MENU

4 winners and 4 losers of reporting season

Over the last two weeks investors have seen some extreme contrasts in half-yearly and full-year earnings results by many of Australia’s biggest and best companies. But which companies have shone, and which have stumbled?

Here is a mix of four companies of each which have stood out for me so far:

4 Winners:

Healthcare and animal care distributor Ebos Limited (ASX: EBO) made a big splash with its first result as an ASX-listed company. Ebos beat prospective forecasts, grew net profit after taxes (NPAT) by 229% and raised its interim dividend 17% for the half year.

Cooper Basin focused energy producer Beach Petroleum Limited (ASX: BPT) was another big winner announcing record sales revenue of $557 million, up 63% for the half year. Shares jumped as much as 10% on Monday, before falling back yesterday.

BHP Billiton Limited (ASX: BHP) announced a glowing 15% increase to underlying EBIT for the half year to US$12.4 billion. The strong performance was driven by a substantial improvement in productivity and volume additions from the company’s new investments.

Commonwealth Bank of Australia (ASX: CBA) sent investor hearts fluttering by releasing a 13% increase in earnings per share just before Valentine’s Day. Cash NPAT was up 14%, driven by strong results across all the company’s business groups.

4 Losers:

The huge losses announcement by QBE Insurance Group Ltd  (ASX: QBE) yesterday was expected after the insurance giant warned of problems late last year. Shares rose on the announcement because of the optimistic outlook which promises better days ahead in 2014.

Although not an official report, Graincorp Limited (ASX: GNC) released a shareholder update warning that poor seasonal conditions in Queensland and northern NSW would contribute to a fall in full-year NPAT of up to 54%.

Drilling service company Boart Longyear Ltd. (ASX: BLY) saw revenue plummet almost 40% and announced a statutory net loss after taxes (NPAT) of US$620 million, compared to a $68 million profit the year prior.

Newcrest Mining Limited (ASX: NCM) announced an 88% fall in statuary profit for the half year, but EBIT were down just 14% to $404 million, a stronger result than many were anticipating given the 28% fall in the price of gold over 2013.

Foolish takeaway

The range of results is a valuable reminder of the value of holding a diversified spread of companies in your portfolio. The good companies help to balance any poor results that may sneak in.

The top ASX pick you've never heard of...

Top Motley Fool analysts just identified their #1 ASX pick for 2014, a small-cap stock that could be poised for big gains (and offers a fat, fully franked dividend!). Discover all the details now, including the name and code, in this FREE investment report, "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Regan Pearson owns shares in QBE Insurance

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.