Welcome to our live ASX coverage for Tuesday, August 19. We’re trialling a new format, with a high volume of posts before the market opens and periodic updates throughout the day. The live blog will conclude around 2:00 pm AEST, so remember to refresh for the latest updates and let us know how we can improve this experience.
US Companies Exceed Earnings Expectations
[8:07 am] More than 90% of S&P 500 firms have released their Q2 earnings, significantly outperforming market forecasts. The blended earnings per share (EPS) growth rate stood at 11.7%, well above the 4.9% that was anticipated at the beginning of the reporting season.
- Record Earnings Beats: 82% of companies surpassed EPS estimates, exceeding the one-year average of 77%. Goldman Sachs noted that this reflects one of the highest frequencies of earnings beats on record.
- Improving Forward Outlook: Citi’s EPS revisions index has reached its highest level since December 2021, while Bloomberg’s measure of corporate guidance against consensus is at its second-highest figure in nearly four years.
- Support from Macro Conditions: Earnings strength has been attributed to factors such as tariff mitigation strategies and a weaker US dollar, which have bolstered profit margins.
- Concerns Over Sustainability: Some upward revisions may indicate a reversal of prior EPS cuts due to tariffs, rather than a genuine momentum in growth.
Good Morning!
[8:05 am] The ASX 200 futures have dropped by 23 points (-0.25%) following a relatively calm overnight session where major US indices showed little movement.
Today is significant for corporate earnings, with several key reports expected, including from:
- Amplitude Energy (AEL)
- Ainsworth (AGI)
- ARB Corp (ARB)
- BHP (BHP)
- Challenger (CGF)
- Centauri Capital (CNI)
- CSL (CSL)
- Emeco (EHL)
- HMC Capital (HMC)
- Hub24 (HUB)
- Judo Capital (JDO)
- James Hardie (JHX)
- MacMahon (MAH)
- Monadelphous (MND)
- Mystate (MYS)
- Region Group (RGN)
- Seek (SEK)
- Sims (SGM)
- SRG Global (SRG)
- Woodside (WDS)
- Yancoal (YAL)
If you’re new to this blog, catch up quickly with today’s Morning Wrap.
