The Australian profit-reporting season moves into top gear this week with dozens of ASX 200 companies reporting, from big miners, to oil groups, property companies, insurers and consumer focused companies.
In fact around 80 major companies will be reporting results this week, including QBE, Qantas, Wesfarmers, Stockland and AMP.
The AMP’s Chief Economist, Dr Shane Oliver says “profit growth for 2014-15 is likely to be around -1% as resource sector profits slump 28% (thanks to the hit from lower commodity prices), but with the rest of the market seeing profit growth of around 9% as industrials ex financials benefit from low interest rates, the lower $A and cost cutting."
Commsec economists said on the weekend that “So far there have been the usual fair share of stand-outs and disappointments, but companies continue to rack up the profits with balance sheets generally in strong shape."
Today sees earnings results from Newcrest Mining, Aurizon, Charter Hall Retail and Flexigroup.
Tomorrow sees full year or interim profits from QBE Insurance Group Ltd, Iluka Resources, Sonic Healthcare, GPT Group, Challenger, Sydney Airport, Invocare and Asciano.
Amongst those scheduled to issue their profit results on Wednesday are Woodside Petroleum, Stockland, iiNET, Alumina, Treasury Wine Estates, and Seven West Media.
Thursday is the heaviest day of the week with earnings reports due from Origin Energy, APN News & Media (half year), Qantas, ASX, Western Areas, IRESS, AMP, Wesfarmers, Tatts Group, Adelaide Brighton, Qube, Lifestyle Communities, Mount Gibson Iron, Investa Office Fund, NRW Holdings and RCR Tomlinson.
Friday sees earnings result from Medibank Private, Coca-Cola Amatil (half year), DUET Group, Insurance Australia and Santos.
Dr Oliver wrote at the weekend that “so far the results have been rather mixed. 51% of results have beaten expectations and 61% have seen their profits rise from a year ago which is good, but good results often come out early on and at the same point in the February reporting season these numbers were 60% and 76% respectively.”
"Despite this dividends are continuing to surge with 68% of companies so far raising their dividends and only 8% cutting them.
“Other key themes are ongoing weakness amongst resources and mining services companies, slowing profit growth for the banks at the same time they are raising more capital and ongoing cost control,” Dr Oliver wrote.
Source: AMP Capital
Source: AMP Capital
Source: AMP Capital
