Day: 20 February 2021

When looking at growth shares, I like to focus on ones that have long runways for growth. This is because these companies have the potential to generate strong long term returns, allowing investors to benefit from compounding.

Three ASX growth shares which have been tipped for big things in the future are listed below. Here’s why they are highly rated:

Kogan.com Ltd (ASX: KGN)

This ecommerce company could be worth a look due to the continued rise in online shopping. In addition to this, its expansion into potentially lucrative verticals, the growing popularity of Kogan Marketplace, and recent acquisitions should support its growth in the coming years.

Although Kogan’s shares have surged higher over the last 12 months, analysts at Credit Suisse believe they can still go higher. The broker currently has an outperform rating and $21.08 price target on its shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Another highly rated ASX growth share to consider is Pushpay. It is leading donor management and community engagement platform provider with a focus on the faith sector. Pushpay has been growing at a rapid rate in FY 2021 and expects to achieve full year operating earnings of US$56 million and US$60 million. This will be up a massive 123% to 139% year on year.

Positively, this is still scratching at the surface of its addressable market in the United States, which gives it a long runway for growth over the 2020s. Management is aiming to win a 50% share of the medium to large church market. This slice is estimated to be worth US$1 billion in revenue per annum at present.

Analysts at Goldman Sachs are positive on the company. They have a conviction buy rating and $2.59 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX growth share to look at is this cloud-based business and accounting software provider. Despite the pandemic’s impact on small businesses, Xero has continued to perform strongly in FY 2021. This has gone down well with analysts at Goldman Sachs. They were impressed with its performance in the first half and believe it can still grow materially over the next decade and beyond.

It currently has a buy rating and $157.00 price target on its shares. Goldman believes Xero can achieve a 2030 subscriber footprint of 7.4 million and generate NZ$3.4 billion in annual revenue.

But even better, the broker doesn’t expect its growth to stop there. Its analysts see opportunities for Xero to monetise its app ecosystem and drive multi-decade strong growth.

More reading

• Got cash to invest? Here are 2 ASX shares to buy
• Why the Openpay (ASX:OPY) share price is surging higher today
• One year on and 50% up, the All Technology Index is booming
• 3 outstanding ASX growth shares to buy today
• 2 exciting ASX tech shares to buy

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Do you have some cash to invest? There are some ASX shares that may be worth looking into at the moment.

Share prices are always changing, so a business can become good value if it falls back a bit.

However, businesses that are falling can be called ‘falling knives’ because you don’t know how far they’re going to fall. Some businesses have growing profits but – at the moment – declining share prices, like these two:

Kogan.com Ltd (ASX: KGN)

The Kogan.com share price has fallen by around 25% since 25 January 2021.

If you don’t know much about Kogan.com, it’s an e-commerce business where a large number of different products and services are sold such as TVs, computers, phones, devices, clothing, furniture and cars. Services that are sold include mobile plans, insurance and energy.

The ASX share has seen elevated levels of demand ever since COVID-19 came along. Kogan.com recently gave a trading update for the first six months of FY21.

It said that gross sales grew by more than 96% and gross profit increased by more than 120%. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 140% and adjusted EBITDA grew by 175%.

It ended the period with $78.9 million of cash. It also had 3 million active customers for the Kogan.com business and another 719,000 active customers for the Mighty Ape business. Mighty Ape is a New Zealand e-commerce business that Kogan.com recently acquired. 

Kogan.com founder and CEO Ruslan Kogan spoke of the focus of the business to keep delivering growth:

We are investing into building strong customer relationships by expanding our logistics capability, our marketing reach and our systems and infrastructure – giving us the foundation to continue delighting customers as the business further scales.

Looking at the current Kogan.com share price, it’s valued at 22x FY23’s estimated earnings according to Commsec.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a funds management business that has around $100 billion of funds under management (FUM). The Magellan share price has fallen by 10% since 15 February 2021. 

It has a few different investment strategies, with international equities and infrastructure equities being the main two. Magellan also has an Australian funds management division as well.

Morgans is one of the brokers that likes Magellan at the moment, with the fund manager beating the broker’s expectations with its FY21 half-year result. The average FUM growth was essentially in line with the management fee increase.

