The half-year profit reporting season for companies listed on the Australian Securities Exchange (ASX) is upon us!
This time of year is important and interesting for ASX share investors.
We're able to get our hands on tangible and digestible information on how companies have performed over the six months to December 2024.
If you're new to investing or haven't paid much attention in the past, these half-yearly reports will typically include information like:
Earnings — A key metric to watch in the reports is net profit after tax (NPAT). This measures a company's profitability after all operating expenses, interest, taxes, and other costs have been deducted from total revenue.
Another earnings metric that can help investors understand a company's profitability is earnings before interest, taxes, depreciation and amortisation (EBITDA).
It measures profitability, excluding the costs of financing and asset depreciation.
Dividends — Companies pay dividends to shareholders from the profit they make. It's essentially a way of rewarding them for investing in the business.
Earnings and dividends go hand in hand because dividends are typically paid out from company profits.
In fact, dividend investing is a strategy amongst ASX investors to earn passive income.
In reporting season, companies release information on whether dividend payments will go up, down or stay the same, and when they will be paid to shareholders.
Check out the Motley Fool Australia's earnings calendar to find out when your companies are reporting and to read our coverage of their results.
Last year, ASX 200 utilities shares were the sector that delivered the highest dividend returns.
Set to release half-yearly results next week are two of Australia's largest utilities companies.
AGL will release its half-year results for the period ended 31 December 2024 to the ASX on Wednesday, 12 February.
AGL supplies energy to residential, business, and wholesale customers.
Last reporting season was good news for AGL investors, as the company shared positive news on profits, NPAT, EBITDA and dividends.
Investors will want to see in this reporting season if AGL can keep profits moving upward.
Analysts on the CommSec trading platform predict AGL will pay a dividend yield of 4.38% in 2025.
AGL shares have climbed 48.12% in the last 12 months.
Origin Energy Limited will release its half-year 2025 results on Thursday, 13 February.
Origin provides customers with energy solutions, including solar, LPG, and broadband. It powers homes and businesses, and it also engages in power generation, gas exploration, and renewables.
The company's last reporting season results sparked in a 10% drop in the Origin share price, despite seemingly positive profit and earnings news.
Analysts on the CommSec trading platform predict Origin will pay a dividend yield of 4.94% in 2025.
Origin shares are up 19.43% in the last 12 months.
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