Here we are, already into the first week of reporting season where investors get a chance to see what companies got an "A", "F" or something in between on their earnings "report card". Some companies are already on the edge of reporting a dismal first half and a possibly flat second half as well.
For example, Kathmandu Holdings Ltd (ASX: KMD), the outdoor gear and apparel retailer got punished on Monday for poor sales and earnings – shares were down 27.5% at the close. JB Hi-Fi Limited (ASX: JBH) slightly rose on small sales growth results.
Curious minds might ask, "Are there any companies that looked quite strong before reporting season?" They may get a share price boost when their earnings are announced, so maybe you can get a head start on other investors. But don't forget investing is always about focusing on buying good companies over the long term.
Suncorp Group Ltd (ASX: SUN) for this business I want to see how the company's simplification and cost-cutting program has created savings and potentially improved earnings. Also, the insurer and banker has paid out special dividends in the recent past, so there might be more dividend income for shareholders.
Slater & Gordon Limited (ASX: SGH) acquired a number of law practices both in Australia and the UK in the past year or so. The new additions to the company's law firm network may raise overall earnings and help keep Slater & Gordon's stock heading higher.
Cochlear Limited (ASX: COH), the "bionic ear" Cochlear implant producer, had remarkable improvement in both business and share price since early 2014. The company is the market leader in the US for cochlear implant hearing devices and has new products in all its categories. The popular and reliable brand keeps new customers coming. Cochlear's half-year revenue and earnings could show even further increases, so there could be good news when it reports.
Domino's Pizza Enterprises Ltd (ASX: DMP) has been driving pizza sales with its "Pizza Moghul" ad campaign and online ordering has taken off as a strong success. Also, its Domino's Pizza Japan stores have been quickly growing in number, so I am looking forward to seeing how that segment's earnings turned out. The takeaway pizza retailer's annual earnings are forecast to grow an average 23% over the next few years.
