Analysts tip positive Queensland reporting season

QUEENSLAND’S upcoming earnings season should reveal good news for some of the state’s biggest companies, including Suncorp, Flight Centre and Corporate Travel Management.

But Hunter Green Institutional Broking director Charlie Green warned there could be some “train wrecks” in an overall positive reporting season, which starts next week.

That could include potentially disappointing results from Blue Sky and Aurizon.

“Overall it will be a solid season for Queensland companies,” Mr Green said.

“Suncorp is having a cracking second half, while the travel twins of Flight Centre and Corporate Travel Management are both harvesting the golden age of travel – it is just so cheap to travel these days. Twenty years ago you could go to Malaysia for $2000 and it still costs $2000.

“Suncorp has had its own thing going on, but there have not been any monster cyclones (that could have hurt its insurance business).”

Morningstar analyst David Ellis said Suncorp chief executive Michael Cameron continued to restructure the business and improve operational efficiency.

“Ultimately, we expect increasing earnings growth,” Mr Ellis said. “The potential for further capital returns is reducing, but the balance sheet remains strong.”

Morgan Stanley analysts said CTM’s profit margins should rise significantly in coming years as it refocused on corporate travel, where it obtains half of its earnings.