ASX companies top analyst expectations
Australia’s top companies that have exceeded analyst expectations halfway through reporting season have outnumbered the firms that missed the market expectations, according to Lonsec Research, and this will have a direct impact on their share prices.
The study found that around 35 per cent of the 130 ASX 200 companies, which already announced their results, exceeded the market expectations as far as their financial results were concerned, 29 per cent of companies have missed and 35 per cent remained in line with the market’s consensus.
Also, the companies that reported above-consensus earnings saw their share price growing by two per cent on average, while those that missed saw it falling by 3.4 per cent.
As far as the biggest players were concerned, BHP reported earnings slightly below expectations, missing estimates by minus six per cent despite a 25 per cent rise in net profit, while Rio Tinto’s 90 per cent growth in earnings was more or less in line with expectations.
According to Lonsec, major surprises were biotech giant CSL, which delivered 30 per cent above expectations, A2 Milk Co which delivered results of 24 per cent above the consensus and Insurance Group Australia (IGA) which managed to beat estimates by 18 per cent.
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