The Australian December half profit reporting season will start to ramp up this week with 16 major companies reporting, while the US 4th quarter season tips over last week’s peak and starts easing, though not before we get a slew of media results and early retailing figures.
The big Australian groups reporting this week include Rio Tinto, AMP, News Corp, Car Sales, AGL Energy and Suncorp.
By the time you read this the National Australia will have issued its first quarter trading update, while Macquarie issues an update tomorrow.
The AMP’s chief economist, Dr Shane Oliver says “steady earnings upgrades for resources stocks on the back of the rise in commodity prices has seen the consensus expectation for 2016-17 earnings growth rise to 17% from around 7% last September."
"Resource company profits are expected to more than double, but profit growth across the rest of the market is likely to be around 5% led by retailers, utilities, telcos and building materials companies.
“Key themes are likely to be: a massive turnaround for resources companies; constrained revenue growth for industrials; continuing constrained revenue growth for the banks; and an ongoing focus on dividends,” he wrote at the weekend.
The NAB updates this morning. Then on Tuesday we get: Macquarie Group operational briefing; Transurban half year results; Alacer Gold full year results; SCA Property Group full year results.
Wednesday: Rio Tinto full year results; Carsales.com half year results; CIMIC full year results.
Thursday: Suncorp Group half year results; AMP full year results; AGL Energy half year results.
Friday: News Corp second quarter and half year results
So far in Australia we have see Downgrades from: Brambles, McGrath, Bellamy’s, Suncorp, Village (Ardent), AFI, Mirrabooka, Villa World (tiny, full year rise maintained), Oroton Group, Virtus, Aurizon, Iluka, Navitas, Servcorp, Resmed, Oz Forex, James Hardie after a weak 3rd quarter.
Woodside and Santos, Oil Search. Possible profit falls for 2016, but outlook for 2017 should be better with higher prices and improving demand.
Upgrades: Downer EDI, CSL, Wesfarmers coal earnings jump sharply, BlueScope, Resmed, Fortescue Metals Group, OZ Minerals, Rio Tinto, BHP (before Samarco costs), Origin Energy.
In the US the focus will again be on December quarter earnings reports with media companies releasing results, along with some food and early retailers. Twitter’s figures on February 9 will be watched very closely.
Other companies releasing figures include News Corp, 21st Century Fox, Viacom, Time Warner, Hasbro, Tyson Foods, Michael Kors, General Motors, Walt Disney, Whole Foods, Yum! Brands, Kellogg, GM, Dow Chemical, Whole Foods, Intel and Expedia are all expected to report.
