Reporting season preview

Follow the Fool's guides this reporting season

a woman

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

August is traditionally the busiest month of the year as the majority of ASX listed companies report their 6 or 12 month results to the end of June 2012. The deadline for reporting is set as the end of August, which is why you may notice many companies report their results in the last few weeks of the month.

Some companies, either with fairly simple operations or great accounting systems will report earlier in the month, and some even report as early as July – GUD Holdings Limited (ASX: GUD) and Navitas Limited (ASX: NVT) are examples.

Given the weak economic environment, analysts (and many investors) will be eagerly poring over company statements, attending company briefings and presentations in an effort to assess any changes in company fortunes. For many broker analysts, the most important piece of information is not what the company has just reported, but what the company's outlook is and forecast for the following year. (After all, if the company forecasts to make a certain amount of profit or revenue in the coming year, that's pretty easy to plug into their models, rather than having to trying and produce the forecasts themselves).

August will see a vast variety of companies reporting results including banks, telcos, utilities, property trusts (or A-REITs as they are now known), retailers, services & financial companies, miners, explorers and your standard industrial companies like Boral Limited (ASX: BLD) and Amcor Limited (ASX: AMC). Novice and expert investors alike, can struggle to work out whether the results are good or not.

To help you make sense of company results, we've prepared a series of articles on the major sectors. We'll also be bringing you updates on many of the largest and most popular stocks, as they report.

For all companies, I'll be looking for any  one-off, or abnormal items, which are gains or losses on things like sale of assets, writedowns of goodwill and other intangibles, restructuring expenses. BHP Billiton's (ASX: BHP) US$2.8 billion writedown on the value of its shale gas assets is a perfect example. Some companies, like Amcor, report one-offs so frequently, you have to wonder if they should actually be classified as one-offs, or included as part of normal business. In weak economic conditions such as we are currently experiencing, companies may use the opportunity to take more one-off expenses, especially if they report a loss. Investors don't seem to take much notice how big the loss is, just that the company has reported a loss.

I'll also be looking at profit growth and margins, return on equity and debt levels for all companies. Hopefully, I've whetted your appetite and the previews add something to your investing knowledge. With that in mind, watch the website for the imminent release of the first reviews. We'll also be updating this article with links below to the whole series.

If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool writer/analyst Mike King owns shares in BHP and GUD Holdings. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »