Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ earnings season meets expectations, outlook pulled back

NZ earnings season meets expectations, outlook for 2014, 2015 pulled back, First NZ says

By Tina Morrison

Sept. 3 (BusinessDesk) – New Zealand’s 2013 earnings season met expectations with most companies posting results in line with estimates, although future growth assumptions have been pulled back for the coming two years, brokerage First NZ Capital says.

Sixty percent of the 25 listed companies which First NZ monitors reported earnings per share growth in line with analyst expectations, the brokerage said in a note published today. Some 28 percent of companies exceeded expectations, largely because of bigger gains from cost cuts, while 12 percent disappointed, First NZ said.

Those exceeding expectations included Michael Hill International, Fletcher Building, PGG Wrightson, Summerset and Steel & Tube Holdings. The biggest disappointments were Trade Me, Sky City Entertainment Group, Port of Tauranga, Chorus and Sky Network Television.

About 40 percent of companies posted double-digit earnings per share growth, while 28 percent showed a contraction, mostly due to exposure to the weakening Australian economy, softer global markets, an elevated New Zealand dollar, drought effects or because the latest year was compared with the buoyant Rugby World Cup period the year earlier, the brokerage said.

Still, earnings per share expectations for coming years drifted lower, with 2014 growth revised down to 5 percent from 7 percent and 2015 softening to 7 percent from 8 percent, First NZ said.

Outlook comments from management were generally optimistic. Most companies were confident that the domestic economy was building momentum although several remained focused on improving efficiency and managing costs with a key risk being exposure to a potentially weaker Australian economy, the brokerage said.

In line with last year’s earnings season, just over two thirds of companies increased their dividends on the back of robust balance sheets and increased confidence about future prospects. Only stock exchange operator NZX and telecommunications company Telecom Corp. reduced their dividends, First NZ said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>