BP Q3 results: Again exceeding forecasts
29 October 2009 | The group’s recent third quarter results (27 October 09) saw BP comfortably exceeding analysts’ forecasts. While the global economic downturn continued to impact, an improved operational performance combined with additional cost savings helped to cushion the fall. Third quarter profits on an underlying replacement cost basis (strips out gains or losses in inventories held) declined to $4.98 billion, down 50.2pc over Q3 2008. Excluding exceptional items, profit fell to $4.67 billion, ahead of the consensus estimate at $3.25 billion. The fall in both oil and natural gas prices continued to sit at the heart of the downturn. In addition, profit margins at the group’s refining business remained under some pressure. However, despite the fall in profitability against last year, signs of improving operational performance continued to show through. Reported production for the quarter was 3.917 million barrels of oil equivalent per day (mboe/d), more than 7pc higher than for Q3 2008 - +4pc when adjusted for hurricanes during 2008.
Reckitt Benckiser Q3 results: Another polished performance
29 October 2009 | The group's recent third quarter results (27 October 09) saw the company retaining its reputation for reliability. Again, the company generated profits ahead of analysts' expectations – Q3 net profit rose to £357m (£285m – Q3 2008) against a consensus forecast of around £341m – but management was confident enough to raise its full year target for revenue growth to 6pc to 7pc against a previous target of 5pc to 6pc. Profit estimates were also raised to between 12pc and 13pc from 10pc to 11pc. Emerging markets again proved a growth driver, with strong free cash flow helping the company to reduce net debt (£423m against £1.1 billion as of 31Dec08).
BG Group Q3 results: International growth spurs a move towards the US dollar
29 October 2009 | The group’s recent third quarter results (28 October 2009) saw the company exceeding analysts’ forecasts. Thanks largely to lower natural gas and oil prices, third quarter net profit declined by 43.5pc to ?484m, against ?857m in Q3 2008. However, as has been the case for some time, resilient performances from the group’s Transmission & Distribution division and from its Liquefied Natural Gas (LNG) business helped to cushion the downturn. On the production front, output materialised at 615,000 barrels a day, a rise of 4.8pc on the year, although below many analyst expectations of nearer 8pc, thanks mainly to a delay in the start-up of the Hasdrubal facility in Tunisia. As for the outlook, production targets over the fourth quarter are expected to come in around 700,000 barrels of oil equivalent, a 12pc increase on last year. Finally, given the group’s continuing international growth, like its major rivals, BG is moving during 2010 to report its results in US dollars.
Pearson - Moving to the top of the class
27 October 2009 | The group’s recent third quarter update (20 October 2009) saw the group revising upwards earnings estimates for the full year. Group sales over the nine month period increased by 20pc, with operating profit rising by 19pc. However, the figures were flattered by currency movements, with sales on a currency adjusted basis gaining by 2pc and operating profit increasing by 3pc. Against a difficult backdrop of US state budgetary pressures, the group’s important Education division continued to prosper, gaining market share as the company’s digital learning courses continued to enjoy good demand. As an example, more than 2.5m students had enrolled in an online course provided by eCollege over the 9 month period, an increase of almost 30pc over last year. As for the remaining two divisions, both continued to trade in line with management expectations, with the FT newspaper division limiting a sales decline to 3pc on a currency adjusted basis and Penguin witnessing a similar 4pc sales decline on a similar basis.
Autonomy - Searching for and finding growth
27 October 2009 | A recent third quarter trading update (20 October 2009) revealed figures broadly in line with analyst expectations, with management confident regarding its performance for the current full year. Pre-tax profits for the nine month period materialised at $48.64m compared with $47.86m a year earlier. Revenues for the third quarter of 2009 totalled $191.6m, up 51pc from $127.1m for the third quarter of 2008 and included strong organic growth. Revenue on a geographical basis was broken down as follows: American revenue of $135.7m representing 71pc, with the rest of the world generating $55.9m (29pc).
Home Retail Group - Marginal improvement, but management remain cautious
27 October 2009 | The group’s recent half year results (21 October 2009) saw the company registering a small first half profit increase on last year. Profit before tax and exceptional items rose 1pc to £122.7m, boosted by Homebase which benefited from good weather and tight cost control. Home Retail, like the majority of non-food retailers in the U.K., has been hurt by the economic downturn as consumers cut back on spending amid concerns about the economy and general job security. Although Argos was impacted by both intense competition and the hit to product prices which a weaker pound brings, the group’s product base was again expanded – over 15,000 lines now available – with internet sales now accounting for 28pc of total sales and ‘Check & Reserve’ increasing to nearly 50pc.
