4 ASX shares to watch in week 4 of reporting season

Lloyd Prout
Business man and woman looking into the future

Week 4 of the ASX reporting season sees some huge names updating the market on their recent performance.

The ASX has had a great run of late, with the market more broadly trading at a P/E ratio of around 18x earnings. Investors will want to see their companies meeting or even exceeding guidance.

Here are 4 ASX shares to watch during week 4 of reporting season.

Appen Ltd (ASX: APX) – Tuesday

Appen is set to announce its FY19 full-year results on 25 February. The company raised guidance back in November, with November and December results based on an AUD/USD exchange rate of 74 cents.

Estimated full-year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for FY19 was raised from $85 million – $90 million to a range of $96 million – $99 million.

Investors will be expecting Appen to at least meet this revised guidance.

Rio Tinto Limited (ASX: RIO) – Wednesday

One of the largest companies on the ASX releases its FY19 annual results on Wednesday 26 February.

The iron ore price has come back a fair way since peaking at US$123 in July 2019. With that said, 2019 was a good year for strong commodity prices.

Analysts at Morgan Stanley expect the iron ore price to drive earnings for Rio, forecasting a 44% growth in earnings per share (EPS). This, combined with a healthy balance sheet and relatively low capital expenditure commitments, could see dividends rise.

Nanosonics Ltd. (ASX: NAN) – Wednesday

Owning shares in Nanosonics has served investors well in recent history. The stock price has more than doubled over the last year. The company’s Trophon medical device is used to sterilise ultrasound probes. Key advantages of the machine is that it is automated, while not requiring any chemicals.

Investors will want to see continued strong growth in the installed base of Nanosonics. Increases in the installed base today leads to greater high margin consumables revenue in the future. The company estimates that it only has 17% global market share.

Afterpay Ltd (ASX: APT) – Thursday

Afterpay has executed extremely well to date in the United States (US). The US market opportunity dwarfs that of Australia and New Zealand. As such, investors will have a keen eye on the growing relationships Afterpay has with US and global brands.

The strong execution to date has seen the Afterpay share price more than triple since the start of 2019. Afterpay now has more than a $10 billion market capitalisation, despite note being profitable.

The post 4 ASX shares to watch in week 4 of reporting season appeared first on Motley Fool Australia.

Here are 3 great dividend stocks to consider while you're waiting for those company reports to hit.

The Motley Fool AU Announces Top 3 Dividend Shares To Buy For 2020

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.

Click here now to access this free report.

More reading

Lloyd Prout owns shares in Nanosonics Limited and expresses his own opinions. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Nanosonics 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 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