CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

NIB earnings watch: 4 things you need to know before 2019 results

According to the Wall Street Journal analysts have taken a bearish view on nib in recent times – with a consensus underweight rating being assigned to the stock ahead of FY19 results.

NIB share price (ASX: NHF) Source: Bloomberg

When are nib's results due?

nib holdings Limited is expected to announce its 2019 full-year results to the market this coming Monday, August 19.

The outlook remains challenging

When nib holdings Limited reported its half-year results in February, the company used consistently conservative language in describing its FY19 outlook.

Speaking of this outlook, Managing Director Mark Fitzgibbon said, 'nib does not anticipate the second half of FY19 to be as strong as the first.’

Mr Fitzgibbon further added that:

‘Key factors expected are unfavourable claims seasonability, the fact that the first half was boosted by a claims provision release within arhi and likely weak market conditions affecting parts of the Group.'

Across the Australian, Chinese and New Zealand business segments, nib raised a number of specific concerns. In China for example, the company noted that it’s ‘not expected to be profitable until FY22.’

More locally, nib flagged that the:

‘Australian market remains tepid but with near term market agitation and growth opportunity due to reforms.’

Speaking of nib’s upcoming full-year results, wealth management firm Morgans made the point that:

‘While the second half is seasonally weaker for claims, FY19 UOP guidance still seems conservative given the 1H19 performance (~A$114m).’

First-half fundamentals were good

Though nib holdings Limited's management and Morgans have flagged seasonality concerns for the 2019 full-year results, nib’s financials in the first-half were impressive.

Here, the company reported total group revenues of $A1.2 billion – a solid increase of 10.2% from the previous half.

The company also saw significant gains in its underlying earnings – rising 18.6% to A$114.3 million in the first-half.

nib’s interim dividend was also up in 1H19– gaining 11% on the corresponding period to 10 cents per share.

According to the ASX, nib currently has a dividend yield of 2.78%.

nib share price: what do analysts think?

As it stands, the analyst outlook is a negative one for nib (ASX: NHF). This is hardly a surprise when you consider management’s comments surrounding the soon-to-be released FY19 results.

For example, the Wall Street Journal notes that of the ten analysts covering the stock, not one rates it a buy. Overall, nib (ASX: NHF) has an underweight rating.

Mind you, irrespective of these bearish views, nib holdings Limited has significantly outperformed the ASX 200 in the 2019 calendar year, rising 47% in that period.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.