The ASX share’s near-term prospects are expected to be dictated by the direction of the market as well as its ability to generate performance fees.

However, Morgans is attracted to Magellan’s new product launches and good balance sheet, plus the principal investments, for long-term growth. Two of those new investments within the parent Magellan company include FinClear and Barrenjoey, the investment bank which has been attracting a lot of talent to the new outfit.

Morgans is expecting Magellan to generate $2.28 of earnings per share in FY21, which means it’s valued at 20x FY21’s estimated earnings.

The broker has a share price target of $58.26 for Magellan.

More reading

• Why the Openpay (ASX:OPY) share price is surging higher today
• One year on and 50% up, the All Technology Index is booming
• 3 outstanding ASX growth shares to buy today
• 2 of the best ASX growth shares to buy now
• Why the Kogan (ASX:KGN) share price is charging higher today

Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted their price target on this payments company’s shares to $170.10. The broker notes that buy now pay later (BNPL) providers have been growing very strongly despite increasing competition. The broker believes this bodes well for Afterpay’s future growth, especially given its industry-leading repeat usage. In addition to this, it sees opportunities for Afterpay’s growth to accelerate in the future as its builds out its offering. The Afterpay share price ended the week at $151.92.

Westpac Banking Corp (ASX: WBC)

Analysts at Morgans have retained their add rating and lifted their price target on this banking giant’s shares to $27.50. According to the note, Westpac delivered a first quarter result well ahead of the broker’s expectations. Morgans was particularly pleased with the bank’s net interest margin, which has improved since the second half of FY 2020. In light of this strong start to the financial year, the broker has lifted its earnings estimates and price target accordingly. The Westpac share price last traded at $24.09.

Whispir Ltd (ASX: WSP)

A note out of Ord Minnett reveals that its analysts have upgraded this cloud-based communications platform provider’s shares to a buy rating with a $4.53 price target. This follows the release of a first half result which was in line with its expectations. Whispir reported a 29.2% increase in its Annualised Recurring Revenue (ARR) to $47.4 million for the half. Ord Minnett believes that Whispir is well-placed to continue its strong growth over the medium term. The Whispir share price ended the week at $4.20.

More reading

• Is the Westpac (ASX:WBC) share price a buy?
• 5 things to watch on the ASX 200 next week
• Here’s why the Afterpay (ASX:APT) share price is storming 6% higher today
• Why Cochlear, Goodman, Lovisa, & Whispir shares are surging higher
• Why the Whispir (ASX:WSP) share price is surging 10% higher today

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Whispir Ltd. 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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There are a number of smaller businesses on the ASX that aren’t well known but may be able to make good returns for investors.

It is usually easier for a business to double from $500 million to $1 billion than it is to go from $5 billion to $10 billion because of the difficulty of doubling bigger and bigger numbers.

That’s why these ASX growth shares could be worth thinking about:

City Chic Collective Ltd (ASX: CCX)

This business is a global retailer of plus-size clothes, footwear and accessories for women. Not only does City Chic have a large network of retail stores across Australia and New Zealand, but it also has wholesale agreements in the northern hemisphere and a website in the US.

City Chic is liked by brokers such as Macquarie Group Ltd (ASX: MQG) and Morgan Stanley.

Macquarie thinks that City Chic is going to report that it’s had a solid period of operating over the last few months. Macquarie thinks that it has good growth potential over the long term.

Morgan Stanley thinks that domestic sales in ANZ may have been solid in the first half when looking at other ASX retail shares. Other acquisitions could be on the cards with its healthy balance sheet.

The ASX growth share recently acquired Evans in the UK. City Chic plans to turn it into an online-only offering, with lower costs.

Audinate Group Ltd (ASX: AD8)

Audinate is a business that owns the Dante platform which replaces traditional analogue audio cables by transmitting synchronised audio signals across large distances to multiple locations at once using just a ethernet cable.

It’s used in the professional live sound, commercial installation, broadcast, public address and recording industries.

COVID-19 has impacted some of the industries that Audinate helps, but it is recovering. In the first half of FY21, Audinate said that it had generated US$11.1 million of revenue – this was in-line with the first half of FY20. It represented an increase of 19.3% from the revenue made in the second half of FY20.

