The Australian December half profit reporting season hits the first of three peak weeks in the week ahead with 77 major companies reporting.
They include CSL, Woodside, Lend Lease, AMP, GPT and Telstra, with trading updates from the NAB and ANZ, plus results from several media companies, led by Fairfax and Seven West Media.
According to the AMP’s chief economist, Dr Shane Oliver, the key themes for the rest of the season is likely to be ”ongoing horrific conditions for resources companies (where 2015-16 earnings are expected to fall another 61%); continued modest profit growth for the rest of the market (of around 5%) led by healthcare, building materials, general industrials and discretionary retail; help from the lower $A; and an ongoing focus on cost control.”
Among those reporting this week include Aurizon, Newcrest and Argo Investments, who are due to release today. Tomorrow sees results from CSL, Bendigo & Adelaide Bank, GWA, Challenger, Star Entertainment, Reckon, Invocare, Pacific Brands and Paladin while a first quarter update is scheduled from National Australia Bank.
On Wednesday, among those expected to report Amcor, A2 Milk, The Reject Shop, Insurance Australia, Lend Lease, Independence Group, Domino’s Pizza, Sonic Healthcare, Arrium, Coca Cola Amatil, Primary Health Care, Woodside Petroleum and Mount Gibson Iron. The ANZ releases its first quarter trading update.
Thursday sees reports from GPT, Seven West Media, Telstra, Tatts Group, AMP, Webjet, Sydney Airport, QBE Insurance, Charter Hall and Origin Energy.
And on Friday, earnings are expected from Western Areas, Santos, Iluka, Fairfax Media, James Hardie, Medibank Private and Transpacific.
In a note at the weekend, Dr Oliver said that so far only 17% of companies in the ASX 200 have reported their interim or full year results.
“So far so good with 52% of results coming in better than expected, 63% seeing profits up on a year ago and 70% raising their dividends relative to a year ago, he wrote.
“It’s about horrible as expected for resources stocks with RIO’s profits down sharply and it warned that its dividend will be cut as has long seemed inevitable, but conditions seem okay for the much of the rest of the market“ Dr Oliver said.
OZ Minerals stood out last week with a higher profit and dividend (and no debt) in one of the better results. Cochlear was another to beat expectations and investors are looking to CSL to match that performance tomorrow.
But Dr Oliver points out that “of course the good results have a habit of coming out early in the reporting season.”
