NEEL PORWAL, Shareholder Analytics
In the evolving landscape of financial reporting, understanding when companies disclose their financial performance can be helpful. We have been monitoring trends in the reporting practices of ASX 300 companies since 2016 to uncover any patterns that might provide relevant insights for investors, analysts, and industry watchers alike. In this review we look at the latest reporting period for the half-year ending December 2023.
Reporting Date Distribution by Week
In February 2024, a total of 243 reports were released, compared to 224 reports in February 2023. This year four companies released their results in January, commencing on January 18, 2024, compared with three companies that released on January 31 in 2023.
An examination of the weekly distribution of reporting this year compared to 2023 highlights a distinct shift towards earlier reporting, with an increased number of reports in Weeks 1 and 2 (24%) compared with 2023 (16%). Week 3 replaced Week 4 as the most popular with 40% of companies reporting that week compared to 2023 when 44% of companies reported in the last week.
Note: 5 Business days periods, working backward from the final day of February.
Day of the Week Analysis
The preference for mid-week announcements remains, with 75% of companies choosing to report between Tuesday and Thursday. This year all days during the week saw an increase in the number of companies reporting with the exception of Monday which saw a 35% drop. Monday this year was almost as unpopular as Friday which most companies try to avoid, unless it happens to be the last day of the month.
Reporting in the Final Week
When we review the last week of the February reporting period, we note that ASX 300 companies showed a more consistent reporting pattern across the week this year. The final five reporting days in 2024 ran from Friday to Thursday with the highest number of reports on Tuesday and Wednesday. In 2023, the last five days stretched from Wednesday to Tuesday with Wednesday and Thursday the busiest days. Despite differences in weekly structure, companies continue to favour mid-week to release their results.
Sector Distribution
During February, the majority of ASX 300 companies reported in the second to last week although there is some variability between sectors. In 2024, for example, the majority of companies in the Energy, Healthcare and Information Technology sectors reported in the final week, while Real Estate and Utilities reported in the first half of the month.
The speedy reporters typically have the advantage of more stable and predictable business models with both the Real Estate and Utilities sectors consistently reporting ahead of the market average.
At the half-year there was a general trend toward later reporting in most sectors, the two standouts being Information Technology (+15% on pcp) and Healthcare (+7% on pcp). The Energy sector, despite having a relatively small number of reporting entities (12), has consistently reported late in the reporting period.
Conclusion
Our review of this season’s reporting confirms the consistency of established trends, with the bulk of ASX-listed companies favouring the last two weeks of February and mid-week days to report their results. Nevertheless there is a discernible shift towards earlier reporting in 2024, as well as a couple of notable changes in sector-specific timing of their reporting. These emerging trends offer a useful backdrop for stakeholders tracking corporate disclosures and market activity.