Next week will be yet another busy one for the S&P/ASX 200 index, with earnings season due to go up another gear.
Whilst a good number of well-known companies are scheduled to release their latest results, three that I'll be watching closely are summarised below:
A2 Milk Company Ltd (ASX: A2M)
On Thursday this infant formula and fresh milk company is scheduled to release its half year results. Late last year at its annual general meeting the company provided its guidance for the half. It expects to report revenue in the range of NZ$780 million to NZ$800 million with an EBITDA margin of 31% to 32%. This implies an EBITDA range of NZ$241.8 million to $256 million. The main driver of its growth is expected to be China label infant nutrition sales. They are forecast to be approximately NZ$135 million, representing a growth rate of ~84%. All eyes will be on its guidance for the second half. Citi recently suggested that the coronavirus may have led to stockpiling activities by consumers in China.
Appen Ltd (ASX: APX)
On Tuesday Appen is scheduled to release its full year results. In November the artificial intelligence and machine learning company upgraded its underlying EBITDA guidance due to increases in monthly Relevance revenues and margins. This was largely from existing projects with existing customers. Instead of underlying EBITDA of $85 million to $90 million, it now expects its earnings to be in the range of $96 million to $99 million. Though, this was based on an Australian dollar at 74 U.S. cents. Not long after its update the Aussie was trading notably lower than this level and continues to do so today.
Woolworths Group Ltd (ASX: WOW)
On Wednesday this conglomerate is due to release its half year results. Expectations are high for the company's supermarket business, especially after a strong result by Coles Group Ltd (ASX: COL) last week. According to Goldman Sachs, it expects Woolworths to report earnings before interest and tax of $1,859 million and a net profit after tax of $1,021 million. The latter represents an 8.8% increase over the prior corresponding period. The broker has also penciled in a fully franked interim dividend of 49 cents per share.
