Just over halfway through the current reporting season, brokers have reported positive earning results underpinning the NZX50, while dividend growth for investors has been the surprise for some brokers.
After a flurry of more the 25 companies reporting last week, just nine are scheduled to report this week, followed largely by the retail sector, and Fonterra and Synlait Milk next week.
Craigs Investment partners broker Chris Timms said the NZX50 index had at times gone against the global trend, booking gains on some days.
He said Thursday was the busiest day of the reporting calendar, with plenty of information to be digested by investors, with Metlifecare leading that day's gains, up almost 7%.
‘‘The strong property market, particularly in Auckland and the Bay of Plenty, was the biggest driver for the strong result, with net profit more than tripling,'' he said.
Forsyth Barr broker Suzanne Kinnaird said that at about the halfway reporting mark, aggregated and median earning per share growth were currently below expectations.
‘‘However, dividend growth has surprised on the upside,'' Mrs Kinnaird said.
Of 20 companies that reported by late last week, Mrs Kinnaird said revisions after their respective results included eight downgrades, four upgrades and eight companies left unchanged.
She noted dividend per share growth had been boosted by Chorus and Fletcher Building.
Mr Timms said Fletcher Building and Meridian Energy both jumped 2.99% on their reporting days.
While Meridian reported a profit decline, down 11% to $104 million, it announced a special dividend, driven by the strength of earnings.
The retail sector reports in the pipeline includes Briscoe Group, The Warehouse, Pumpkin Patch, Kathmandu and Hallenstein Glasson.
Analysts will be looking for a turnaround in Pumpkin Patch's fortunes, the company having told shareholders in November its main areas of focus were funding, executive capability and strategy and execution.
It has secured its funding requirements with the ANZ, through to December next year, and is looking at major restructuring to rebuild the brand and company fortunes.
In February, Hallenstein signalled the likelihood of a 20% profit slump, while Kathmandu, the target of a unsuccessful hostile takeover by Briscoes, also updated the market at the time, hoping it would convert a $1.8 million loss a year ago into an after-tax profit result of between $8.5 million and $9.5 million.
Expected to report this week
Wellington Drive Technologies
Pyne Gould Corp
Allied Farmer
Seeka Fruit Industries
Diligent Corp
Marsden Maritime Holdings
Promisia Integrative
Vista Group International
CBL Corp
