Next Week At A Glance – 2-6 Sept 2024

This story features TABCORP HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: TAH

For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

The week that was in Australian Finance:

As the August reporting season draws to a close, the Australian share market has shown resilience in the face of what are disappointing trends emanating from corporate results, in particular cost management and positive forward guidance remain challenges for corporate Australia.

While not all companies have delivered a black eye, the FNArena Corporate Results Monitor (up to August 29) revealed a high number of earnings misses at 36.9% against beats at 30.8%.

Historically, this level of misses stands at the high end, with some CEO’s including incoming Gill McLachlan kitchen sinking Tabcorp Holdings ((TAH)) to start his tenure at re-based earnings.

The energy sector rallied over the week, boosted by geo-political tensions in the Middle East and Woodside ((WDS)) beating market expectations for 1H, including a better-than-expected dividend.

Industrials also performed well, with Brambles ((BXB)) last week and Downer EDI ((DOW)) shares rallying over 19% after its earning beat.

Supermarket majors Woolworths Group ((WOW)) and Coles Group ((COL)) didn’t disappoint including a special 40c dividend from departing Woolies CEO Brad Banducci to cheer the shareholders.

Helping the index were the financials including the insurers and CommBank ((CBA)) that shows no intention of retreating as the share price tracks ex-dividend no less towards its 52-week high of over $141.

Real estate was also a heavy lifter with better-than-feared earnings for some REITs, like Charter Hall ((CHC)), enough to encourage the buyers off the sidelines.

BHP Group ((BHP)) didn’t disappoint but market darling Wesfarmers ((WES)) sold off after a spectacular share price run following a disappointing FY25 outlook. Are storm clouds gathering around the beloved Bunnings?

A higher-than-forecast CPI print only temporally derailed enthusiasm for the market and flat retail sales failed to quell some corners of angst over an under-pressure consumer.

The world survived the Nvidia results which were great, just not great enough.

With earnings season officially wrapping up, stocks will continue to trade ex-dividend, and markets will refocus back on data watching with US August non-farm payrolls out Friday 6, before the highly discussed FOMC meeting on September 18.

Corporate news in the week that was:

-Woolworths Group ((WOW)) has invested an additional $7m in Seedlab Australia, a food and drink startup incubator

-The Albanese government is considering introducing fixed prices for operations and other private hospital services

The Senate’s economics committee has called a new probe into big-box retail chains selling household items outside the reach of the food and grocery sector’s code of conduct

Macquarie Asset Management ((MQG)), Bain Capital, and Carlyle Group are preparing bids for Permira’s $4bn I-MED Radiology Network

-AustralianSuper has been forced to write off more than -$1.1b in equity and loans tied to American online education start-up Pluralsight, in its single worst VC investment

-State Street Global Advisors acquired a 5% stake in Raiz Invest ((RZI)) and partnered to enhance micro-investment options and financial education for Australian investors

-Redflow ((RFX)) has entered voluntary administration and suspended its shares, just after announcing a 5 MWh project with Stanwell Corporation

-Austin Engineering ((ANG)) is looking for acquisitions to expand its capabilities and scale, assessing opportunities based on their potential benefits

-Acquisition-hungry Yancoal Australia ((YAL)) may target the $3bn Kestrel coal mine if it misses out on the $4bn Anglo American assets

-CommBank’s ((CBA)) chief economist, Stephen Halmarick, will depart in 2025 after 15 years

-Genesis Minerals ((GMD)) is reportedly a potential buyer for Magnetic Resources ((MAU))

-Southern Cross Media ((SXL)) is restarting the sale of its regional TV assets and is negotiating with buyers

-Fortescue ((FMG)) invests -$22m in HyTerra to enter the white hydrogen sector

Next week at a glance

-Monday September 2: Australia 2Q inventories, ANZ job ads, July building approvals; US Public Holiday

-Tuesday September 3: Australia 2Q net imports, NZ terms of trade; UK unemployment; US ISM manufacturing

-Wednesday September 4: Australia 2Q GDP; US factory order

-Thursday September 5: Australia trade balance

-Friday September 6: Euro 2Q GDP; US August non-farm payrolls

Corporate Calendar selection of upcoming ex-divs is shown. Please visit the FNArena calendar for a more extensive list

-Monday September 2: Ex-divs, Bendigo and Adelaide Bank ((BEN)) 33c (100% franked); Pinnacle Investment Management ((PNI)) 26.4c (70% franked)

-Tuesday September 3: Ex-divs. Endeavour Group ((EDV)) 5.5c (100% franked); Iluka Resources ((ILU)) 4x (100% franked); Northern Star Resources ((NST)) 25c

-Wednesday September 4: Ex-divs, Newmont Corporation ((NEM)) 26.54c; Pro Medicus ((PME)) 22c (100% franked); Seek ((SEK)) 16c (100% franked); Universal Store Holdings ((UNI)) 19c (50% franked); Whitehaven Coal ((WHC)) 13c (100% franked)

-Thursday September 5: Ex-divs, Amcor ((AMC)) 19.10c; Monadelphous Group ((MND)) 13c (100% franked); Origin Energy ((ORI) 27.5c (100% franked)

-Friday September 6: Ex-divs, AUB Group ((AUB)) 59c (100% franked); WiseTech Global ((WTC)) 9.2c (100% franked)

For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)

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