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3 big results to look out for in August

Earnings season is just a few days away and there certainly is a lot to look forward to in my opinion.

Three key results that I am watching out for are summarised below. Here’s what to expect:

Altium Limited (ASX: ALU)

On August 20 this printed circuit board (PCB) design software provider is expected to release its full-year results. Expectations are high after a stunning half-year result led to its shares catapulting higher. According to Bloomberg, the market is expecting Altium to achieve net profit after tax of US$37.4 million. This follows a first-half net profit after tax of US$14.9 million, up 51% on the prior corresponding period. While this is a big ask, I believe the growing popularity for its award-winning software and the rise of the internet of things has put it in a position to achieve this.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

On August 14 this pizza chain operator is due to release its highly-anticipated full-year results. Opinion is divided on whether or not Domino’s will achieve its guidance of at least 20% year-on-year growth in net profit after tax. Short sellers certainly don’t expect the company to achieve it, especially after Domino’s only delivered net profit after tax growth of 7% in the first-half of FY 2018. Whatever happens in August, I think Domino’s is a great long-term buy and hold option for investors due largely to its expansion plans.

JB Hi-Fi Limited (ASX: JBH)

This retail giant is due to release its full-year results on August 13. All eyes will be on its sales growth after a surprisingly weak third-quarter performance from its Good Guys business. Competitive pressures led to the business experiencing a 1.3% decline in quarterly sales compared to the prior corresponding period. Comparable store sales declined 2.9% during the period. Like Domino’s, short sellers don’t appear confident that the company will achieve the Bloomberg consensus net profit after tax estimate of $230.8 million. Short interest has shot up in recent weeks and earlier this week stood at a massive 19.1%.

Finally, here are three mid cap stars which I expect to deliver strong results in August.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. 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 Scott Phillips.

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