Earnings season is just a few days away and there certainly is a lot to look forward to in my opinion.
Three key results that I am watching out for are summarised below. Here's what to expect:
Altium Limited (ASX: ALU)
On August 20 this printed circuit board (PCB) design software provider is expected to release its full-year results. Expectations are high after a stunning half-year result led to its shares catapulting higher. According to Bloomberg, the market is expecting Altium to achieve net profit after tax of US$37.4 million. This follows a first-half net profit after tax of US$14.9 million, up 51% on the prior corresponding period. While this is a big ask, I believe the growing popularity for its award-winning software and the rise of the internet of things has put it in a position to achieve this.
Domino's Pizza Enterprises Ltd (ASX: DMP)
On August 14 this pizza chain operator is due to release its highly-anticipated full-year results. Opinion is divided on whether or not Domino's will achieve its guidance of at least 20% year-on-year growth in net profit after tax. Short sellers certainly don't expect the company to achieve it, especially after Domino's only delivered net profit after tax growth of 7% in the first-half of FY 2018. Whatever happens in August, I think Domino's is a great long-term buy and hold option for investors due largely to its expansion plans.
JB Hi-Fi Limited (ASX: JBH)
This retail giant is due to release its full-year results on August 13. All eyes will be on its sales growth after a surprisingly weak third-quarter performance from its Good Guys business. Competitive pressures led to the business experiencing a 1.3% decline in quarterly sales compared to the prior corresponding period. Comparable store sales declined 2.9% during the period. Like Domino's, short sellers don't appear confident that the company will achieve the Bloomberg consensus net profit after tax estimate of $230.8 million. Short interest has shot up in recent weeks and earlier this week stood at a massive 19.1%.
