As the dust settles after reporting season, it’s a good time to look at the numbers and what companies delivered, and what didn’t.
Companies in the healthcare sector might be getting a bit expensive but the true performers still managed to deliver during the interim reporting season. Ramsay Health Care – now sporting a forecast PE for FY15 of 34.5, according to FN Arena – still managed to announce an increased guidance for FY15 earnings growth of between 18% to 20%, up from 14% to 16%.
“Another standout in the reporting season was one of my favourite stocks Ramsay Health Care,” Paul Rickard says.
“They announced a 21.3% increase in profitability up to $191.4 million, and, more importantly, increased guidance in terms of future profitability.”
“It’s one of the best performing stocks over the last decade.”
Ramsay
Source: ASX, 9 March 2015
Raymond Chan, of broker Morgans, also likes Healthscope (HSO) and says its underlying results were solid, underpinned by strong performance in the hospital and international pathology divisions. Ongoing operating efficiencies will help to expand margins.
“We continue to view Healthscope as a core holding, with the outlook reaffirmed and further upside expected as additional capacity comes on line and efficiencies are realised,” he said.
Healthscope
Source: Yahoo!7 Finance, 9 March 2015
Property or super?
And Joe Hockey had a very busy weekend. Not only was he questioning the future of the GST, but in a doorstop on Saturday, he also said that the government would consider looking at early access to superannuation for young people looking to buy their first home.
I have to admit, when I first heard this over the weekend, and then read the transcript that earlier referenced how superannuation would become “a bigger and bigger part in retirement income,” I seriously questioned the Treasurer’s line of thinking.
But Peter has given this a lot more consideration than I did. And his verdict is that it’s “not a totally questionable idea”, provided the government can address and fully explore the negatives.
“What’s clear is this: anyone who opts for this early access to super will have a smaller nest egg when they retire. That means they’ll have to work longer — but that’s going to happen anyway — and they might have to be ready to trade back their property when they retire to bump up the sum of money they plan to live on after they stop work,” he says.
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