Macquarie favors BSL, RWC, REH in Australian earnings season
Macquarie’s Australian equity strategy update says week two of earnings season saw net EPS beats averaging 5%, down from 23% in week one. Dividend per share surprises were more positive at 21% and showed a 65% correlation with two-day stock moves. Macquarie favors BlueScope Steel (BSL), Reliance Worldwide (RWC), and Reece (REH), and is least favorable on Growthpoint Properties (GOZ), Whitehaven Coal (WHC), The Lottery Corporation (TLC), TPG Telecom (TPG), and Fortescue (FMG).
How this was made
The 30-second read
Why it matters
The only actionable element is Macquarie’s preferred and least-favored stock list for upcoming results; the article does not provide new company-specific earnings or guidance figures.
Market read
This is a multi-name earnings-season positioning update, with dividend beats and soft guidance framed as key drivers so far, and three stocks highlighted as preferred into upcoming reports.
What to watch
The piece highlights dividend beats and bond-yield funding, but does not quantify how much each favored stock’s dividend or guidance will change, limiting conviction.
Background
Macquarie reports Australian earnings-season performance by week, emphasizing net EPS and dividend-per-share surprise correlations with short-term price reactions.
Ticker impact
Macquarie’s Australian equity update explicitly favors BlueScope Steel (BSL) for upcoming results citing solid momentum, recent upgrades, and U.S. exposure.
Likely modest sentiment support versus peers, but limited immediate repricing without fresh earnings/guidance numbers.
The article is a strategy update with qualitative factors; it does not disclose new BSL earnings, guidance, or contract details.
Market effects
Positive read-through for cyclicals and dividend-supporting earnings dynamics, with Macquarie expecting the pattern to persist as domestic slows.
Primarily affects Australian equities positioning into the earnings season.
U.S. exposure is cited as a driver, which may influence cross-market sentiment for globally exposed Australian industrials.
Counterpoint
Macquarie’s “favors” list may already be priced, and the article’s guidance commentary suggests expectations are resetting, which can mute follow-through.
Key entities
- broker/strategy firmMacquarie
Released an Australian equity strategy update covering earnings-season surprise drivers and naming preferred stocks.
- companyBlueScope Steel
Named as a favored stock for upcoming results by Macquarie.
- companyReliance Worldwide
Named as a favored stock for upcoming results by Macquarie.
- companyReece
Named as a favored stock for upcoming results by Macquarie.
