S&P/ASX 200 Earnings Report July Edition

Key Highlights

• 8 companies in the S&P/ASX 200 have reported annual earnings thus far for FY 2013. 50% have reported earnings better than street expectations, polled by Capital IQ analysts. Collectively, the S&P/ASX 200 has reported a 1.9% EPS surprise.
• Last year, 40% of all companies in the S&P/ASX200 had beaten earnings street expectations.
• Of those companies who have announced earnings, only one has shown double digit or better Y/Y growth.
• Companies still remaining to report with the largest expected earnings growth for FY 2013 include, Independence Group NL (ASX:IGO) +913.5%, Bank of Queensland Ltd. (ASX:BOQ) +856.3%, and Senex Energy Limited (ASX:SXY) +264.2%.
• Companies still remaining to report with the most upward revisions for FY 2013 in the past month include, Oil Search Limited Limited (ASX:OSH) 10 upward revisions, CSL Ltd. (ASX:CSL) 8 upward revisions, and QBE Insurance Group Ltd. (ASX:QBE) 8 upward revisions.
• Companies still remaining to report with the largest FY 2013 EPS% change in the past month include Western Areas Limited (ASX:WSA) +18.0%, Magellan Financial Group (ASX:MFG) +15.0% and Shopping Centres Australasia Property Group (ASX:SCP) +12.4%.
• Companies with the greatest potential upside based on S&P Capital IQ consensus target price include, Discovery Metals Ltd. (ASX:DM) +438.1%, Linc Energy Ltd (ASX:LNC) +306.5%, and Perseus Mining Limited (ASX:PRU)+252.2% (*data as of 6/30/13).
• 12 companies are expected to report annual earnings in July including:
• Origin Energy Limited (ASX:ORG) with an S&P Capital IQ EPS consensus estimate of, $0.71
• BHP Billiton Limited (ASX:BHP) with an S&P Capital IQ EPS consensus estimate of, $2.42
• Fortescue Metals Group (ASX:FMG) with an S&P Capital IQ EPS consensus estimate of, $0.50
• On June 23, 2013, Metcash Limited (ASX:MTS) reported annual earnings of $0.31, narrowly missing the S&P Capital IQ consensus estimate of $0.32. This was the fourth straight year that the company has failed to exceed analysts’ expectations. The wholesale distributor grew earnings by 3.3% when compared to last year. Revenues of $13.10 billion were slightly above consensus and up almost 6% versus a year ago. Its Food and Grocery segment has come under significant pressure from its loss on Franklin retail stores. However, it’s Liquor and Hardware & Automotive divisions both reported strong sales along with improved margins. Management did not provide any guidance, but incoming CEO Morrice announced they plan to update investors with their strategic plans in December. Shares of stock spiked up 5% following the earnings release, but treaded downward to finish the month.

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