5 things to watch on the ASX 200 next week

A2 Milk Company Ltd (ASX:A2M) and Afterpay Ltd (ASX:APT) shares will be on watch on the ASX 200 next week…

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Last week was a disappointing one for the S&P/ASX 200 Index (ASX: XJO). After a strong start, the benchmark lost all its gains and more on the final day of the week. This led to the benchmark index falling 0.2% over the five days to 6,793.8 points.

Another busy one is expected next week. Here are five things to watch:

ASX futures pointing lower

The Australian share market looks set to start in the red following a subdued end to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 11 points lower. On Wall Street on Friday night, the Dow Jones was flat, the S&P 500 fell 0.2%, and the Nasdaq index was up slightly.

Afterpay half year results

All eyes will be on the Afterpay Ltd (ASX: APT) share price on Thursday when the payments company releases its half year results. According to a note out of Morgan Stanley last month, the broker is expecting the company to report active customers of approximately 13.6 million for the first half of FY 2021. This represents a 37.4% increase from 9.9 million active customers at the end of FY 2020. Updates on its international expansion in Europe and Asia will also be of interest to investors.

A2 Milk update

The A2 Milk Company Ltd (ASX: A2M) share price could also be on the move on Thursday when it hands in its half year report card. Due largely to COVID-19 headwinds in the daigou channel, late last year the infant formula company downgraded its guidance for the first half and full year. In respect to the former, it revealed that it expects to report revenue of ~NZ$670 million and an EBITDA margin of ~27%. Whereas for the full year, it has guided to revenue of NZ$1.4 billion to NZ$1.55 billion and an EBITDA margin of 26% to 29%. Investors will no doubt be hoping this isn’t downgraded further.

Woolworths half year results

On Wednesday Woolworths Group Ltd (ASX: WOW) will be releasing its highly anticipated half year results. According to a note out of Goldman Sachs, its analysts are forecasting total revenue of $35,789.7 million for the first half. This will be a 10.1% increase on the prior corresponding period. In respect to earnings, it is expecting a 5.3% increase in first half net profit to $1,030.2 million.

SEEK result

The SEEK Limited (ASX: SEK) share price will be on watch on Tuesday when it releases its half year update. Earlier this month analysts at Goldman Sachs tipped the job listings company to upgrade its FY 2021 guidance. The market is currently expecting SEEK to deliver operating earnings of $404 million in FY 2021, but it feels this could be lifted to $420 million. This is due to the continual improvement in macro trends relative to the October levels when its guidance was given.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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