reviewing the property group's 1H FY26 results.

The broker has a $4.05 target, which suggests a potential 13% upside ahead.

Inghams Group Ltd (ASX: ING)

The Inghams share price is $2.05, up 2.3% today and down 26% over 12 months.

Over the past month, this ASX 200 consumer staples share has fallen 9%.

Jarden downgraded Inghams shares to a hold rating after the company's FY26 results.

The broker's target is $2.50, which implies a potential 22% upside ahead.

The post 7 ASX 200 shares downgraded by brokers this week appeared first on The Motley Fool Australia.

As the earnings season continues, more companies are announcing their next dividends.

We'll help you keep track of ex-dividend dates with an article every Friday over the next two months.

Here are the ASX 200 shares going ex-dividend next week.

ASX shares with ex-dividend dates ahead

Insurance Australia Group Ltd (ASX: IAG)

This ASX 200 financial share will pay an 80% franked dividend of 20 cents per share on 28 September.

IAG shares go ex-dividend on Monday, 24 August.

QBE Insurance Ltd (ASX: QBE)

QBE will pay a 30% franked dividend of 33 cents per share on 2 October.

The ex-dividend date is Monday, 24 August.

Santos Ltd (ASX: STO)

This ASX 200 energy share will pay an unfranked dividend of 11.6 US cents per share on 23 September.

Santos shares go ex-dividend on Monday, 24 August.

Amotiv Ltd (ASX: AOV)

This ASX 200 retail stock will pay a 100% franked dividend of 23 cents per share on 15 September.

Amotiv shares go ex-dividend on Tuesday, 25 August.

Deterra Royalties Ltd (ASX: DRR)

This ASX 200 materials share will pay a 100% franked dividend of 10.8 cents per share on 22 September.

The ex-dividend date is Tuesday, 25 August.

AGL Energy Ltd (ASX: AGL)

This ASX 200 utilities stock will pay a 100% franked dividend of 26 cents per share on 24 September.

AGL shares go ex-dividend on Tuesday, 25 August.

Challenger Ltd (ASX: CGF)

This ASX 200 financial stock will pay a fully-franked dividend of 17.5 cents per share on 17 September.

Challenger shares go ex-dividend on Tuesday, 25 August.

Telstra Group Ltd (ASX: TLS)

This ASX 200 telco will pay a 90% franked dividend of 10.5 cents per share on 24 September.

The ex-dividend date is Wednesday, 26 August.

Lottery Corporation Ltd (ASX: TLC)

This ASX 200 consumer discretionary share will pay a 100% franked dividend of 8.5 cents per share on 24 September.

Lottery Corp shares go ex-dividend on Wednesday, 26 August.

JB Hi-Fi Ltd (ASX: JBH)

This ASX 200 retail share will pay a 100% franked dividend of $1.27 per share on 11 September.

JB Hi-Fi shares go ex-dividend on Thursday, 27 August.

SRG Global Ltd (ASX: SRG)

This ASX 200 industrial stock will pay a 100% franked dividend of 4 cents per share on 11 September.

The ex-dividend date is Thursday, 27 August.

Ebos Group Ltd (ASX: EBO)

This ASX 200 healthcare share will pay a 97% franked dividend of 63.7 NZD cents per share on 18 September.

Ebos shares go ex-dividend on Thursday, 27 August.

REA Group Ltd (ASX: REA)

This ASX 200 communications share will pay a fully-franked dividend of $1.73 per share on 11 September.

The ex-dividend date is Thursday, 27 August.

Beach Energy Ltd (ASX: BPT)

This ASX 200 energy stock will pay a fully-franked dividend of 2 cents per share on 30 September.

The ex-dividend date is Friday, 28 August.

Orora Ltd (ASX: ORA)

This ASX 200 materials stock will pay an unfranked dividend of 4 cents per share on 6 October.

The ex-dividend date is Friday, 28 August.

Iress Ltd (ASX: IRE)

This ASX 200 tech stock will pay a 100% franked dividend of 14 cents per share on 28 September.

The ex-dividend date is Friday, 28 August.

The post 16 ASX 200 shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

These three companies released their FY26 results this week.

Let's see how Morgans adjusted its ratings and 12-month price targets after reviewing the numbers.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price is $5.87, up 1.7% today and down 24% over 12 months.

