Week 2: Reporting Season Wrap

The following is a transcript of an interview with Will Riggall, CIO – Bell Financial Group. You can watch the original interview here.

Sophia: Thank you for joining us this Friday, the 20th of February. I’m Sophia Mavridis and I’m joined by Bell Financial Group CIO, Will Riggall. Will, thank you for joining us again.

Will: Great to see you, Sophia. We’ve had a strong start to our weekly reporting updates. It certainly hasn’t been a boring week, with some big moves in the ASX. Happy to kick things off.

Sophia: Let’s jump straight in. It’s been the biggest week of reporting season so far, with a long list of companies reporting earnings. The ASX 200 was up 1.9%, outperforming global markets, with the S&P 500 up 0.4%. Energy and telecommunications led gains. What stood out to you?

Will: Reporting season always gets us into the detail of companies, but macro themes are still influencing markets. Energy was the biggest mover this week, somewhat surprising given how stock-specific reporting season can be. Geopolitical tensions have supported gold, which also performed well. Healthcare was driven by Sonic this week, after CSL last week. IT saw buying support, particularly the platforms Hub24 and Netwealth. On the downside, interest rate-sensitive sectors like real estate lagged, along with consumer discretionary names following cautious commentary from retailers. We’ve seen more earnings beats than misses, but also heightened volatility.

Sophia: What’s driving that?

Will: There’s been a shift from last year’s winners toward old economy and resource stocks, creating rotation and volatility. Overall, it’s been a positive reporting season. Earnings upgrades over the past six months have been confirmed. However, we’re seeing large moves post-results — even in names like CBA, BHP and Telstra — which isn’t typical. Let’s talk about key company results this week. JB Hi-Fi reported on Monday. It’s a consumer bellwether and the market was pleased with the operational performance. While there was caution around the consumer outlook, the stock has re-rated lower over the past year and rebounded strongly this week. BlueScope Steel also reported, but attention focused on Seven Group lifting its takeover bid. BHP delivered a standout result, which attracted media coverage.

Sophia: What stood out from BHP’s result?

Will: BHP showed strong top-line growth, largely driven by copper. Revenue was up double digits, EBITDA growth exceeded 20%, and strong capital discipline supported free cash flow. This led to a 40–49% increase in the dividend, fully franked. Importantly, more than 50% of earnings now come from copper. While iron ore remains strong, copper is increasingly viewed as the future-facing commodity, supporting BHP’s valuation.

Sophia: Looking at top performers this week — Hub24, Netwealth and Zip — what’s behind the moves?

Will: There’s been concern about AI disruption in wealth platforms. However, Hub24 and Netwealth demonstrated the strength of their adviser networks and structural tailwinds as funds shift toward platforms. Both delivered strong performances. Telstra also delivered a solid result, again highlighting dividend strength. Sonic Healthcare surprised positively under new leadership, showing improved capital discipline. Wesfarmers delivered a typically solid result but flagged softer trading in the first six weeks, leading to a share price pullback.

Sophia: Looking ahead, what are you watching today?

Will: Several ASX 200 companies are reporting. QBE will be important given its global exposure and turnaround progress. Mineral Resources is key, especially with lithium prices recovering after earlier debt concerns. Guzman y Gomez will be interesting given its strong brand and leadership. Telix Pharmaceuticals has been a market favourite but has seen some share price weakness, so we’ll be watching closely. We’ll wrap up those results next week.

Sophia: Will, thank you for your insights. We’ll catch you next Friday.

Will: Great to see you. Have a great day.

This information is general in nature and does not take into account your financial situation, objectives or needs. You should consider whether it is appropriate for you. You should read our Financial Services Guide and any relevant Product Disclosure Statements before making an investment. For more information visit belldirect.com.au or call 1300 786 199. Bell Direct is the trading name of Third Party Platform Pty Ltd ABN 74 121 227 905, AFSL 314341.