Reporting Season Summary: 21 Feb 2014
About the author:
- Author name:
- By Fiona Buchanan
- Job title:
- Co-Head of Research, Senior Analyst
- Date posted:
- 24 February 2014, 7:53 AM
- Sectors Covered:
- Property, AREITS
Crown Resorts (CWN)
1H14 Result
NPAT: A$315 million; Dividend: 18cps
The result was in-line with expectations.
Morgans comment
Despite a weaker than expected domestic result our investment thesis remains intact. CWN remains our preferred gaming exposure.
Duet Group (DUE)
1H14 Result
NPAT: A$38.9 million; Dividend: 8.5cps
The result missed expectations.
Morgans comment
Quality of the result looks okay with no real one-offs boosting the cashflow. With a flat earnings profile we see pressure on distribution growth. While yielding 8% on current guidance it is trading at 10.0x EBITDA and looks close to fully valued in our view.
Insurance Australia (IAG)
1H14 Result
NPAT: A$642 million; Dividend: 13cps
The result was in-line with expectations.
Morgans comment
This result has been pre-released and the NPAT of A$642m is roughly in-line with our expectations. Insurance profit was a slight beat but offset by lower shareholder investment income. Very strong result across the board with no real concerns in the detail.
National Australia Bank (NAB)
1Q14 Result
NPAT: A$1.55 billion (underlying)
The result was in-line with expectations.
Morgans comment
NAB's unaudited cash earnings of A$1.55bn and a bad debt charge of A$324m are roughly in-line with our estimate. This equates to cash earnings growth of 7% on pcp and 2% on the prior period. That said, underlying earnings momentum stalled in the quarter.
Qube Logistics (QUB)
1H14 Result
NPAT: A$42.8 million; Dividend: 2cps
The result missed expectations.
Morgans comment
The disappointment out of the result was flat EBIT margins, driven by a 50bps decline in the Logistics division. Ports and Bulk offset this though with a 70bps improvement. With margin improvement a key tenet of the QUB investment case, this was a disappointing result. However, management are expecting margin improvement in the 2H as a few new contracts ramp up.
Santos (STO)
1H14 Result
NPAT: A$516 million; Dividend: 15cps
The result missed expectations.
Morgans comment
Disappointing result largely due to higher Opex and DD&A charges. GLNG 75% complete end of December 2013 and on target for our first gas 2015. PNG LNG, construction almost complete and focus is now turning to commissioning.
More information
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