Morgans kept its buy rating on this ASX 200 wine share after Treasury released its FY26 earnings yesterday.

TWE's FY26 result came in above the top end of its original EBITS guidance range and NPAT beat consensus expectations.

While FY27 is a transition year, we think guidance will prove conservative and could be upgraded at the 1H27 result given the progress on inventory rebalancing (ahead of expectations) and the strong depletions growth across key brands.

Strategies to improve TWE's performance are well underway and should result in it returning to solid earnings growth and a strong balance sheet in FY28. We have upgraded our forecasts.

With a multi-year transformation program in place, strong management and the strength of the Penfolds brand, we reiterate our BUY rating …

The broker increased its 12-month target on Treasury Wine Estates shares significantly from $5.95 to $7.30.

This suggests a potential near-25% upside ahead.

Orora Ltd (ASX: ORA)

The Orora share price is $1.51, up 1.7% today and down 32% over 12 months.

Orora manufactures aluminium cans and glass bottles, mainly for beer, wine, and spirits.

Morgans maintained its hold recommendation on this ASX 200 materials share after Orora's FY26 results.

The broker said:

ORA's FY26 result was slightly softer than our forecasts but largely in line with consensus.

Key positives: Cans continued to perform well with EBIT up 7% on the back of 6% volume growth. The balance sheet remains strong, supporting the resumption of the on-market buyback following the result.

Key negatives: The near-term outlook for Saverglass remains challenging. ORA also recorded a non-cash impairment of $742.8m following a reassessment of the business's earnings outlook relative to expectations at the time of its acquisition in 2023.

With the outlook for the Glass business remaining challenging and group earnings expected to decline in FY27, a recovery still appears some way off.

While management is implementing initiatives to restore growth, progress is likely to be constrained until consumer demand for wine and spirits improves.

The broker reduced its 12-month share price target from $1.55 to $1.45.

This suggests the stock is already more than fully valued.

Transurban Group (ASX: TCL)

The Transurban share price is $14.08, down 3.3% today and up 0.8% over 12 months. 

Morgans maintained a trim rating on Transurban shares after reviewing the company's FY26 report.

EBITDA was slightly below and Free Cash slightly above consensus expectations. FY27 DPS growth guidance was in-line with consensus, but guidance on Free Cash coverage surprised by implying approximately no FC growth in FY27.

The Free Cash guidance indicates TCL is a slower growth stock than implied in its trading yield. If TCL were repriced to APA Group's yield the share price would trade down towards our $12.53 target price.

TRIM into share price strength.

The broker shaved its price target down from $12.63 to $12.53.

This implies a potential 11% downside ahead.

The post Buy, hold, sell: Transurban, Orora, Treasury Wine Estates shares appeared first on The Motley Fool Australia.

If you are, it could be worth hearing what Ord Minnett is saying about the ASX shares below.

Is the broker bullish, bearish, or something in between? Let's find out.

Orora Ltd (ASX: ORA)

Ord Minnett remains relatively positive on this packaging company despite concerns over potential write-downs for the Saverglass business.

The broker has an accumulate (between buy and hold) rating and a $1.55 price target on its shares. It said:

Ord Minnett also highlights the risk of a material write-down of the value of its Saverglass business – bought for $2.2 billion in 2023 but now seemingly valued by the market at circa $850 million – and its Gawler plant – where a $200 million investment was recently made in plant upgrades and repairs – unless end-market demand starts to revive.

Post our review, we cut our EPS estimates by 0.8%, 13.1% and 11.7% for FY26, FY27 and FY28, respectively, to incorporate downgraded volume forecasts, with the Saverglass business feeling the deepest cuts. These downgrades led us to cut our target price on Orora to $1.55 from $1.70, while we maintained our Accumulate recommendation on valuation grounds.

ResMed Inc. (ASX: RMD)

This sleep disorder treatment company recently announced the sale of its MatrixCare business for US$490 million.

Ord Minnett labelled the sale as "strategically sound" and remains positive on the investment opportunity with ResMed shares.

