Big week of earnings: BHP, Wesfarmers and Coca-Cola Amatil

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Time-wise we are about halfway through the full-year reporting season, but in terms of numbers of companies that have reported, the proportion is about one-quarter. This week, the action steps up a notch, with a big slate of companies – more than 70 all up – stepping into the spotlight to reveal how FY14 treated them.

Of the major stocks reporting this week, the biggest news will be BHP, which reports on Tuesday. Rival diversified miner Rio Tinto brought an early highlight to the season by more than doubling its reported half-year profit to US$4.4 billion, well above expectations, and lifting its dividend by 15%: BHP is also expected to outperform in its full-year result.

Back in February, BHP comfortably beat expectations for the first half, lifting underlying net profit by 30.6% to US$7.8 billion, as it stripped US$4.9 billion in costs out of its business. The market is hoping for something similar, especially given the company’s earlier production report, in which BHP achieved a 15th consecutive year of record iron ore production.

BHP said it was on track to achieve its target of 16% production growth across all commodities for the two years to the end of June 2015. The mining giant is expected to report a massive full-year profit of more than $US13.6 billion. That profit figure would be up about 25% on the FY13 figure of $US10.9 billion, which was hit by weaker commodity prices.

This result is also expected to be the first time BHP – which has just announced a demerger of some of its assets – has reported higher annual profits for three years, after higher volumes of exports outpaced falls in the prices of the company’s main commodities.

BHP is also expected to announce a share buyback, of at least $US3 billion worth of its equity.

Also on Tuesday, insurance heavyweight QBE comes out with its half-year result. QBE shocked the market last month with its fourth earnings downgrade in two years.

The company expects to post a net profit of about $390 million for the first half: a major fall from the $477 million posted in the first half of the 2013 financial year.

Worse, the market was expecting an insurance margin of 10%, but QBE warned it in July to expect something in the order of 7%–8%. (The insurance margin is the company’s profit, which comes both from underwriting profit and the investment income earned on claims reserves, as a proportion of its net earned premium.) At the lower end, that would imply an insurance margin that had halved from 2011.

Packaging heavyweight Amcor is up on Tuesday, and it is one of the companies that Deutsche Bank nominated as a potential negative surprise this season: analysts expect a 17% lift in full-year earnings and a 1.8% rise in the dividend.

Federation Centres, Insurance Australia Group and Seek are potential positive surprises, nominated by Deutsche, scheduled to report this week.

Tasmanian salmon farmer Tassal Group (Tuesday) and junior telco iiNet (Wednesday) are also tipped to surprise on the upside.

UBS likes the prospects for Sonic Healthcare and SMS Management & Technology to deliver positive outlook statements for FY15, but it is wary of the news to come this week from Treasury Wine Estates, Coca-Cola Amatil and Toll Holdings – although it says the latter could produce a positive dividend surprise as an offset. The broker also expects the full-year numbers from Monadelphous and NRW Holdings to reflect the continued softness in mining services.

Conglomerate Wesfarmers reports full-year results on Wednesday: analysts are looking for a 6.9% rise in earnings and a 13.6% lift in the dividend. The signs for retail spending at Coles, Bunnings, Kmart and Target contained in the Wesfarmers outlook statement will be eagerly awaited.

Australia’s third-largest iron ore miner, Fortescue Metals, reports on Thursday: there, analysts expect a healthy 53% boost to annual net profit and a 61% lift to the fully franked dividend (Fortescue reports in $US.)

Here is a heads-up of major company results to look out for this week, with consensus market expectations from FN Arena:

Tuesday 19 August

Amcor (AMC)

Consensus earnings per share (EPS): 58.4 cents, +17.3%
Consensus dividend per share (DPS): 40.7 cents, +1.8%

Arrium (ARI)

Consensus earnings per share (EPS): 22.4 cents, versus loss of 51.5 cents in FY13
Consensus dividend per share (DPS): 9.8 cents, +96%

AWE (AWE)

Consensus earnings per share (EPS): 5.3 cents, +39.5%
Consensus dividend per share (DPS): nil

BHP (BHP)

Consensus earnings per share (EPS): 260.5 cents, +17.5%
Consensus dividend per share (DPS): 122.1 cents, +5.2%

Cardno (CDD)

