Standard Chartered reported attributable profit of USD 4,786 million for 2012 (USD 1.98 per diluted share), flat with 2012, as the bank absorbed a USD 667 million settlement with the United States related to money laundering charges. Once again, Standard Chartered’s global network, which we see as the source of its narrow moat, served shareholders well as a slowdown in profits in some geographies (notably India and Americas, U.K., and Europe) was offset by growth in others (notably Hong Kong and Korea), allowing the bank to report an underlying return on equity of 12.8%, well ahead of most Europe-based peers.…
Author: Daniel Curran
While H&M could not escape economic instability in some key European markets, the company’s geographically diversified base allowed it to deliver reasonable fourth-quarter and full-year results. With more than 17% of store locations spread across France, Spain, Italy, Greece, and Portugal, we think the quarter could have been materially worse than what was reported. The quality merchandise at fair prices across multiple concepts kept H&M’s products in favor with its audience, and we anticipate this will remain the case going forward, as the company continues to launch locations in new countries and through new channels (online in new countries and…
Nordea Bank reported net income of EUR 842 million for fourth-quarter 2012, or EUR 0.21 per diluted share, representing an increase of 7.1% over the EUR 786 million, or EUR .19 per diluted share, earned a year ago. For 2012, net income equaled EUR 3.1 billion, or EUR 0.78 per share, representing an increase of 18.7% over the EUR 2.6 billion, or EUR 0.65, earned for 2011. Net interest income was stable at EUR 1.43 billion for fourth-quarter 2012 and fourth-quarter 2011. Overall, return on equity was 12.1% for the quarter as a result of stronger fee and commission income.…
Novo reported yet another quarter of double-digit top-line expansion and even stronger earnings growth, which met our already optimistic expectations. We have raised our fair value estimate following the approval of the firm’s next generation insulins (Tresiba and Ryzodeg) in Europe and to account for rolling our assumptions forward by one year. Fourth-quarter sales increased 16% in Danish kroner and 12% in local currencies compared to the same period in 2011. Victoza and modern insulins remain the primary drivers behind double-digit revenue growth, with strong performance from NovoSeven also boosting sales this quarter. Victoza brought in DKK 2,709 million during…
Swedish consumer goods company Svenska Cellulosa reported full-year earnings per share of SEK 7.06 against net sales of SEK 85.4 billion. Excluding exchange rate effects and divestments, net sales increased 11%, with acquisitions accounting for 8% of the growth. Personal-care sales increased 11% compared with 2011 (excluding divestments), with acquisitions accounting for 5% of the growth. Sales of adult incontinence products grew 9%, sales of baby diapers increased 17%, and sales of feminine-care products rose 9%. Much of the sales growth in each category can be attributed to higher emergingmarket demand; segment operating margin also improved to 12.6% in the…
London Stock Exchange Group LSE reported a 6% yearon- year increase in revenue–which the exchange operator calls total income–to about GBP 209 million in the third quarter of the company’s 2013 fiscal year, up from about GBP 196 million in the year-earlier quarter. The company is making progress toward our full-year revenue target and we are not making changes to our GBX 1,000 per share fair value estimate at this time. Cash equities revenue was down 18% to GBP 23.3 million, reflecting restrained trading activity, and the overall capital markets revenue fell 4% to GBP 66.3 million. While we think…
Carnival’s seasonally small fourth-quarter results were better than anticipated, but a still-weak global consumer is keeping pricing power tepid for the company. The cautious spender continues to compress pricing by waiting it out for better deals, causing cruise companies to have more erratic control of pricing, with bookings occurring closer in to sail dates. The main risks to the industry now are two fold: first, that Europe remains in an economic predicament that has lasted more than two years and, second, that the fiscal cliff weighs heavily on the domestic consumer if the American politicians cannot resolve their differences imminently.…
Ericsson reported a mediocre third-quarter result on Thursday. For the quarter, sales decreased 2% year over year to SEK 54.6 billion, gross margins fell to 30.4% from 35.0% year over year, and non-IFRS earnings per share dropped 32% to SEK 1.04 year over year. Ericsson faces a number of headwinds. It is tackling a slowdown in the macroeconomic environment, it faces pressure in the networks segment, and its sales mix continues to generate relatively weak margins. The company’s margins are expected to improve during the next six to nine months as capacity projects increase relative to coverage projects. The company…