ASX 200 (XJO) down 1.7%

The ASX 200 (ASX: XJO) is down around 1.7% on the final day of trading for the week.

Overnight there were two headliner-makers in the US. Donald Trump suggested delaying the US election, which sent the overall US share market down. However, Amazon, Apple, Facebook and Alphabet all reported better numbers than expected.

Victoria reported another 627 new cases of COVID-19, meaning that stage 3 restrictions may be extended. Queensland has seen at least one transmission from the three people who allegedly tried to hide their visit to Melbourne. There were 21 new cases in NSW.

AMP (ASX: AMP)

The AMP share price is down 11.6% after giving an update for its FY20 half year expectations.

AMP said that it expects to report continuing business earnings of approximately $195 million.

The ASX 200 Australian wealth management division expects operating earnings of $60 million with average assets under management (AUM) of $126 billion, down 6% compared to the second half of 2019. Net outflows were around $4.4 billion.

AMP Capital expects operating earnings of $70 million with average AUM of $198 billion, down 2% compared to the second half of 2019. Performance and transaction fees are estimated to reduce by around 40% compared to the prior corresponding period due to market impacts.

AMP Bank expects operating earnings approximately $50 million. A credit loss provision of $25 million is expected, which will impact earnings. Increased COVID-19 provisions are common with banks at the moment. The total loan book is expected to be $20.9 billion, an increase of around 3.5%.

Super Retail (ASX: SUL)

The Super Retail share price is up 11% after giving investors an update about its FY20 profit expectations.

Super Retail has announced that its sales were stronger than expected in the second half of FY20. Total revenue is going to be approximately $2.82 billion.

The ASX 200 company reported its numbers for the 52 weeks to 27 June 2020:

Supercheap Auto reported that total sales grew 7.6% with like for like (LFL) sales growth of 6.3%. Rebel sales grew by 3.3% with LFL sales growth of 2.7%. BCF sales grew by 4% with LFL sales growth of 3%. Macpac total sales declined by 5% with LFL sales declining by 9.1%.

In total across the company, total sales are expected to be 4.2% higher with LFL sales growth of 3.6%.

After COVID-19 restrictions eased there was a strong rebound of sales in the fourth quarter for personal fitness and outdoor leisure activities. That was after a 26.2% decline in monthly LFL sales during the peak of the COVID-19 lockdowns. Monthly like for like sales rose by 26.5% in May and 27.7% in June.

The retailer hasn’t completed its annual accounts yet, but it was able to provide preliminary unaudited management account numbers.

‘Pro forma segment EBITDA’ (click here to learn what EBITDA means) is expected to be between $327 million to $328 million, up from $315 million last year. ‘Pro forma segment EBIT’ is expected to be between $235 million to $236 million, up from $228 million. ‘Pro forma normalised net profit after tax’ is expected to be between $153 million to $154 million (FY19’s profit was $153 million).

These pro forma numbers exclude “abnormal” items of approximately $54 million relating to remediation of wage underpayments, the exit of non-core businesses, support office restructure costs, accelerated write down of certain assets and close out of interest swaps.

However, the $54 million figure is actually below the previous guidance of $58 million for abnormal items – so this has improved. Pro forma also excludes AASB 16 lease accounting to enable a meaningful comparison with last year.

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