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ASX stocks have been busy in the reporting season, which is a week away from concluding, and substantial businesses have reported earnings.
It is likely that the sell-side consensus would be either upgrading or downgrading companies under their coverage as the reporting season comes to an end and analysts revise their projections, based on the latest financials.
In this article, we have picked some stocks of consumers and financial services focused companies. Most of these companies have reported attractive results with interim dividends.
Australian Finance Group Limited (ASX:AFG)
Mortgage origination and lending business, Australian Finance Group reported strong first-half performance. Improving lending conditions in the economy are proving to be tailwinds for the business.
On its proposed merger with Connective, which is facing scrutiny at the ACCC, AFG is confident that the merger would complete, reckoning that the proposed transaction is pro-competitive.
On 21 February 2020, AFG last traded at $3.040, up by 10.545 per cent from the previous close.
Genworth Mortgage Insurance Australia Limited (ASX:GMA)
Lenders mortgage insurance business, Genworth Mortgage Insurance recorded a 58.7 per cent rise in statutory profit after tax for the full year (FY2019), largely owing to unrealised gains in the investment portfolio.
In FY2019, the company declared total dividends of 16.5 cents per share, in addition to special dividends of 46.1 cents per share.
On outlook, it was noted that the performance of the insurer would be impacted by prevailing economic conditions of the country, including labour markets, household income growth, and First Home Loan Deposit Scheme.
On 21 February 2020, GMA last traded at $3.600, up by 1.983 per cent from the previous close.
Magellan Financial Group Limited (ASX:MFG)
Asset management company, Magellan continued to its growth trajectory in revenue base, profits and dividends. It is focused on client driven outcomes, entering into listed space with two funds in line.
On 21 February 2020, MFG last traded at $72.400, up by 0.695 per cent from the previous close.
Auswide Bank Ltd (ASX:ABA)
Small-cap banking company, Auswide Bank released half-year results for the period ended 31 December 2019. Its net interest revenue increased 10.9 per cent to $34.51 million compared to $31.1 million.
In the first half, the bank recorded strong annualised loan book growth of 5.4 per cent in a challenging lending environment, which is higher compared to industry level growth of 2.4 per cent.
During the second half, ABA intends to focus on improving the cost to income ratio, upward net interest margin trend, return on net tangible assets of 10 per cent, and a better lending growth across channels compared to the system.
On 21 February 2020, ABA last traded at $6.710, up by 1.36 per cent from the previous close.
JB Hi-Fi Limited (ASX:JBH)
In the half-year period, the company recorded total sales of $4 billion, which increased 3.9 per cent with positive comparable sales growth across all three divisions. In Australian segment, total sales grew 5.1 per cent to $2.72 billion with online sales growth of 18.3 per cent.
In NZ segment, total sales increased 0.8 per cent to NZD132.8 million, of which 7.3 per cent was sourced from online channel. In The Good Guys segment, total sales grew by 1.5 per cent to $1.15 billion with comparable sales growth of 0.6 per cent.
The company has increased its full-year sales guidance to $7.33 billion with net profit after tax to be in the range of $265 million to $270 million, pre AASB 16.
On 21 February 2020, JBH last traded at $40.230, up by 1.54 per cent from the previous close.
Breville Group Limited (ASX:BRG)
For the half-year ended 31 December 2019, Breville Group reported revenue of $552 million, up by 25.4 per cent from $440.4 million in the pcp. In the global product segment, the company recorded double-digit growth in revenue from all regions and categories.
Net profit after tax for the period was $49.7 million, up by 14.1 per cent from $43.5 million in the previous corresponding period. A 60 per cent franked interim dividend of 20.5 cents per share has been declared by the company.
In addition, the company expects EBIT of $110 million for the full year, assuming no major disruptions in the operating condition and pre AASB 16. BRG said that spending on marketing and R&D, as a percent of net sales, would increase.
On 21 February 2020, BRG last traded at $21.890, down by 1.927 per cent from the previous close.
Domino's Pizza Enterprises Limited (ASX:DMP)
Global pizza restaurant operator, DMP clocked network sales of $1.58 billion for the half-year ended December 2019. Its global food sales were up by $151.3 million or 10.6 per cent over the previous corresponding period.
DMP’s online sales recorded a growth of 18.8 per cent to $1.1 billion, while the business added 85 new stores to its closet. The Company will pay shareholders an interim dividend of 66.7 cents per share on 13 March 2020.
On outlook, DMP notes that same store sales (sss) growth in the initial trading weeks during the second half was 6.3 per cent and FY to date sss growth was 4.6 per cent. Also, the company is examining opportunities to expand reach.
On 21 February 2020, DMP last traded at $62.780, down by 3.042 per cent from the previous close.
