ASX reporting season is upon us. Every August, a large number of the companies on the ASX report their full year results. This allows investors to gauge performances over the past 12 months and get some insight into future performance.
This reporting season, however, is unlike any other. The effects of coronavirus will be apparent in many companies’ financial results. For most, the pandemic has had a negative impact. But for a few, it has driven sales and revenues to new heights. Here’s what to look out for during this week of ASX reporting season.
What’s happening in ASX reporting season this week?
The week starts with a bang and when Aurizon Holdings Ltd (ASX: AZJ) releases its full year report. Australia’s largest rail-based transport business, Aurizon has been fighting the ACCC in court over the latter’s decision to oppose Aurizon’s proposed sale of its Acacia Ridge Terminal. In June, Aurizon confirmed underlying earnings before interest, taxes, depreciation and amortisation (EBIT) guidance of $880 million to $930 million for FY20.
On Tuesday, it will be time to take a look at the financial sector with Challenger Ltd (ASX: CGF) providing its results. The wealth manager was subject to volatile investment markets over the second half of FY20 which may impact on results. The Challenger share price is yet to recover from the March downturn, remaining nearly 60% down from its high for the year.
On Wednesday, we hear more from the financial sector with Magellan Financial Group Ltd (ASX: MFG) reporting. The Magellan share price fell on Friday despite the wealth manager reporting an increase in funds under management. Commonwealth Bank Bank of Australia (ASX: CBA) is also due to release its full year results. Investors are eager to see whether the bank will pay a final dividend, and if so, its size.
Come Thursday, it’s time to hear from AGL Energy Limited (ASX: AGL) and Breville Group Ltd (ASX: BRG). AGL has predicted full year profits will be in the upper half of its guidance range of $780 million to $860 million. The Breville share price hit a record high last week with the appliance maker reporting strong sales throughout the pandemic.
On Friday it’s the miners’ turn, with Newcrest Mining Limited (ASX: NCM) and Iluka Resources Limited (ASX: ILU) reporting. The Newcrest share price has recently hit all time highs off the strength of the gold price. Iluka saw its mineral sands revenue decline 16% in the half year to June compared to the prior corresponding period, reflecting the impact of COVID-19 on key markets.
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Motley Fool contributor Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended Aurizon Holdings 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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