On Friday, Coca-Cola added 0.45% as it moved to close at $44.98 per share, helped along by the release of better-than-expected results. Revenues for the period came in at $7.51b, beating estimates of $7.37b. However, it must be noted that net revenues declined by 20% during the quarter, with the slump mainly due to headwinds from its efforts to refranchise its bottling operations. Organic sales, however, which excludes the aforementioned efforts, increased by 6%. Overall, adjusted earnings per share for the quarter stood at 39 cents, marginally higher than forecasts of 38 cents. This excluded a $3.6b one-time charge relating to changes in the US tax code.
On Thursday, Nestlé released its latest results, with the group’s shares dropping 2.1% in response. Total sales for the period came in at 89.8b Swiss francs, or $96.9b, 0.4% higher than that reported previously and in-line with estimates. However, organic growth, which excludes the effects of currency changes, acquisitions and divestments, stood at 2.4% during 2017. This was slightly lower than expectations of a 2.6% increase and was also down from the 3.2% recorded previously. Overall, net profit for the period declined by 16% to 7.2b Swiss francs, or $7.76b, much lower than estimates of 9.63b Swiss francs. This poor performance was partly due to a goodwill impairment in its skin health unit.
The rand strengthened sharply against the dollar yesterday, buoyed by increasing pressure on President Jacob Zuma to resign. After a previous close of R11.962/$ on Tuesday, the local currency was at R11.936/$ at 07:50. From there, the rand firmed throughout the session, supported by reports the ANC would back an EFF-sponsored motion of no confidence on Thursday if President Zuma did not resign. The rand trimmed some of its gains following an interview with President Zuma, but recovered as the session progressed. Finally, at just before 23:00 last night, Jacob Zuma resigned as the President of South Africa. In response, the rand moved to and is currently stable at R11.73/$ this morning.
On Tuesday, PepsiCo ended marginally higher, up 0.19% at $112.14 per share, helped along by the release of better-than-expected quarterly results. During the fourth quarter, the group saw revenues come in at $19.53b, slightly higher than estimates of $19.39b and mostly unchanged compared to that reported a year ago. Overall, PepsiCo recorded a net loss of $710m, or 50 cents per share, sharply lower than earnings of $1.40b, or 97 cents per share, a year ago. Earnings were negatively affected by a $2.50b one-off charge related to changes in the US tax code. On an adjusted basis, the group saw earnings come in at $1.31 per share, surpassing analysts’ forecasts of $1.30 per share.
On Monday, Heineken shed 2.03%, or €1.7, as it moved to settle at €82.14 per share following the release of its latest results. During 2017, the Amsterdam-listed company recorded a 5.3% increase in revenues to €21.89b, up from €20.79b in 2016. The uptick was mainly due to a 3% increase in consolidated beer volumes, helped along by growth in all regions. Furthermore, Heineken’s operating profit before exceptional items and amortisation came in at €3.76b, up from €3.54b previously. The world’s second largest brewer by sales, recorded a net profit of €1.94b, or $2.28b, sharply higher than the €1.43b reported in the previous corresponding period.
During the previous session, PFG issued a trading update for the three months ended 31 December 2017. During the period, total volumes increased by 5.2%, which helped Pioneer gain market share, while group turnover declined by 2.4%. The drop was mainly due to sales price deflation in soft commodities. Overall, the group confirmed that its improved sales volume performance and the normalisation of raw material cost positions should support higher first half margins and profits compared to the previous corresponding period. However, it is expected that the improvements will be partially offset by the underperformance in the wheaten value chain as well as price promotional related margin pressure.
On Thursday, Nvidia shed 4.93%, or $11.28 per share, to close at $217.52 during the regular session. Its shares, however, surged as much as 14% in after-market trade following the release of better-than-expected results for the fourth quarter. Revenues for the period came in at $2.91b, 34% higher than that reported a year ago and easily beating analysts’ estimates of $2.69b. This strong performance comes after the group exceeded forecasts in four out of its five markets. Adjusted earnings surged to $1.78 per share, sharply higher than estimates of $1.17 per share.
On Wednesday, Tesla gained 3.3% to settle at $345 per share during the normal session, but continued to trade higher in after-market trade following the release of better-than-expected results. During the fourth quarter, the group recorded revenues of $3.29b, marginally higher than estimates of $3.28b. This uptick was mainly due to a record number of deliveries during the quarter, with Model S and X deliveries increasing by 28% over the last year. Overall, Tesla reported a net loss of $675m, or $4.01 per share, its largest loss ever, much higher than the 78 cent per share loss recorded in 2016. On an adjusted basis, the group reported a loss per share of $3.04, marginally better than forecasts of a loss of $3.12.
On Tuesday, Walt Disney added 1.4%, or $1.47, as it moved to settle at $106.17 per share, despite the group releasing mixed quarterly results. During the quarter, revenues came in at $15.35b, slightly lower than expectations of $15.45b. Its studio segment disappointed with revenues of only $2.5b, less than forecasts of $2.75b, while its media and networks segments also missed expectations by $0.11b. In contrast, the group was supported by a strong performance from its parks and resorts segment which reported revenues of $5.15b, sharply higher than estimates of $4.86b. Walt Disney reported adjusted earnings per share of $1.89, easily beating forecasts of $1.61.
On Monday, Bristol-Myers Squibb shed 3.97%, or $2.52, to close at $60.96 per share, despite the group releasing better-than-expected quarterly results. During the period, revenues increased to $5.45bn, up from $5.24bn previously and easily topping expectations of $5.35bn. Overall, Bristol-Myers Squibb recorded a net loss of $2.33bn, or $1.42 per share, much lower than earnings of $894mn, or 53 cents per share, reported a year ago. However, it must be noted that this includes a $2.9bn one-time charge in the 4th quarter following the US corporate tax overhaul. On an adjusted basis, the group saw earnings come in at 68 cents per share, marginally higher than 67 cents per share.