Daily FNArena News - Australia

While Coronado Resources has flagged significant productivity improvements and returned cash to shareholders in FY19, brokers suspect softer near-term coal prices and poor sentiment will weigh on the stock.

Rio Tinto has spread the benefit of surging iron ore prices in the first half but most brokers believe sustaining such a high rate of earnings will be difficult heading into 2020.

Australia’s banking sector is under pressure amid soft loan growth, a squeeze on margins and a reinvestment burden. Brokers are not yet factoring in much of a recovery.

A preference share deal with a major shareholder has reduced the likelihood of a substantial equity raising for Nufarm and brokers now focus on the longer-term outlook.

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

Adelaide Brighton has slashed net profit estimates for 2019. Brokers believe the housing market alone cannot be blamed.

CYBG is underperforming a weak UK banking sector, as redemptions and margin pressures take their toll. Then there is Brexit.

Orica believes its technological breakthrough should offer a competitive advantage and contribute to earnings growth in FY21. Yet brokers assess the positive outlook is already factored into the shares.

Credit Corp delivered its traditionally conservative guidance at its FY19 results and brokers assess where the upside may lie.

After a strong FY19, sleep apnoea specialist ResMed is expected to make further inroads into market share in FY20 with its “connected-care” strategy.