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ANZ reported full-year earnings, and while the stock is trading around fair value, it has to be said that today’s full-year cash earnings are strong at $6.498 billion (+11%), which is 1% above the street. Many were talking upside risks to the dividend today and it delivered with a final dividend of 91 cents, some 5 cents above consensus. The balance sheet continues to improve and at first blush it looks like a solid result, although margins are not brilliant. Is the result priced in? Perhaps to a degree given yesterday’s buying spree, however we feel the stock should find support.
With ANZ reporting cracking numbers, it’s worth pointing out that of the sixteen companies in the ASX 200 trading at 52 week highs, these include ANZ, NAB, CBA, WBC, MQG and BOQ. Given the big four banks have a 31% weight on the ASX, a miss today could have big implications for the market as the banks generally share the same thematics. Given the market was happy to buy into the banks ahead of the earnings, expectations are high.
Apple fell after hours (down 2.5% at the time of writing), however the actual earnings themselves were good with Q4 EPS, revenue and gross margins all beating expectations. Why the stock is down so much is not immediately apparent, however we get the sense that its Q1 gross margin forecasts were shy.
The pair seems to be range trading of late and seems to be lacking a catalyst. Whether that comes from the FOMC or BoJ meeting this week is yet to be seen, however its worth keeping an eye on the data today with Japanese retail sales, US retail sales, consumer confidence and the Case-Shiller house price index on the cards. Traders seem to be happy bidding up USD/JPY around the 200-day moving average at 97.39.
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