Reporting Season 2019 - What We Know So Far
CMC Markets | Feb 18, 2019 15:23
Originally published by CMC Markets
Get the latest updates on the major stocks in ASX, reporting in 2019. Companies will be publishing their earning reports for the year which will help traders and investors gauge their take away in terms of share prices.
h2 18-2-2019/h2The US reporting season is now around 80% complete. Sales growth around 6.5% and earnings growth near 11% is supportive of recent share market gains. In Australia, reporting will cross the half way in the busiest week of the season. More than 70 of the top 200 companies report to shareholders. In early results Ansell has come in below forecasts, and both NIB (AX:NHF) and Brambles (AX:BXB) slightly above.
After disappointment from AMP (AX:AMP) and Telstra (AX:TLS) dragged on the S&P/ASX 200 index yesterday it’s likely today’s reports will dominate the action. Online property group Domain (AX:DHG) took a massive goodwill write down after a further slump in listings and activity, which may see its share price hit an all-time low. Medibank Private (AX:MPL) income took a hit as investment income fell. On a brighter note Whitehaven Coal (AX:WHC) announced a special dividend after a 19% lift in profits. However an overall impression of misses could see the market finish in the red.
Another full day of company reports will keep Australian investors busy. Sixteen top two hundred companies report their half or full year results today, and once again early indications are for disappointment. Yesterday the Australia 200 index confounded positive international leads to close lower, and a similar risk exists today, subject to further releases.
Get The App
Australian investors have much to consider as twelve of the top two hundred companies report half year earnings. The results are skewing negative so far, and combined with weaker metals prices and political chaos in Canberra there is potential for downside surprise.
The Australian season hits the quarter way mark today, with Challenger (AX:CGF) and toll road manager Transurban (AX:TCL) fronting investors. Both have missed estimates by a very wide margin, Challenger reporting a 97% fall in profit and Transurban a 54% slump.
US reporting season is two thirds complete. Earnings growth around 14.5% so far is about 3% over forecasts, and giving some support to the higher index levels gained this year.
h2 11-2-2019/h2The Australian company reporting season get into full stride, with 45 of the top 200 companies announcing results for the half or full year. In releases this morning property group GPT (AX:GPT) and retailer JB Hi-Fi (AX:JBH) delivered above expectations, while packaging group Amcor (AX:AMC) missed the mark. With overall projections of 5% profit growth across the top companies more good results are required to justify last week’s raging rally in the Australia 200 index.
The dual US /Australian listed News Corp (AX:NWS) unveiled a whopping 21% increase in revenue, swinging back into profitability for the quarter. The improvements came across its publishing, cable and streaming services, and the partially owned digital real estate subsidiary REA (AX:REA) was a significant contributor, although REA’s headline result was dragged down by write-offs associated with their Asian businesses
The Australia 200 index is sitting just above the technically important 6,000 level, and any gains today may see underweight investors forced back into the market.
Announcements this morning showed IDP Education (AX:IEL) and property group Mirvac (AX:MGR) beat consensus forecasts in the first half of the financial year. Engineers Downer EDI (AX:DOW) unveiled a return to profitability and lifted guidance on full year earnings. However power utility AGL (AX:AGL) saw a modest decline in revenues exacerbated by significant hedging losses. It’s a coin toss.
The Commonwealth Bank Of Australia(AX:CBA) (AX:CBA) reported a modest 1.7% lift in operating profit, although overall profit fell 2.1% on higher impairment charges. The result is below consensus forecasts and may see CBA shares give back some of yesterday’s extraordinary gains. Other results this morning are more impressive, and IAG (LON:ICAG), Bunnings Trust and Dexus Property (AX:DXS) delivered pleasant surprises to shareholders.
It’s a full day for Australian investors. Financial stocks comprise 31.55% of the Australia 200 index, and the sweeping change coming to the sector will keep analysts busy for weeks to come. There is an emerging view that the big four banks may rally from this point given the actions taken already and more certainty about the future. This is a view yet to be tested, although index futures lifted in an immediate response to the report delivered after the cash market close yesterday.
It’s the first day of the corporate reporting season with James Hardie (AX:JHX), CIMIC (AX:CIM) and Scentre Group (AX:SCG) fronting shareholders. Throw in an overnight surge in aluminium, nickel, iron ore and steel and predicting the outcome of today’s session is a tough call.
Below are the expected results:
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.