US reporting season reaches peak

Amazon is among some large United States companies reporting this week. Photo from Reuters.
Amazon is among some large United States companies reporting this week. Photo from Reuters.
This week represents the peak of the third-quarter reporting season in the United States and more than 150 S&P500 companies are scheduled to do so.

Craigs Investment Partners broker Chris Timms said a host of results were due from big names throughout the week.

Those reporting include Apple, Google, Kimberley-Clark, Visa, 3M, Caterpillar, Procter & Gamble, United Technologies, Boeing, Coca-Cola, Amazon and Exxon Mobil.

The earnings season so far had been encouraging, he said. Of the 116 companies to have reported to date, 66% had beaten revenue estimates and 81% had exceeded profit forecasts.

New Zealand and Australia would be quieter for corporate news, as many of the big names held annual meetings last week.

However, there would still be plenty to keep analysts occupied in the holiday-shortened week, Mr Timms said.

Companies holding annual meetings this week include Metlifecare, Comvita, Skellerup, Airwork, Freightways and Meridian Energy.

Restaurant Brands reports first-half earnings today.

In Australia, earnings results or trading updates would be released by National Australia Bank, Woolworths and Macquarie Group, along with annual meetings from Stockland, APA and Regis Healthcare, he said.

The highlight of the Australian economic data this week would be the release of inflation figures for September. Headline Consumer Price Index inflation was expected to rise to 0.5% for the quarter, from 0.4% in June, and 1.1% for the year from 1%. In New Zealand, inflation remains below 1%.

''The trimmed mean measure, which the Reserve Bank of Australia watches, is expected to fall slightly to 0.4% for the quarter and remain flat at 1.7% on an annual basis. After a weaker labour force report last week, odds for a RBA rate cut have increased slightly, rising to 24% for the December meeting from 15% a week earlier.''

In New Zealand, the trade balance would be released tomorrow. ASB economists expect a trade deficit of $650million in September.

Chief economist Nick Tuffley said after last month's surprisingly large deficit, he expected some rebound during September.

ASB also expected the deficit to be lower than in September 2015. New Zealand normally recorded a September deficit as agricultural exports remained low on a seasonal basis.

On the export side, the main strength in export values continued to lie in export sectors such as fruit, wine and forestry. Import values remained constrained by lower global inflation.

Add a Comment