More Profit Downgrades?

The end of the financial year is fast approaching, and come July 1  companies on the ASX will need to follow the continuous disclosure guidelines should there be any news that is market-sensitive. Ahead of that, Citi has tipped a couple of media companies likely to announce further profit downgrades.

Marked are Fairfax, Southern Cross Media and APN News and Media.

According to reports in Fairfax press today, all three media companies “felt at risk”. But they are not the only ones tipped to announce profit downgrades with Citi also listing a major banking sector brand, mining exploration, building services and two major retails brands amongst the names on the list.

According to Citi, Fairfax reports that despite the raft of recent downgrades: “this reporting season does not look like it will be exceptionally good or bad.

“Business conditions are off their lows, and the fall in interest rates and the exchange rate should be supportive of earnings and the recent federal budget is seemingly supportive of business and consumer confidence.”

Citi also mentioned that the Australian dollar could also impact  future earnings forecasts.

“While the fall in the Australian dollar has been supportive for earnings in the 2015 financial year, assumptions around the Australian dollar in financial year 2016 remain critical.”

You can read the full story here.