Yarra Capital Management’s Katie Hudson on the sectors and companies likely to deliver top line growth as opposed to lifting profits through cost cutting this reporting season:

“Top line growth remains elusive for Australian companies and highly prized by investors. With earnings growth for the S&P/ASX 200 likely to be around 4 per cent, there are few companies currently exhibiting strong revenue growth trends. This coming reporting season we expect companies such as Resmed, Seek and CarSales, which are beginning to see the benefit of recent investments in product innovation, to deliver earnings growth through revenue rather than via cost-out initiatives.”

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