The News Corporation (ASX: NWS) share price is on the rise this morning following the release of its fourth quarter and full year financial results. The News Corp share price was up 5% to $19.42 in mid-morning trade today, despite reporting a significant drop in revenues for FY 2020.

Revenues are down

News Corp reported full year total revenues of $9.01 billion for the 12 months to June 30 2020. This result was a significant 11% decline compared to the year prior.

The drop was mainly due to a 4% negative impact from the coronavirus pandemic and the divesture of New Corp’s News America Marketing division. The negative impact of foreign currency fluctuations as well as a reduction in revenues from the group’s Foxtel division also had an impact on the bottom line.

In contrast, growth subscription revenues from New Corp’s Dow Jones segment impacted positively on the company’s overall revenue growth.

News Corp recorded an overall net loss of $1.55 billion for the full year. This compared with an overall net income of $228 million in FY 2019. The net loss was largely attributed to $1.69 billion in non-cash impairment charges relating mainly to its Foxtel and North America Marketing segments.

Total EBITDA fell by 19% to $1.01 billion for the full year. News Corp estimated that the total negative impact from the coronavirus pandemic on total EBITDA amounted to between $55 million and $70 million.

Big impact on fourth quarter profits 

The coronavirus hit News Corp’s fourth quarter revenues particularly hard, dropping them by a very high 22%. Total Segment EBITDA fell even more sharply by 28%. The worst hit segment was News Media, which saw a 41% decline in revenue for the fourth quarter and an 18% drop for the full year.

Subscription Video Services also took a significant hit during the fourth quarter, due mainly to falling residential broadcast subscribers. Foxtel had subscribers totalling 2.777 million at the end of the financial year. This was a very sharp 12% decline on 12 months prior.

Digital Real Estate Services Revenues – attributable to News Corp’s part ownership in REA Group Limited (ASX: REA) –declined by 8% during the final quarter.

News Corp share price trends

The News Corp share price was hit during the early phase of the pandemic recording a 52-week low of $13.10 in early April. Since then the News Corp share price has made a partial recovery and is trading at $19.42 at the time of writing.

More reading

• Why Coca-Cola Amatil, REA Group, Redbubble, & Sezzle shares are storming higher
• REA Group share price on watch after robust FY 2020 result
• 5 things to watch on the ASX 200 on Friday
• The best blue chip ASX shares to buy today
• House prices are falling – which ASX shares are in the firing line?

Motley Fool contributor Phil Harpur owns shares of REA Group Limited. The Motley Fool Australia has recommended REA Group 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.

The post Earnings: News Corp share price up 5% today despite posting major loss appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fC9dcu

The Link Administration Holdings Ltd (ASX: LNK) share price is today on watch following news that the company has decided on a new CEO. The share price is currently trading up 3.27% to $4.26 on the news

What does Link do?

Many of our readers may be familiar with the name Link Administration, as the company provides investor services to many prominent companies on the ASX. 

Link Group connects millions of people with their assets including equities, pension and superannuation, investments, property and other financial assets. This is done by partnering with thousands of financial market participants to deliver services, solutions and technology platforms. Link aims to enhance the user experience and make scaled administration simple.

New CEO

Link has today announced that Vivek Bhatia is set to succeed John McMurtrie as Link Group Managing Director and CEO. Mr McMurtrie, will retire as managing director of Link Group in early 2021, after almost 2 decades of service to the company.

The Link Group Board determined Mr Bhatia, currently QBE Insurance Group Ltd (ASX: QBE) CEO, was the standout candidate from an extensive international executive search as part of a planned succession process.

In order to facilitate a smooth transition Mr McMurtrie will work with Mr Bhatia over the coming months.

Who is Vivek Bhatia?

Vivek Bhatia is an experienced chief executive, having led a number of businesses during his 22-year career in financial services, government and management consulting. He has been CEO of QBE since 2018. In this role, he delivered a significant improvement in financial results, customer, broker and partner satisfaction scores and employee engagement.

For his services Mr Bhatia will receive payment of $1.3 million per year.

What now for Link?

The company has been hard hit by COVID-19, with the Link share price down by 27% so far this year. Furthermore, in worrying news for shareholders recent reports suggest the market wants to get rid of the current CHESS ownership system. This will have a significant impact on share registry companies such as Link and Computershare Limited (ASX:CPU), which derive business through this system. 

Mr McMurtrie will present the full year results for Link on 27 August.

More reading

• All Technology Index celebrates 6 months with stunning outperformance
• Leading brokers name 3 ASX shares to buy today
• These were the ASX 200’s biggest share gainers last week
• ASX 200 Weekly Wrap: ASX has week of high volatility
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings 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.