In response, it has retained its buy rating with a $36.60 price target. The broker commented:

ResMed (RMD) sold its MatrixCare unit, a supplier of software to manage post-operative out of hospital care for senior citizens, for US$490 million ($705 million) in cash, with net proceeds to be used to return capital to shareholders via an accelerated share buyback program. Ord Minnett viewed the decision to offload MatrixCare, which is being bought by private equity group Frazier Healthcare Partners, as strategically sound given the business was complementary rather than core to its sleep apnoea and respiratory-focused residential care software (RCS) division. ‍ 

ResMed also reiterated guidance for an FY26 gross operating margin of 62–63%, a selling, general, and administrative (SG&A) expenses-to-sales ratio of 19–20%, and an R&D-to-sales ratio of 6–7%. Post the sale, expected to be completed in the September quarter, we have cut our EPS estimates by 0.2%, 1.2% and 1.0% for FY26, FY27 and FY28, respectively, to incorporate the removal of MatrixCare earnings and a reduced number of shares, which drives a downgrade in our target price to $36.60 from $36.80. We reiterated our Buy recommendation on ResMed.

Virgin Australia Holdings Ltd (ASX: VGN)

This airline operator could be worth considering according to Ord Minnett.

It has been running the rule over Virgin Australia shares and likes what it sees. The broker has put a buy rating and $3.90 price target on them. It said:

Ord Minnett forecasts the airline's net debt-to-operating earnings (ND/EBITDA) multiple will hover near the lower end of its target range of 1–2x out to FY30. Note that this includes our expectations Virgin will commence dividends in FY28 of around $0.18 per share, implying a dividend yield of around 8% on a fully franked basis.

Post our review, we have nudged our EPS estimate for FY26 higher by 0.2%, while our FY27 forecast increases 2.2% and our FY28 numbers are unchanged. This leads us to raise our target price on Virgin to $3.90 from $3.80, and we reiterate our Buy recommendation.

The post Buy, hold, sell: Orora, Virgin Australia, and ResMed shares appeared first on The Motley Fool Australia.

Many Aussies think that they need to invest millions of dollars to make it worth it. But those with more experience know that you can earn a good passive income off any-sized portfolio if it's invested wisely.

But how much dividends could you actually earn?

Let's break it down, using a $400,000 portfolio as an example.

How much could I earn off a $400,000 ASX share portfolio?

To calculate your passive income, you need to multiply your total portfolio value by your dividend yield.

The tricky part is that the answer varies widely depending on your portfolio's dividend yield.

For example, $400,000 x 3% = $12,000 per year in dividend payments.

But if you double your portfolio yield to around 6%, your passive income will be double the size too. That's because $400,000 x 6% = $24,000 per year in dividend payments. 

That's some decent passive income!

Then, as your dividend yield increases, the passive income you can earn from your $400,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credits.

Of course, this type of money isn't going to become a primary income stream, but it'll certainly help turbocharge your wealth.

Which ASX shares could earn me $12,000 per year in dividends?

To earn an annual passive income of around $12,000, your portfolio will need to yield around 3%.

A 3% dividend yield is very achievable, and there is a huge range of high-quality ASX dividend shares that pay out around that level. 

Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are all stable ASX shares that yield around 3%.

What ASX shares could help me earn around $24,000 per year in dividend payments?

To earn an annual passive income of around $24,000, your portfolio will need to yield around 6%.

This is slightly higher than the index average, but there are still plenty of options available.

I'd look at ASX shares like Origin Energy Ltd (ASX: ORG), Graincorp Ltd (ASX: GNC), or Harvey Norman Holdings Ltd (ASX: HVN), which all yield around this level.

What about if I wanted to earn $28,000 per year in dividends, or even more? Is that possible?

Yes, it's possible, although your portfolio would need to average a dividend yield of 7% or higher.

There are options around this level, but remember, the higher the yield, the more risk those ASX shares have.

For ASX shares yielding around 7%, I'd look at Orora Ltd (ASX: ORA), Atlas Arteria Ltd (ASX: ALX), and Dexus Industria REIT (ASX: DXI). Abacus Group (ASX: ABG) pays a little higher, closer to 9%.

Of course, it's important to note that, ideally, you want to build a portfolio comprising a mix of different yielding shares for diversification, rather than a portfolio of just one stock.

The post How much could a $400,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

The fastest rising ASX 200 shares today are Capricorn Metals Ltd (ASX: CMM), up 14%, and Firefly Metals Ltd (ASX: FFM), up 9%.

Among the biggest fallers today are Karoon Energy Ltd (ASX: KAR), down 9%, and Yancoal Australia Ltd (ASX: YAL), down 6%.

Meanwhile, let's check out three ASX 200 shares with new ratings from the experts (courtesy The Bull). 