Audinate also announced in the same update that it has been able to attract and establish an experienced video development team of 11 employees in Cambridge, in the UK. Audinate is looking to develop the next generation of Dante audio and video software implementations. It wants to make Dante video the technology of choice. This will help increase the company’s total addressable market.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a technology expansion capital fund. In other words, it invests in private technology businesses.

It’s invested in a few different businesses right now including Instaclustr, Stackla and Straker Translations Ltd (ASX: STG).

Bailador says that its portfolio of companies are well capitalised with no liquidity concerns. It has a portfolio of 10 investments which have a gross margin of more than 75%. Bailador has disclosed 86% of the company revenue is recurring. Excluding travel, its portfolio is generating revenue growth of 25%.

It recently reported its FY21 half-year result which showed a net profit of $13.1 million and the pre-tax net tangible assets (NTA) per share increased by 12.3% to $1.39.

Bailador expects 2021 to be a significant year for profitable realisations.

More reading

• 2 of the best ASX tech shares to buy this week
• Bailador Technology Investments (ASX:BTI) share price is pushing higher
• 3 ASX shares rated as strong buys by brokers
• 2 ASX shares rated as strong buys by brokers
• 2 ASX shares to own according to fund managers

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Macquarie Group Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Straker Translations. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Appen Ltd (ASX: APX)

According to a note out of Macquarie, its analysts have downgraded this artificial intelligence services provider’s shares to an underperform rating and cut the price target on them to $19.00. The broker made the move amid concerns that Appen could be losing market share due to increased competition. It suspects this could lead to consensus downgrades once its challenging outlook is understood better by the market. The Appen share price ended the week at $21.60.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Analysts at Morgan Stanley have retained their underweight rating but lifted the price target on this regional bank’s shares to $9.90. This follows the release of a half year result which went down well with the broker. And while this has led to the broker upgrading its earnings estimates for the coming years, it isn’t enough for a change of rating. It continues to see more value in other bank shares. The Bendigo and Adelaide Bank share price last traded at $10.03.

Wesfarmers Ltd (ASX: WES)

A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this conglomerate’s shares to $45.00. According to the note, the broker was pleased with Wesfarmers’ strong half year result. It appears confident there will be more of the same in the second half due to favourable trading conditions. However, it feels that this is already factored into its shares and sees no reason to change its recommendation at this point. The broker also has concerns that Wesfarmers could be struggling to find suitable acquisitions. The Wesfarmers share price ended the week at $54.01.

More reading

• 3 reasons the Wesfarmers (ASX:WES) share price could be in the buy zone
• Wesfarmers (ASX:WES) share price on watch after broker upgrade
• ASX 200 mixed, CSL reports 44% profit growth, TWE soars
• Top brokers name 3 ASX shares to sell today
• Wesfarmers (ASX:WES) share price tumbles despite strong half year profit growth

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of Wesfarmers 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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Could the Westpac Banking Corp (ASX: WBC) share price be worth a buy?

Some brokers have had their say after having a look at the numbers reported by the big four ASX bank for the first quarter of FY21.

So let’s have a look at some of those highlights first before getting to the broker thoughts.

Westpac’s FY21 first quarter highlights

The major ASX bank reported an unaudited statutory net profit of $1.7 billion, which compared to the second half quarterly average statutory profit of $550 million.

It also reported unaudited cash earnings of $1.97 billion, which was up on the second half of FY20 quarterly average of $808 million. Cash earnings were up 54% when excluding notable items.

The bank said that core earnings were up 28%, or up 3% excluding notable items.

Part of the profit growth came about from an impairment benefit of $501 million from improved credit quality, the stronger economic outcomes and a better economic outlook after COVID-19 impacts. Consumer delinquencies of more than 90 days were lower over the quarter, including Australia mortgage delinquencies over 90 days being 16 basis points lower to 146 basis points.

The number of loans that are in deferral continue to decline. It had $11 billion of Australian mortgage deferrals at 31 January 2021, with a significant roll-off expected in February and March.

