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Earnings Preview: 8 shares to watch this week

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Earnings season shifts into a higher gear this week with a number of big name companies delivering their results to shareholders.

Some of the shares investors should keep a close eye on this week include:

Monday

Bendigo and Adelaide Bank Ltd (ASX: BEN) – According to CommSec, the market will look for net profit after tax (NPAT) of $201.7 million for the second half of FY16 and a final dividend of 34 cents per share. Investors will pay close attention to the regional bank’s net interest margin (NIM) and for movements in bad and doubtful debts.

Tuesday

REA Group Limited (ASX: REA) – Investors should expect another strong result from REA Group with double digit growth expected for most of the company’s key financial metrics. I’ll look closely for changes to the group’s operating margins and to see if the resurgence of Domain is having an impact on profitability.

Cochlear Limited (ASX: COH) – Cochlear’s share price has surged by around 30% over the past five months so investors will hope for a better-than-expected result when the company reports. According to Commsec, investors should be looking for NPAT of $190.4 million (slightly above guidance) and a full year dividend of 230.9 cents per share.

Transurban Group (ASX: TCL) – The toll road operator has been a consistent performer and investors will look for another strong result to justify the great run the shares have had over the last year. Investors will want to see higher toll revenues translate into higher earnings and will also be keen for FY17 dividend guidance.

Wednesday

Commonwealth Bank of Australia (ASX: CBA) – All eyes will be on Australia’s biggest bank which is expected to deliver NPAT in excess of $9.3 billion. Investors will hope the dividend is maintained (previous corresponding period was $2.22 per share) and that NIMs haven’t been squeezed too much. The market will also look closely at the Bank’s outlook statement.

AGL Energy Limited (ASX: AGL) – The energy provider recently confirmed its FY16 results will be in-line with its previous guidance for underlying profit in the upper half of the guidance range of $650 million to $720 million. Investors, therefore, shouldn’t expect any nasty surprises when the company reports, but will look closely at how each operating segment is performing.

Thursday

Telstra Corporation Ltd (ASX: TLS) – According to CommSec, consensus forecasts suggest investors should look for NPAT of around $4.8 billion and a final dividend of 16 cents per share. Along with the financial results, investors will be just as keen for further details of Telstra’s $1.5 billion capital management program that was announced in May.

Magellan Financial Group Ltd (ASX: MFG) – Magellan’s share price has been quite volatile over the past 12 months thanks to market moving events such as Brexit and this volatility means it is hard to gauge just how well the fund manager has performed in FY16. Despite this, CommSec expects the company to deliver NPAT of $197 million – a 13% increase on FY15.

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Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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