4DMedical Ltd (ASX: 4DX)

This healthcare share was the best performer of the entire ASX 200 in FY26, skyrocketing 1,786% to $4.53.

Today, the 4DMedical share price is $3.19, up 2.6%.

Philippe Bui from Medallion Financial Group has a buy rating on 4DMedical shares.

Bui said: 

4DMedical is an Australian respiratory imaging company. Its CT:VQ platform uses existing CT scans to improve evaluating lung function amid diagnosing conditions.

Since CT:VQ obtained US Food and Drug Administration (FDA) clearance in 2025, the company has secured deployments with six leading US academic medical centres.

A bipartisan bill in the US directing the Department of Veterans Affairs to establish a pilot program using 4D functional lung imaging software to identify respiratory disorders and lung disease is an encouraging development.

The company is well capitalised and we remain content holders at current levels given several potentially positive catalysts.

Megaport Ltd (ASX: MP1) 

ASX 200 tech shares tanked in FY26, but there were 3 winners, and Megaport was one of them, rising 49%.

Megaport provides cloud and data centre connectivity services through a global network-as-a-service (NaaS) platform.

Today, the Megaport share price is $18.75, up 1.5%.

Bui has a hold rating on this ASX 200 tech share, and commented:  

The business is riding two powerful trends — the global data centre build and the shift to multi cloud.

Global data centre capital expenditure is projected to reach $US1.7 trillion by 2030. Wholly owned subsidiary Latitude.sh recently signed three contracts, adding $A254 million in annual recurring revenue.

Results in the first half of 2026 confirmed growth is high quality, with EBITDA up 28 per cent to $A35.3 million. The shares have soared since April, so much of the good news is now priced into the stock, in our view.

Orora Ltd (ASX: ORA)

The Orora share price is $1.47, up 1% today and down 31% over 12 months.

Orora makes aluminium cans and glass bottles, mainly for beer, wine, and spirits.

Michael Gable from Fairmont Equities has a sell recommendation on this ASX 200 materials share. 

Gable said: 

In April, this packaging company downgraded fiscal year 2026 earnings guidance for its Saverglass business.

The conflict in the Middle East and weaker customer confidence is also impacting performance.

The shares are entrenched in a downtrend and this further heightens the risk of lower share price levels, in my view.

The shares were priced at $2.34 on February 25, three days prior to the start of the war in Iran.

Other stocks appeal more in challenging times across the globe.

The post Buy, hold, sell: Megaport, Orora, 4DMedical shares appeared first on The Motley Fool Australia.

Meanwhile, Ord Minnett has released new research notes on two ASX All Ords shares.

Let's see what the broker has to say, as well as its new 12-month price targets for the stocks.

Virgin Australia Holdings Ltd (ASX: VGN)

The Virgin Australia share price is $2.65, down 0.8% today and down 17% over 12 months.

Virgin Australia is the nation's No. 2 airline behind market leader Qantas Airways Ltd (ASX: QAN).

Ord Minnett updated its Virgin model after the carrier retired its last remaining Airbus A320 in June.

This reduced the Virgin fleet to just two types – 104 Boeing 737s across various models and four Embrauer E190-E2 jets.

In its new note, the broker said it had adjusted its expectations given Virgin's new planes, just delivered, would raise seat capacity.

The increased share of seats for the newer aircraft models, said to have more than 17% better fuel efficiency than older models it will replace, should reduce fuel consumption per available seat kilometre (ASK) by 5% across the network, generating around $50 million in cost savings per annum.

The airline's balance sheet is robust enough for its fleet renewal plans, in our view, despite the large step-up in capital expenditure to more than $900 million annually and expected higher payments for 'heavy' maintenance work as leases expire.

We also highlight a significant planned increase in the share of owned aircraft in its fleet to about 50% by FY32, up from 30% currently, with outright ownership affording Virgin improved lending terms and reduced costs in the longer term versus leasing.

The broker kept its buy rating on this ASX All Ords travel share and raised its target from $3.80 to $3.90.

This suggests a potential 47% upside for Virgin Australia shares in FY27.

Orora Ltd (ASX: ORA)

The Orora share price is $1.46, up 0.5% today and down 30% over 12 months.

Orora designs and manufactures aluminium cans and glass bottles, mainly for beer, wine, and spirits, in Australia and other nations.

