The market must be back to normal, or close to it.
Not only did it enjoy a bit of froth and bubble yesterday at the results from the CBA and Boral, not to mention Stockland, but it also went a bit miserable at confirmation from global share registry Computershare that 2010-11 is turning out to be a tough year.
Computershare shares fell nearly 4% by the close, with the shares ending at $9.80, a loss of 39c.
It was a 31.2% fall in interim earnings that seems to have sparked the sell down.
But with the company maintaining earnings guidance for the full year (for a fall of 5% to 10%), there would seem to be a pick up in the current half after the first half slump.
But the market chose to ignore than suggestion and focus on the bad interim.
The 5% to 10% profit fall forecast has been in the market now for the best part of six to seven months and maintaining it yesterday shouldn’t have come as a surprise.
At November’s annual general meeting, Computershare president and chief executive Stuart Crosby told shareholders the company was expecting a 5% – 10% fall in management earnings per share for the full 2010-11 year.
Computershare said yesterday that net profit for the six months to December 31, 2010, came in at $US116.87 million ($115.4 million), down from $US169.88 million in the prior corresponding period.
Management earnings per share was 26.96 cents, down 14% from 31.38 cents a year earlier.
But in a statement accompanying the financial results yesterday, Mr Crosby said full year guidance was unchanged.
"Equity market and general economic conditions, while perhaps less volatile than they have been in recent years, are still relatively unfriendly to Computershare’s business model," Mr Crosby said.
"Interest rates are low, market and M&A transactional activity is slow, and the expected second wave of US bankruptcies has not yet hit.
"That said, strong annuity revenue continues to underpin our performance, and fundraising in Asia has been something of a bright spot."
Mr Crosby said Computershare was well-placed to "take full advantage of the inevitable upturn in the cycle, whenever that arrives".
"We also continue to explore a broad range of acquisition and other growth opportunities, both in our current business lines and in new verticals," Mr Crosby said.
"However, any acquisition or increase in transactional activity is unlikely to have a material impact this year and so we continue to anticipate management EPS being five per cent to 10 per cent lower in FY11 than it was in FY10."
Revenue fell 3.2 per cent to $US774.92 million ($A765.32 million), Computershare said.
The company declared an unchanged interim dividend of 14 Australian cents, 60% franked.
Melbourne-based Ansell, the rubber gloves and latex products manufacturer also confirmed its earnings-per-share guidance for the full 2010-11 financial year despite more pressure from higher raw material prices.
Ansell yesterday reported a first-half net profit of $64.2 million, up 5% on the prior corresponding period.
In US dollars, which is Ansell’s operating currency, net profit for the six months to December 31 rose 12% to $US61.0 million.
The market looked at the result and then sold the shares down 1%, or 14c to $13.58.
While that was a similar reaction to Computershare, but not as extreme.
Ansell said the results translated into Australian dollars showed a lower period-on-period improvement due to the Australian dollar’s 9% rise against the greenback.
"We anticipate further pressure from raw material price increases," Ansell said in a statement.
"Ansell is continuing its programs to mitigate this impact and the strong global momentum in the industrial and SH&WB (sexual health and well-being) businesses are expected to provide a favourable offset.
"Ansell therefore reconfirms the previously communicated EPS (earnings per share) guidance range of 86 to 91 US cents, which is up eight to 14 per cent on the 2010 financial year’s 79.7 US cents earnings per share result," chairman Peter Barnes said in the statement yesterday.
Ansell’s sales for the first half were up one per cent at $617.5 million, or up 9% to $US583.7 million in US dollars.
The company declared an interim dividend of 14 cents per share, compared with 13c for the first half of 2009-10.
Takeover target Austereo Group has posted first-half net profit up 9.9% on an improving advertising market, and says the second half has opened satisfactorily.
Austereo reported a net profit of $30.441 million in the six months to December 31, 2010, up from $27.69 million in the prior corresponding period.
Revenue from operating activities grew 11.5% to $146.18 million in the half year and group earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.3% higher to $53.6 million.
Austereo, currently subject to a takeover bid from Southern Cross Media Group, declared an interim dividend of 5c, up from 4c a share, fully franked, in the prior first-half year.
Austereo says the second half
