Nampak weighed down by the stronger rand

Nampak surged 15% on Tuesday after the group released results for the six months ended 31 March 2017. During the period, the group reported a 1% decline in revenue to R9.3bn, weighed down by the stronger rand. Despite the downtick in revenue, NPK’s trading profit increased by 12% to R1.1bn, while operating profit surged by 30%.   Overall, net profit for the period came in at R853mn, an increase of 41%, while earnings per share increased by 15% to 120.8 cents. Headline earnings per share also grew, up 8% to come in at 113.1 cents. Despite a significantly improved balance sheet, the board has decided to not declare an interim dividend.

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Clover earnings sour on weather effects

Clover released a trading statement on Monday in which the group confirmed it expects earnings per share to decline by between 40% and 55%. EPS is expected between 83.58 cents and 111.56 cents which is sharply lower than the 185.9 cents reported a year ago. Headline earnings per share are set to drop to between 66.12 cents and 94.42 cents, representing a decline of between 50% and 65% compared to the 188.9 cents recorded in 2016. The slump in earnings was due to a number of factors, including the prolonged drought, rand volatility and a comparatively cooler summer. Clover is set to release its results for the period on the 12th of September 2017.

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Medtronic records sales of $7.92bn

Medtronic,the world’s largest medical device company, added 1.04% on Thursday after releasing results for the fiscal fourth quarter. The group recorded sales of $7.92bn, 4.6% higher than that reported a year ago and beating expectations of $7.86bn. Profits stood at $1.16bn, or 84 cents per share, representing an increase of 5.3%. Furthermore, adjusted earnings per share came in at $1.33, slightly higher than analysts’ estimates of $1.31. Looking forward, Medtronic expects post adjusted earnings per share to increase by between 9% and 10% in the upcoming financial year.

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Mediclinic drops 7.3% on guidance miss

Mediclinc released results for the year ended 31 March 2017, in which the group reported a 30% increase in revenue to £2.749bn. EBITDA increased by 17% to £501mn, while operating profit rose by 26% to £362mn. Despite the uptick in these metrics, underlying earnings slumped by 19% to 29.8 pence, weighed down by an increase in the number of shares in issue as well as the pressure resulting from the (now historic) Thiqa co-payment issues in the UAE. Management guidance described the environment in Switzerland as competitive and forecast underlying EBITDA margin to move lower in FY18, SA revenue growth is likely to be stable but they also predicted only marginal improvement in UAE revenues and gradual improvement in EBITDA margin over time. This view seems very conservative given market expectations. Lastly, earnings per share ended 5% higher at 31 pence, while the board declared a dividend of 4.7 pence per share.

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Reinet Investments NAV breaks €6bn

Reinet released its year end results in which the group reported that its net asset value had finally exceeded €6bn. As of 31 March 2017, the group NAV stood at €6.002bn, an increase of 15% over the year. On a per share basis, REI’s net asset value came in at €30.63 per share, up from the €26.65 per share recorded previously. Furthermore, despite the group making commitments of €213mn in respect of new and existing investments, REI’s investment in British American Tobacco accounted for 70.8% of its net asset value at the end of the period. Reinet’s board proposed a dividend of €0.165 per share, reflecting an increase of 2.5% over the dividend paid last year.

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Ford Motor unexpectedly gets a new CEO

Ford added 2.12% to close at $11.10 per share on Monday, boosted by reports the group had named James Hackett as its new CEO, replacing Mark Fields in an unexpected move. Mr. Fields spent less than three years as CEO of the Detroit-based carmaker, but concerns about the company’s direction have been brewing for some time. As a result, Ford’s Chairman, Bill Ford Jr., said that he wanted the incoming CEO to speed up decision-making in order to compete against its competitors, as well as cut costs. Mr. Hackett, who is known as a turnaround specialist, has led the Ford unit developing self-driving cars and related projects for the past year.

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Deere & Co’s first uptick in 13 quarters

Deere surged 7.3% on Friday to close at $120.90 per share, buoyed by the release of better-than-expected quarterly results. The group saw revenues increase by 5.2% to $8.29bn, the first uptick in 13 quarters and sharply higher than estimates of $7.32bn. Deere recorded net income attributable to the group of $802.4mn, or $2.49 per share, up from the $495.4mn, or $1.56 per share, reported a year ago. Including adjustments, the group saw earnings per share come in at $1.94, much higher than expectations of $1.68.

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Wal-Mart Stores misses on revenue as competition heats up

Wal-Mart released mixed quarterly results on Thursday, with the group easily beating earnings estimates, but falling marginally short of revenue expectations. During the period, revenues increased by 1.4% to come in at $117.5bn, slightly lower than forecasts of $117.74bn. The increase in revenue was partly attributed to a 63% increase in e-commerce sales, sharply higher than the 29% increase recorded in the previous period. Earnings grew by 2% to $1.00 per share, up from the 98 cents per share reported a year ago and slightly better than expectations of a decline to 96 cents per share.

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Strong results but poor guidance from Cisco Systems

Cisco released its latest quarterly results on Wednesday, with the group recording revenues of $11.94bn, slightly higher than estimates of $11.89bn. Adjusted earnings stood at 60 cents per share, better than expectations of 58 cents per share. Nevertheless, Cisco traded sharply lower in after-hours trade, weighed down by a worse-than-expected forward guidance. As it stands, the group expects revenues to drop by between 4% and 6% during the 4th quarter, sharply lower than estimates of a 1% decline. Earnings are only expected to come in at between 60 cents per share and 62 cents per share, slightly less than a predicted midpoint of 62 cents per share.

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Home Depot easily surpasses earnings and revenue expectations

Home Depot released better-than-expected results on Tuesday, with the group easily surpassing expectations for both earnings and revenue. During the first quarter, revenues came in at $23.89bn, beating estimates of $23.74bn. The group’s US comparable sales metric increased by 6%, sharply higher than expectations of 4.3%, while global same-store sales grew by 5.5%. Home Depot also saw net income come in at $2.01bn, or $1.67 per share, in the first quarter, up from $1.8bn, or $1.44 per share, a year ago. Adjusted earnings stood at $1.67 per share, marginally higher than expectations of $1.62 per share.

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