Although still early into the reporting season, Goldman Sachs provides a summary of some key trends to date. Early trends show fewer headline surprises, but encouragingly, an increase in the number of companies providing guidance and surprising on dividends, says Goldman. Despite this, our analysts remain more cautious having downgraded earnings for close to half the companies that have reported. Goldman reports that there have been fewer headline surprises with 42% of results in line with analyst expectations (37% average). Encouragingly, there has been a notable increase in companies providing guidance, with 61% of companies that have reported to date providing FY1 guidance (42% average). This suggests growing optimism from management around the risks in managing their businesses to a budgeted outcome. Moreover, companies have reported 2.6x as many positive dividend surprises versus negative dividend surprises to date - the highest this ratio has been on record. (VIEW LINK)
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