A positive outlook for the coming reporting season should
deliver improved profits and earnings per shares for
investors, Forsyth Barr broker Andrew Rooney says.
From this week to the end of June, almost 40 listed companies
are due to report.
While the recovering property sector companies will initially
dominate the reporting, their earnings per share growth is
expected to be flat to negative.
Mr Rooney said for May, with about 19 companies reporting,
analysts were forecasting median sales increases of 8.7%,
median earnings before interest and tax (ebit) up 10.4% and
both normalised profit and earnings per share above 5% each.
However, while dividend growth from an aggregated level was
expected to be above 9.5%, the median would be flat, at 0%.
The initial reporting period was dominated by six property
companies reporting full-year 2014 results.
''The property sector is the most prominent to feature in the
upcoming reporting season.''
While first-half 2014 trading for property companies had a
very active period of acquisitions and new capital being
raised, which boosted second-half earnings, the earnings per
share growth was ''flat or negative for most'', given the
share issuances and increased tax rates for many, Mr Rooney
The Kiwi Income Property Trust is expected to be the
It is forecast to pay no tax, given the deductibility of a
management contract payment, which should boost growth in
earnings per share, he said.
''We expect evidence that the underlying property market
continues to recover ... although this will be largely
centred on Auckland-based assets,'' Mr Rooney said.
Large listed companies expected to report this week include Z
Energy on Thursday, TrustPower on Friday, followed next week
by Infratil, Goodman Property Trust and Ryman Healthcare.