The post Link share price buoyed by appointment of new CEO appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gzjis4

The Coca-Cola Amatil Ltd (ASX: CCL) share price is pushing higher on Friday morning.

At the time of writing the beverage company’s shares are up 1.5% to $8.47.

Why is the Coca Cola Amatil share price pushing higher?

Investors have been buying the company’s shares this morning after they were upgraded by a leading broker.

According to a note out of Goldman Sachs, it has upgraded Coca-Cola Amatil’s shares to a buy rating with a $9.30 price target ahead of its half year results release later this month.

It made the move largely on valuation grounds and notes that at 14.4x FY 2022 earnings, it is trading at a notable discount to consumer staple peers Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

In addition to its buy recommendation, the broker has laid out its expectations for Coca-Cola Amatil during the first half of FY 2020.

What does Goldman expect from the company in the first half?

When Coca-Cola Amatil reports its half year results on 20 August 2020, Goldman is expecting the company to report sales of $2.21 billion. This is an 8.9% decline year on year, but ahead of the consensus estimate of $2.1 billion.

Underlying earnings before interest and tax (EBIT) is expected to decline at a sharper rate. Goldman expects first half EBIT to come in at $215.8 million, down 25.6% year on year. However, this is a sizeable 11.5% higher than the analyst consensus estimate.

The company’s key Australia segment is expected to be a drag on its results. Goldman commented: “We expect 1H20 volumes to be down -9.5% in Australia, reflecting the weak trading during COVID-19 lockdowns. Sales are forecast to be at A$1,111mn for the period, -8.6% yoy. However, EBIT declines are forecast to be stronger at -20.3%, resulting from weaker EBIT margins (-170bps) due to the impact of operating leverage being partially offset by cost savings initiatives.”

The broker expects it to be a similar story in the Indonesia and PNG region. It explained: “Indonesia and PNG region is forecast to have seen the biggest COVID19 related impact due to the lockdowns overlaying key sales periods like Ramadan. We forecast sales volume to be down -17% in this region for 1H20, but expect revenue to be only down -12.1% yoy to A$512mn, due to a significant FX benefits expected in this half. Management has already guided that the group lost operational scale in the region. We forecast EBIT to be A$23.6mn for 1H20, implying margins down -435bps, after the impact of cost outs.” 

More reading

• Why Coca-Cola Amatil, REA Group, Redbubble, & Sezzle shares are storming higher
• Top brokers name 3 ASX shares to buy next week
• ASX 200 rises 0.3%, investors bet on Tabcorp
• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps
• Why Coca-Cola Amatil, Newcrest, QBE, & Tabcorp shares are pushing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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.

The post Earnings preview: What to expect from the Coca-Cola Amatil half year result appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EZhN8O

The Magellan Financial Group Ltd (ASX: MFG) share price has slumped lower this morning despite the Aussie wealth manager reporting strong inflows for July 2020.

What did Magellan announce?

Magellan’s funds under management (FUM) update contained some positive numbers for shareholders.

Magellan’s overall FUM climbed 1.4% higher to $98,526 million as at 31 July 2020.

That was despite retail FUM edging 0.7% lower to $26,585 million with institutional FUM climbing 2.2% higher to $71,941 million.

Magellan also reported strong net inflows during the period, totalling $769 million. That figure comprised net retail inflows of $269 million with net institutional inflows of $500 million.

Asset allocation remained broadly unchanged with global equities comprising 75.9% of FUM, and infrastructure equities (16.8%) and Australian equities (7.2%) making up the remainder.

How has the Magellan share price performed this year?

Despite the coronavirus pandemic spooking investors this year, the Magellan share price has climbed higher.

In fact, shares in the Aussie wealth manager are up 7.0% in 2020 while the S&P/ASX 200 Index (ASX: XJO) has fallen 9.7% as at this morning’s open.

Market volatility has proven to be a good thing for Magellan, which has seen strong inflows in recent months.

The Magellan share price opened down 0.7% in early trade as investors digest this morning’s update.

However, there are many big-name shares within the ASX Financials sector that have also slumped lower this morning.

Which other ASX shares are falling?

The big banks have been leading the ASX 200 benchmark index in a soft start to the trading day.

Commonwealth Bank of Australia (ASX: CBA) shares have fallen 0.6% lower, but it hasn’t been all bad news.

Shares in some fellow wealth managers have gained in early trade. For instance, the Pinnacle Investment Management Group Ltd (ASX: PNI) share price has jumped 0.7% higher this morning.

Leading the ASX gainers list this morning is REA Group Limited (ASX: REA) following the release of its full-year results.