Consensus earnings per share (EPS): 51.3 cents, –6.9%
Consensus dividend per share (DPS): 36.3 cents, +0.8%

Commonwealth Property Office Fund (CPA)

Consensus earnings per share (EPS): 8 cents, +29%
Consensus dividend per share (DPS): 6.9 cents, +7.8%

Crowe Horwath (CRH)

Consensus earnings per share (EPS): 8 cents, +29%
Consensus dividend per share (DPS): 6.9 cents, +7.8%

Hills (HIL)

Consensus earnings per share (EPS): 11.2 cents, versus loss of 38.2 cents in FY13
Consensus dividend per share (DPS): 7.7 cents, +133.3%

Insurance Australia Group (IAG)

Consensus earnings per share (EPS): 54.9 cents, +46%
Consensus dividend per share (DPS): 34.5 cents, –4.2%

Investa Office Fund (IOF)

Consensus earnings per share (EPS): 25.5 cents, –1.2%
Consensus dividend per share (DPS): 18.6 cents, +4.5%

Macmahon (MAH)

Consensus earnings per share (EPS): 3 cents, versus loss of 3 cents in FY13
Consensus dividend per share (DPS): nil, versus 2.5 cents in FY13

Monadelphous (MND)

Consensus earnings per share (EPS): 153.3 cents, –11.4%
Consensus dividend per share (DPS): 121.7 cents, –11.1%

Newcrest (NCM)

Consensus earnings per share (EPS): 23.6 cents, versus loss of 754.5 cents in FY13
Consensus dividend per share (DPS): 1.5 cents, –87.5%

Oakton (OKN)

Consensus earnings per share (EPS): 10.1 cents, +0.4%
Consensus dividend per share (DPS): 9 cents, –5.8%

Sonic Healthcare (SHL)

Consensus earnings per share (EPS): 97.6 cents, +15.1%
Consensus dividend per share (DPS): 67.7 cents, +9.2%

Salmat (SLM)

Consensus earnings per share (EPS): 2.3 cents, –90.9%
Consensus dividend per share (DPS): 15 cents, +30.4%

Tassal (TGR)

Consensus earnings per share (EPS): 25 cents, +9.3%
Consensus dividend per share (DPS): 12 cents, +26.3%

Toll Holdings (TOL)

Consensus earnings per share (EPS): 39.9 cents, +238.3%
Consensus dividend per share (DPS): 28.1 cents, +3.9%

Wednesday 20 August

AGL Energy (AGK)

Consensus earnings per share (EPS): 100.3 cents, +41.9%
Consensus dividend per share (DPS): 63.6 cents, +1%

Aveo (AOG)

Consensus earnings per share (EPS): 9.4 cents, –31%
Consensus dividend per share (DPS): 4 cents, +300%

AGL Energy (AGK)

Consensus earnings per share (EPS): 100.3 cents, +41.9%
Consensus dividend per share (DPS): 63.6 cents, +1%

APA Group (APA)

Consensus earnings per share (EPS): 29.8 cents, –23%
Consensus dividend per share (DPS): 36.3 cents, +2.2%

ARB Corporation (ARP)

Consensus earnings per share (EPS): 57.4 cents, –1.8%
Consensus dividend per share (DPS): 28.9 cents, +3.1%

Brambles (BXB), reports in $US

Consensus earnings per share (EPS): 46.5 cents, +12.9%
Consensus dividend per share (DPS): 26.2 cents, –0.8%

Challenger (CGF)

Consensus earnings per share (EPS): 63.1 cents, –20.4%
Consensus dividend per share (DPS): 26.6 cents, +33.1%

Charter Hall Retail REIT (CQR)

Consensus earnings per share (EPS): 29.7 cents, +83%
Consensus dividend per share (DPS): 27.4 cents, +2.3%

Coca-Cola Amatil (CCL)

Consensus earnings per share (EPS): 52.7 cents, +401.7%
Consensus dividend per share (DPS): 45.9 cents, –18%

CSG (CSV)

Consensus earnings per share (EPS): 5.9 cents, +95%
Consensus dividend per share (DPS): 5 cents, –44.4%

Fantastic Holdings (FAN)

