Australia’s earnings season winners emerge

Summary

Elfreda Jonker of Alphinity Investment Management discusses Australia's earnings season, arguing results are underwhelming excluding commodities and that dispersion is high. She is positive on BHP and copper, Goodman Group, Ventia Services and AMP, while reducing Australian bank exposure amid consumer weakness. She also sees Australia's data-centre buildout as one way to access AI investment.

• Australian earnings are in line but ex-commodities growth is only about 5% versus a 10% average.
• BHP is a top conviction on copper leverage, balance-sheet strength, management and capital returns.
• Australian big banks face earnings downgrades from softer consumers and falling housing prices.
• She prefers non-bank financials such as Macquarie and AMP as self-help or relative-value stories.
• Goodman Group is liked for data-centre buildout as an Australian AI beneficiary.
• Ventia Services is liked for defense exposure, an AI overlay and cost management.
• Australian consumer sentiment remains cautious due to housing wealth decline.