The majority of companies were reporting their first half results for the 2015 financial year.
Forsyth Barr analysts were forecasting revenue growth of 2.9% at an aggregated level and operating profit growth of 2.3%.
Earnings per share growth was forecast to be 1.4% and dividend growth was forecast to be up 17.2%, driven by the reinstatement of Auckland International Airport's interim dividend and utility companies.
The key positive elements for companies reporting were global earnings, interest rates and the potential for acquisitions.
Australian earnings and high valuations will be negative for companies reporting, Mr Young said.
The positive global growth backdrop was driven by a strengthening US economy and bolstered by cheap oil.
Domestically, migration continued to drive housing and non residential building remained strong. Commodity price falls meant less rural spending, denting the positive factors from last year.
Companies exposed to Australian earnings faced translation and operational problems, he said.
''Australian economic conditions are expected to remain difficult, with the likelihood of negative wage growth. We would avoid exposure unless these risks are outweighed by the potential for market share gains.''
Although interest rates remained low, debt funded acquisitions were all positive for earnings per share, Mr Young said.
Valuations left little room for error. Higher price/earning multiples inferred higher growth or lower required rates of return.
Either way, investors were accepting higher risk.
''In this environment, we prefer to take a lower risk approach and focus on quality, rather than chase higher risk returns.''
Reporting calendar
February 9-13: Opus International, SkyCity, Michael Hill International.
February 16-20: Contact Energy, Property for Industry, NZX, Fetcher Building, Meridian Energy, NZOG, Precinct Properties, Trade Me, Ebos Group, Hellaby Holdings, Nuplex, Oceana Gold, Port of Tauranga, Skellerup Holdings, Spark, Steel and Tube, Auckland International Airport, Cavalier Corp, Refining NZ, Vector.
February 23-27: Chorus, Freightways, Genesis, Mighty River Power, PGG Wrightson, SLI Systems, Summerset Group, Air NZ, Heartland NZ, Metlifecare, Sky Network TV, TeamTalk, Wynyard Group, The a2 Milk Company, Guinness Peat, Delegat Group, Diligent, Vital Healthcare.
