The Australian December half 2017 earnings reporting season will really ramp up in the week ahead with around 80 major companies reporting , with the most important being BHP Billiton.
Retail gets a look in with the likes of Woolworths, Super Retail, the Reject Shop and Temple & Webster and Scentre (the old local arm of Westfield which reports its full year) also releasing results, along with Wesfarmers and its group of chains – Coles, Kmart, Bunnings and Officeworks.
And while the figures from Wesfarmers and Woolies will grab the headlines, watch for a result from retail Food Group on Friday, it could be very nasty.
Media companies also get a look in with Seven West Media’s half year report tomorrow the most watched, Fairfax releases its figures the next day (Domain, its digital real estate businesses releases this morning), Nine Entertainment on Thursday and Southern Cross Austereo on Friday.
Monday (Today) sees reports from Brambles, Beach Energy, Seek, GWA, Cardno, Domain Holdings and nib Holdings (health insurance).
Tuesday (tomorrow) will see BHP report, Seven West Media, Aconex, Bapcor, Flexigroup, Greencross, Monadelphous, Oil Search, Super Retail, Vocus, Temple & Webster and Western Areas.
On Wednesday reports are expected from Worley Parsons, Wesfarmers, Lend Lease, The Reject Shop, AP Eagers, Santos (full year), DownerEDI, Lovisa, Scentre and Fairfax (Wednesday), Coca Cola Amatil (full year), Blackmores, Australian Vintage, Pact Group and McPhersons.
Thursday sees reports from Qantas, Nine Entertainment, Crown, Kogan, iSentia, Flight Centre, Alumina, Beacon Lighting, Oz Minerals (full year), Qube, Bega Cheese, Inghams, Westfield, Perpetual, Platinum Bellamy’s and Webjet.
On Friday Woolworths leads off the reporters, along with Automotive Holdings, Southern Cross Holdings, Tassal, Mayne Pharma and Retail Food Group.
According to Shane Oliver, the AMP’s Chief Economist the December half profit reporting season has seen only a third of companies having reported, “but so far it remains reasonably good.
He says 46% of results have exceeded expectations against a norm of 44%, 74% have seen profits rise from a year ago and 72% have increased dividends from a year ago,” he wrote at the weekend
“However, only about 49% have seen their share price outperform on results day and there is still a way to go yet with results often tailing off a bit as more report.”
Source: AMP Capital
Dr Oliver says he is still expecting to see a fall back to single digit earnings growth (after the resource driven surge seen in 2016-17) with overall earnings growth around 7% (compared to around 16% in the last financial year), with resources profit growth slowing to around 14% (from 130% in 2016-17) but still supported by solid commodity prices and production growth, bank earnings growing around 3% and industrials up 5% with strong results for insurers, utilities, healthcare, building materials and consumer discretionary.
“The main themes will be continued strength in companies exposed to housing construction and the infrastructure spending boom, the impact of the US tax cut on companies exposed to the US and the potential for some special dividends and capital returns,” he wrote.