Interest rates and profits will be the topic of the week for investors with three major banks producing their financial results in Australia, along with several major annual meetings.
In the US another 162 S&P 500 companies report their quarterly figures this week.
The key for investors will be if the ANZ has improved its previously dismal home loan performance, whether the NAB’s earnings justify its recent strong performance and by how much more than $2 billion Macquarie’s earnings will end up.
Dividends will also be the key to future market views for the three banks.
The ANZ on Wednesday, NAB on Thursday produce interims with their dividend decisions widely watched – will by how much NAB lift its interim above 2020-21’s 60 cents a share. The ANZ paid 70 cents a share and some analysts are not looking for much of a rise.
Friday sees Macquarie release what will be a solid result for the full 2021-22 financial year to the end of March.
Macquarie paid a full year’s dividend of $4.70 a share in 2020-21 and the dividend will end up well past $5 if the performance alluded to in an early February trading update is any guide.
ANZ shares are down for the year to date by around by just 21 cents on the level at the end of December. The NAB shares are up 13.1% and Macquarie shares were down $1.58 from the end of December to the end of April on Friday
ANZ said on Friday that its first half profits will be negatively impacted by $43 million, compared to the massive $817 million write down and losses a year earlier.
US domiciled Amcor releases its March quarter results this week as does News Corp.
Annual meetings will be held by Rio Tinto, QBE and Santos.
…………
Elsewhere, more 3,200 companies report quarterly results or hold annual meetings this week.
In the US, more than 52% of S&P 500 companies have delivered their results and as we saw on Friday the energy majors delivered really big profits, led by Exxon Mobil and Chevron.
This week Shell and BP report – both will reveal multibillion losses from their exit or winding down of Russian investments, especially BP.
The AMP’s chief economist, Shane Oliver says the current season is turning out to be a bit better than expected at first. He wrote in his weekly note that “with 81.5% beating expectations (versus a norm of 76%). Consensus earnings expectations for the quarter have moved up to 7.4%yoy from 4.3% at the start from start of the reporting season.”
“With the average beat running around 7% its likely to end up at around 11%yoy. Energy, materials and industrials are seeing the strongest earnings growth. Key to watch going forward though will be the impact of rising costs.”
Other US groups reporting include Square – the payments group that bought Afterpay for billions of dollars (in a paper takeover) and then revealed big write downs and a $345 million loss for the December quarter. Local analysts will be watching to see if there’s any more red ink from Afterpay in Square’s March quarter report.
Albemarle, the world’s biggest lithium group, reveals its March quarter figures and analysts are expected a solid report.
Besides News Corp, Liberty Media is down to report, as is the New York Times (will its solid growth in subscriptions continue?).
Starbucks, Uber, Airbnb are also due, along with Kellogg and KraftHeinz – all will no doubt complain about higher inflation and costs.
LNG exporter, Cheniere which should benefit from the surge in LNG prices in the wake of the Russian invasion of Ukraine, and be looking at a great 2022.
German giants like Allianz, Rheinmetall (the big arms maker and defence contractor) and VW are due to reveal their figures.
And Canadian fertiliser group Mosaic is also due to release its quarterly figures and provide an update on the impact of the sanctions on Russian and Byelorussian exports of fertilisers and chemicals.
