Reporting Season Review August 2020
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 01 September 2020, 3:13 PM
- Sectors Covered:
- Equity Strategy and Quant
In our most recent analysis on the Reporting Season August 2020, we were able to identify three common trends that became evident throughout this last month.
1. Beating low expectations
With the lack of guidance going into Reporting Season August 2020, we saw a number of companies, particularly those cyclical companies beat FY20 guidance by some margin. This was commonly noted in the retail sector.
2. Income Scarcity
About 72% of companies decided not to pay forward a dividend, so income scarcity was certainly a theme… those companies who provided some form of certainty on income for FY21 or paid a dividend were certainly rewarded in the form of market support. We believe this will become an increasing focus in the oncoming future.
3. Never waste a good crisis
With enormous operating leverage flowing through, we expect those who took the Covid situation as an opportunity to cut out costs, and stream line their businesses to reap the benefits in FY21.
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