For equity analysts in Australia Christmas comes twice a year, every February and August when the majority of Australian listed companies reveal their semi-annual profit results. At this time companies also provide guidance as to what growth in profit, revenue, profit margins or dividends that shareholders can expect over the following financial year. This can be a stressful time for a fund manager. When companies reveal unpleasant surprises, the company’s stock price tends to get sold down hard. Alternatively, it can be very pleasant when the company reports a good result, which validates the investment case for originally owning their shares.
In this piece we are going to go through how Aurora approaches each day during reporting season and what goes on during a typical day in an the earnings season. It’s not all convivial lunches with management teams in the boardroom of an investment bank overlooking Sydney harbor.
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