Company Interview / Positive results the market could be missing

Key points:

Reporting season expectations remain low for quality ASX growth stocks, creating potential opportunitiesResMed (ASX:RMD) result viewed as strong, with short‑term margin pressure seen as a buying opportunityREA Group (ASX:REA) considered a dominant platform with pricing power and attractive long‑term growth potential

Bowen Hosking from Enhanced Asset Management outlines a constructive outlook for the current ASX reporting season, despite macro headwinds from inflation and geopolitical tensions. Hosking expects volatility to remain elevated, but views expectations for many quality growth companies as unusually low, creating potential opportunities for long‑term investors focused on fundamentals.

On ResMed (ASX:RMD), Hosking characterises the latest result as strong, noting solid underlying device sales once the impact of the Astral ventilator recall is stripped out. He points to 5–7% revenue growth guidance for FY27 as broadly in line with prior expectations, and highlights robust cash flow generation. Short‑term headwinds from higher freight and component costs may pressure margins in Q1 FY27, which Hosking sees as a possible buying opportunity if the share price weakens, with margin expansion expected in the second half as price rises flow through.

Turning to REA Group (ASX:REA), Hosking acknowledges headline pressures such as a profit decline and AI disruption fears, but views the result and outlook as bullish. He argues tax changes may actually support listing volumes, while REA’s pricing power and dominant marketplace position should underpin double‑digit earnings per share growth and attractive value below $200 per share.