So how was your reporting season ?
Australia has just finished its reporting season and the action is just picking up. judging from the reporting season we will possibly in for a helluva ride looking forward.
There was the minor hiccups affecting the global economy predictions like the Greece scare that is still fresh in our minds and alive and the impending doom of the UL economy gloom ( when is that bubble going to be pricked) .Irrespective of all this our reporting season saw very good results with the mining stocks poised to boom and the banks expanding into overseas economies ( CBA and ANZ poised to explore growth potential in india after acquiring their licenses) .
CommSec assessed 129 companies among the top 200 on the Australian Securities Exchange (ASX) and found that 113, or 88 per cent, were profitable for the six months to December 31, 2009. Sixty-seven per cent reported improved earnings and 60 per cent lifted earnings per share.
Australia’s December quarter GDP came in slightly stronger than expected, with growth of 0.9% in the quarter which, combined with upwards revisions to growth in the previous two quarters, resulted in growth over the year to the December quarter of 2.7%.
Rockers of reporting season:
Coca-Cola Amatil pleased with its annual figure.
Woolworths, AGL and Harvey Norman impressed
Dazzlers were the supposedly generously valued net stocks such as Realestate.com. Wotif, Carsales and Melbourne IT
Toll Holdings, which shocked the market last Thursday when it missed expectations by almost 15 per cent
Timber-lopper Gunns slipped on ice with a 99 per cent profit decline
Qantas, and plumbing supplier Crane Group disappointed
Foster’s Group lost its fizz
CommSec expects the SP/ASX 200 and the All Ordinaries indices to lift to 5,150 by mid-year and to 5,600 by the end of calendar 2010.
Recent earnings upgrades from big companies such as Commonwealth Bank and Qantas, as well as a strong fourth-quarter production report from miner Rio Tinto ahead of its full-year results in March, have added to the belief that the worst is behind us.
The AMP’s chief economist, Dr Shane Oliver, says that as we approach the one year anniversary of the bear market low in shares (Australian shares bottomed on March 6, 2009 and US shares bottomed on March 9) things are vastly different; the economy is much stronger than expected and corporate profits are recovering solidly. Profits have now bottomed and with the economy picking up pace and costs well and truly under control profits are likely to rise by around 20% over the next year.
Australia’s growth performance remains stellar compared to other advanced countries – Australia’s growth of 2.7% through 2009 compares to just 0.1% growth in the US, a 0.4% contraction in Japan, and a 2.1% contraction in the euro-zone and a 3.3% contraction in the UK
In the United States, the current reporting season has seen about 80% of companies surprise on the upside. But don’t assume positive earnings will translate necessarily translate into a higher stock price.
Reporting season for Newbies
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