Earnings season looks set to go up another gear next week with a large number of companies scheduled to reveal how they fared in FY 2019.
Amongst the plethora of results being released, here are four to watch closely:
A2 Milk Company Ltd (ASX: A2M)
Another blockbuster result is expected from this infant formula and fresh milk company on Wednesday. According to Morgans, it expects the company to deliver a stronger than expected result. The broker explained: "Our EBITDA forecast of NZ$431.3m is 3.6% above the higher end of guidance. Consensus is NZ$420.6m. Strong earnings growth reflects strong product demand, improved sales velocity, increased points of distribution, market share gains, scale benefits and favourable product mix."
Altium Limited (ASX: ALU)
After the market close on Monday this market darling will release its full year results. Expectations are high for the printed circuit board design software provider after a stellar share price gain this year. In the first half of FY 2019 the company grew its revenue by 24% to US$78.1 million and expanded its profits to record levels with an EBITDA margin of 36.3% and a 58% increase in net profit after tax to US$23.4 million. More of the same is expected in the second half as it closes in on US$200 million revenue target by 2020..
Domino's Pizza Enterprises Ltd (ASX: DMP)
One of the most highly anticipated results of earnings season will be released by this pizza chain operator on Thursday. The market appears reasonably confident that Domino's will fall short of its guidance once again in FY 2019. In February the company advised that its EBIT is expected to be at the lower end of its guidance range of $227 million and $247 million. And in respect to NPAT, according to CommSec, the consensus estimate is for a net profit after tax of $121.7 million.
SEEK Limited (ASX: SEK)
On Tuesday this job listings giant will release its full year results. At the end of April SEEK advised that it expects revenue growth to be in the range of 16% to 20%, EBITDA growth to be in the range of 5% to 8%, and reported net profit after tax to be moderately lower year on year. SEEK attributed its falling profits to its Early Stage Ventures investments and transaction funding costs. But as these are expected to be key drivers of growth in the future, the market appears to be willing to look beyond this. So, all eyes will be on SEEK's guidance for FY 2020.
