Daily FNArena News - Australia

A sharp drop off in demand for some of its produce over December and into January caused Costa Group to flag a flat net profit outcome for 2018. Brokers believe the market reaction was overdone.

Discretionary retailing encountered difficult Christmas trading in 2018 and brokers suspect a depressed consumer environment bodes poorly for the upcoming reporting season.

Treasury Wine Estates has flagged strong earnings growth for 2019, although several brokers remain concerned about the softer US wine business signalled by competitor, Constellation Brands.

NZ-based manufacturer Methven is expected to extend GWA Group’s range of bathroom & kitchen products and diversify its geographic exposure.

A merger of Australian Pharmaceutical Industries and Sigma Healthcare is logical but ACCC issues are uppermost in broker views.

Sonic Healthcare will acquire Aurora Diagnostics, which is expected to transform its US business and provide substantial revenue synergies.

Inaugural Edition of the Australian Broker Call *Extra* Edition, featuring additional expert sources on additional ASX-listed stocks. Re-published to remove technical errors.

Brokers suggest the market has overreacted to QBE’s update, given the progress made in 2018 and the cost reductions outlined for the next three years.

Is Australia’s housing market a source of vulnerability for the economy?

Delays in infrastructure activity and an uncertain housing outlook have cast a shadow over Adelaide Brighton, which has downgraded earnings estimates for 2018.