Earnings outlooks continued to be positive, and in the latest season there were only eight companies providing negative outlooks, down from 11 in February and March.
''We noted the percentage of companies having positive or unchanged earnings per share [EPS] revisions was helped by lower interest costs. But overall earnings before interest and tax revisions were still viewed as positive.''
Minimal currency comment by those reporting suggested improved cost focus, she said.
Forecast EPS growth remained high and the higher 2016 base meant underlying market earnings had lifted 1% for the 2016-19 financial year.
Market reaction meant earnings revisions positively correlated to returns during August. Momentum was expected to return, given global monetary policies remained unchanged, Ms Howe said.
Fiscal policy support was still being talked about and that could bolster earnings growth internationally and hurt New Zealand's attractiveness. However, indebtedness globally should mean interest rates remained supportive.
''Getting back to the reporting season, beats versus misses clearly provided a positive backdrop, with the food production companies - consumer staples - and technology the primary areas of weakness. Elsewhere, beats overwhelmed misses by 26 to nine.''
Post-result revisions were also positive but more mixed on a sector basis. Property and telecommunications had the strongest possible revisions, followed by healthcare and utilities, which, despite a positive beat/miss ratio, had mostly negative revisions, she said.
Tracking the 2017 financial year revisions post result, 41% of companies were upgraded, the highest since September 2010.
A net 73% of companies had earnings forecasts unchanged or revised positively, up from 68% in the March 2016 reporting season.
The positive view was reinforced by only eight companies providing negative outlook.
''We are mindful the earnings cycle is maturing and large portions of the New Zealand market are low growth, including electricity gentailers, property and telecommunications. We believe near-term growth driven by net migration should be supportive.''
Tourism should also be positive while the primary industry should be less of a drag.
Actual dividend per share growth had finished above expectations at an aggregated level. At an absolute level, of the results reported, 11 companies exceeded Forsyth Barr's dividend forecast, nine were below and 21 were in line.
Companies where dividends surprised on the upside included: Abano, Ebos, Fliway, Freightways, Mercury, Metlifecare, Michael Hill International, NZ Refining, Skellerup, Steel & Tube and Summerset.
Those reporting dividends below expectations included: Auckland Airport, Delegat, Heartland Bank, NZME., Opus International, PGG Wrightson, Port of Tauranga and SkyCity Entertainment.
