UBS: Profits season weakest since GFC

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Via UBS today:

Earnings growth of 3.8% expected in FY19, but driven mostly by Resources

Reporting season is now complete. While results were only modestly weaker than expected, guidance was very soft, with more company downgrades than upgrades for the first time in four February reporting seasons. The market is now expected to deliver 3.8% EPS growth in FY19 (down from 6.9% in FY18), driven by Resources up 13.5%, but the Industrials ex-Financials are now expected to contract EPS by 3.4% (Figure29).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.