Looking back at the earnings season - United Capital

As we close the books for the first half of 2017, we are pleased to note that most Nigerian companies posted strong earnings growth for the period.
Companies in the consumer goods sector have been the standout. Albeit from a low base, the sector showed some strength in the second quarter of the year, supported by improved foreign exchange liquidity and upward price adjustments. Industrials showed some strength too amid growth in global cement consumption, operational efficiency, as well as additional price adjustments in Q2.
The banking sector also posted impressive earnings growth, buoyed by increased interest income. However, system illiquidity and asset quality challenges stifled some of the growth momentum from the topline. The Oil and Gas sector saw fractional improvements in turnover amid heightened cost pressures which overshadowed the momentum from the topline
In all, we think that improvements in the macroeconomic environment have really been supportive of earnings growth. The outlook also remains bright as the economy escapes the thorns of recession- this points to better prospects for earnings growth through year-end and into 2018.