America’s third-quarter earnings season is nearing the end while in Australia, the September 30 results continue with Westpac revealing its full-year figures this morning, along with a first-quarter update from the Commonwealth Bank midweek.
Westpac’s results are expected to echo those from the NAB and ANZ last week – some cost pressures from the impact of the royal commission, a slow down in housing, but signs of a solid year ahead, even if house prices remain weak.
The CBA’s update will be done ahead of the annual meeting in Brisbane on Wednesday which is expected to be a fiery affair given the tide of bad news from the country’s biggest bank – the settlement of the Austrac money laundering scandal, management changes, rotten disclosures about activities across the bank, especially the insurance arm which is being sold.
The CBA revealed the $4.13 billion sale of its funds’ management arm last week to a Japanese buyer and some shareholders will be looking for news on a capital return like the ANZ is doing with its $3 billion buyout which is two-thirds complete.
Don’t be surprised if there is a high vote against the bank’s new directors and the remuneration report as a way of shareholders letting off steam.
News Corp and its local property arm, REA Group report third-quarter figures early Thursday morning, Sydney time.
Third quarter earnings continue in Europe, the US, and Asia, with the US again holding the most attention.
More than 70 companies in the S&P 500 are scheduled to report quarterly financial results next week. So far, 74% of S&P 500 companies have reported earnings, and 78% of those firms have surpassed estimates, according to FactSet, the US financial data group.
Factset pointed out on Friday that if earnings growth holds steady at 24.9%, it would mark the second-highest rate since the third quarter of 2010.
This week’s earnings include Marriott International, Murphy Oil, Marathon Oil, Qualcomm and Walt Disney, News Corp, 21st Century Fox (The last), SoftBank, Occidental Petroleum, Siemens, Activision Blizzard, Square Inc, BMW, Toyota, Gannett, Dillard’s, Meredith Corp, Eli Lilly, AstraZeneca and Brazilian oil firm Petrobras.
