EARNINGS PER SHARE – AUSTRALIA

Near enough is good enough in season so far

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Original article by David Rogers
The Australian – Page: 28 : 22-Aug-17

Analysts’ consensus earnings-per-share estimates for 2017-18 have been downgraded by 0.3 per cent so far in the August 2017 reporting season. Hasan Tevfik of Credit Suisse notes that this compares with EPS upgrades of 1.6 per cent in the February reporting season. Meanwhile, just 19 per cent of Australian-listed companies have exceeded consensus earnings estimates so far in the current reporting season, compared with an average of 40 per cent over the last two decades. Likewise, 38 per cent of companies have failed to meet consensus estimates to date, while the historical average is just 28 per cent.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL, BEACH ENERGY LIMITED – ASX BPT, G8 EDUCATION LIMITED – ASX GEM, FORTESCUE METALS GROUP LIMITED – ASX FMG, APN OUTDOOR GROUP LIMITED – ASX APO, TELSTRA CORPORATION LIMITED – ASX TLS, TRANSURBAN GROUP LIMITED – ASX TCL, CSL LIMITED – ASX CSL, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AGL ENERGY LIMITED – ASX AGL, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, CITIGROUP PTY LTD

Dividend cuts loom despite $23bn profits

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Original article by Michael Bennet
The Australian – Page: 17 & 21 : 24-Oct-16

National Australia Bank is tipped to post a 2015-16 cash profit of $A6.55bn on 27 October 2016. The ANZ Bank and Westpac are expected to post full-year profits of $A6.18bn and $A7.8bn respectively in coming weeks, while the Commonwealth Bank has booked a cash profit of $A9.45bn for the year to 30 June. Bank dividends are likely to come under pressure, while Jonathan Mott of UBS expects the banks to post negative growth in earnings per share for the first time since the global financial crisis.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, CLSA AUSTRALIA PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, CLYDESDALE BANK PLC, STANDARD AND POOR’S ASX 200 BANKS INDEX, DEUTSCHE BANK AG

ASX to hit 6000 in ’17, says Credit Suisse

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 25 : 18-Oct-16

Hasan Tevfik of Credit Suisse believes that the Australian sharemarket’s "profits recession" of the last several years has ended, which will be reflected in the market’s outlook. Credit Suisse expects the benchmark S&P/ASX 200 to reach the 6,000-point level by the end of 2017, buoyed by single-digit growth in earnings per share over the next year. Meanwhile, Matthew Sherwood of Perpetual is upbeat about the outlook for the economy, forecasting a rise in GDP growth over the next 12 months.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, PERPETUAL LIMITED – ASX PPT, ANSELL LIMITED – ASX ANN, BLUESCOPE STEEL LIMITED – ASX BSL, CALTEX AUSTRALIA LIMITED – ASX CTX, COMPUTERSHARE LIMITED – ASX CPU, FORTESCUE METALS GROUP LIMITED – ASX FMG, LEND LEASE GROUP LIMITED – ASX LLC, MAQUILADORA PARTNERSHIP, MYER HOLDINGS LIMITED – ASX MYR

Flat outlook for Coca-Cola Amatil puts doubt on growth

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 19-May-16

Shares in Coca-Cola Amatil closed $A0.04 lower at $A8.99 on 18 May 2016, following the group’s annual meeting. CEO Alison Watkins is aiming for earnings per share growth of five per cent in the near-term, but says the bottler may not necessarily meet this target in 2016. However, she expects the group to achieve earnings growth in the year to December. Analysts have forecast underlying profit growth of 3.6 per cent and growth in sales of 2.7 per cent for 2016.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, ARNHEM INVESTMENT MANAGEMENT PTY LTD, PEPSICO AUSTRALIA PTY LTD, SCHWEPPES AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Reporting season ups and downs

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Original article by Philip Baker
The Australian Financial Review – Page: 34 : 2-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed five per cent so far in 2016, and share price performances are likely to come under scrutiny during the February reporting season. Matt Ross of Goldman Sachs says price-earnings multiples are five per cent lower than they were in the lead-up to the August 2015 reporting season. He adds that growth in earnings-per-share is now at its lowest level since the global financial crisis.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BEGA CHEESE LIMITED – ASX BGA, COLES GROUP LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, MG UNIT TRUST – ASX MGC, REA GROUP LIMITED – ASX REA, ISENTIA GROUP LIMITED – ASX ISD, RAMSAY HEALTH CARE LIMITED – ASX RHC, CSL LIMITED – ASX CSL, CARSALES.COM LIMITED – ASX CAR, SEEK LIMITED – ASX SEK, ARB CORPORATION LIMITED – ASX ARB, TATTS GROUP LIMITED – ASX TTS, QUBE HOLDINGS LIMITED – ASX QUB, IRESS LIMITED – ASX IRE, PREMIER INVESTMENTS LIMITED – ASX PMV, HEALTHSCOPE LIMITED – ASX HSO, TABCORP HOLDINGS LIMITED – ASX TAH, TRADE ME GROUP LIMITED – ASX TME, BRAMBLES LIMITED – ASX BXB, MYOB GROUP LIMITED – ASX MYO, WESFARMERS LIMITED – ASX WES, SELECT HARVESTS LIMITED – ASX SHV, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JB HI-FI LIMITED – ASX JBH, SONIC HEALTHCARE LIMITED – ASX SHL, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHALLENGER LIMITED – ASX CGF, MONADELPHOUS GROUP LIMITED – ASX MND

AGM downgrades but growth likely

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 24-Nov-15

Analysis by Citigroup shows that 36 Australian-listed companies have upgraded their earnings guidance during the 2015 AGM season, and 42 have issued downgrades. Citigroup’s Tony Brennan notes that earnings-per-share forecasts have been reduced by about one per cent overall. Citigroup now expects the benchmark S&P/ASX 200 to be trading at 5,900 points at the end of 2016, compared with its previous forecast of 6,200.

