Last week was a much better one for the S&P/ASX 200 Index (ASX: XJO). Optimism over a potential coronavirus vaccine led to the benchmark index rising 1.3% over the period to 6,004.8 points.
There's another busy week coming up for the ASX 200 next week. Ahead of it, I thought I would take a look to see what we should be watching out for.
Here are five things to watch next week:
ASX futures pointing higher.
The benchmark ASX 200 looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points higher on Monday. This is despite a reasonably subdued finish to the week on Wall Street. On Friday the Dow Jones rose 0.2%, the S&P 500 edged slightly higher, and the Nasdaq index fell 0.9%.
Commonwealth Bank FY 2020 result.
The Commonwealth Bank of Australia (ASX: CBA) share price will be in focus on Wednesday when it releases its full year results for FY 2020. According to a note out of Goldman Sachs, its analysts are expecting FY 2020 cash earnings from continued operations (pre-one offs) of $7,815 million. This represents an 8% decline on the prior corresponding period. The broker is forecasting a final dividend of 100 cents per share. Elsewhere, National Australia Bank Ltd (ASX: NAB) is scheduled to release its third quarter update on Friday.
Telstra result, dividend on watch.
One of the most eagerly anticipated results of earnings season will be released on Thursday when Telstra Corporation Ltd (ASX: TLS) hands in its report card. Opinion is divided on whether the telco giant will be able to maintain its 16 cents per share fully franked dividend. Goldman Sachs expects this dividend to be maintained. It is despite it forecasting a 22% decline in net profit after tax to $2.4 billion. I agree with Goldman and feel Telstra's dividend is sustainable from its current cash flows.
Challenger FY 2020 result.
The Challenger Ltd (ASX: CGF) share price has been out of form in 2020. Investors will no doubt be hoping that its full year results on Tuesday are the catalyst to getting it heading in the right direction again. The annuities company has provided guidance for normalised net profit before tax at the bottom end of the range of $500 million and $550 million in FY 2020. This compares to $548 million in FY 2019.
SEEK to release full year results.
The SEEK Limited (ASX: SEK) share price could be on the move on Wednesday when it releases its full year results. According to a note out of Goldman Sachs, its analysts are expecting revenue growth of 4% to $1,603 million. However, this isn't expected to flow through to its earnings. Goldman expects a 10% decline in EBITDA to $410 million. This is in line with its guidance. And while the broker suspects SEEK may not provide guidance for FY 2021, it is forecasting FY 2021 EBITDA growth of 16% to $476 million.
