Watch: Credit Pulse: Australian Corporate Earnings Preview

Corporate Australia faces a choppy earnings season. A cocktail of persistent cost pressures, high interest rates, and softening demand confronts issuers. A robust labor market and consumer sentiment have helped Australian companies navigate a shifting operating environment. But things are changing.

We outline our forward-looking views of the most urgent themes affecting Australian corporates ahead of the fiscal 2024 earnings season. Key questions include:

• How can office REITs alleviate pressure on stretched metrics amid declining valuations?
• Will the wane in pricing power among corporates heap more pressure on earnings margins?
• How is the COVID-19 inventory overhang affecting credit?
• Which sectors are most likely to attract capital investment as higher-for-longer interest rates and slowing demand force greater capital discipline?