6 ASX Stocks to watch with an eager eye this FY24 reporting season

6 ASX Stocks to watch this FY24 reporting season

Nick Scali (ASX:NCK)

Nick Scali has doubled in the last 5 years, and a big part of this growth can be attributed to the furniture boom during the pandemic. Its sales have doubled from ~$250m to ~$500m in that time and its profit has more than doubled. But maybe this run may be finally coming to an end. Its revenue in the first half of FY24 (1HY24) was down 20% to $226.6m and consensus estimates call for $468m for the full year, which would be down 8%. For many investors in the last couple of years, a decline in revenue has been a forgivable offence if margins hold up. That’s what we reckon investors will look for. Also keep your eye on whether or not the company provides an update on trading results in FY25, and whether or not the Stage 3 cuts have had any impact at all.

Transurban (ASX:TCL)

It’s great to have a monopoly over an entire city’s toll roads, especially a city like Sydney. That is, until people stop using them – during lockdowns, people did. And since the pandemic, NSW politicians finally heed the cries of people that they are paying too much in tolls and undertook reviews to find what we already knew, that Sydney road users pay too much. In addition to the company’s results, we expect commentary from the management on current negotiations with the government as well as if there’s been any impact from the new weekly caps on tolls. Consensus estimates expect flat revenue growth, although they expect 10% EBITDA growth.

IGO (ASX:IGO)

You could argue we shouldn’t expect much of a share price impact because we just saw its quarterly results. And you can derive its annual production figures by adding up all its quarterly figures. But we expect it to provide an outlook of FY25 so far as production and exploration is concerned. A big factor in where the company goes will be its prediction of where battery metal prices will go. Will FY25 be a year of recovery, or another in the doldrums? This could set the tone of expectations for investors across the entire battery metals sector. Analysts aren’t just pessimistic about FY24, but about future years too. For the record, they expect revenue to fall from over $1bn to just over $800m, and EBITDA to be only one third of FY23.

Commonwealth Bank (ASX:CBA)

Last year, the bank paid out $2.4bn in dividends and each individual shareholder got over $3,000 each. During the cost of living crisis, many would need all the help they can get. As with the companies we have already mentioned, this stock’s results will set the tone for many of its peers, and potentially provide insight into the broader economy. Most particularly, how people are coping with rising interest rates, and what impact Stage 3 might have. Consensus estimates expect flat revenue and earnings.

JB Hi-Fi (ASX:JBH)

JB Hi-Fi is another retailer that saw a boom from the pandemic. Like the aforementioned Nick Scali, the boom has not worn off because people need electronics and need to update them regularly. Analysts expect FY24 to be a year where this growth starts to ticker off with revenue predicted to be flat and EBITDA to fall over 10%. Many investors may forget that it owns the Good Guys, having purchased it for $870m in 2016, in an aim to increase its market share. It has struggled in recent years, but perhaps the Stage 3 tax cuts will see people spend their money on new home appliances and specifically at the Good Guys. 

Qantas (ASX:QAN)

Qantas’ results are eagerly anticipated, not just because it doesn’t typically provide guidance barring circumstances such as COVID, but also because it announces new capex projects, such as lounge refurbishments, plane orders. Of course announcing them and delivering them are different things – just ask Adelaide and Auckland passengers who have long been waiting for lounge refurbishments at their ports. Another thing to watch will be to see if it will bring back dividends for the first time since the pandemic, or opt to buy back stock as many of its global airline peers do?

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