FNArena’s Weekly Insights – February 21 2022

In this week’s Weekly Insights:

-More Beats Than Misses
-(Other) Expert Voices

By Rudi Filapek-Vandyck, Editor FNArena

More Beats Than Misses

As I write this week’s Weekly Insights on Monday, the FNArena Corporate Results Monitor shows the financial results from 120 ASX-listed companies have been reported and reviewed thus far. By the beginning of September, next week, this number will have risen to just under 350.

It is dangerous to draw conclusions when we only have a little more than one third of data available, and history suggests many more misses will be coming out of the woodwork during the final days of the season, but some of the early trends that are appearing are worth paying attention to.

First up, while circa two-thirds of company results are still absent from the Monitor, those companies that have already reported represent more than two-thirds of the ASX’s total market capitalisation. Let’s not forget the re-unified BHP Group ((BHP)) has an index weighting of 10%-11% these days.

Early observations

Corporate Australia is displaying a lot more resilience than it’s generally been given credit for. Despite broad discomfort with how companies might be performing amidst numerous challenges, including covid-impacts and inflationary pressures, the general impression after three weeks of public admissions is that companies are prepared and coping better-than-expected……

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