The Australian June 30 reporting season hits top gear this week with around 60 companies in the ASX 200 down to report, along with the vital third quarter trading update from the ANZ tomorrow.
Today sees companies such as Bendigo Bank, Ansell, Aurizon, Newcrest and JB Hi Fi today, GPT (half year), Challenger, Domino’s Pizza, Flexigroup tomorrow, Westfield, Origin, Fairfax, Seek, Stockland, Sonic Healthcare and Woodside on Wednesday.
Wesfarmers, Breville, Cochlear, Mirvac, Treasury Wine Estates, Whitehaven Coal, QBE, Tatts and Telstra are to release their reportson Thursday.
On Friday companies due to report include Kogan, Farm Pride, Primary Healthcare, Link Administration Holdings ands Vita Group.
A very busy week and tomorrow we have the early morning update from the ANZ for the June quarter will be closely watched for confirmation that the big banks are on the verge of better than expected results.
The full year figures this morning from Bendigo Bank will confirm that the smaller banks are being left behind by the giants.
The AMP’s Chief Economist, Dr Shane Oliver says “2016-17 profits for the market as a whole are likely to have increased by around 18%, driven by a huge 133% gain in resources profits on the back of the rebound in commodity prices.
“Profit growth for the rest of the market is likely to be around 5.5% led by retailers, utilities, healthcare stocks and financials. Dividends and outlook statements will remain the key focus, He added in a weekend note.
In his first assessment of the early weeks of the season, Dr Oliver wrote on Friday that the season has so far been mixed (after 25 or so major companies have reported).
“45% of results have exceed expectations which is around the long term norm of 44% (see the first chart below), but 72% have reported profits higher than a year ago and 82% have increased dividends from a year ago.
"But reflecting the mixed results so far 50% of companies have seen their share price outperform the market on the day they reported and 50% have seen underperformance. It’s worth noting though that there is a tendency for the quality of results to tail off a bit as the reporting season proceeds.
Consensus earnings expectations for 2016-17 have been revised down by 0.4% to 17.7% over the last week but mainly due to resources stocks,” he added.
Source: AMP Capital
Source: AMP Capital
