A ''moderate level'' of earnings growth is expected from
listed companies in the forthcoming reporting season, which
starts with 12 of the 48 companies reporting this week.
NZX reports today, Summerset reports tomorrow then Guinness
Peat Group, Opus, Precinct Properties, Property for Industry,
PGG Wrightson, SkyCity, Nuplex,Vital Healthcare, Michael Hill
and Steel and Tube report during the week.
The coming eight weeks is the larger of the quarterly
reporting seasons, dominated by companies releasing their
full-year 2014 results.
Forsyth Barr broker Andrew Rooney said it was a ''mixed bag
for growth'', with the building and transport sectors in
support of growth for earnings per share but utilities,
retail and telecommunications sectors had negative growth
''The utilities, retail and telecommunications are depressing
our overall aggregated market growth expectations.''
''We're forecasting a moderate level of earnings per share
growth at the aggregated level in the reporting season.''
Forsyth Barr was forecasting revenue growth up 1.8%,
aggregated, or up 4.9% median, with earnings before interest
and tax (ebit) up 3.9% aggregate and 6.3% median.
Dividend growth aggregate was ''flat'' at 0% but up 1.3% at
the median level, Mr Rooney said.
Of the 48 companies reporting, 11 were expected to have
earnings per share growth for the six months on the previous
corresponding period of more than 15%, he said.
The 11 were Abano Healthcare, Air New Zealand, Delegat's,
Hellaby, Meridian Energy, Mighty River Power, Oceana Gold,
Opus, PGG Wrightson, Skellerup and Steel and TubeThe top four
for earnings per share growth were Oceana Gold, Abano,
Delegat's and Meridian Energy while at the other end of the
scale were Wynyard, Fonterra Shareholder Fund, A2 Milk and
Refining New Zealand.
The research said Oceana Gold, which had already reported,
would deliver better results than the same period a year ago,
but noted it had expected to be working its way through lower
grades of ore.
Abano's dental acquisitions were expected to contribute
annualised gross revenues of $30 million, but it faced a
''sharply lower'' earnings before interest, tax, depreciation
and amortisation (ebitda) loss by associate Bay
Delegat's appeared well positioned to capitalise on a strong
2014 grape harvest.
Meridian Energy had reaped the benefits of a great year from
high lake levels, which had boosted earnings well ahead of
Wynyard is expected to deliver first-half revenues, up 36% on
a year ago, of around $14 million, but more clarity was
sought on revenue opportunities and the product sales path,
the research said.
Falling commodity prices for the Fonterra Shareholder Fund
should help drive medium term profit margin expansion in
The research said A2 Milk had been constrained in its ability
to export infant formula to China but recently gained
''This has limited earnings potential through the second half
[of] 2014 and will weigh on full year 2014 profitability,''
the research said.
Marsden Point fuel refiner Refining New Zealand had an
''extremely difficult'' start to full year 2014 with the
strong New Zealand dollar, low refining margins and a longer
than expected refinery outage, which could all contribute to
what was ''likely to be an awful result'', the research said.