More reading

• Earnings: IAG share price on watch after 50% profit slump
• The next ASX stocks to beat expectations during this reporting season
• Is there a bull trap ahead for ASX shares like Webjet?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.7%, ResMed result disappoints

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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.

The post Magellan share price falls despite strong July inflows appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3a0eR7k

The Australian Ethical Investment Limited (ASX: AEF) share price has come under pressure on Friday.

In morning trade the ethical investment company’s shares are down over 15% to $5.06.

Why is the Australian Ethical share price tumbling lower?

The Australian Ethical share price has dropped lower today after one of its major shareholders offloaded the majority of its holding.

According to an announcement by IOOF Holdings Limited (ASX: IFL), the financial services company has sold approximately 14.2 million shares or 72% of its shareholding of 19.7 million shares in the investment company.

This sale has reduced the company’s stake to approximately 5.5 million shares, which equates to a 4.9% interest in Australian Ethical.

IOOF sold the shares for a total consideration of $74.5 million, which represents an average of $5.25 per share. This compares to the last close price of $5.99, which is implying a sizeable 12.5% discount.

It is also significantly lower than the 52-week high of the Australian Ethical share price. It reached a high of $9.07 in mid-June.

Why is IOOF selling Australian Ethical shares?

IOOF’s Chief Executive Officer, Renato Mota, revealed that the sale was part of the company’s plan to simplify its business.

He commented: “Our investment in Australian Ethical has realised significant returns for our shareholders. This sale aligns to our transformation strategy which includes simplification of our business. We remain committed to providing access to ethical investment for the benefit of our clients as well as society generally.”

“Australian Ethical’s award winning funds will remain available alongside several other ethical investment options on our platforms,” he added.

The company advised that the proceeds from the divestment will be used to reduce its debt and provide strategic flexibility for growth opportunities. The impact on its underlying net profit after tax will not be material.

More reading

• These were the worst performing shares on the ASX 200 last week
• IOOF share price drops 5% following business update
• Why IOOF, IGO, Janus Henderson, & Qantas shares are dropping lower
• Why these 9 ASX shares have doubled in value in the past year
• ASX 200 jumps almost 2% today, Afterpay rises

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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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.

The post Australian Ethical share price crashes 15% lower after IOOF selldown appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31rJsqj

With the interest rates on offer with most savings accounts just 0.05%, I believe income investors are better off skipping them and focusing on dividend shares if they have no immediate use for these funds.

But which dividend shares should you invest in? Two dividend shares that I think would be great options are listed below:

Aventus Group (ASX: AVN)

The first ASX dividend share I would suggest investors look at is Aventus. I think it is fair to say that the pandemic has hit retail property companies incredibly hard. In light of this, I can understand why investors may wish to stay clear of the sector right now. However, I’m optimistic that Aventus will be a lot less impacted than others.

This is because it specialises in large format retail parks and has a large proportion of its tenancies weighed towards everyday needs. This includes high quality retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. I believe this leaves it better positioned than most to ride out the storm. As a result, I estimate that Aventus shares could provide investors with a dividend yield of over 6% for FY 2021.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software across the ANZ region. It has been one of only a handful of companies that have accelerated their growth during the pandemic. During the first half of FY 2020, Dicker Data reported half year revenue above $1 billion for the first time. 

But even better was its bottom line performance. Thanks to solid top line growth and further margin expansion, Dicker Data recorded a 30.4% lift in net profit before tax to $42 million. In light of this, the company is on course to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.7% dividend yield.

More reading

• 3 ASX shares with generous dividend yields to buy today
• Buy these ASX dividend shares if the RBA cuts rates
• Top ASX Stock Picks for August 2020
• Buy these ASX dividend shares before the RBA meeting
• 3 quality ASX shares to add to your portfolio

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

The post Skip savings accounts and buy these ASX dividend shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iewmUg

The good news continues to roll in for Pointsbet Holdings Ltd (ASX: PBH). I think the Pointsbet share price is one to watch this morning after a third consecutive day of updates.

What did Pointsbet announce this morning?

Pointsbet has announced a new partnership with leading Denver, Colorado-based Kroenke Sports & Entertainment, LLC (KSE) this morning.

The new multi-year agreement will see Pointsbet become the official and exclusive gaming partner of the Denver Nuggets of the National Basketball Association.

Pointsbet will also become an exclusive parter of the National Hockey League’s Colorado Avalanche, National Lacrosse League’s Colorado Mammoth and their home arena, Pepsi Center.

The Pointsbet share price will be one to watch this morning as the company’s impressive growth continues.

What else has Pointsbet been doing?

