CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Coles share price: first-half results preview

We examine some of the key things investors should know before Coles (ASX: COL) reports its first-half results to the market next week.

When will Coles report their H1 results?

Coles Group (ASX: COL) is expected to report its H1 results to the market next week, on 19 February.

Coles share price: fundamentals in focus

Potentially suggesting that the current ‘supermarket wars’ – waged between Coles and Woolworths is heating up – analysts have a relatively flat outlook for the stock’s top and bottom-line growth figures in FY20.

Specifically, analysts are currently expecting that Coles will report FY20 revenues of $36,039 million – against earnings (EBITDA) of $1,979 million.

This represents a slight slump from the year prior, where Coles reported full-year revenues of $38,464 million and earnings (EBITDA) of $2,143 million.

Importantly, with the upcoming release of the supermarket's first-half results, investors and analysts will be able to get a better sense of how the company is tracking against the above expectations.

A recent Market Update from the company filled out some of those details, with it being noted that 'the success of the [Coles] Christmas campaign exceeded expectations with Supermarkets delivering comparable sales growth of 3.6% in the second quarter and 2.0% for the first half.'

It was further noted that:

'Comparable sales growth in Liquor and Express [...] were 2.1% and 5.1% respective for the second quarter and 1.5% and 2.9% respectively for the first half.'

'Coles' provisional first half FY20 Group EBIT [...] is expected to be between $710 million and $730 million,' the company also said.

Interestingly, though the Coles (ASX: COL) share price has risen ~40% in the last year, the company trades at a valuation relatively in-line with historical market averages, at 15.9x FY19 earnings, according to the ASX.

Do you own Coles shares? You can hedge your downside risk by trading CFDs now.

The analyst outlook

Valuations aside, the current analyst outlook may suggest that the stock has run somewhat ahead of its fair value.

According to Bloomberg Data, Coles (ASX: COL) currently has 2 buy recommendations, 6 hold recommendations and 7 sell recommendations, against an average 12-month price target of $15.74.

At Coles’ current $16.980 share price, the above price target, if accurate, implies downside potential of around 7%.

The stock trended down almost a full percentage point today, even as the broader market rose ~30 points.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.