|
 (26
August 2009) - Broking analysts were wringing
their hands in the lead-up to the latest profit
reporting season but so far the news has been surprisingly
good.
Our sample of 176 companies
shows that sales have continued to outpace inflation
in the year to 30 June 2009 and underlying profitability
has been remarkably resilient. Investors have
responded positively too with most stocks rallying
around 1.44% on the day of their profit announcement.
|
FY09 Corporate Earnings
Results
|
|
| Twelve months
to: |
Jun-2009
|
Jun-2008
|
| Number
of companies in sample |
176
|
257
|
| Median sales growth (%) |
5.3
|
15.2
|
| Median
pre-tax profit growth (%) |
-8.3
|
9.5
|
| Median net profit growth
(%) |
-19.2
|
6.4
|
| Median
EPS growth (%) |
-15.4
|
-2.3
|
| Median net margin (%) |
8.4
|
10.0
|
| Median
dividend yield (%) |
5.6
|
5.4
|
| Average share
price reaction (%) |
1.44
|
0.89
|
|
While the 19.2% slide
in full-year net profits is not a great in
absolute terms, it is significantly better
than the 34.1% drop recorded in the year to
December 2008.
The other
surprising trend is that net profit margins
have edged up slightly during the last six
months, particularly among some of the smaller
stocks.
And despite
the drop in bottom line profits, the reaction
of share investors has been favourable with
nearly 52% of stocks rallying on the day
of their profit release.
|
