This exclusive annual scorecard checks bank results in a difficult year, and looks ahead at the hurdles and opportunities for the sector that many Australians rely on for their income.
Tag Archives | reporting season
About half of companies reported as expected in their latest financial results, and the rest were split between favourable and disappointing. Valuations are not cheap but some companies deserve to be expensive.
Exogenous factors like macro changes and weather can affect a company’s short-term profits. Management often blames uncontrollable factors for earnings downgrades but rarely owns up to a fortuitous tailwind.
Our regular check on the ‘star’ performances from the Australian banks’ May 2018 reporting season in the face of low credit growth, increased regulatory scrutiny and the sales of insurance and wealth management divisions.
The Australian banks are on firm ground with strong capital ratios, few bad loan problems and sustainable dividends, but lower demand for credit, tighter margins and the bank levy give no room for complacency.
A look at the ‘star’ performances from the Australian banks’ financial results for 2017 and how they have handled non-bank competition, government levies and business divestments.
LICs have generally retained their dividends despite some softness in income received from underlying investments, and three prominent, longstanding LICs are worth a look at current prices.
At any point in the cycle, the portfolios of either the optimists or the pessimists perform better. Despite stretched valuations and rising rates, the optimists are winning at the moment.
It was a good reporting season with market EPS expectations increasing 1.6%, the best outcome since 2010, but as ever, some segments of the market are faring much better than others.
Commodity price falls and China worries overhung the market at the start of 2016, and some miners posted terrible results. But February’s reporting season had some bright spots and room for optimism.
Reporting season is hard work for equity analysts, especially when a company’s results differ from the expected. It’s also a time for a company to outline its strategy and gauge the reaction of its owners, the fund managers.