Weekend Edition: Australian Equities Doing Nicely Thankyou
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What were the standout earnings and surprises from the Australian results season?
Australia's earnings season over. What were the standouts? Where were the weaknesses? Where do we go for dividends? What happens now as the Fed cuts interest rates and we don't? So many questions. Let's talk to Gemma Dale for inspiration and to tell us what NAB trade investors are doing right now. The morning call from NAB with Phil Dobby. The weekend edition. So the earnings season for ASX listed companies is over. Not quite as we record this, but Definitely by the time you listen to this, uh companies have filed their full year results ending June twenty twenty four. So how did they do? What were the surprises? Um what do investors take from it all? Well, Nab Trades, Gemma Dale is with me. And the good news, Gemma, by and large, positive results, weren't they?
I mean corporate earnings often exceeding expectations.
Yeah, it was not bad at all. I mean it's It's an interesting time. Most of our uh concerns about where the economy would be have not come to fruition. And to that extent you would expect that company earnings are gonna hold up okay. It's yeah, it's not bad at all. It's really turned out okay.
And the resources sector still going strong. I mean, despite all the China slow down talk, BHP doing better than expected. I mean it's the iron ore story is still going strong. They're bailing out coal bit by bit, but iron uh o ore output at a peak for them and Rio Tinto also uh doing very well.
Yeah, this is super interesting and it is I know you have Ray on regularly and he's talking about the iron ore price frequently and the other guys also, you know, it has such a material impact for Australian government revenues more than anything else. You know, not everyone is involved in the iron ore trade in Australia, but it feels like they are. And to that extent, yeah, the iron ore price is off ten percent year on year, roughly. Uh, and it's off What a bit recently. There's been this talk about peak iron ore in terms of prices for ages, and as you say, the China story. The reopening was just not what anyone hoped for. Where is that dramatic stimulus that everyone was expecting and then hoping for and then maybe disappointed by?
And yet the price has held up relatively well. You know, it's all relative, but it's held up relatively well. It's dramatically better than uh the forecasts that are always put into the federal budget papers. And to that extent, we always end up in the black at the end of the year, in terms of that aspect. So your Fortescue reported, Fortescue's always very handy 'cause it's a pure iron ore play, despite lots of talk about green hydrogen and various other bits and pieces, but it's a very straight line between the iron ore price production and how Fortescue performs. Yeah, net profit up eighteen percent, right? They're doing really well. You've got a yield on Fortis Hue of eleven percent at the moment.
So that's keeping a lot of investors very happy and BHP and Rio doing doing nicely.
How are iron‑ore miners like BHP and Fortescue still delivering strong yields?
So So why it's twenty percent of the market.
Yeah, and because we've seen prices come down, as you say, not a great deal, but they are down. So then they're doing better what? Because they've just up production. Which is curious because again, 'cause of China's story, you would have thought that th there'd be less demand.
Look, there is a story about headwinds, and they are careful not to say that the future is going to be anything like the heady days of $220 a ton, right? You know, we've had our moments in the sun. It might be a little bit more challenging, but production's holding up. Uh, weather conditions are holding up, all those sorts of things. So At this point, investors seem relatively happy. I the bit that's most astonishing if you've been around for quite a while is the yields that come out of these companies, right? If you are an investor, you're getting these astonishing yields. out of Australia's biggest miners. You never look to resources company for yield. That's not what they're for. And yet our investors continue to take this beautiful income stream from these guys.
And they're very happy on that.
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Chapters
8 chapters
1
What were the standout earnings and surprises from the Australian results season?
0:01–2:47
2
How are iron‑ore miners like BHP and Fortescue still delivering strong yields?
2:47–5:21
3
Why are Australian banks delivering high dividend yields despite a flat earnings outlook?
5:21–7:51
4
How are retail investors using ETFs to gain exposure to overseas markets?
7:51–10:19
5
Which Australian growth stocks (e.g., WiseTech, ProMedicus) are worth a look despite high valuations?
10:19–13:01
6
How does US market performance influence Australian share prices and investor sentiment?
13:01–16:08
7
What is the outlook for interest rates, earnings stability, and sector performance in Australia?
16:08–19:19
8
What topics will be covered in next week’s edition about China, EVs, and the housing sector?
19:19–21:33