|Data for week commencing 20 August 2018|
In a week when stocks should have gone up, with positive Trump trade talk with China, the pesky political Peter Dutton play for the Prime Ministership also took our eye off how reporting season has progressed, in what has been the biggest week for the corporate show-and-tell we all look forward to. And it looks like the results will come in better than expected, which mirrors our economy that continues to just come in better than the consensus views, which have tended to be a little too negative.
This is AMP Capital’s Shane Oliver’s summary of what has shown up so far, with 85% of companies reporting: “47% of results have surprised on the upside, compared to a norm of 44%, the breadth of profit increases is high, with 79% reporting higher profits than a year ago compared to a norm of 66, 86% have increased their dividends or held them constant and 65% of companies have seen their share price outperform the market on the day results were released. 2017-18 earnings growth are on track to come in around 9%, with resources earnings up 25%, thanks to solid commodity prices and rising volumes and the rest of the market seeing profit growth of around 5%.”