BSkyB - Staying in is the new going out
27 October 2009 | The group’s recent first quarter results (23 October 2009) revealed strong demand for pay television, internet and telephone services. The results comfortably exceed market expectations, defying the current economic downturn. The company added an impressive 94,000 subscribers over the first quarter. Sky posted an operating profit of £198m for the period, up 9pc on the £182m achieved in the first quarter last year. Revenue for the period rose by 10pc to £1.38billion, underpinned by customer signings.
HSBC Holdings PLC (NYSE: HBC) has absorbed the financial crisis' impact and is now exploiting it
13 October 2009 | In tough times, the strong get stronger, and HSBC Holdings PLC is (NYSE ADR: HBC) is cherry-picking the world. HSBC is one of my favorite banks in the world. And that feeling is shared. In fact, "the world's local bank," as they like to call themselves, is the largest recipient of deposits in the world. HSBC operates in 86 countries around the world and has 55% of its assets in Europe, 23% in Asia/Pacific, including its original base in Hong Kong, 26% in North America and 4% in Latin America. This diversification is invaluable in an increasingly globalized world. Additionally, it spreads out all of the risks to which a bank is exposed: systemic, economic, regulatory, currency, deposit-raising and lending. Geographic diversification, a strong balance sheet and disciplined credit saved HSBC in the downturn.
Panmure Gordon maintains "hold" recommendation on Cadbury Schweppes
12 December 2007 | Panmure Gordon maintains its "hold" recommendation on Cadbury Schweppes. Price target is set to 650p.
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BP Q3 results: Again exceeding forecasts, 29 October 2009
The group’s recent third quarter results (27 October 09) saw BP comfortably exceeding analysts’ forecasts. While the global economic downturn continued to impact, an improved operational performance combined with additional cost savings helped to cushion the fall. Third quarter profits on an underlying replacement cost basis (strips out gains or losses in inventories held) declined to $4.98 billion, down 50.2pc over Q3 2008. Excluding exceptional items, profit fell to $4.67 billion, ahead of the consensus estimate at $3.25 billion. The fall in both oil and natural gas prices continued to sit at the heart of the downturn. In addition, profit margins at the group’s refining business remained under some pressure. However, despite the fall in profitability against last year, signs of improving operational performance continued to show through. Reported production for the quarter was 3.917 million barrels of oil equivalent per day (mboe/d), more than 7pc higher than for Q3 2008 - +4pc when adjusted for hurricanes during 2008.
Reckitt Benckiser Q3 results: Another polished performance, 29 October 2009
The group's recent third quarter results (27 October 09) saw the company retaining its reputation for reliability. Again, the company generated profits ahead of analysts' expectations – Q3 net profit rose to £357m (£285m – Q3 2008) against a consensus forecast of around £341m – but management was confident enough to raise its full year target for revenue growth to 6pc to 7pc against a previous target of 5pc to 6pc. Profit estimates were also raised to between 12pc and 13pc from 10pc to 11pc. Emerging markets again proved a growth driver, with strong free cash flow helping the company to reduce net debt (£423m against £1.1 billion as of 31Dec08).
BG Group Q3 results: International growth spurs a move towards the US dollar, 29 October 2009
The group’s recent third quarter results (28 October 2009) saw the company exceeding analysts’ forecasts. Thanks largely to lower natural gas and oil prices, third quarter net profit declined by 43.5pc to ?484m, against ?857m in Q3 2008. However, as has been the case for some time, resilient performances from the group’s Transmission & Distribution division and from its Liquefied Natural Gas (LNG) business helped to cushion the downturn. On the production front, output materialised at 615,000 barrels a day, a rise of 4.8pc on the year, although below many analyst expectations of nearer 8pc, thanks mainly to a delay in the start-up of the Hasdrubal facility in Tunisia. As for the outlook, production targets over the fourth quarter are expected to come in around 700,000 barrels of oil equivalent, a 12pc increase on last year. Finally, given the group’s continuing international growth, like its major rivals, BG is moving during 2010 to report its results in US dollars.
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