Analysts upgraded their profit forecasts again during November, according to the latest Wren Research survey of broker earnings estimates. After steadily downgrading their numbers during the first half of the year, brokers have become more confident about the trading outlook with estimates at their highest level since September 2002.
Net profits are now expected to grow by 12.4% in 2004. That’s significantly higher than the previous month’s consensus of 11.0% and well ahead of what they were expecting a year ago.
Key winners included IAG, Qantas, Tabcorp and Wesfarmers. Most banks – especially the Commonwealth and National Australia Bank – and major mining stocks had their earnings trimmed.