Ord Minnett reviewed its Orora model to take into account growing evidence of people drinking less alcohol worldwide.

In its new note, the broker said: 

Data from analytics group Nielsen shows American spirits volumes fell 7% year-on-year (YoY) in the three months to mid-June, while in Europe, spirits volumes lost 3.5% YoY in the three months to mid-May.

Meanwhile, in Australia, retailers such as Coles noted a sharp deterioration of circa 20% in sales from its big-box liquor stores in the March quarter…

Ord Minnett also highlights the risk of a material write-down of the value of its Saverglass business – bought for $2.2 billion in 2023 but now seemingly valued by the market at circa $850 million – and its Gawler plant – where a $200 million investment was recently made in plant upgrades and repairs – unless end-market demand starts to revive.

Ord Minnett kept its accumulate rating on this ASX All Ords materials share on valuation grounds, but cut its target from $1.70 to $1.55.

This implies a potential 6% upside for Orora shares in FY27.

The post What is Ord Minnett saying about Orora and Virgin Australia shares? appeared first on The Motley Fool Australia.

It was a rough return for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares to trading this Tuesday following the long weekend break.

After closing the trading week on a bit of a sour note last Friday, investors didn't lose their cold feet over the weekend. The ASX 200 did recover a little from a sharp plunge at market open this morning, but still closed 0.24% down for the day. That leaves the index at 8,604.2 points.

This miserly start to the short trading week follows a mixed start to the American trading week on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't in a great Monday mood, falling 0.16%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared much better, though, advancing a confident 0.86%.

But let's get back to the local markets now and take stock of how the various ASX sectors fared amid today's tough trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The rebound is happening across most of the sectors on the ASX All Ords Index, and it's positive news for the companies that slumped to 52-week lows on Monday.

Here are four ASX All Ords shares rebounding from a dip today. Here's what brokers expect next.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

Fisher & Paykel Healthcare shares have rebounded 2.06% on Tuesday to $27.21, at the time of writing. It's a welcome turnaround after the ASX All Ords healthcare stock crashed to a two-year low of just $26.67 on Monday. Overall, healthcare shares have come under pressure so far in 2026, and stock prices have tumbled across the board. Slumping sentiment has been driven by a weaker US dollar, concerns about more interest rate rises, rising inflation, and cost-of-living pressures. There are also ongoing concerns about tariffs. But the business remains relatively sound. And the respiratory designer and manufacturer still expects to meet its revised FY26 revenue and profit guidance figures. Brokers rate the ASX All Ords stock as a strong buy and tip a potential 29% upside to $35.10, at the time of writing. 

Endeavour Group Ltd (ASX: EDV)

Endeavour shares have rebounded 2.48% higher to $3.10, at the time of writing. At the close of the ASX on Monday, the shares had crashed to an all-time low of $3.02. The alcoholic beverages retailer, hotel operator, and poker machines operator, owns major retail drinks companies such as Dan Murphy's and BWS. It also owns other brand names such as ALH Hotels, Langton's, and Jimmy Brings. Weaker consumer sentiment has hit the company's growth recently, while higher supply-chain costs and inflation have put margins under pressure. But Endeavour is investing heavily in market competitiveness and online growth. Although brokers aren't sure if the ASX All Ords company can pull off a turnaround. They rate the cost as a sell and top a 12-month target price of $3.51. However, after the latest price crash, it still represents a 14% upside at the time of writing.

Orora Ltd (ASX: ORA)

The packaging company's shares are also rebounding 0.8% at the time of writing, to $1.26. The update comes after the shares crashed to an all-time low on Monday. The ASX All Ords company's share price crashed 18% in early April following its latest trading update. Investors jumped on their sell buttons after the company downgraded its full-year FY26 EBIT guidance for its Saverglass division, citing disruptions from conflict in the Middle East. Brokers are also cautious about the company's outlook. They rate the stock a hold and tip a potential 34% upside to $1.71 at the time of writing. 

