Heading into reporting season, anticipation always runs high. Will my company report cracking results? Will it blow up? Who knows? Here are 3 of the most hotly anticipated questions of 2017's reporting season:
- Will Telstra Corporation Ltd (ASX: TLS) cut its dividend?
Last year, Telstra paid out more per share than it earned in income. This is obviously unsustainable, but Telstra's dividend has become such an article of faith that it is hard to see the company cutting without a big backlash from investors. Telstra remains heavily indebted though and is growing at only a modest pace, so a dividend cut could be in order. Telstra reports on 17 August.
- Can Vocus Group Ltd (ASX: VOC) meets its guidance?
With multiple $3.50 per share non-binding takeover bids hanging over it, and several recent downgrades, the market is anxiously wondering if Vocus can meet its stated guidance for the full year. Importantly, given the company's debt burden, any shortfall could put Vocus quite close to breaching the covenants on its debt which could lead to asset sales or a capital raising. Vocus will release its full-year results on 23 August.
- Is Commonwealth Bank of Australia's (ASX: CBA) lending growth coming to an end?
After a near 25-year boom time for the banking industry, are the big banks about to reveal slowing lending growth and higher bad debts? Recent tightening of lending standards imposed by the regulator is expected to lead to slower loan growth, although the big banks responded by raising interest rates, which could in fact make their loans more profitable. Suncorp Group Ltd (ASX: SUN) revealed modest loan growth, shrinking margins, and record low loan losses, which could be a sign of things to come. Commbank reports on 9 August, and we'll have full coverage of all these companies as they report.
