Australia’s corporate reporting season is under way, with the ASX’s big listings lifting the lid on full-year results.
Some highlights include CBA posting the biggest profit for an Australian bank … ever. As well as miner Fortescue Metals Group surprising investors with a bigger-than-expected dividend, and James Packer’s Crown wearing a 22% net profit slide.
Goldman Sachs sent us through their latest season monitor. From the report, here’s the themes emerging so far:
- There’s clear confirmation mining capex has peaked and the oil & gas peak will be lower but will likely last longer
- Consumer confidence remains weak and discretionary retail trends mixed
- Australian residential recovery continues to be pushed out
- Early flickers of life in the non-residential construction market, but patchy
- REITs – commercial office is challenged, and accounting changes and debt restructuring are being used to enhance growth
From the GS reporting season monitor:
As a general comment, company commentary has been cautious with most domestic companies highlighting the challenging operating environment and sighting the peaking in mining capex, cautious consumer, and election as having an impact on business confidence.