Tabcorp Holdings Ltd (ASX: TAH)

Tabcorp shares are climbing higher on Tuesday. At the time of writing, the shares are 1.78% higher at 69 cents a piece. The turnaround follows a slump to a 52-week low yesterday. The wagering company's shares have come under pressure since late 2023 following weaker revenue and profit performance. The stock was gaining traction in early 2026, but news of a letter from Australia's financial crimes watchdog, AUSTRAC, earlier this month sent the share price crashing. The ASX All Ords company said that the watchdog raised serious concerns about the company's ability to identify, mitigate, and manage money laundering and terrorism financing risks. It has also started an enforcement investigation. The shares have lost 41% of their value since the announcement. And brokers are reserved about their outlook for the company. They rate the stock as a hold and tip a potential 42% upside to 98 cents, at the time of writing. 

The post Are these 4 ASX All Ords stocks a buy after rebounding from 52-week lows? appeared first on The Motley Fool Australia.

Below we look at four stocks you would have done well to avoid in the month just past.

Temple & Webster Group Ltd (ASX: TPW)

On 31 March, Temple & Webster shares closed trading for $7.10. On 30 April, shares in the online furniture and homewares retailer ended the day changing hands for $5.64 each.

That put this ASX 200 stock down 20.6% over the month.

Temple & Webster shares closed down 8.2% on 23 April, after the company announced that its co-founder and CEO Mark Coulter was stepping down to take a position as executive chair. Former senior executive Susie Sugden will take over as CEO on 1 July.

A2 Milk Co Ltd (ASX: A2M)

A2 Milk was another ASX 200 stock best avoided in April.

Shares in the dairy company closed on 30 April trading for $7.08, down 26.0% in the month just past.

A2 Milk shares tumbled 13.0% on 13 April following a disappointing trading update.

Citing significant supply chain disruptions, management reduced the company's fully year FY 2026 profit guidance and revenue growth guidance.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) margin guidance was also lowered to 14.0% to 14.5%, from the prior 15.5% to 16.0%.

Orora Ltd (ASX: ORA)

The third ASX 200 stock turning the calendar page on a month to forget is Orora.

Shares in the global packaging company closed on 30 April trading for $1.31 apiece. That saw Orora shares down 30.7% over the month.

The Orora share price crashed 18.0% on 9 April following the release of a trading update.

Investors were overheating their sell buttons after the company downgraded its full year FY 2026 earning before interest and tax (EBIT) guidance for its Saverglass division.

Amid disruptions from the Middle East conflict, Orora now expects underlying FY 2026 EBIT from Saverglass in the range of 63 million to 60 million euros, down from prior guidance of 79 million euros.

Which brings us to…

Cochlear Ltd (ASX: COH)

The worst performing ASX 200 stock to have bought and held in April is Cochlear.

Shares in the hearing solutions company closed on 30 April trading for $94.00 each, down a sharp 44.4% over the month just past.

Cochlear shares crashed 40.7% on 22 April following the company's decidedly underwhelming trading update.

Citing decreased demand for its implants in developed markets and cancelled orders to its Middle East markets amid the Iran war, Cochlear reduced its FY 2026 underlying net profit guidance to between $290 million and $330 million. That's down from prior full year profit guidance of $435 million to $460 million.

The post The worst 4 ASX 200 stocks to buy and hold in April unmasked appeared first on The Motley Fool Australia.

After falling for eight straight sessions in a row, the ASX 200 finally turned a corner today, with investors clearly deciding enough was enough. By the time trading wrapped up, the index had gained 0.74%, leaving it at 8,729.8 points as we head into the weekend.

This stellar end to the trading week for the local markets comes after a euphoric night on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was off to the races, rising a confident 1.62%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was slightly less enthusiastic, but managed a respectable 0.89% jump regardless.

Let's return to the ASX now and examine how today's market optimism percolated down into the different ASX sectors this session.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The company is a global packaging and distribution business.

Investors were heavily exiting their positions in Orora shares following the release of a trading update. 

Most notably, the update included a downgrade to earnings expectations for its Saverglass business.

According to the release, Orora now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros.

On a reported basis, EBIT is expected to fall further to between 52 million euros and 59 million euros.

Orora shares fell 25% across Thursday and Friday last week following the announcement. 

Its share price is now down approximately 33% in 2026. 

Middle East conflict weighing heavily on sentiment 

According to new guidance out of Morgans, the Middle East conflict has affected operations both directly and indirectly: directly through the effective closure of ORA's Ras Al Khaimah (RAK) facility in the UAE, and indirectly through lower spirits volumes and an adverse product-mix shift, which have weighed on earnings. 

As a result, the broker has adjusted FY26/27/28F underlying EBIT by -8%/-11%/-10% for this ASX materials stock.

