3 reports I’m looking forward to this earnings season

Reporting season is starting and it sort of feels like Christmas. Opening up the report and not knowing what’s in it is fun feeling this time of year.

FY18 could turn out to be a key point. There has been synchronised growth across the globe and this has helped Australia’s export-focused economy quite substantially.

There are some reports that I’m looking forward to more than others, particularly because I’m interested to see what the market’s reaction is to them. Here are three of the ones I’ve got my eyes on:

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. It provides engineers with software for what they need to create the products of the future.

Its share price has been an amazing performer and over the past year alone it has gone up by almost 140%.

It’s trading at almost 42x FY19’s estimated earnings, which in a rising interest environment might just be too high to justify.

However, it could also unveil a very impressive set of numbers that may send the share price even higher. I have a feeling it could go up or down by more than 10% on report day.

InvoCare Limited (ASX: IVC)

InvoCare is Australia and New Zealand’s leading funeral provider with a market share of around a third.

The number of deaths recently is reportedly lower than the expected number. Plus, when you add in InvoCare’s refurbishment investment costs and take off the revenue from the temporarily-closed locations it’s easy to see why short interest is over 9% at the moment.

However, InvoCare has recently been on an acquisition rampage and has acquired a lot of additional revenue that may soften the blow.

If the shorts are right InvoCare could fall by more than 10% after its report. If does, I will be looking to buy shares.

It’s trading at 24x FY19’s estimated earnings.

MNF Group Ltd (ASX: MNF)

MNF is a leading voice over internet protocol (VoIP) provider. It has grown organically at an impressive rate for a number of years and has just expanded into Singapore with an acquisition that could allow it to become a sizeable operator there in time.

The market really didn’t like the idea of MNF launching its over-50 phone brand, Pennytel, which is why the shares are down by around 25% since its all-time high at the start of the year.

It’s trading at around 30x FY18’s management estimates.

Foolish takeaway

If the share prices of Altium and InvoCare fall then I will be looking to add more shares to my portfolio. Short-term issues often work themselves out and present a compelling long-term opportunity for investors focused on the long-term.

Another business that could provide an exciting report is this top ASX stock which has predicted profit growth of at least 30% in FY18.

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It's been a nail-biter of a reporting season here in the first half of 2018.

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Motley Fool contributor Tristan Harrison owns shares of Altium and InvoCare Limited. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended InvoCare 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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