During reporting season 60% of companies saw their share price outperform the market the day they released results, the best in 4 years

During reporting season 60% of companies saw their share price outperform the market the day they released results, the best in 4 years. Key themes: Strong profit growth of 25% for resources after a 19% profit slump as costs fell and volumes rose. Financials are doing well with 11.5% profit growth, helped by 9% growth from the banks and a 34% surge for insurers. Ongoing cost control making up for still soft revenue growth resulting in 4% profit growth for industrials. There were mixed results for cyclicals - good for Boral, Stockland & Harvey Norman, not so good for JB HiFi. Strong dividend growth reflecting investor interest in income, strong cash flow growth and corporate confidence in earnings prospects. Dividends grew 7% after 11% growth in 2012-13. Consensus expectations for the current financial year are for 5% earnings growth, unchanged from the start of the reporting season. (VIEW LINK)