Broker Peter Young said company downgrades prevailed after their results. Eight companies exceeded Forsyth Barr's expectations, one was in line and the remaining 10 were either below or within the 2.5% margin of error.
''Despite actual earnings per share growth exceeding our expectations, downgrades prevailed for full-year 2014 forecasts,'' he said.
Forsyth Barr analysts made six upgrades, nine downgrades and left four unchanged.
Mr Young said the largest five downgrades of the total nine, at the earnings-per-share level, were all down more than 25%, being Acuity Health Group, Moa, Oceana Gold, Sanford and Tower.
''Acuity's short-term earnings are under pressure from ongoing weakness in private-funded surgical procedures and issues surrounding the level of procedures that can be relied on being sourced from ACC and the Wellington District Health Board,'' Mr Young said.
Moa's achieved gross margins of 31%, with softer US revenues than expected, were offset by strong results in all other markets, he said.
Mr Young said Oceana had achieved a strong first-quarter result and its Didipio gold/copper development in the Philippines was continuing to ramp up ahead of plan, but the recent fall in spot prices had ''overshadowed everything''.
Sanford's results reflected the continued ''headwinds'' of the strong New Zealand dollar, with revenue growth offset by profit margin contraction across its export products.
Tower's first-half profit of $44.2 million included total abnormal items of more than $30.7 million. The result included six months' contributions from divisions Investments and Life, which had since been sold after the balance date, he said.