Today’s announcement is the third straight day of new announcements for the Aussie wagering group.

The Pointsbet share price has climbed 3.7% higher since Monday after the strong news week.

Yesterday, Pointsbet secured an arrangement with Twin River Management Group, Inc. to provide online iGaming/online casino in New Jersey, USA.

That’s a potentially lucrative market given the strict gambling rules in the United States.

Wednesday saw another sports-related update from Pointsbet. The Aussie wagering group secured a multi-year agreement to become the Official Sports Gaming Partner of the Indiana Pacers in the NBA.

That’s good news for the Pointsbet share price, particularly with the NBA restarting in the Orlando, Florida bubble in recent weeks.

How is the Pointsbet share price performing?

The Pointsbet share price has been one of the top performers in 2020.

Shares in the wagering group are up 24.9% for the year, but that doesn’t tell the full story.

Pointsbet shares were smashed in the March bear market. Investors were spooked by sporting shutdowns across the world due to the coronavirus pandemic.

However, it’s been good news for shareholders ever since. In fact, the Pointsbet share price is up 456.4% from its 52-week low in March.

After today’s announcement, it could be headed even higher in early trade.

More reading

• Pointsbet share price edges higher on new market opportunity
• Why Mesoblast, Northern Star, PointsBet, & Splitit shares are racing higher
• PointsBet share price jumps 4% on new US deal
• Short-sellers are targeting these ASX stocks ahead of the reporting season
• Why Bubs, PointsBet, Perpetual, & Waypoint shares are dropping lower

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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.

The post Pointsbet share price on watch after ANOTHER new partnership appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XDA81H

The Ardent Leisure Group Ltd (ASX: ALG) share price is on watch today after the theme park operator announced it had received financial assistance from the Queensland Government. The company’s Theme Parks division has received support under the Queensland Government’s COVID-19 Industry Support Package and Queensland Tourism Icons Program. What will these mean for the Ardent Leisure share price?

What does Ardent Leisure do? 

Ardent Leisure owns and operates leisure assets in Australia and the United States. It is behind the Dreamworld and Whitewater World theme parks and the Skypoint attraction in Queensland. It also operates Main Event, a portfolio of family entertainment assets in the US. Many of these assets were temporarily closed with the onset of the coronavirus pandemic. 

What type of support is Ardent Leisure receiving?

The Queensland Government has granted Ardent Leisure a financial assistance package totalling $69.9 million over three years. This consists of a secured loan of $66.9 million (including capitalised interest and fees) and a grant of $3 million which can be used to fund working capital and approved capital expenditure. 

Ardent Chairman, Gary Weiss, said, “The Queensland Government’s foresight in providing this financial assistance package will enable Ardent to reopen its iconic theme parks, continue to employ hundreds of people and, once the COVID-19 pandemic is behind us, continue to invest in future tourism infrastructure and create more local jobs.” 

Reopening of Ardent Leisure’s assets

Ardent Leisure reopened its Skypoint observation deck and climb last month. Now that financial assistance for the Theme Parks division has been secured, the company plans to reopen Dreamworld and Whitewater World by mid-September. Under COVID Safe plans approved by Queensland Health, Dreamworld and Whitewater World will each reopen at 50% of historical capacity. 

Main Event sale

In June, Ardent Leisure sold a 24.2% interest in the Main Event business to a private US investment firm, Redbird. Redbird has the option to acquire an additional 26.8% interest in the business at a future date. The sale will enhance the Main Event business’ liquidity as well as its capacity to invest in future growth. 

About the Ardent Leisure share price?

The company is due to release its full year results on 27 August which will reveal the impact of park closures. But while travel restrictions remain in place, visitor numbers to Ardent’s attractions are likely to remain low. The Ardent Leisure share price has recovered 200% from its March low of 11 cents but is still down more than 75% in year-to-date trading. The Ardent leisure share price has fallen just over 72% in the past twelve months.

More reading

• Village Roadshow locked in a capital raise as it secures new $70m facility
• Ardent Leisure share price surges 10% despite facing $4.5 million fine

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Ardent Leisure share price on watch following government assistance appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ijsHom

Insurance Australia Group Ltd (ASX: IAG) is one to watch this morning after the insurer’s full-year earnings announcement. The IAG share price could be on the move after the company reported a 49.6% slump in underlying net profit after tax.

What did IAG announce today?

There will be no final dividend paid by Australia’s largest general insurance company. That means total FY20 distributions fell 68.8% from FY19 with just the 10 cents per share interim dividend for shareholders.

IAG reported a 5.2% increase in revenue to $18,576 million for the year ended 30 June 2020.

