Last week earnings season moved up a gear with a large number of popular companies releasing their latest sets of results.
Three results that caught my eye are summarised below. Here’s why I think they were among the best results last week:
Commonwealth Bank of Australia (ASX: CBA)
I thought Commonwealth Bank of Australia’s half year result was one of the strongest results from last week all things considered. For the six months ended December 31, Australia’s largest bank delivered cash earnings of $4,477 million. This may have been a 4.3% reduction on the prior corresponding period but was higher than the consensus estimate of $4,405 million. The bank finished the period with a group net interest margin of 2.11% and a CET1 capital ratio of 11.7%. This balance sheet strength allowed Commonwealth Bank to maintain its fully franked 200 cents per share interim dividend.
IDP Education Ltd (ASX: IEL)
Arguably the strongest result from last week came out of this student placement and language testing company. IDP Education delivered revenue of $379 million and EBITDA of $106.2 million during the first half of FY 2020. This was a 25% and 53% increase, respectively, over the prior corresponding period. A key driver of this strong performance was its Student Placement segment, which posted a 35% increase in revenue to $122.6 million. This was supported by strong revenue growth in the key English Language Testing segment. It recorded a 21% lift in revenue to $215.3 million. Pleasingly, management appears confident on the future and advised that the coronavirus outbreak was not having a meaningful impact on its business at this point.
JB Hi-Fi Limited (ASX: JBH)
Another strong result came from this retail giant. During the first half of FY 2020, JB Hi-Fi delivered a 3.9% increase in total sales to $4 billion. This was driven by positive comparable sales growth across all three of its divisions. The company’s profits grew at an even quicker rate thanks to a combination of good cost control and lower depreciation. Earnings before interest and tax (EBIT) climbed 8% to $255.6 million. This was ahead of the consensus estimate for EBIT of $244 million. Another positive was that this strong half led to management upgrading its guidance for the full year. It now expects FY 2020 total sales to be ~$7.33 billion, up from its previous guidance of ~$7.25 billion. Net profit after tax, pre application of AASB 16, is expected to be in the range of $265 million to $270 million. This represents an increase of 6.1% to 8.1% on the prior corresponding period.
The post Were these the best results on the ASX last week? appeared first on Motley Fool Australia.
I thought they were all fantastic results. But if you're still not a fan of CBA or JB Hi-Fi, then you might want to try out these high quality dividend shares that have been rated as buys.
When Edward Vesely -- The Motley Fool Australia's resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares to buy now
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2020
- 5 Stocks for Potentially Building Wealth After 50
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. 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020