Given the ongoing uncertainty surrounding the conflict in the Middle East, visibility on the timing of a potential restart at the RAK facility remains limited. In addition, global consumer confidence and spirits demand have already been negatively affected by the conflict and may remain subdued for some time, even in the event of a near-term resolution.

Target price decreases – opportunity elsewhere says Morgans

Based on this guidance, Morgans reduced its price target to $1.55 (previously $2.30) for this ASX materials stock.

It maintained its hold rating. 

From last week's closing price of $1.48, this price target indicates an upside of roughly 5%. 

The broker also noted that there is better opportunity elsewhere within the sector. 

Given this uncertainty, we believe it is prudent to await further updates before reassessing our view. Within the Packaging sector, our preference remains Amcor PLC (ASX: AMC).

The broker has a buy recommendation and $76.00 price target on Amcor shares. 

This indicates approximately 30% upside from its current stock price of $58.28. 

The post What's this broker's updated view on this ASX materials stock following a 25% fall? appeared first on The Motley Fool Australia.

Will the market be able to bounce back on Monday? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set for a strong start to the week despite a mixed finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 0.75% higher. In the United States, the Dow Jones was down 0.55%, the S&P 500 dropped 0.1%, and the Nasdaq rose 0.35%.

Oil prices ease

It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 1.23% to US$96.57 a barrel and the Brent crude oil price was down 0.75% to US$112.57 a barrel. This may have been driven by optimism over peace talks between the US and Iran.

Dividends being paid

A couple more ASX 200 shares will be rewarding their shareholders with dividend payments on Monday. This includes hearing solutions company Cochlear Ltd (ASX: COH) and auto listings giant CAR Group Limited (ASX: CAR). They will be paying partially franked dividends of $2.15 per share and 42.5 cents per share, respectively, later today.

Gold price slides

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price fell on Friday night. According to CNBC, the gold futures price was down 0.65% to US$4,787.4 an ounce. This may also have been driven by news of peace talks between the US and Iran.

Hold Orora shares

Morgans isn't a buyer of Orora Ltd (ASX: ORA) shares despite their heavy decline last week. The broker has retained its hold rating with a heavily reduced price target of $1.55 (from $2.30). It prefers fellow packaging company Amcor (ASX: AMC) and has a buy rating and $76.00 price target on its shares. It said: "Given the ongoing uncertainty surrounding the conflict in the Middle East, visibility on the timing of a potential restart at the RAK facility remains limited. In addition, global consumer confidence and spirits demand have already been negatively affected by the conflict and may remain subdued for some time, even in the event of a near-term resolution. Given this uncertainty, we believe it is prudent to await further updates before reassessing our view. Within the Packaging sector, our preference remains Amcor (AMC, BUY, $76.00 TP)."

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Beetaloo Energy Australia Ltd (ASX: BTL)

The Beetaloo Energy share price is down 13% to 30 cents. This has been driven by the energy company completing a $66.3 million placement this morning. These funds were raised at 28 cents per new share, which represents an 18.8% discount to its last close price. The company's managing director, Alex Underwood, commented: "This Placement marks a pivotal moment for Beetaloo Energy. The participation by existing and new investors reflects genuine conviction in the potential scale of our Beetaloo Basin acreage and projects in the Northern Territory. […] we are now fully funded through to first pilot gas sales expected in Q4 2026, a milestone that we believe will be transformational for Beetaloo Energy and for Australia's domestic gas supply."

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down 2% to $20.09. This is despite the mining giant announcing that it is accelerating the delivery of the world's first industrial and fully integrated green energy grid. This grid is dedicated to eliminating fossil fuels from large-scale industry, at a scale comparable to a city. It expects implementation to ramp up within two years. It also confirmed that it expects to save US$100 million in fossil fuel costs by next year, and at the completion of its decarbonisation program, expects to see a further reduction in C1 unit costs of at least US$2 to US$4 per wet metric tonne. It believes this demonstrates that eliminating fossil fuels is not only achievable, but economically superior.

