Publicly listed companies are expected to deliver a mixed bag of earnings results, with strong showings for companies with limited exposure to Covid-related disruptions, but weaker results from the rest, and cautious outlooks for the rest of the business year.
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Close to 40 stocks, including most of the market heavyweights, will release mostly half year earnings reports to the end of December over the next two weeks.
"It will reflect a pretty solid period for most, but I think there'll be very much a cautionary message when you hear from CEOs and board chairs going forward," Craigs Investment Partners head of private wealth research Mark Lister said.
He said one positive sign was that there had not been many profit downgrades ahead of the reporting season.
"The confession season, as they call it, is coming to an end now. If you haven't sort of confessed, then it probably means you're on track to be at least there or thereabouts."
Among those expected to deliver a strong result was Fletcher Building, which has gained from the residential and commercial construction boom.
Rubber goods maker Skellerup was also expected to post a strong report and a positive outlook given ongoing demand for its products across a number of sectors.
Heartland Bank was also expected to deliver a solid first half, and with a positive outlook.
Devon Funds Management head of retail Greg Smith said companies that surprise on the upside were likely to be rewarded with a lift in share prices.
"I think those companies that are able to demonstrate pricing power will perhaps be rewarded," he said.
"All in all, any positive surprises will be well received, particularly given the extent to which share prices have fallen this year in line with global volatility."
However, Omicron was expected to introduce some uncertainty into the outlook for most companies, with higher than usual absenteeism and a drop-off in consumer demand.
Air New Zealand was expected to deliver another weak first half earnings report, reflecting the travel restrictions throughout most of the period.
The market was looking forward to hearing from Auckland Airport's incoming chief executive Carrie Hurihanganui about the company's outlook given the gradual reopening of the international border.
Specialty milk company A2 Milk was expected to deliver another weak result, as it completed work to stabilise price points and reduce excess inventories.
Uncertainty about the daigou channel, which depended on Chinese tourists buying product in Australia and New Zealand for resale in China, would continue to be a drag on sales for A2 Milk, as well as for mānuka honey exporter Comvita.
Retirement village operator Summerset was expected to deliver strong second half earnings but the outlook for the housing market, could further sour its share price performance.
Others to watch included an update from Chorus on its new dividend policy, work plan and capital spending.
Contact Energy was expected to be a standout among its peers - Mercury, Meridian Energy and Genesis Energy - which were also reporting over the period.
