We are around a third of the way through this year's August reporting season and so far everything seems to be going to plan. Analysts expect that earnings and dividends will increase between 7% and 9% over the period and luckily we haven't seen many of the massive disappointments common around this time of year.
The Best 3
Three of the best performing companies this reporting seasons have been growth companies that have either lived up to their ambitious forecasts or have performed even better than the market expected.
Can they continue to outperform? Will we see their share price accelerate over the next 12 months? Only time will tell but investing in companies that the market is impressed with has been a successful strategy for many investors over the years.
Domino's Pizza Enterprises Ltd. (ASX: DMP) reported an amazing 70% increase in earnings before interest, tax, depreciation and amortisation due to the stellar performance of the group's investment in the Japanese franchises of the Domino's brand. The company has forecast another big year in 2015 with EBITDA growth of 20% expected from improving conditions in Japan and Europe.
Some analysts have expressed caution at the current share price but investors are willing to pay more for strong growth stocks and Domino's looks set to be just that.
Shares in CSL Limited (ASX: CSL) have jumped nearly 10% since full year results were released last week. CSL recorded, as should be expected from a reliable company, an 8% increase in revenue and 9% increase in net profit after tax. The result continued the years of solid growth that have pushed the share price from just $27 in 2011 to $70 today. Analysts expect CSL will deliver between 10% and 15% earnings per share growth in the next two years, aided by share buy-backs and new product releases.
Finally, Crown Resorts Ltd (ASX: CWN) was an underachiever going into the results season but outperformed all expectations and is up nearly 10% over the last five trading days. The group announced a 35% increase in net profit and a 24% lift in free cashflow. Crown has a massive pipeline of casinos and hotels due to finish construction over the next five years which should push earnings, and hopefully the share price, much higher.
