Investment Matters

Reporting season continues

The company profit reporting 'season' is underway.  Elsewhere in Investment Matters, we look at the results for companies in which First Samuel has invested for you.

Here, I give some comments on other interesting companies:

NAB, one of the "big-4", announced a 3% fall in profit from a year earlier, in its third quarter trading update.

JB Hi-Fi, an electronics retailer, boosted its profit by 12% to $152m.  It's all about spending on technology and gadgets, loosing a competitor (Dick Smith), plus the government's immediate tax write-off of $20,000 (to end on 30-Jun-17).

Santos, a gas production and exploration company, announced a US $1b write-off associated with its Gladstone LNG project.  Total write-downs for the past three years are greater than US $5b.

Aurizon, a coal hauling and railway owner and formerly named Queensland Rail, recorded a 16% fall in underlying net profit to $510m.  With a dividend payout of 100% of underlying NPAT, it is another company facing dividend cuts in coming periods.

Ansell, a protective equipment, glove and condom maker, had a 15% fall in profit to US$159m, with currency having a major impact (in constant currency, profit was down 2.5%).  It also announced it is considering selling its condom division.

Domino's Pizza, a fast food chain, increased underlying net profit by 44%, to $92m.  It remains ridiculously expensive.

CSL, a biopharmaceutical company, reported a 10% decrease in net profit to US$1.2b.  But it wasn't as bad as the headline appeared - underlying profit, in constant currency terms and removing impact of an acquisition made during the year, was up 5%.

Crown Resorts, a casino operating company, announced a 23% fall in normalised net profit, to $406m.

AMP, a finance company, reported a 10% fall in underlying profit.