Corporate Results Monitor

FNArena's All-Year Round Australian Corporate Results Monitor.

Currently monitoring March-July 2019.

Figures shown as at 26 March 2019

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TOTAL STOCKS:

12

Beats

4

In Line

2

Misses

6

Total Rating Upgrades:

3

Total Rating Downgrades:

5

Simple average net target price change:

-2.28%

Beat/Miss Ratio:

0.67

Previous Corporate Results Updates

Company Result Upgrades Downgrades Buy/Hold/Sell Prev Target New Target Brokers Commentary
BKW - BRICKWORKS BEAT 0 1 0/4/0 16.93 18.19 4

Brickworks' result beat forecasts thanks to positive property revaluations offsetting a -35% drop in building materials earnings as housing slows. Housing will continue to slow while property revaluations ease off, leaving the US investment and cross-holding with WH Soul Pattinson as earnings drivers. On balance, brokers are happy to maintain Hold ratings, as suggested by one downgrade.

DUB - DUBBER CORPORATION LTD IN LINE 0 0 0/1/0 0.75 0.75 1

Dubber Corp has released a first half result which is little changed in context from the quarterly update in January, Morgans notes. After years of technology build the company has turned the corner towards commercialisation and monetisation. Revenue was up 300% year on year. The broker has rejigged its valuation model, aligning Dubber with SaaS peers that trade at higher multiples. This means a big target increase but a solid share price rally keeps the broker on Hold. Investor confidence is the major swing factor, and the broker would like to see ongoing growth in recurring revenue and active users. As Dubber is not yet self-funding, access to capital is a key risk.

FSF - FONTERRA MISS 0 0 0/1/1 0.00 0.00 2

Fonterra's first half result fell short of expectations and while FY guidance has been downgraded a substantially better second half will be required. The issue for brokers is the company is currently undertaking a strategic asset allocation and portfolio review with a view to restructuring and while this might make for significant upside, brokers are not prepared to make any assumptions until more is known.

GDF - GARDA DIV PROP FUND IN LINE 0 1 0/1/0 1.29 1.35 1

Garda Diversified's first half results were in line and distribution guidance is reiterated. Morgans notes some good leasing activity during the half. The broker updates forecasts to account for new industrial developments and does not assume any divestments. Given the strong appreciation in the security Morgans downgrades to Hold from Add.

MYR - MYER BEAT 1 0 0/3/3 0.38 0.45 6

Myer's result met or beat forecasts. Lower costs led to higher margins as the sales trend improved. However the company was cycling a weak prior period and total sales still fell, despite a solid lift in online sales. While the result is an improvement, brokers remain focused on the current challenges for retail and the structural decline in bricks & mortar sales. One upgrade to Hold, but no Buys.

NHC - NEW HOPE CORP MISS 0 1 0/2/0 3.79 3.90 2

New Hope's result disappointed brokers due to elevated costs. The company has drawn down on its debt facilities for the first time since 2006 to fund the acquisition of a 30% tranche of Bengalla, to lift exposure to 80%. While Morgans thus suggests a lower dividend is prudent, Credit Suisse expects lower capital returns going forward. A share price run-up to the result sees Credit Suisse downgrade to Hold.

NUF - NUFARM MISS 1 1 6/1/0 7.85 6.44 7

Nufarm's result either met or missed forecasts but all brokers were surprised by the extent of lowered FY guidance. With the end of the domestic drought not yet in sight the balance sheet is stretched, leading to a suspension of dividend which clearly disappointed the market, as did news of the US glyphosate lawsuit progressing. Yet while sentiment may be weak, all brokers agree the day's share price fall on top of prior weakness leaves the stock at an attractive valuation. Hence one upgrade to Buy to make six from seven, with one downgrade to Hold.

PMV - PREMIER INVESTMENTS BEAT 0 0 2/1/1 18.82 17.87 4

Premier Investments' result surprised brokers as the traditional brands outperformed, when typically they've proven a drag. The company's star growth story Smiggle is now seeing a slowing of pace, leading Premier to again change tack and concentrate on wholesale and online expansion while closing 12 stores. Landlords were warned. Smiggle growth will be tempered during the transition and as to the success or otherwise of the new strategy, brokers are split.

SIL - SMILES INCLUSIVE MISS 0 1 0/1/0 0.14 0.14 1

Smiles Inclusive released an interim result that was worse than bad. Integration issues, practice underperformance and a lack of management oversight have brought loan covenants into question and the bank is now working with the company. CFO and CEO are gone. FY guidance is lowered. Morgans has downgraded to Hold from Add. Price target falls to 14c from $1.01.

SM1 - SYNLAIT MILK MISS 0 0 0/0/2 0.00 0.00 2

Despite ongoing solid growth in infant formula, Synlait Milk's result fell short capital investment and operating expenditure that will lead to substantial profit reduction year on year. There is concern over margin pressures arising from the renegotiation of the a2 Milk contract which at this stage are hard to forecast. The outlook for volumes is positive. Longer term the diversification strategy makes sense, but in the short term, two Sells.

TPM - TPG TELECOM BEAT 0 0 1/2/3 6.51 6.50 6

TPG Telecom's result met or beat forecasts on solid cost control and better earnings from the corporate division. Brokers point to structural headwinds ahead and rising wholesale costs in the second half. There is significant downside risk were the ACCC to reject the Vodafone merger proposal, which leaves only Morgan Stanley game to hang onto a Buy rating.

TPE - TPI ENTERPRISES MISS 1 0 1/0/0 1.77 1.31 1

TPI Enterprises' 2018 results were below expectations and guidance. Profit was affected by several negative items including lower capacity utilisation, softer manufacturing throughput and inadequate staffing. Nevertheless, the company appears to be making progress and was profitable in the fourth quarter. Morgans also expects volume gains to continue and further operating efficiencies to drive profitable growth. Rating is upgraded to Add from Hold as the broker considers the current trading levels attractive, for more speculative investors.

Total: 12

Yet to Report

Indicates that the company is also found on your portfolio

Monday
25 March
Tuesday
26 March

earnings result


Wednesday
27 March
Thursday
28 March
Friday
29 March
Monday
1 April
Tuesday
2 April
Wednesday
3 April

earnings result


Thursday
4 April
Friday
5 April
Monday
8 April
Tuesday
9 April
Wednesday
10 April
Thursday
11 April

earnings result


Friday
12 April
Monday
15 April

quarterly production report


AGM


Tuesday
16 April
Wednesday
17 April
Thursday
18 April

earnings result


Friday
19 April

Listed Companies on the Calendar

Date Code
18/04/2019APIearnings result
11/04/2019BOQearnings result
Date Code
15/04/2019ILUquarterly production report
26/03/2019KDRearnings result
Date Code
15/04/2019OZLAGM
03/04/2019SYRearnings result