Orora Ltd (ASX: ORA)

The Orora share price is down a further 7% to $1.50. This packaging company's shares have been sold off this week following the release of a trading update. Partly due to the war in the Middle East, Orora's Saverglass has been underperforming expectations. Management now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from its previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros. The company notes that shipping routes and overland access have been disrupted in the Middle East, forcing Orora to transition its facility into a closed-loop hot operation.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 5.5% to $7.93. This morning, this coal miner announced a new US$600 million senior secured syndicated facility. It comes with a tenor of 4.5 years consisting of a US$475 million term loan and a US$125 million revolving credit facility. Whitehaven's CEO, Paul Flynn, said: "With Whitehaven's strengthened credit profile and successful integration – and initial improvements – of the Daunia and Blackwater metallurgical coal operations, we are focused on refinancing our acquisition credit facility and establishing a capital structure with more diverse, longer tenor and lower cost debt facilities."

The post Why Beetaloo, Fortescue, Orora, and Whitehaven Coal shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Orora Ltd (ASX: ORA)

The Orora share price is down 20% to $1.57. Investors have been selling this packaging company's shares following the release of a trading update. Partly due to the war in the Middle East, Orora's Saverglass has been underperforming expectations. Orora now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from its previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros. It notes that shipping routes and overland access have been disrupted in the Middle East, forcing Orora to transition its facility into a closed-loop hot operation. This means the furnace is kept running, but no bottles are produced.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is down 8% to $3.69. This morning, this almond producer revealed the surprise resignation of its CEO, David Surveyor, after three and a half years leading the company. The release notes that Mr Surveyor will remain with the company to work through his six-month notice period and assist with an orderly transition. Surveyor commented: "It has been a privilege to lead Select Harvests over the past three years. I am proud of the transformation we have achieved together. Our people have lifted strategy and execution across the business, from improving our horticultural practices to step changing our processing capability and redefining our approach to market."

Tamboran Resources Corp (ASX: TBN)

The Tamboran Resources share price is down 17.5% to 26 cents. This has been driven by the completion of the institutional component of an equity raising. The natural gas company has raised US$103 million (A$147.1 million) of gross proceeds via a registered underwritten public offer. Tamboran Resources' CEO, Todd Abbott, said: "We are entering what will be the most active two‑year period in the Beetaloo Basin to date, including the delivery of first gas sales in the third quarter of 2026 and the continued delineation of gas resources across our Beetaloo East and Beetaloo West acreage."

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 10% to $38.92. This is despite there being no news out of the logistics solutions software provider on Thursday. However, it is worth noting that the tech sector is a sea of red today, with heavy declines being seen across the board. This has led to the S&P/ASX All Technology index dropping a sizeable 4.5%.

The post Why Orora, Select Harvests, Tamboran, and WiseTech shares are sinking today appeared first on The Motley Fool Australia.

At the time of writing, the ASX 200 share is down 16% to $1.63.

Why is this ASX 200 share sinking today?

Investors have been selling the packaging company's shares following the release of a trading update, which included a downgrade to earnings expectations for its Saverglass business.

According to the release, Orora now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros.

On a reported basis, EBIT is expected to fall further to between 52 million euros and 59 million euros.

Middle East conflict weighing on earnings

Management highlighted that the downgrade reflects both direct and indirect impacts from the ongoing Middle East conflict.

Directly, the company expects a 9 million euro to 11 million euro hit to second half earnings due to disruptions at its Ras al Khaimah (RAK) facility in the United Arab Emirates.

Shipping routes and overland access have been disrupted, forcing Orora to transition the facility into a closed-loop hot operation. This means the furnace is kept running, but no bottles are produced.

The RAK facility accounts for approximately 15% of Saverglass production capacity, with output now expected to shift to Mexico over time.

Softer demand and mix shift

In addition to the direct impact, Orora flagged weaker-than-expected trading conditions.

The company said volumes are now expected to be lower than previously forecast, with a shift in product mix also weighing on margins.

Specifically, there has been a greater-than-anticipated shift toward wine and champagne relative to premium spirits, alongside softer customer demand following the onset of the conflict.

This combination is expected to reduce earnings by a further 11 million euros to 16 million euros in the second half.

Other impacts

The ASX 200 share also noted that inventory levels have increased due to slower customer offtake and rising competitive pressures.

In response to the uncertainty, the company has decided to pause its on-market share buyback program while it monitors the situation.

Nevertheless, despite these challenges, management emphasised that the company's balance sheet remains strong, with leverage expected to stay below 1.5 times by June 2026.

The post Why is this ASX 200 share sinking 16% today? appeared first on The Motley Fool Australia.