keeping hardware and electronics retailers afloat have delivered robust conditions for the ASX's big names.Australian blue-chips capped off the 2021 financial year with a 26 per cent surge in earnings per share, which is expected to slow to growth of 13.6 per cent in 2021-22, and 4.5 per cent in 2022-23 according to consensus estimates measured by Morgan Stanley.Consensus is measured on an earnings per share basis, or EPS, arriving at an estimated $4.
The iron ore stocks, which make up 25 per cent of the ASX 200 profit base, will then pose a 5 to 8 percentage point drag on the benchmark’s EPS growth for 2022-23 on current commodity price forecasts, but MST Marquee suggests that's too bearish on present pricing.Fund managers are on the lookout for how inflationary pressures are affecting margins, particularly given the shock
On Monday, medical gloves and protective personal equipment or PPE maker Ansell reported margin compression due to higher-than-expected increases in freight and labour costs, adding that logistics disruptions have led to order delays. “The enduring bright spot for ASX 200 profits promises to be the COVID recovery stocks,” agreed Hasan Tevfik, investment strategist at MST Marquee. “While these companies will face rising cost issues, we expect much of this will be passed through given the considerable level of pent-up demand in some instances.