Own Suncorp shares? Here's what to expect from its FY23 results

Suncorp is releasing its FY 2023 next Tuesday.

| More on:
A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

All eyes will be on Suncorp Group Ltd (ASX: SUN) shares next week.

That's because the insurance giant is scheduled to release its full-year results on Tuesday 8 August.

Ahead of the release, let's take a look to see what the market is expecting from the company.

Suncorp results expectations

According to a note out of Goldman Sachs, its analysts are expecting Suncorp to report gross written premiums (GWP) growth of 8.5% to $12,355.9 million for FY 2023.

This is expected to comprise an Australian GWP of $10,189 million and a New Zealand GWP of $2,166 million. And with the broker forecasting a second-half underlying margin of 12%, this is expected to lead to strong earnings.

Goldman expects cash earnings of $1,240 million for the 12 months, up from $673 million a year earlier. On a per share basis, this equates to 94 cents per share.

From this, the broker is expecting Suncorp to reward shareholders with a 70 cents per share fully franked dividend. Based on where Suncorp shares are currently trading, this represents a 5% dividend yield.

Finally, investors may also want to watch out for any guidance for FY 2024. Goldman is expecting an underlying insurance margin of 11.3% next year and GWP growth of 6.6% to $13,170 million.

Are Suncorp shares good value?

Goldman still sees value in Suncorp shares at the current level and has a buy rating and a $15.13 price target on them.

This implies a 7% upside for investors over the next 12 months or a total potential return of 15% including dividends.

This could make it worth considering if you're looking for income options or exposure to the financials sector.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

Man pointing at a blue rising share price graph.
Financial Shares

How is this ASX 200 financial stock popping 6% today?

This lucky company has just swung into the green in 2024...

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Financial Shares

AMP share price falls on first-quarter update

How did AMP perform during the first quarter?

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Financial Shares

Why the Macquarie share price could soar 16% on an overlooked factor

A double-edge sword might be Macquarie's secret weapon for huge upside.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Financial Shares

Suncorp share price hits new 52-week high amid $375m asset sale

Suncorp is offloading another asset as it reshapes its business.

Read more »

A young man goes over his finances and investment portfolio at home.
Financial Shares

Are IAG shares worth buying right now?

IAG shares have climbed high, but is there further to go?

Read more »

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

1 dirt-cheap ASX stock I'd buy as Aussie cash carrier looks for a lifeline

Every crisis comes with an opportunity. I reckon this payments company is in the buy zone as cash crumbles.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »