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The ASX reporting season is perhaps one of the most awaited celebrations of the Australian stock market. It is the time wherein the publicly listed companies of one of the world’s most active exchanges announce their financial and operational results and provide investors and other market participants with the outlook and plan of actions.
As expected, the first reporting season of the decade remained up and running as a herd of ASX companies released their newest results. Experts opine that this time Australia witnessed a mixed reporting season amid increasing fear of the coronavirus, the plight of the bushfires and the global economy’s probable downward spiral due to trade disruptions.
In this backdrop, we have cherry-picked four ASX-listed stocks that released quite promising results recently and should not miss the investor’s eye-
CSL Limited (ASX:CSL) - 1H20 NPAT Up 11%, Upgraded Guidance for FY20
Recently named amongst one of Forbes Magazine’s Best Employers for Diversity 2020, this leading global biotech company continued to deliver strong profit growth for the six months ended 31 December 2019.
CSL’s reported NPAT was USD 1,248 million, up by 11% on a constant currency basis. This was catalysed by strong growth in immunoglobulin products, well-progressing transition to the China distribution model, continued evolution of the haemophilia therapies portfolio and Seqirus influenza vaccines business delivering another strong performance. Moreover, EPS increased by 11% to stand at USD 2.75.
At the back of focused execution of its strategy and robust demand for our differentiated medicines, CSL’s strong half-year was well acknowledged by market enthusiasts. The declared interim dividend of USD 0.95 per share was up by 18% and bolstered confidence amid investors that the Company is on the right trajectory.
CSL’s outlook also seems promising, as it upgraded its FY20 profit outlook and the NPAT for FY20 is now anticipated to be in the range of approximately USD 2,110 million to USD 2,170 million at constant currency, demonstrating a lift of 10-13% over FY19.
JB Hi-Fi Limited (ASX:JBH)- Record Sales, Earnings in 1H20, FY20 Total Sales to be $7.33 billion
One of Australia's largest home entertainment retailer that sells and specialises in consumer goods, JBH reported its half-year 2020 results on 10 February 2020.
The Company’s total sales were up by 3.9% to $4 billion, with positive comparable sales growth across its three divisions (JB HI-FI Australia, JB HI-FI New Zealand and The Good Guys). The Group EBIT was up by 8.0% to $255.6 million while NPAT rose by 8.9% to $174.4 million. EPS too grew to 151.8 cps (up by 8.9%).
JBH Performance (Source: JBH’s Report)
Building onto investor sentiment positively, the Company declared an Interim dividend which was up 8.8% to 99 cps, to be payable on 6 March 2020. The Board believes that the existing dividend payout ratio, which is 65%, suitably balances the allocation of profit to stockholders.
On the guidance front, JBH expects the total sales to be circa $7.33 billion. The total NPAT is expected to range between $265 and $270 million, up by 6.1 - 8.1% on the pcp.
The Company does appear to be clear on its objectives for the next six months and as CEO Richard Murray stated- remains excited by the outlook for its business.
Coles Group Limited (ASX:COL) - Growth Across Segments, Interim Dividend of 30 cps declared
The leading Australian retailer, with over 2,500 retail outlets nationally, Coles caters to over 21 million customers. On 18 February 2020, the Company declared its Statutory results for 1H20, highlighting the below-
- First-half sales revenue increased by 3.3% with growth in all segments
- The period marked the 49th consecutive quarter of Supermarkets comparable sales growth, increasing to 3.6% in Q2
- Express comparable fuel volume growth was 4.2%, marking the first consecutive quarters of growth in six years
- EBIT was up by 0.4%, catalysed by strong property disposal demand
- The Company declared an interim fully franked dividend of 30 cents per share declared, which was in line with the demerger guidance.
- The reporting period was the most significant range change period in recent years with more than 3,000 new products introduced
- The Smarter Selling strategy seems in place with $95 million in cost-out due to Smarter Selling initiatives
- The Company, justifying its Win Together strategy, contributed more than $6 million to rural firefighters and towards bushfire relief
Goodman Group (ASX:GMG) - Strong 1H20 Propels Upgraded FY20 EPS Forecast
Investors are currently eyeing the Australian real estate sector, which is on recovery mode since some time now and is likely to get a further boost from the upcoming anticipated rate cuts. Moreover, the sector is regarded as a safe haven for investors, (especially in market crunch periods) when it comes to offering a quite stable dividend flow and consequently enhancing passive income.
In this backdrop, we are throwing some light on the integrated commercial and industrial property group, GMG’s results for the half-year ended 31 December 2019.
The Group posted an operating profit worth $530.4 million, higher by 14.1% on 1H19. The EPS amounted to 28.8 cents, up by 12.9% on 1H19 while the statutory profit for 1H20 stood at $810.6 million. Earnings from development, investment and management were up by at least 10% (relative to 1H19) while the AUM grew 15% and was reported at $49.2 billion.
The Company continues to focus on markets where the e-commerce business is expanding, the need for well-equipped supply chains is becoming greater, and customer expectations are escalating.
Building scale in its target markets, GMG’s development work in progress grew to $4.3 billion at the half and is likely to surpass $5 billion. Moreover, the Group upgraded its forecast FY20 EPS to 57.3 cps (a growth of 11% on FY19). It has also confirmed the forecast full-year distribution worth 30 cps.
As deciphered from the above results, the ASX did succeed in providing few positive results amid the nervousness catalysed by bushfires, floods and a potential global pandemic of the coronavirus. However, with the coronavirus plague spreading across the globe, business disruptions could be likely; though it is too early to predict the impact right-a-way.
