August means one thing – it’s reporting season for ASX shares. But this reporting season is different. The spectre of coronavirus hangs over results. The pandemic and associated lockdowns have wreaked havoc on businesses across Australia, and ASX shares have not been exempt. But some have actually benefitted from the changes brought by coronavirus, which has shifted consumer demand.
Below, we take a look at 4 ASX shares I’m expecting strong results from this reporting season.
Kogan.com Ltd (ASX: KGN)
Kogan has seen a surge in sales since coronavirus lockdowns began. The online-only retailer has seen active customers grow to 2.3 million at the end of July, with 126,000 customers added in July alone. Gross sales for the month grew more than 110% year on year with gross profit up more than 160%. This follows strong trading in May and June, with 4Q FY20 sales up by more than 95%. Full year results are due for release on 17 August.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi saw a surge in sales in March and April as office workers were sent home and hurriedly set up home offices. Australian sales grew 20% in the second half to early June with demand for tools to support working, learning, and entertaining from home high. JB Hi-Fi has forecast total FY20 sales of around $7.86 billion. Total profits is expected to be in the range of $300 million to $305 million, a 20–22% increase on FY19. JB Hi-Fi is due to report full year results on 17 August.
Afterpay Ltd (ASX: APT)
Afterpay has also seen surging customer numbers, boosted by the shift to transacting online and a renewed focus on budgeting. The buy now, pay later (BNPL) provider reported underlying sales of $3.8 billion in the fourth quarter, up 127% Q4 FY19. In May, Afterpay reached 5 million customers in the US, closely followed by 1 million in the UK. The BNPL provider now boasts nearly 10 million customers globally. Afterpay is due to report its full year results on 27 August.
Zip Co Ltd (ASX: Z1P)
BNPL provider Zip Co has also seen strong growth in customer numbers with 197,000 added in the June quarter. This brings total customers to 2.1 million, up 63% year-on-year. Transaction volumes in the June quarter were up 120% to $570.7 million. This means Zip Co achieved annualised transaction volumes of $2.3 billion in FY20, above its $2.2 billion target. Zip Co is due to release full year results on 27 August.
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Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. 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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