Reporting season – 6 companies to watch

Financial journalist and commentator on 3AW and Sky Business
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The 2017-18 financial year reporting season kicks off in earnest this week, with the market – meaning, in essence, the A&P/ASX 200 stocks – expected to show profit growth of about 5%–7% for FY18.

The ‘headline’ earnings growth figure for the market is always a mixture of results for the main segments of the listed-company world – loosely, resources, industrials, banks and real estate investment trusts – and this year, as in FY17, the market is relying on the resources companies to do most of the heavy lifting.

Brokerage Goldman Sachs, for example, projects 5.9% growth in earnings per share (EPS) across the market, powered by a 23% uplift from the resources stocks, a 5.1% gain in industrial stocks and 5% from the real estate investment trusts (REITs). But Goldman Sachs expects the banks’ EPS to go backwards, by 2%.

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