Breaking News
0

Earnings Releases Lose Steam

By Thabiso MamathubaStock MarketsSep 25, 2018 08:45
za.investing.com/analysis/earnings-releases-lose-steam-200197623
Earnings Releases Lose Steam
By Thabiso Mamathuba   |  Sep 25, 2018 08:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Retailers Nike (NYSE:NKE) and Next PLC set to publish results

  • Capitec Bank (JO:CPIJ) (Interim Results): In a recent trading statement, management said that headline earnings per share will be between 18% and 21% higher y/y. This was ahead of market expectations (Bloomberg +17.75%). The company made an announcement in June that it had been shortlisted to pay up to R5 billion for Mercantile Bank, along with Nedbank and the Public Investment Corporation. This would serve as a potential entry point into business banking, particularly in the SME space
  • Ascendis Health (JO:ASCJ) (Full Year Results): Management is targeting to improve the EBITDA margin from 17% to 18% over the medium term, mainly in the South African pharma and Medical Devices businesses. Operationally the key focus will be on the Scitec turnaround strategy and implementation, extracting synergies from the recent acquisitions, effectively driving higher organic growth, while also ensuring an efficient leadership transition following the appointment of the new CEO.
  • Group Five (Full Year Results): Recent guidance suggested that the headline loss per share is expected to deteriorate by between 52.4% and 70% y/y. Consensus was expecting losses to narrow by 18.1% for FY18. Despite benefits being realised following the restructuring and the rationalisation programmes implemented in FY18, further losses were incurred in 2H18 due to contract losses, and difficulty in the construction sector as some contract awards did not materialise whilst some secured contracts materialised later than anticipated.
  • Aveng (Full Year Results): Management guided for the headline loss per share to be between 297 and 329 cents per share, an improvement compared to a loss of 1 625.3 cents per share in the prior period and in line with market expectations (Bloomberg: loss of 313 cents per share). Although the loss narrowed and the company is making strides in deleveraging and improving liquidity, the business is still in a difficult position considering that this is being facilitated through asset sales and raising further equity.
  • From a local corporate actions perspective, Tuesday marks the last day to trade in Imperial (JO:IPLJ) Holdings, Hyprop Investments, Adcock Ingram (JO:ADEOJ), Assore, Spur (JO:SURJ) Corporation and African Rainbow Minerals (JO:ARIJ) to receive their recently declared distributions. These counters will trade ex-dividend on Wednesday. Sygnia will host a special GM next week regarding the election of three new company directors.

Global footwear and apparel retailer Nike is likely to generate interest in the US next week as the group prepares to release quarterly numbers on Tuesday. Beside a broad-based, short-term negative publicity impact, according to Bloomberg Intelligence, the backlash from featuring Colin Kaepernick in its marketing campaign likely won’t have a material impact on Nike’s top-line performance. If anything, the controversy would only affect U.S. revenue, which is up to 40% of annual sales. Accelerating footwear and apparel sales internationally, and improving market trends in North America, should help Nike reach high-single-digit revenue growth in FY19.

In Europe, investors are likely to keep a watchful eye on specialty apparel retailer Next PLC, scheduled to release first half results towards next week. According to Bloomberg, Next’s inability to expand store sales in an exceptionally favourable period was a signal that it may have to begin to take the more dramatic action it signalled in March, closing a significant proportion of its 528 stores. Bloomberg Intelligence believes that Next’s unchanged full-year sales and profit guidance will slightly disappoint, given the bar was set high, following rival Asos reporting particularly robust online UK sales, the unexpected good weather boost and challenges facing some peers.

In the Asia-pacific region, investors will shift their focus towards Australia as Nufarm (worldwide manufacturer and supplier of agricultural chemicals used by farmers to protect crops from damage caused by weeds, pests and disease) prepares to release full year earnings. Bloomberg Intelligence expects Nufarm’s revenue and EBIT to remain under pressure if current dry weather in Australia persists, weakening demand for crop-protection products. The global crop-protection chemicals market remains highly competitive due to low soft-commodity prices.

Earnings Releases Lose Steam
 

Related Articles

Earnings Releases Lose Steam

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email