All the big calls from reporting season (including why small-cap earnings can grow 10-15% in the next two years)

Twice a year, the chatter stops, the background noise dies down, and Australian investors get a clear picture of corporate Australia's health (or otherwise). 

It's an incredibly important time. Company results can drive share prices for the next six months, and investors often make buying decisions off the back of a big beat or miss. They also form strong ideas about what will come next. 

For Michael Steele, Co-portfolio Manager, Small Caps at Yarra Capital Management, his big call is;

"We have confidence of an accelerating earnings growth outlook, with earnings growth of 10 to 15% in the next two years... based on earnings coming in line with expectations and also the positive outlook statements". 

Reflecting on the season is important to understand the key macro and sector themes driving markets. It's also nice to come away with a fresh stock idea or two. 

In that vein, I recently sat down with three members of the Yarra Capital Management team; Marcus Ryan, Michael Steele and Joel Fleming to have an in-depth conversation across the entire market cap spectrum - from micro to large. 

Don't miss the reporting season summary, followed by key insights from within each of their respective market cap spaces and the standout themes to emerge from the latest set of company results. 

Please note this video was filmed on 28 February 2024

Time codes

0:20 - Characterising the season
2:00 - What were the major themes?
3:47 - AI - is it making an impact on the ground?
5:30 - The shape of the consumer 
8:07 - Highlights of the season
9:30 - Cap space deep dive
9:42 - Funding your own growth
11:00 - The most exciting trends in micro-caps
11:46 - Is 2024 the year small-caps catch up?
13:35 - Where do small-cap valuations sit compared to history?
14:38 - Expensive defensives - are they still expensive?
16:49 - The big miners and their dividends - are they sustainable?
18:27 - Key themes from the season: Lithium
22:18 - A less loved commodity: Copper
25:35 - This sector makes up almost one-third of the market: Financials

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Yarra Capital Management's actively managed Australian Equities strategies seek to deliver outperformance for clients over long time horizons. For more information, please visit their website.