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Writer's pictureRoyce Advisory

Reporting Season Update: Key Insights from Week 2

As we navigate through the August reporting season, here's what caught our attention in Week 2:


<Positive Surprises Continue>


  • Net beats of +16% this week, with a +19% overall for the season so far

  • Margins are outperforming, often due to lower tax and interest costs


<Guidance Trends Conservative>


  • Many companies are providing cautious guidance, likely due to uncertainties around interest rates and the upcoming US election

  • This conservatism could present opportunities if economic conditions improve


<Sector Spotlights>


  • Cyclical Retailers: JB Hi-Fi and Temple & Webster stood out with strong results

  • Media: Faced challenges with misses from SEEK and Seven West Media


<ESG Focus Intensifies>


  • Emissions reduction targets on track for several major companies

  • Increased investment in cyber security and data privacy across the board


<Looking Ahead>


  • Keep an eye on upcoming results from Suncorp, Domino's Pizza, and Sonic Healthcare




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