Week 3 Earnings Preview: 10 shares you should be watching

Week two of earnings season was headlined by some of the biggest shares on the ASX including Telstra Corporation Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA).

The upcoming week is shaping up to be an even bigger week with around three times as many companies reporting their results to the market.

Some of the big name shares investors should watch this week include:


JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi shares are trading at all-time highs on the expectations of a takeover of The Good Guys and partially as a result of the benefits expected to flow-on from the demise of Dick Smith. Nevertheless, investors will want to see the electronics retailer meet or beat its stated guidance for FY16 sales to be around $3.9 billion and NPAT to be in the range of $143 million to $147 million.

Ansell Limited (ASX: ANN)

Ansell has disappointed investors over the past 18 months as the company has struggled with unfavourable currency movements and negative sales growth. The company has guided for a strong second half performance, however, and expects to report full year earnings per share (EPS) of US$0.95 to US$1.10.


BHP Billiton Limited (ASX: BHP)

As one of the most widely-held stocks on the ASX, BHP will be the major headline story on Tuesday and investors will hope for an upbeat outlook statement when the company reports. Investors will be keen to see how the underlying business is performing, although headline profits will be impacted by provisions taken for the Samarco disaster.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Considering its sky-high valuation, I think the market darling will have to post better-than-expected profit results to keep the market happy. Domino’s upgraded its earnings guidance after a strong first half and expects full year NPAT growth of at least 35%.


CSL Limited (ASX: CSL)

CSL is not expected to deliver massive profit growth for FY16, with the company expecting profit growth of just 5% in constant currency terms. Despite this, the market will look for stronger guidance for FY17 on the back of new treatments and improvements to its manufacturing facilities.

QBE Insurance Group Ltd (ASX: QBE)

The insurance giant is once again expected to be negatively impacted by lower investment yields, although the performance of the underwriting division is expected be in-line with expectations. According to CommSec, earnings and dividends are expected to come in at US$285.5 million and US19.0¢, respectively.


Sydney Airport Holdings Ltd (ASX: SYD)

Sydney Airport delivered strong passenger numbers throughout FY16 and this is expected to drive a strong increase in full year profits. Investors will also be keen to find out FY17 distribution guidance.

AMP Limited (ASX: AMP)

Considering its market-leading position, AMP has been a serial underperformer and investors will hope the wealth manager has made progress on fixing its life insurance business when it reports. CommSec expects the company to deliver second half earnings of $485 million and a dividend of 13.9 cents per share.


Woodside Petroleum Limited (ASX: WPL)

Australia’s largest energy company has undoubtedly suffered from the downturn in oil prices, although it still remains comfortably profitable at current prices. Investors will look closely at the company’s balance sheet, current cost of production, expected capital expenditure and production guidance for FY17.

Medibank Private Ltd (ASX: MPL)

The private health insurer delivered a very strong first half result, although this is not expected to be replicated in the second half. According to CommSec, investors should look for full year NPAT to come in at $406.3 million and a final dividend of 5.8 cents per share.

Knowing which stocks to avoid this reporting season is just as important as knowing which stocks you should hold...

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.