Australia's reporting season has delivered solid results to date, with most companies either meeting forecasts or surprising on the upside, according to research house and fund manager, Lincoln Indicators.

This welcome result augurs well for investors seeking value companies as a 'steadying force' in a sharemarket which has remained largely immune from the fear and uncertainty of the sovereign debt crisis in Europe and Greece.

With most companies reporting either meeting their forecasts or providing above-consensus results, Elio D'Amato, Lincoln's Chief Executive Officer, says "this is a great opportunity to buy sound companies in what is perhaps an irrationally bearish market."

"While government and monetary policy may impact some stocks, ultimately the fundamentals of Australia's economy and business environment are very good. What's even better news is that earnings, across the board, are expected to improve in the second half of 2010 and the 2011 calendar year. That's assuming that global markets, in particular the old economies of United States and Europe, continue to chart a course of economic recovery."

Prior to this reporting season some stocks had failed to meet market expectations but still produced solid results. Mr D'Amato says "Retailer JB Hi-Fi Limited, whose share price fell 6.7% intraday at the time of their results announcement, has since bounced back with the dip simply a great short-term opportunity to gain long-term exposure."

Five notable companies that 'stood out' as outperforming analysts' expectations and meet Lincoln's Financial Health rating of 'Strong' include:

1. BHP Billiton Limited (BHP)

   Net operating profit before tax and significant items fell from $16,696 million in the previous corresponding period to $8,921 million, due to weaker realised mineral prices. BHP's performance for the second half of this financial year is expected to improve because of the company's strong improving production results and realised resource prices which should increase as it catches up to current spot prices.

2. Lihir Gold Limited (LGL)

   LGL had a record year for gold production, and given historically high gold prices, it is not surprising that it achieved strong profit growth this period. That said, LGL reported a statutory loss due to the sale of its Ballarat operations at a discount to book value after disappointing development results. As long as gold prices continue to strengthen we expect LGL to perform strongly going forward. LGL is a Lincoln Stock Doctor Star Stock.

3. News Corporation Limited (NWS)

   Net operating profit before tax and significant items fell from $1.812 billion in the previous corresponding period to $1.551 billion, but after accounting for once-off events, normalised Earnings per Share (EPS) rose from 12 cents to 40.56 cents, a rise of 238%, far in excess of expectations. Strong performance was found in their movie business with Avatar a standout performer.

4. CSL Limited (CSL)

   Sales of CSL's swine flu vaccine provided a significant contribution to their $811.344 million net profit before tax and abnormals this period. This result is impressive considering the period of adverse currency movements. Our outlook remains positive with CSL continuing to benefit from its rollout of blood plasma products and management upgrading their guidance for annual earnings. CSL is a Stock Doctor Star Stock.

5. Monadelphous Group Limited (MND)

   The quality of MND's latest results should not be understated. A combination of cost reduction and diversification decisions has helped the company deliver strong profits. MND secured $450 million in new contracts during the period, including a $170 million contract with Woodside for its Pluto LNG project. MND is a Stock Doctor Star Stock.

Five companies that achieved great results and have a Lincoln Financial Health rating of 'Strong' and are identified as Stock Doctor Star Stocks include:

1. GUD Holdings Limited (GUD)

   GUD's net operating profit before tax and significant items rose 44.9% to $34.583 million this period due to higher sales and significantly lower interest costs, with reported improvements in operations and return on assets improving from 15.02% to 19.94%. GUD's solid trading conditions in the first half are expected to continue through FY10 with earnings to continue to benefit from the higher exchange rate.

2. Decmil Group Limited (DCG)

   DCG's net operating profit before tax and significant items rose markedly from $1.409 million in the previous corresponding period to $13.171 million on the back of significant contract wins and contract extensions by its subsidiary, Decmil Australia. Around A$160 million in new contracts and contract extensions during the first six months of FY10 boosted its total current order book to A$390 million.

3. Domino's Pizza Enterprises Limited (DMP)

   DMP is a growth company in the restaurant sector with a history of improving same-store sales. Around 65% of current revenue is derived from Australia and New Zealand. Its local operations were buoyed by the success of various campaigns like DMP's iPhone application and product launches such as its sandwich range.

4. Webjet Limited (WEB)

   WEB has taken a significant share of booking services away from traditional travel agency firms and has delivered cost savings on to consumers, thereby cementing brand loyalty and repeat custom. This dynamic is amply reflected in the company's financial performance and the most recent reporting period is no exception.

5. Wotif.com Holdings Limited (WTF)

   WTF reported a fantastic interim result and its prospects remain promising as consumers focus on value under the current economic conditions. Demand for WTF's services is expected to grow further given the continuing shift from the traditional retail travel services towards internet bookings. It is well positioned to take advantage of this given wotif.com's impressive brand recognition in Australia and New Zealand.

Going forward, Mr D'Amato says "We can expect the market to continue to follow macroeconomic trends and trade with a bearish, downwards bias over the near term. Although we believe this to be counterintuitive, considering that corporate earnings are forecast to rise and the economic climate is also expected to improve, this does, however, present opportunities for the retail investor seeking value."

"Investors may consider rebalancing their portfolios before the cycle swings up again and the best way to choose stocks is to apply Lincoln's 'Nine Golden Rules' for successful investing."