Net profit from continuing operations fell 49.6% to $439 million while net profit attributable to parent company shareholders slumped 59.6% to $435 million.

Gross written premium (GWP) climbed 1.1% higher to $12,125 million. Insurance profit slumped 39.5% as IAG’s underlying and reported insurance margin fell by 60 basis points (bps) and 680 bps to 16.0% and 10.1%, respectively.

That 10.1% reported margin is below the company’s revised guidance which makes the IAG share price worth watching today.

IAG’s common equity tier 1 (CET1) multiple fell 8 bps to 1.23 as diluted cash earnings per share (EPS) plummeted 68.8% to 12.12 cents.

The IAG share price is currently trading at $5.07 per share. That means a 12.12 EPS would translate to a price to earnings (P/E) ratio of 41.8 with a dividend yield of 2.4%.

What about COVID-19?

IAG did provide an update on the impact of the coronavirus pandemic on its earnings.

The low single-digit GWP growth was attributed to a modest negative COVID-19 effect. IAG reported some Australian commercial portfolios were underperforming despite personal and New Zealand commercial lines performing well.

The Aussie insurer has also increased its provision for customer refunds to $141 million after-tax for the full year.

The COVID-19 impact on underwriting profit was largely offset during the second half of the year. IAG reported lower motor claim frequency while business interruption and landlord claims weighed on profits.

Foolish takeaway

The IAG share price could be on the move this morning following the full-year update. Shares in the Aussie insurer are trading down 34.4% this year while the S&P/ASX 200 Index (ASX: XJO) has fallen 9.7%.

A near 50% fall in underlying net profit doesn’t read well. However, I don’t think IAG will be the last ASX company to report a heavy earnings hit this month.

More reading

• Magellan share price falls despite strong July inflows
• The next ASX stocks to beat expectations during this reporting season
• Is there a bull trap ahead for ASX shares like Webjet?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.7%, ResMed result disappoints

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Earnings: IAG share price on watch after 50% profit slump appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gCloHE

The August reporting season has only kicked off, but we’ve already seen some significant share price action. These S&P/ASX 200 Index (Index:^AXJO) stocks could be next to deliver positive surprises in the coming weeks.

Some of the reporting season heroes so far include the Nick Scali Limited (ASX: NCK) share price, which hit a record high yesterday of $8.80, and the Centuria Office REIT (ASX: COF) share price.

But Goldman Sachs reckons there are several other ASX stocks that are likely to beat expectations when they turn in their profit results.

Heading for the clouds

One of the standouts is the Nextdc Ltd (ASX: NXT) share price. Mind you, it isn’t only Goldman Sachs that’s a believer. Several other brokers have highlighted the data centre operator as a potential reporting season winner.

“We expect NEXTDC to have a very strong operating result with record contracted MW, underpinned by 2×6 MW Melbourne contracts,” said Goldman Sachs.

“We see upside risk to market expectations, given accelerating Enterprise demand (which are higher yielding vs. hyperscale) and ongoing growth in interconnection revenues.”

Consensus earnings upgrade candidate

Another potential profit season hero in the making is the Seven Group Holdings Ltd (ASX: SVW) share price.

I hold the stock and share Goldman’s positive sentiment.  It believes the market is underestimating the underlying strength of the heavy construction equipment rental group.

The group’s WesTrac division (Caterpillar dealer) is benefiting from increased mining activity brought on by the high iron ore price. It’s also winning market share from rival Komatsu.

Its Coats Hire business should also be holding up due to its exposure to infrastructure construction, despite Victoria’s stage four COVID-19 shutdown.

Low bar to jump over

Meanwhile, the BlueScope Steel Limited (ASX: BSL) share price could come out tops this month as expectations are set low.

This is another stock that I think is undervalued. The BSL share price is lagging the market with a 22% fall since the start of 2020.

“BSL has pre-guided their result, so outlook commentary and capital management is key,” said the broker.

“With the market already expecting downbeat (or lack of) 1H21 guidance or forward-looking commentary, we see upside risk from neutral-positive guidance.”

The steel products manufacturer’s balance sheet is also strong, which means it can sustain its dividend and is unlikely to announce a surprise cap raise.

That last point already makes the stock unusual in this coronavirus-stricken world.

More reading

• Is there a bull trap ahead for ASX shares like Webjet?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.7%, ResMed result disappoints
• Village Roadshow locked in a capital raise as it secures new $70m facility
• Harvey Norman share price gets a helping hand from competitor’s rosy outlook

Motley Fool contributor Brendon Lau owns shares of BlueScope Steel Limited and Seven Group Holdings Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post The next ASX stocks to beat expectations during this reporting season appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3a32O95