Listed firms performance aligned with expectations

CEBU, Philippines - Publicly-listed companies in the Philippines performed mostly in line with expectations during the first quarter of 2016, even better than posted in the same quarter last year.

Market analysts of COL Financial Philippines' research team headed by April Lynn Tan, reported that out of the 52 listed companies that they monitor, 22 or 42.3 percent  performed in line with expectations, 17 or 32.7 percent performed below expectations, while 13 or 25.0 percent performed better than expectations.

During the 2015 earnings season, 34.0 percent of the companies that the analysts monitor performed below expectations, while 40.0 percent performed in line with expectations.

According to the report, most of the companies that reported better than expected earnings belong to the banking and power sectors (seven out of 13).

For the banks, outperformance was led by the smaller banks. They also benefited from analysts’ more conservative earnings estimates.

For the power companies, outperformance was due to the hydro plants which benefited from ample water supply, although outperformance might not be sustainable.

Meanwhile, all four listed gaming companies that the research monitor performed below expectations as gross gaming revenues continued to disappoint.

Sectors that registered positive earnings growth include the property, power, consumer and banking sectors. Most gaming companies and selected telcos and mining companies registered weaker profits during the first quarter compared to last year.

The telecom industry’s core earnings fell 15.3 percent during the first quarter led by TEL which recorded a 22.3 percent drop in core earnings to P7.2 billion.

Industry service revenues were up by 5.5 percent as the 57.5 percent jump in data revenues more than offset the drop in revenues from legacy businesses such as Mobile voice, SMS.

Consumer sector revenue and profit growth increase strongly, in line with expectations.

Consumer companies reported generally positive results that were in line with estimates. The sector registered median revenue growth of 11.2 percent and median earnings growth of 11.0 percent.

Revenues of retail companies grew by 12.3 percent to P104 billion during the first quarter of 2016.   (FREEMAN)