Few standouts in mixed results season
Mon, 25 Feb 2013 7:50a.m.
By 3 News online staff
Some business heavyweights delivered their latest profit results last week, revealing mixed performances.
Tyndall Asset Management Equities specialist Rickey Ward told Firstline this morning New Zealand company results, on the whole, were disappointing.
"Around about a third of the companies that have reported in New Zealand have disappointed, or certainly haven't met most people's expectations, which is a change in trend of what we've seen in the past."
He says New Zealand is "very small" market that lacks diversification.
"Companies' earnings do rely on international revenue to their own profit, so unlike many other countries it's very hard to predict because we don't sit in other countries."
Mr Ward says many have blamed the high NZ dollar, but "on the other hand you have Fisher & Paykel Healthcare, who wasn't due to report, come out and indicate an earnings upgrade is in the pipeline. That should be severely impacted by a high currency."
Other standout performers include Contact Energy and Sky TV.
"Contact Energy In an environment where electricity prices are being rather low, have managed their costs very well… Sky TV have lowered ad revenues, but have been able to encourage people to transition to a higher premium product."
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