3 small-cap surprises from earnings season

Financial journalist and commentator on 3AW and Sky Business
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With the interim profit reporting season in its final days, the upshot is that it has been a good one: according to AMP Capital, 73% of companies have reported profits higher than a year ago, which is a proportion both well up on the “norm” of 65%, and more impressively, the highest since the GFC hit a decade ago. About 46% of results have exceeded expectations – against a norm of 44% – and 66% of companies have increased dividends from a year ago.

Consensus profit growth expectations for the 2017-18 financial year across the market remain at about 7%, with resources stocks having been upgraded slightly to 15% and the rest of the market downgraded to 5% from 6%, mostly on the back of diminished expectations for the banks. Profit expectations for the 2018-19 financial year have been lifted from 4% to 5%, on the back of higher expectations for resource companies.

Here are three small-cap companies that surprised the market with good news during the reporting season:

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