In this final installment of our reporting season series, we once again asked some of Australia’s leading fund managers to highlight the standout earnings result this week. After punching in strong numbers that converted to an 8% jump in dividends, QBE received votes from both K2 and Atlas Funds. Perennial uncover a growth stock that is now trading on value metrics, Nikko AM backs LendLease’s exposure to the US construction thematic, and Regal discusses a recent tech IPO they believe has global potential. Click below for the last instalment in this series until next season, and see which five stocks our 7 panelists selected. Links to 3 previous episodes are at the bottom of the wire.
2016 was the turning point for QBE
DAVID POPPENBEEK, K2 Asset Management
For the year to December 2016, QBE Insurance grew its profit by 23%. The group delivered its highest return on average shareholder’s funds in 6 years and increased the A$ dividend per share by 8%. It would appear that 2016 could be the turning point in QBE’s fortunes. (VIEW LINK)
A growth company … on value metrics
ANDREW SMITH, Perennial Value Management
We see that the sell-off in the stock since Brexit has created a unique situation where investors can get a true growth company, on value metrics: (VIEW LINK)
Lendlease’s growth momentum set to continue
NIKKO ASSET MANAGEMENT AUSTRALIA
We believe the company remains attractively valued and is well positioned to continue its strong growth momentum. The buoyant local construction sector and the potential fiscal stimulus in the US could provide a further boost to the company’s earnings. (VIEW LINK)
QBE confirms the recovery is underway
HUGH DIVE, Atlas Funds Management
One would have to look back to August 2007 – that’s nineteen reporting seasons -before the words “QBE Insurance” and “Result of the Week” had been uttered in the same sentence. (VIEW LINK)
The company creating magical spaces worldwide
JOHN MURRAY, Perennial Value
Perennial Value will be focusing on the $49 billion development pipeline, the $20.5 billion of construction backlog revenue and the $24.7 billion in funds under management that will underpin Lendlease’s earnings for many years to come.
Money3’s metrics are outstanding
DEAN FERGIE, Cyan Investment Management
All business metrics look outstanding: bad debts have fallen from 3.5% to 2.5%; EBITDA margins are over 45%; and a further 2.5c dividend has been declared.
Getswift could be the start of something big
JULIAN BABARCZY, Regal Funds Management
It is rare for Australian investors to get the opportunity to invest in an IT business with global potential and apparently such strong commercial and strategic merit. We believe Getswift could be the start of something big: (VIEW LINK)
You can access the last three reports by clicking below:
- 5 stocks that impressed and 1 that bombed: (VIEW LINK)
- 5 stocks that exceeded expectations: (VIEW LINK)
- 7 earnings results in the Livewire reporting roundup: (VIEW LINK)
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