Consensus earnings per share (EPS): 7.6 cents, –42.3%
Consensus dividend per share (DPS): 5.7 cents, –46.1%

Fletcher Building (FBU), reports in $NZ

Consensus earnings per share (EPS): 52 cents, +9.2%
Consensus dividend per share (DPS): 36 cents, +5.9%

GWA Group (GWA)

Consensus earnings per share (EPS): 14.1 cents, +32.8%
Consensus dividend per share (DPS): 5.9 cents, –50.7%

iiNet (IIN)

Consensus earnings per share (EPS): 40.1 cents, +6%
Consensus dividend per share (DPS): 22.1 cents, +16.3%

Sedgman (SDM)

Consensus earnings per share (EPS): 1 cent, –76.7%
Consensus dividend per share (DPS): 4 cents, –20%

Seek (SEK)

Consensus earnings per share (EPS): 53.5 cents, –39.4%
Consensus dividend per share (DPS): 28.9 cents, +31.5%

SMS Management & Technology (SMX)

Consensus earnings per share (EPS): 18.6 cents, –39.3%
Consensus dividend per share (DPS): 12.6 cents, –50.8%

Sirtex Medical (SRX)

Consensus earnings per share (EPS): 45.4 cents, +34.4%
Consensus dividend per share (DPS): 17.4 cents, +74.3%

The Reject Shop (TRS)

Consensus earnings per share (EPS): 52.8 cents, –28.1%
Consensus dividend per share (DPS): 31.7 cents, –14.4%

Webjet (WEB)

Consensus earnings per share (EPS): 18.5 cents, +111.6%
Consensus dividend per share (DPS): 13.3 cents, +2.3%

Wesfarmers (WES)

Consensus earnings per share (EPS): 209.4 cents, +6.9%
Consensus dividend per share (DPS): 204.4 cents, +13.6%

Thursday 21 August

Atlas Iron (AGO)

Consensus earnings per share (EPS): 1.9 cents, –7.5%
Consensus dividend per share (DPS): 1.4 cents, –54.2%

Asciano (AIO)

Consensus earnings per share (EPS): 35.9 cents, +2.9%
Consensus dividend per share (DPS): 12.8 cents, +11.7%

ASX (ASX)

Consensus earnings per share (EPS): 199.1 cents, +1.8%
Consensus dividend per share (DPS): 178.5 cents, +4.9%

Breville (BRG)

Consensus earnings per share (EPS): 38.7 cents, +1.1%
Consensus dividend per share (DPS): 26.9 cents, +3.4%

Cabcharge (CAB)

Consensus earnings per share (EPS): 56.4 cents, +12.2%
Consensus dividend per share (DPS): 28.2 cents, –6%

Codan (CDA)

Consensus earnings per share (EPS): 5 cents, –80.7%
Consensus dividend per share (DPS): 3 cents, –64.7%

CFS Retail Property Trust (CFX)

Consensus earnings per share (EPS): 13.5 cents, +29.7%
Consensus dividend per share (DPS): 13.6 cents, +1.4%

Collection House (CLH)

Consensus earnings per share (EPS): 15 cents, +9.5%
Consensus dividend per share (DPS): 7 cents, –2.8%

Decmil (DCG)

Consensus earnings per share (EPS): 34 cents, –11.3%
Consensus dividend per share (DPS): 13 cents, +8.3%

Emeco (EHL)

Consensus earnings per share (EPS): –4.3 cents, versus EPS of 1 cent in FY13
Consensus dividend per share (DPS): nil, versus DPS of 6 cents in FY13

ERM Power (EPW)

Consensus earnings per share (EPS): 9.4 cents, –54.6%
Consensus dividend per share (DPS): 12.2 cents, +15.9%

Fortescue Metals Group (FMG), reports in $US

Consensus earnings per share (EPS): 85.9 cents, +53.2%
Consensus dividend per share (DPS): 16.1 cents, +61%

Generation Healthcare REIT (GHC)

Consensus earnings per share (EPS): 8.8 cents, no comparison
Consensus dividend per share (DPS): 8 cents, no comparison

IRESS (IRE)

Consensus earnings per share (EPS): 41.6 cents, +140.7%
Consensus dividend per share (DPS): 39.9 cents, +4.9%

Mirvac (MGR)

