A poor trading statement by Coronation Fund Managers 

On Friday, Coronation shed 4.04% following the release of a trading update. In it, CML advised shareholders that it expects diluted headline earnings per share to decrease by between 10% and 20%, to between 464.4 cents and 412.8 cents, compared to the 516 cents reported a year ago. This decline was mainly due to the cyclical nature of its business, while its revenue stream remained highly geared to both the returns of the market and the level of out-performance generated in the funds that it manages on behalf of clients. Furthermore, CML advised that the total AUM stood at R599bn at the end of the period. The group’s results for the period are set to be released on or around the 15th of November 2016.

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A strong performance by Alphabet

On Thursday, Alphabet released its results for the fiscal 3rd quarter, with the group topping analysts’ estimates. For the quarter, the group saw revenue increase by 20% to $22.45bn, up from $18.68bn a year ago and better than expectations of an increase to $22.05bn. This sharp increase was mainly due to a strong performance in the group’s search and YouTube segments. In addition, Google’s websites saw sales increase by 23% to $16.09bn, while advertising revenues increased by 18% to $19.82bn. Alphabet reported adjusted 3rd quarter earnings of $9.06 per share, easily beating expectations of $8.63 per share.

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Tesla Q3 profits surge

On Wednesday, Tesla fell 0.05% during the normal session, before surging in after-hours trade following the release of its 3rd quarter results. The group posted its 2nd profitable quarter ever which easily beat analysts’ expectations. Revenue for the period came in at $2.3bn, much better than estimates of $1.98bn. In addition, the group saw adjusted earnings surge to 71 cents per share, vastly better than expectations of a 54 cent per share loss. Tesla’s strong performance was partly attributable to new product launches, increased store efficiency and new store openings.

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Apple beats estimates but revenue still sliding

On Tuesday, Apple released its results for its fiscal 4th quarter, with the group beating expectations for earnings, while revenues were in-line with estimates. For the quarter, the group recorded revenues of $46.9bn, slightly lower than expectations of $46.94bn, but much lower than the $51.5bn reported a year ago. As a result, this marks the 3rd straight quarter that Apple has posted a year-over-year decline in revenue, partly due to a 5% drop in iPhone shipments. On the upside, adjusted earnings came in at $1.67 per share, sharply lower than the $1.96 per share reported a year ago, but marginally better than estimates of a decline to $1.66 per share.

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Visa comes in ahead of expectations

On Monday, Visa gained 1%, before moving lower in after-hours trade following the release of its results for the fiscal 4th quarter. During the quarter, Visa reported a 19% increase in revenue to $4.3bn, better-than-expectations of $4.24bn. Furthermore, the group saw earnings come in at $1.9bn, or 79 cents per share, higher than the $1.5bn, or 62 cents a share, reported a year ago. On an adjusted basis, earnings increased to 78 cents per share, beating expectations of 73 cents per share. The group incurred an $110mn pretax charge during the quarter in order to cover severance costs, including planned reductions in Europe.

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AT&T to acquire Time Warner  

On Friday, AT&T shed 3%, before news broke over the weekend, the group has agreed to acquire Time Warner in a deal worth $85.4bn. The cash-and-stock offer values Time Warner at about $107.50 per share, which represents a premium of around 20% compared to Friday’s closing price. As it stands, Time Warner shareholders are set to receive $53.75 a share in cash and $53.75 a share in AT&T stock. AT&T is one of the largest private employers in the US, boasting some 281,000 employers, vastly more than the Time Warner’s 25,000 employees. In 2015, AT&T reported revenues of $146.8bn compared to Time Warner’s $28.1bn.

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Microsoft at all-time highs

On Thursday, Microsoft shed 0.49% during the normal session, ahead of the release of its latest quarterly results. However, its shares traded sharply higher in after-hours trade, with the stock hitting levels above its all-time high in 1999, boosted by the better-than-expected results. For the quarter, the group reported revenue of $22.33bn, sharply higher than estimates of $21.71bn. In addition, adjusted earnings came in at 76 cents per share, easily surpassing expectations of 68 cents per share. The group’s strong performance was partly due to Azure, its cloud offering service, which saw revenue increase by 116% to $6.38bn.

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Morgan Stanley joins the rest as it destroys expectations

Yesterday saw Morgan Stanley gain 1.89%, as the group joined fellow banking giants after it also easily surpassed analysts’ expectations. During the 3rd quarter, the group saw revenues come in at $8.9bn, sharply higher than expectations of $8.17bn. In addition, Morgan Stanley reported adjusted earnings of 81 cents per share, easily beating analysts’ estimates of 63 cents per share and much higher than the 34 cents recorded in the previous corresponding period. Despite its stellar results, the group saw its return on average common equity come in at 8.7%, lower than the 10% threshold.

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Goldman Sachs smashes expectations

On Tuesday, Goldman Sachs gained 2.15% to close at $172.63, boosted by the release of the group’s results for the 3rd quarter. During the quarter, revenue came in at $8.17bn, sharply higher than the $6.86bn recorded a year ago and better than expectations of an increase to $7.42bn. In addition, the group saw its adjusted earnings come in at $4.88 per share, substantially higher than estimates of $3.82 per share. This strong performance was partly due to an uptick in the group’s trading activity, with net revenue from fixed income, currency and commodities trading increasing by 34% over the last year to $1.96bn.

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Netflix jumps after earnings beat estimates

On Monday, Netflix shed 1.65% during the normal session, before spiking in after-hours trade following the release of its latest set of quarterly results. During the 3rd quarter, the group saw revenue come in at $2.29bn, marginally higher than expectations of $2.28bn. In addition, Netflix also surpassed analysts’ estimates in its 3rd quarter earnings after reporting a figure of 7 cents, compared to an expected figure of 6 cents. The group managed to add 370,000 subscribers in the US and 3.2mn internationally, easily beating its own forecasts of 300,000 and 2mn respectively and surpassing expectations of 309,000 and 2.01mn.

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