It’s a big week ahead for corporate businesses with a raft of results being handed down. JB Hi-Fi has set the bar high for the rest of Australian companies this morning with a solid set of results as profit and sales beat estimates while raising its dividend. Consumer confidence is handed down on Tuesday, where the prospect of an RBA rate cut could boost sentiment. Across the pond, we get more quarterly earnings while US inflation remains in focus in the light of US President, Donald Trump’s tariff war.
Aus earnings: Origin & AGL and CBA
Australia’s first big earnings run of the year kicks off this week with some big names.
Two of Australia’s biggest players in energy and natural gas; AGL and Origin Energy, will be providing earnings reports on Wednesday and Thursday respectively.
AGL should be in a good position to provide a reassuring outlook to investors, which will be vital given the power provider has been recently marred by a welfare scandal that’s saddled the company with an AU$25m fine – something it intends to appeal. Ultimately, AGL has had an impressive three-year performance and with its redevelopment of the Liddell Power Station greenlit just last week, optimism will be high.
Origin is a different story, having just cut LNG guidance and quarterly production down. The energy retailer’s leadership team will have their work cut out for them amidst sell-offs, with a positive tone unlikely to do much to stop the stock tumbling further should the numbers underwhelm.
Commonwealth Bank’s half-year results will be one to watch on Wednesday. The bank’s stock has performed very well over the last six months, up by more than 25% at the time of writing. Given its strong rally and lofty valuation, it feels like anything short of perfection might be punished. Improving revenue growth and net interest margins will be heavily in focus.
No one is expecting blockbuster outcomes, but the prospect of this rate cut means that investors will likely be more forgiving than usual. A weaker Australian dollar could also have an impact, particularly for those companies with high exposure to currency fluctuations such as the big miners. What may stoke anxiety is an increasingly uncertain global economic climate, thanks largely to US President Trump’s escalating trade war.
AU Consumer Confidence
Retailer results from the last quarter are set to be positive overall, but unlikely to inspire much enthusiasm from investors. Early numbers indicate that despite resilient spending amid tight inflationary conditions, it was not necessarily a blockbuster holiday season at the checkout – although by no means was it the disaster that some analysts anticipated. Thankfully, the proposition of a February rate cut will likely boost consumer sentiment and keep investors holding on for a while longer.
The flip side to a rate cut is that confidence from an employment level continues to deteriorate, as shown in last month’s figures. With the unemployment rate only set to creep higher over the next year, this could continue to keep Aussies pessimistic, particularly with house prices also falling across Melbourne and Sydney in January.
What would be a kick in the teeth for consumer confidence next month is if a rate cut doesn’t come to fruition this month. That does seem unlikely with markets pricing in a 93% chance of the RBA cuts, but the RBA has surprised us a number of times in recent years, so further pausing should not be ruled out entirely.
US earnings: Airbnb, Coke, DoorDash, McDonald’s
Looking forward, it’s also a massive week for US earnings, with big names like Airbnb, Coke, McDonalds and DoorDash set to report their earnings in the coming days.
Airbnb, set to report on Thursday in the US, will be being closely watched by investors following the recent implementation of new features. The Co-Host Network, launched at the start of Q4, helps accommodation owners reduce their workload and boost bookings. The company’s integration of AI to monitor market trends among other uses, might also enhance booking efficiency. This could be critical for the business in the near future, as 55% of Airbnb’s revenue comes from outside of the US, and tariffs/political tensions may affect the company’s overseas profits in the coming months.
Coca-Cola has had a decent start to the year, with the stock up 2.4% year-to-date, setting an optimistic tone ahead of its Q4 earnings report. The company is expected to report YoY bottom-line growth and is offering investors a strong consumer staple stock in light of Trump’s recent trade tariffs. Investors will be looking to see pricing and volume gains increase this reporting quarter.
McDonald’s is also in the green, with the stock up 0.6% year-to-date. However, the fast-food giant’s Q4 results may leave a bad taste in investors’ mouths, with an E. coli outbreak in October reverting the company’s stock price back to its starting point in 2024 of around USD $290.
DoorDash has had an excellent start to 2025, turning a profit in its most recent quarter. The stock is up 15% year-to-date, and these strong gains are expected to continue with the Super Bowl just around the corner. The food ordering company is set to greatly benefit from increased consumer demand that comes with a nationwide sporting event, and with the company’s presence growing in Australia, investors will be keeping a close eye.
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