• The ASX is down 0.24% with 6 out of 11 sectors in the red
  • 290 Aussie listed companies are expected to host AGMs in the next two months
  • Earnings Per Share growth is predicted to slow from around 23% in FY22 to 5% in FY23 

 

The ASX 200 closed 0.24% lower today, with 6 out of 11 sectors in the red.

Industrials led the winners, up 0.57%, while Energy led the losers, down 1.33%.

The US president of the Chicago Federal Reserve, Charles Evans, said that there was a strong consensus amongst Fed officials to lift the federal funds policy rate to 4.5% by March and then hold it there.

Meanwhile in Europe, investors were focused on reports that Russia launched its most widespread air strikes since the start of the Ukraine war, “in what President Vladimir Putin called revenge for the explosion on the Crimea bridge”, according to Reuters.

Looking ahead in Australia, the Annual General Meeting (AGM) avalanche will soon be upon us, CommBank says.

Between October 10 and November 30 around 290 Aussie listed companies are scheduled to host AGMs, Extraordinary General Meetings and Investor Days.

“Dividend sustainability in particular, is likely to dominate headlines following AGMs,” CBA senior economist Ryan Felsman says.

“While the performance of many companies will be uncertain and difficult to predict over the next 12 months, shareholders will be looking to company directors to provide guidance on their expected performance, plans and strategies through the predicted economic slowdown in 2023.”

The S&P/ASX 200 index 12-month forward price to earnings (P/E) ration currently stands near 13 times, retracing from recent peaks near 19 times.

And while shares have become ‘cheaper’ due to 2022’s global sell-off, a sharp slowdown in annual consensus earnings per share (EPS) is underway.

EPS Growth is predicted to slow from around 23% in FY22 to 5% in FY23, according to estimates from RIMES, IBES and Morgan Stanley.

 

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Owner of one of the world’s largest coal terminals in Hay Point, Queensland, Dalrymple Bay Infrastructure (ASX:DBI) has reached an agreement for a new ten year agreement which will increase the Terminal Infrastructure Charge for users by 23% and 28% respectively to $3.02/t and $3.18/t in FY22 and FY23, with prices to escalate annually for inflation.

An additional $61m will be back paid by DBCT users from July 1 2021 to September 30 this year, which means a fatter dividend cheque for investors. 

DBI expects the dividend for this year to total 20.1cps in quarterly distributions, 10% higher than FY22.

“The successful completion of the commercial negotiations with our customers under the light-handed regulatory framework approved by the Queensland Competition Authority in 2021 is great news for all stakeholders,” MD and CEO Anthony Timbrell said.

“The agreements are the result of a comprehensive negotiation process and the first to be settled under the new negotiate-arbitrate regime.”

Mining services player Orica (ASX:ORI) announced that its CFO Christopher Davis will be leaving the company and Kim Kerr – with over 16 years in several senior executive roles at Newcrest Mining including finance, treasury, investor relations, and commercial functions – will be taking his place effective 11 October 2022. 

The company said it plans to report its 2022 financial results on Wednesday, 9 November 2022, with the full year Earnings Before Interest and Tax expected to be slightly ahead of market expectations. 

 

LARGE CAP LOSERS

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Baby Bunting (ASX:BBN) announced its first quarter gross profit margins were lower than expected at 37.2% – down 230 basis points against the first quarter of FY22. 

“We have plans in place to address the first half impacts outlined above to recover earnings over the full year,” CFO Darin Hoekman says.

 

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