1 week, page-23

From the smh..

Today's session may be all about macro factors, but the time for companies to open their books for the inquisitive eyes of investors is fast approaching.

Stocks that have outperformed the market in the past year have been largely driven by price-to-earnings expansion, with the expectation that growth will come. It’s now time for those companies to deliver, or face the music.

Macquarie has had a look at the companies that will post their results and put out a list of stocks likely to surprise on the upside, and the downside.

Among miners, BC Iron, Fortescue and Rio Tinto have the largest chance of an upside earnings surprise, Macquarie says. Gold miners face the biggest risk of downside earnings surprises.

‘‘Delivery of earnings will be critical to maintain and support future market returns,’’ Macquarie says:
•Splitting the ASX200 universe, the P/E expansion has mainly occurred in the industrial sector, while returns in the resource sector were less compelling.
•Recent quarterly production updates highlight a positive outlook for some resource stocks this reporting season.

Read more: http://www.smh.com.au/business/markets-live/markets-live-gloomy-mood-prevails-20140128-31jg0.html#ixzz2rg0Xcy7K