Reports surfaced on Wednesday that Broadcom is considering increasing its offer for Qualcomm. As it stands, Broadcom’s offer is valued at $103bn, excluding debt, and consists of $60 in cash and $10 worth of Broadcom shares for each Qualcomm share owned. According to reports from Qualcomm’s shareholders, the group requires at least $80 per share from Broadcom to sell their shares. In return, Broadcom has now indicated it may sweeten its offer by including more of its own stock. Qualcomm’s shares increased by 2.19% by the close, helped along by the possibility of a sweetened offer, while Broadcom shed 0.44% to settle at $275.37 per share.
Deere added 4.32% on Wednesday to close at $145.25 per share, buoyed by the release of better-than-expected results. Total sales for the fourth quarter came in at $7.09bn, 25.5% higher than reported a year ago and surpassing estimates of an increase to $6.99bn. As it stands, Deere generates around 70% of its total sales from agricultural equipment and about 60% of sales from the North American farm equipment market. Overall, net income attributable to the group increased by 79% to $510.3mn. On a per share basis, this equates to earnings of $1.57 per share, easily beating forecasts of $1.47 per share. This marked the 5th straight quarter Deere has surpassed analysts’ estimates.
HP traded sharply lower in after-hours trade after releasing its latest quarterly results. During the fourth quarter, revenues increased by 11% to $13.9bn, surpassing expectations of $13.4bn. This uptick was mainly attributable to the introduction of new products as well as the expansion of its 3D printer offerings. Overall, net income came in at $660mn, or 39 cents per share, up from $492mn, or 28 cents per share, a year ago. On an adjusted basis, earnings met analysts’ estimates of 44 cents per share. Looking forward, HP expects its first quarter adjusted earnings per share to come in at between 40 cents and 43 cents, matching forecasts of 42 cents.
Barloworld added 0.61% to close at R133 per share on Monday after the group released results for the year ended 30 September 2017. Company revenue from continuing operations came in at R62bn, mostly unchanged from the prior period’s R62.1bn. Operating profit from continuing operations stood at R4.1bn, with operating margin at 6.6%. This performance comes amid tough trading conditions. Overall, headline earnings per share from continuing operations increased by 16% to 975 cents, up from 841 cents a year ago. The board declared a final dividend of 265 cents, taking the full-year dividend to 390 cents. The outlook statement reads well and it is expected returns will improve in 2018.
Cisco Systems traded sharply higher in after-hours trade yesterday, buoyed by the release of better-than-expected quarterly results. In it, the group confirmed that revenues had come in at $12.14bn, 1.7% lower than that reported a year ago but beating forecasts of a drop to $12.11bn. This was mainly attributed to a 3% decline in product revenue, despite this being somewhat offset by a 1% increase in service revenue. Overall, the group saw adjusted earnings come in at $0.61, marginally higher than analysts’ estimates of $0.60. Looking forward, Cisco expects earnings for the 2nd quarter to be between $0.58 and $0.60, in-line with expectations.
On Tuesday, Consolidated Infrastructure Group (CIL) collapsed as much as 66.6% during the session, before reversing some of its losses to settle 57.23% lower and close at R3.40 per share. This comes after the group issued an updated trading statement in which it advised shareholders earnings per share and headline earnings per share are now expected to be at least 55% lower than those reported a year ago. However, at this stage, CIL does not have a reasonable degree certainty to provide a range or percentage decrease and will thus release a further trading statement once it does. Due to the board’s current investigation into its results, CIL has decided to postpone the release of its results. The group has confirmed they will be released no later than the 30th of November 2017.
Lewis added 6.32% on Monday, with almost the entire move coming in the closing auction. This on the day it released its interim results for the six months ended 30 September 2017. During the period, Lewis reported a 5% increase in merchandise sales, but revenues declined by 3.2%. This drop was mainly due to lower credit sales and changes to the insurance offering in prior periods which limited annuity income. Despite a 40 basis point increase in its gross profit margin to 40.9%, its operating margin slumped by 280 basis points to 7.2%. Overall, headline earnings declined by 20% to R144mn, while on a per share basis, headline earnings dropped by 15.8% to 163.9 cents. The board opted to keep its interim dividend intact at 100 cents per share.
On Friday, Tsogo Sun shed 0.49%, or 10 cents, to close at R20.45 per share. However, after the market closed, Tsogo Sun released a trading statement for the six months ended 30 September 2017. In it, the group advised shareholders revenues are expected to increase by between 0% and 2%, up from the R6.294bn recorded previously. Earnings per share are forecast to grow by between 14% and 16%, up from 91.4 cents in 2016, while headline earnings per share are currently set to increase by between 22% and 24%. In contrast, adjusted headline earnings per share are expected to drop by between 9% and 11%, down from the 88 cents reported a year ago.
Walt Disney issued it’s latest quarterly results on Thursday, with the group missing estimates for both earnings and revenues. However, its shares traded higher in after-hours trade, buoyed by the group’s plan to launch its own streaming service. As it stands, Disney will no longer stream its movies on Netflix starting in 2019. Furthermore, the pricing of Disney’s streaming service is set to be substantially lower than Netflix’s. Looking at its results, Disney saw revenues for the period decline to $12.78bn, down from $13.14bn a year ago and worse than estimates of an increase to $13.23bn. Adjusted earnings came in at $1.07 per share, missing forecasts of $1.12 per share and slightly lower than the $1.10 per share recorded in 2016.
Twenty-First Century Fox released better-than-expected results yesterday. During the quarter, revenues came in at $7bn, up from the $6.5bn reported a year ago and beating forecasts of $6.81bn. This was partly due to a 10% increase in revenue from its cable programming segment, while revenue from the group’s film segment only grew by 3%. In contrast, adjusted earnings declined to 49 cents per share, in-line with estimates but slightly lower than the 51 cents recorded in the previous corresponding period. On Monday, reports surfaced the group was in talks to sell most of its assets to Disney.