Westpac’s net interest margin of 2.06% was up 3 basis points compared to the second half of FY20.

Discussing the outlook for Westpac, the CEO Peter King said:

We are also beginning to improve momentum in mortgages and while the book was little changed over the half, we have processed a significant increase in applications. Low interest rates, rising house prices, new construction, and high consumer confidence all points to continued recovery in home lending activity in 2021.

What do brokers think?

Broker Morgans was particularly impressed by the update, as the cash profit was 23% better than the broker was expecting. It was mostly better because of the impairment benefit with the provision release.

Another important point that the broker liked was the NIM of 2.06%. The NIM is an important profitability metric for banks like Westpac.

For Morgans, Westpac is the best big bank and thinks it’s a better pick than Commonwealth Bank of Australia (ASX: CBA).

Morgans is expecting Westpac to pay a dividend of $1.32 per share for FY21, which translates to a grossed-up dividend yield of 7.8%. It has a share price target of $27.50 for Westpac.

However, broker Ord Minnett wasn’t that impressed. It thinks that it will need to show more of a recovery if Westpac wants to continue to do better than other big banks.

Ord Minnett did say that Westpac is on track to consider extra capital returns with how strong the bank’s balance sheet is now with a CET1 ratio of 11.9%. Ord Minnett has a share price target of $24.50 for Westpac shares. The broker thinks that the bank will only pay a grossed-up dividend yield of 7.1% for FY21.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Westpac (ASX:WBC) share price jumps after Q1 54% profit growth
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks
• Why Domino’s, EML Payments, Redbubble, & Westpac shares are storming higher
• Westpac (ASX:WBC) share price on watch as it delivers $2bn quarterly profit result

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Warren Buffett’s success has not been built on an ability to predict when the next market crash will take place. In fact, the Oracle of Omaha has rarely sought to second-guess market movements.

Instead, he seeks to position his portfolio so that it can take advantage of future short-term movements, as well as a likely rise in share prices that has led to high single-digit annual returns for indexes such as the S&P 500 Index (INDEXSP: .INX) and FTSE 100 Index (INDEXFTSE: UKX) over recent decades.

As such, following his lead could be a sound move. By preparing for a range of possible outcomes in 2021, including a market crash, it may be possible to obtain higher long-term returns.

The unpredictability of the stock market

The stock market’s future movements can be extremely unpredictable. The 2020 stock market crash is evidence of this, with indexes such as the S&P 500 and FTSE 100 declining by around a third in a matter of weeks. This was not an isolated event, with previous bear markets such as the 2009 global financial crisis catching many investors by surprise, both in terms of the speed of decline and the scale of stock price falls.

Due to its unpredictability, as well as a history of following a cycle, it could be a sound move to seek to avoid trying to estimate how the stock market will perform in future. Warren Buffett seems to have settled on this approach, with the world’s most successful investor focusing on company facts and figures, instead of forecasts.

In doing so, Buffett is able to position his portfolio for a variety of future outcomes. For example, he holds large amounts of cash in case there are buying opportunities prompted by a stock market crash. Meanwhile, he holds high-quality companies that may be better placed to survive a market downturn, as well as benefit from a likely growth opportunity in the long run.

Portfolio positioning in 2021

At the present time, such an approach is arguably of even greater value than ever. The economic outlook is extremely difficult to predict due to uncertainty caused by the coronavirus pandemic. Should this lead to further disruption for a variety of industries, as well as rising unemployment and weak consumer confidence, a market crash could realistically take place in 2021.

However, should a vaccine rollout and the end of lockdown measures lead to a release of pent-up demand across many sectors, the opposite could be true. The stock market rally since the 2020 decline could realistically continue and provide capital growth opportunities for investors.

Therefore, following Warren Buffett’s strategy could be a worthwhile move in 2021. It enables an investor to be prepared for a market crash through having cash in their portfolio. Similarly, by purchasing today’s undervalued shares, it is possible to follow in Buffett’s footsteps and benefit from a likely rise in the stock market over the long run.