Consensus earnings per share (EPS): 12 cents, +194.7%
Consensus dividend per share (DPS): 9 cents, +3.8%

Mortgage Choice (MOC)

Consensus earnings per share (EPS): 15 cents, –7.7%
Consensus dividend per share (DPS): 15.2 cents, +16.5%

Mermaid Marine (MRM)

Consensus earnings per share (EPS): 21 cents, –21.8%
Consensus dividend per share (DPS): 11.7 cents, –6.8%

NRW Holdings (NWH)

Consensus earnings per share (EPS): 20.1 cents, –24.6%
Consensus dividend per share (DPS): 9.6 cents, –26.1%

Origin Energy (ORG)

Consensus earnings per share (EPS): 64.5 cents, +86.4%
Consensus dividend per share (DPS): 50 cents, unchanged

Pacific Brands (PBG)

Consensus earnings per share (EPS): 1.5 cents, –81.1%
Consensus dividend per share (DPS): 3.2 cents, –36%

PanAust (PNA)

Consensus earnings per share (EPS): 9.4 cents, +54.2%
Consensus dividend per share (DPS): 6 cents, unchanged

RCR Tomlinson (RCR)

Consensus earnings per share (EPS): 36.1 cents, +27.7%
Consensus dividend per share (DPS): 9 cents, +9.1%

Shopping Centres Australasia (SCP)

Consensus earnings per share (EPS): 12.8 cents, +90.4%
Consensus dividend per share (DPS): 11 cents, unchanged

Super Retail Group (SUL)

Consensus earnings per share (EPS): 55.3 cents, +5.8%
Consensus dividend per share (DPS): 37.7 cents, –0.9%

Seven West Media (SWM)

Consensus earnings per share (EPS): 21.5 cents, versus loss of 7.1 cents in FY13
Consensus dividend per share (DPS): 11.6 cents, –3.4%

Tatts Group (TTS)

Consensus earnings per share (EPS): 16.8 cents, –6%
Consensus dividend per share (DPS): 15.3 cents, –0.9%

Treasury Wine Estates (TWE)

Consensus earnings per share (EPS): 16.6 cents, +154.7%
Consensus dividend per share (DPS): 12.6 cents, –3.3%

UXC (UXC)

Consensus earnings per share (EPS): 5.2 cents, –33.3%
Consensus dividend per share (DPS): 3.4 cents, –35.8%

Village Roadshow (VRL)

Consensus earnings per share (EPS): 34.9 cents, +37.3%
Consensus dividend per share (DPS): 46.9 cents, +80.5%

Friday 22 August

Australian Vintage (AVG)

Consensus earnings per share (EPS): 5 cents, –5.7%
Consensus dividend per share (DPS): 2 cents, –23.1%

Data#3 (DTL)

Consensus earnings per share (EPS): 4.9 cents, –4.9%
Consensus dividend per share (DPS): 4.5 cents, –10.9%

DUET Group (DUE)

Consensus earnings per share (EPS): 11 cents, +2064%
Consensus dividend per share (DPS): 17 cents, +3%

Federation Centres (FDC)

Consensus earnings per share (EPS): 18 cents, +13.7%
Consensus dividend per share (DPS): 15.3 cents, +8.3%

IOOF (IFL)

Consensus earnings per share (EPS): 48.9 cents, +42%
Consensus dividend per share (DPS): 47 cents, +12%

K&S Corporation (KSC)

Consensus earnings per share (EPS): 11 cents, –37.5%
Consensus dividend per share (DPS): 6 cents, –45.5%

Mount Gibson Iron (MGX)

Consensus earnings per share (EPS): 9.2 cents, –36.2%
Consensus dividend per share (DPS): 3.4 cents, –14.3%

Qube Logistics (QUB)

Consensus earnings per share (EPS): 9.5 cents, +13.3%
Consensus dividend per share (DPS): 5 cents, +11.7%

Sims Metal Management (SGM)

Consensus earnings per share (EPS): 36.4 cents, versus loss of 228.1 cents in FY13
Consensus dividend per share (DPS): 2 cents, –80%

Transpacific Industries (TPI)

Consensus earnings per share (EPS): 6.6 cents, versus loss of 13.9 cents in FY13
Consensus dividend per share (DPS): nil, unchanged

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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