What to expect from the Coles (ASX:COL) first half result

Is the Coles Group Ltd (ASX:COL) share price in the buy zone ahead of its half year results?
The post What to expect from the Coles (ASX:COL) first half result appeared first on The Motley Fool Australia. –

Coles share price

With earnings season on the horizon, I thought I would start to take a look at what is expected from some of Australia’s most popular companies.

On this occasion, I’m going to take a look at supermarket giant Coles Group Ltd (ASX: COL).

What is expected from Coles in the first half of FY 2021?

With the Coles share price up strongly over the last 12 months, expectations certainly are high for the company next month.

According to a note out of Goldman Sachs, its analysts are expecting Coles to reported group sales of $20,585.9 million for the half, which will be an increase of 9.2% on the prior corresponding period.

This is expected to be driven by an 8.7% jump in Food sales to $18,022.6 million, a 16% jump in Liquor sales to $1,961.9 million, and a 5.1% increase in Coles Express sales to $601.4 million.

In respect to earnings, Goldman is forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) of $1,784.2 million for the half. This will be a 7.2% increase on the prior corresponding period.

And on the bottom line, an underlying net profit after tax of $540.4 million has been pencilled in. This represents a 10.5% increase on the same period last year.

Finally, the broker expects this strong form to lead to the Coles board declaring an interim fully franked dividend of 34 cents per share, which will be a 13.3% increase on last year’s interim dividend.

Is the Coles share price in the buy zone?

According to the note, Goldman Sachs believes the Coles share price is in the buy zone right now.

This morning it has retained its buy rating and lifted its price target on the company’s shares to $21.10.

Based on the current Coles share price, this implies a potential total return of ~22% over the next 12 months including dividends.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What to expect from the Coles (ASX:COL) first half result appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!