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

Dividends keep climbing despite weak corporate profits

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Original article by Max Mason
The Australian Financial Review – Page: 13 & 18 : 4-Mar-15

Data from JP Morgan shows that the dividend payout ratio for companies in the S&P/ASX 200 increased by about five per cent overall during the February 2015 reporting season. Deutsche Bank in turn estimates that underlying earnings growth rose by about two per cent overall. The benchmark index gained 6.1 per cent during February. Meanwhile, JP Morgan and Citigroup have both scaled back their expectations for growth in earnings per share for the full year

CORPORATES
JP MORGAN AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CONTANGO ASSET MANAGEMENT LIMITED, RESERVE BANK OF AUSTRALIA, FIDELITY INVESTMENTS AUSTRALIA LIMITED, S&P CAPITAL IQ

Shocks likely as weaker $A hits home

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 20 : 10-Feb-15

Shane Lee of CIMB notes that consensus forecasts for earnings per share in the February 2015 reporting season have not been unduly affected by the sharp fall in the value of the Australian dollar. CSL, Boral and Newcrest Mining are among the stocks that could potentially have benefited from the lower currency in the first half of 2014-15. Lee notes that Boral will have greater downside risk in fiscal 2016, when less of its foreign exposure will be hedged

CORPORATES
CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CSL LIMITED – ASX CSL, BORAL LIMITED – ASX BLD, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, COCHLEAR LIMITED – ASX COH, PERSEUS MINING LIMITED – ASX PRU, SONIC HEALTHCARE LIMITED – ASX SHL, TRANSFIELD SERVICES LIMITED – ASX TSE, AMCOR LIMITED – ASX AMC, ALUMINA LIMITED – ASX AWC, WHITEHAVEN COAL LIMITED – ASX WHC, OCEANAGOLD CORPORATION – ASX OGC, RIO TINTO LIMITED – ASX RIO, ILUKA RESOURCES LIMITED – ASX ILU, ATLAS IRON LIMITED – ASX AGO, SANDFIRE RESOURCES NL – ASX SFR, MOUNT GIBSON IRON LIMITED – ASX MGX

Investors ‘too bold’

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Original article by Max Mason
The Australian Financial Review – Page: 33 : 25-Sep-14

Financial markets anticipate that Australian companies will achieve eight per cent growth in earnings per share in 2014-15. However, Matt Sherwood of Perpetual believes that this may be too optimistic, noting that the economy is forecast to expand by just 4-5 per cent. Meanwhile, BT Investment Management is bullish about Australian shares, and expects stocks to deliver an annual return of 10 per cent over five years

CORPORATES
PERPETUAL LIMITED – ASX PPT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, DELTEC INTERNATIONAL GROUP, RESERVE BANK OF AUSTRALIA

Big things expected from small players

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Original article by Tim Boreham
The Australian – Page: 17 : 1-Sep-14

At the end of the August 2014 corporate profit reporting season, analysts say small- and medium-capitalisation stocks are set to outperform larger ones again in 2014-15. Earnings per share growth for the smaller groups was 17.7% as compared to 7% for blue chips, and is set to reach 21.7% in the current year. This is despite downgrades of between 1.5% and 3%. Among the strongest stocks have been Webjet, Slater & Gordon, G8 Education, Specialty Fashion and Nick Scali

CORPORATES
STANDARD AND POOR’S ASX SMALL ORDINARIES INDEX, WEBJET LIMITED – ASX WEB, SLATER AND GORDON LIMITED – ASX SGH, G8 EDUCATION LIMITED – ASX GEM, SPECIALTY FASHION GROUP LIMITED – ASX SFH, NICK SCALI LIMITED – ASX NCK, CAPILANO HONEY LIMITED – ASX CZZ, SELECT HARVESTS LIMITED – ASX SHV, TASSAL GROUP LIMITED – ASX TGR, TRANSFIELD SERVICES LIMITED – ASX TSE, ACRUX LIMITED – ASX ACR, CHANDLER MACLEOD GROUP LIMITED – ASX CMG, NANOSONICS LIMITED – ASX NAN, BREVILLE GROUP LIMITED – ASX BRG, SENEX ENERGY LIMITED – ASX SXY, BOART LONGYEAR LIMITED – ASX BLY, NONI B LIMITED – ASX NBL, SUBZERO GROUP LIMITED – ASX SZG, PULSE HEALTH LIMITED – ASX PHG, QANTAS AIRWAYS LIMITED – ASX QAN, ASX LIMITED – ASX ASX, CONTANGO ASSET MANAGEMENT LIMITED, SHAW STOCKBROKING LIMITED, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, LINCOLN INDICATORS PTY LTD