More than halfway through the month of February and with a number of companies on the S&P ASX 200 Index (ASX: ^XJO) still to report results, what has been the general take on earnings? A dividend surge has been one, with banks and even mining companies delighting shareholders with dividend upgrades. Also, certain sectors are faring better than others.
The financial services company UBS has commented on the results, with investment strategists saying that discretionary retail and housing-related stocks were standing out in performance. Here are the companies that were highlighted.
Discretionary retail:
JB Hi-Fi Limited (ASX: JBH), the electronics retailer, reported sales growth of 6.8% for the half-year ending December, and net profit for the period was up 10% to $90.3 million. General concerns for retailers have made investors anxious about the holiday season performance, but the company showed it was moving in the right direction.
Carsales.com Limited (ASX: CRZ) accelerated earnings with a 17% increase in net profit after tax to $44 million on top of a 10% rise on total revenue. Its investment in the leading Brazilian auto sales website WebMotors also paid off well.
Automotive Group Holdings Ltd (ASX: AHE) kept growing top and bottom line figures over the past three years with group revenue up 6.8% and a 1.3% improvement in a record statutory NPAT of $38.4 million. It reported solid growth in its automotive retail segment coming to $1.92 billion in revenue, up 8% for the half year.
Housing-related
Stockland Corporation Ltd (ASX: SGP), the commercial and residential property developer, reported half-year underlying profit at $267 million for a 5% gain on the pcp. The company stated that the gain was helped greatly by the 39% rise on 1H13 in its residential business, showing the surge in the housing market going on now.
REA Group Limited (ASX: REA) wowed the market by its 30% revenue growth and the further 37% it gained in net profit, up to $70.7 million. The operator of realestate.com.au, the online real estate listings portal, now makes a majority of revenue from selling listing depth and display feature services to property owners for their listings.
Boral Limited (ASX: BLD) also brought the housing theme home by coming in with a half-year underlying net profit of $90 million that was 73% higher than 1H14. Revenue was up 4% to $2.87 billion. It is benefiting from a recovery in both the Australian and US housing markets.
Foolish takeaway
Another week or so and all of the results for the remaining companies will be in and a full review of the last six months ending in December can be done. We'll revisit this topic again for an overall look at the winners and losers.
