Company half-year reporting is a great time to see how individual stocks are performing as well as getting a cross-section view of the overall economy. I plan to look at many of the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) company results, but listed below are three companies in particular that stand out for three topics:- market trends, dividend growth and overseas investment returns.
Rio Tinto Limited (ASX: RIO) (a read on the iron ore market)
I will be looking for shipped iron ore volumes and any indication of production costs and average sale prices, the three main factors that make up earnings. As the iron ore miner continues raising production, other less efficient, higher-cost production miners overseas will get pushed out of the market. Iron ore prices may not change if total supply outweighs global demand, but Rio Tinto may show it increased its market share in a classic cyclical market move.
Suncorp Group Ltd (ASX: SUN) (better earnings translates to bigger dividends)
Suncorp CEO Patrick Snowball has announced he will retire, leaving the insurer in much better condition than when he took the helm in 2009. Investors will want to see further progress in its business simplification program. Projected savings are to be around $265 million by financial year 2016, but how much of that will fall to the bottom line this year? Suncorp stated previously it would return surplus capital to shareholders. Indications of a dividend increase as well as another special dividend could be on this reporting season.
Carsales.Com Ltd (ASX: CRZ) (overseas expansion to maintain business growth)
The car sales search website operator has made a number of recent investments and acquisitions in overseas car sales websites where auto markets are growing strongly like South Korea and Brazil. Also, investing in iCar Asia Ltd (ASX: ICQ) has expanded its exposure to a number of South East Asian countries. Carsales.com's half year results should show how these investments are paying off. Can the company maintain the 13.6% earnings growth pace it had in financial year 2014? Investors will be looking for that trend.