More reading

• Top brokers name 3 ASX shares to sell next week
• Is the Westpac (ASX:WBC) share price a buy?
• 2 rapidly growing small cap ASX shares to buy
• 2 fantastic ASX dividend shares to buy
• 2 top ETFs to buy and hold

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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If you’re a fan of investing in small cap shares, then you may want to look at the ones listed below.

These companies could have very bright futures ahead of them. Here’s what you need to know about them:

Booktopia Group Ltd (ASX: BKG)

The first ASX small cap share to look at is Booktopia. It is an online book retailer which has been growing very strongly.

For example, late last month it released its half year update and revealed a record month in December and a record half.

Booktopia shipped a total of 4.2 million units for the six months, up 40% on the prior corresponding period. Impressively, 728,000 of these units were shipped during the final month of the half. This was driven by the shift to online shopping and its investment in additional automation and increased capacity at its distribution centre.

This ultimately underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted operating earnings to $8 million.

Analysts at Morgans are positive on the company. They recently put an add rating and $3.48 price target on its shares. The broker believes the company is well-placed to grow its market share and benefit from operating leverage.

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is another ecommerce company which could be a good option for small cap investors.

Thanks to the shift to online shopping, which has accelerated over the last 12 months, MyDeal has been growing rapidly. For example, the company recently released its first half update which revealed that gross sales increased 217% over the same period last year to $126.7 million. This was driven by a strong jump in active customers to a record 813,764 and increased repeat use.

Looking ahead, management intends to use the proceeds from its $40 million IPO to drive future growth. This includes growing its private label business and investing in advertising to grow its customer base and brand.

Morgans is also a fan of MyDeal and currently has an add rating and $1.70 price target on its shares.

More reading

• 3 very exciting small cap ASX shares to watch
• 2 exciting small cap ASX shares
• 3 fast-growing small cap ASX shares to watch
• Here are 3 ASX IPOs this fund manager was buying
• 3 growing small cap ASX shares to watch

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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If you’re wanting to overcome the low interest rates being offered by the banks, then the share market could be the answer.

Two ASX dividend shares that offer investors interest rate-beating yields are listed below. Here’s what you need to know:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share to look at is Super Retail. It is the company behind popular retail store brands BCF, Macpac, Rebel, and Super Cheap Auto.

Last week the company released its half year results and revealed stellar sales and profit growth. For the six months ended 31 December, Super Retail reported a 23% increase in sales to $1.78 billion and a whopping 139% increase in underlying net profit after tax to $177.1 million. 

This strong result was driven by solid growth across the company and particularly its online businesses. Online sales jumped 87% over the prior corresponding period to $237.4 million. In light of its strong performance, the Super Retail board declared a fully franked dividend of 33 cents per share. 

One broker that is positive on the company is Goldman Sachs. After reviewing its result, the broker reiterated its buy rating and lifted its price target to $15.00. The broker is also forecasting a dividend of ~81 cents per share in FY 2021 (including a special dividend), which equates to a 6.8% yield. Though, it notes that even if capital management doesn’t happen, it should provide a yield of approximately 5%.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is Telstra. This telco giant has also recently released its half year results, which went down well with brokers.

Particularly given management’s positive outlook. After years of earnings declines, Telstra CEO Andy Penn appears confident that the company is positioned to return to growth in FY 2022. This is thanks to the T22 strategy which has simplified its business and helped cut costs. Mr Penn has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023. 

Another positive is that Telstra maintained its interim dividend at 8 cents per share and revealed plans to do the same with its final dividend. Based on this and the current Telstra share price, this will mean a fully franked 4.8% dividend yield.

Goldman Sachs was pleased with this update as well. The broker put a buy rating and $4.00 price target on its shares.

More reading

• ASX retail shares in focus as Aussies spend big in January
• Vita Group (ASX:VTG) share price up on results, despite Telstra woes
• Why the Whispir (ASX:WSP) share price is surging 10% higher today
• 2 high yield ASX dividend shares to buy today
• Telstra (ASX:TLS) full year dividend for 2021 expected to be 16 cents per share, fully franked

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Telstra 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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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.

More reading

• 2 ASX 200 shares to buy for growth
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• ASX 200 sinks 1.3%, Cochlear soars, TWE sours
• ASX retail shares in focus as Aussies spend big in January

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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