BOQ, QBE can outlook, Ansell sales up

Bank of Queensland, QBE and Tyro Payments have joined a long list of ASX firms to withdraw earnings guidance but rubber glove maker Ansell has boosted sales amid the coronavirus pandemic. 

Ansell said it had experienced a surge demand for protective hand and body equipment and the company, along with insurer IAG on Monday maintaining its earnings outlook.

The strong sales will be offset by some industrial products amid export restrictions and lockdowns.  

“Furthermore, as the COVID-19 situation changes daily there is an increasing likelihood of delays and possible disruptions to transport and local distribution,” Ansell said in a note. 

Regional lender BoQ scrapped its earnings guidance but maintains that its capital position and funding are strong after a recent capital raising.

However, the company announced it has decided that it will no longer seek APRA’s approval for an exemption in relation to the 12‐months profit test for the interim dividend.

Insurer QBE withdrew guidance, citing “extraordinarily difficult times for all stakeholders”.

Independent eftpos provider Tyro Payments withdrew the guidance in its prospectus, saying it had experienced a compression in transaction value growth rates because of measures to combat the pandemic.

“In addition, given the considerable uncertainty that remains, we are not in a position to offer a reliable forecast at this time,” said chief executive Robbie Cooke.

IAG on Monday left its FY20 guidance unchanged as overall year-to-date profitability is expected to absorb higher net natural peril claim costs and severe investment market movements.

Also on Monday, S&P Global Ratings revised its outlook on Boral from negative to stable, saying government restrictions to combat COVID-19 were likely to significantly depress the building product company’s earnings and cash flow.

AAP

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