Own Blackmores (ASX:BKL) shares? Here's what to expect during reporting season

Are the good times returning for this health supplements company?

| More on:
blackmores share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Blackmores Limited (ASX: BKL) share price has been a relatively poor performer over the last 12 months.

During this time, the health supplements company's shares are up almost 3%. This compares to a 25% gain by the S&P/ASX 200 Index (ASX: XJO).

In light of this, investors will no doubt be hoping that a strong full year result in August could be the catalyst to getting Blackmores shares heading higher again.

What is the market expecting from Blackmores in FY 2021?

According to a note out of Goldman Sachs, its analysts are expecting Blackmores to report a 1% increase in revenue in FY 2021 to $573.8 million. This is expected to be driven by double digit sales growth in the China and International divisions, offsetting a 10% decline in ANZ sales to $292.9 million.

Positively, the broker is expecting Blackmores' earnings growth to be much stronger. Goldman is forecasting earnings before interest and tax (EBIT) to come in 67.4% higher year on year at $52.5 million. Once again, weakness in the ANZ segment is expected to be offset by strong growth in its China and International divisions.

And on the bottom line, the broker is expecting Blackmores to report an underlying FY 2021 net profit after tax of $34.7 million. This is an increase of 118.6% year on year and 6.6% ahead of the market consensus estimate of $32.5 million.

Finally, Goldman Sachs expects this improved performance to allow the Blackmores Board to declare a final fully franked dividend of 42.6 cents per share.

The broker commented: "We expect BKL to report group revenue of A$573.8mn (-0.9% vs. consensus and +1.0% yoy) and EBIT of A$52.5mn (+67.4% yoy) for FY21. For BKL, the key factors to watch for from our perspective are pricing levels, growth in the international markets, progress on market launch in India and indications of foot traffic improvements in Australia."

Are Blackmores shares good value?

Despite forecasting strong growth, Goldman continues to hold firm with its neutral rating and $74.80 price target.

Based on the latest Blackmores share price of $72.65, this implies potential upside of just under 3%.

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

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

10 Aussie stocks to buy in FY 2026

Let's see which shares analysts think could be buys in the upcoming financial year.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, BHP, Boss Energy, and Orthocell shares are racing higher

These shares are ending the week on a positive note. But why?

Read more »

Mum playing with her baby boy holding him on her tummy as she lays down while smiling about the Bubs share price going up today
Broker Notes

Following two unfortunate incidents, what's Macquarie's price target on Monash IVF shares?

Is Monash IVF a buying opportunity?

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Macquarie tips 18% return for this ASX 200 stock

The broker thinks this blue chip's profits are going to rebound in FY 2026.

Read more »