5 ASX shares to watch as earnings season heats up

Earnings Season Overview - Earnings season is a volatile period on the ASX calendar where expectations and sentiment can shift quickly [1] - Most listed companies will report half-year results, providing insights into business performance and management outlook [1] Key Companies to Watch - Commonwealth Bank of Australia (CBA) is the second-largest company on the ASX, with a focus on lending growth, margins, mortgage competition, and credit quality [3][4] - CAR Group Ltd has reported strong revenue growth and is focused on dealer demand and international operations as automotive markets normalize [5] - Pro Medicus is a medical imaging software provider whose results will be indicative of market sentiment towards high-quality growth companies [6][7] - CSL Ltd has seen a decline of over 30% in shares since the last reporting season, with key areas of focus including plasma collection volumes and product pipeline progress [8] - Nick Scali has been a standout retailer, and its results will reveal how it is managing softer consumer conditions and the performance of its UK acquisition [9] Market Sentiment and Investor Focus - Investors are particularly interested in commentary around household stress, arrears, and capital management from major players like Commonwealth Bank [4] - The response to Pro Medicus' results may reflect broader market sentiment towards growth companies [7] - For CSL, management's outlook commentary is crucial after a challenging period for global healthcare stocks [8] - Nick Scali's performance will be assessed in the context of rising living costs affecting Australian households [9] Conclusion on Earnings Season - Earnings season can lead to sharp share price movements driven by expectations rather than fundamentals [10] - Long-term investors should focus on understanding business performance and management perspectives rather than short-term market reactions [11]