Daily FNArena News - Australia

Brokers welcome the potential for a future capital return as Caltex announces plans to spin off an interest in most of its freehold retail property.

Bank of Queensland may have announced a capital raising to shore up its balance sheet and provide the flexibility to improve operations but brokers are not that impressed.

Grocery wholesaler Metcash has lost its second major contract in 18 months, exacerbating speculation around the scale and sustainability of the company’s distribution channel.

Mayne Pharma aspires to have more than 60% of its FY24 revenue from US specialty products, although significant challenges in generics are likely to beset the business in the interim.

FNArena’s Monitor keeps track of corporate earnings result releases, including broker views, ratings and target price changes and beat/miss assessments.

Brokers are relieved BlueScope Steel reiterated first half guidance at its AGM and signalled there were no heightened areas of risk heading into the second half.

Aristocrat Leisure has built a strong track record and brokers found little to dislike about the company’s FY19 results. The focus is now on a promising digital strategy.

Qantas asserts that its dominant position in the domestic market and dual brand advantage will support ambitious targets for margin expansion.

A2 Milk envisages strong growth in the year ahead despite the challenges in the Chinese infant formula market. The main issue for brokers is whether the necessary investment will deliver the expected returns.

In his first presentation to investors as CEO of Suncorp, Steve Johnston opted to exclude all reference to profit margins and returns, implying potential for another earnings re-set.