Both Forsyth Barr and Craigs Investment Partners are forecasting an after-tax profit of about $800million and are both close on expectations for the operating profit.
Forsyth Barr is forecasting an operating profit of $2billion and Craigs is forecasting earnings before interest and tax, depreciation and amortisation to be $1.9billion.
An after-tax profit of $800million will be up more than 60% on the previous corresponding period and an operating profit of about $2billion will be up more than 37%.
Forsyth Barr broker Lyn Howe said long-term global dairy market fundamentals remained positive but shorter-term global supply issues continued to constrain dairy prices.
Fonterra's push into the higher margin-branded component of the market continued, although execution risks remained.
The global prices for Fonterra's reference commodity products dictated the farm gate milk price (FGMP) Fonterra was required to pay to its suppliers, she said.
''There is a disconnect between farmer shareholder and investor unit holder desires. Farmers prefer the maximisation of the FGMP while unit holders prefer a lower FGMP and higher dividend as they have no access to the FGMP cash flows.''
Forsyth Barr was targeting normalised earnings per share in the middle of the 45c per share and 55cps guidance range. Fonterra had already announced and pre-paid its second-half dividends of 10cps in June and 10cps in September.
Ms Howe did not expect a further dividend announcement at the result.
''We believe Fonterra has started the 2017 financial year in a strong position. We see some potential upside to the 50cps to 60cps guidance range.
''However, given the key peak production season is yet to come, and stream profit swings can still occur, we imagine Fonterra will leave the range unchanged.''
