On-going corporate earnings | Calamatta Cuschieri

European markets were mixed on Thursday at the end of the trading session, as a string of economic data came in and the earnings season carries on

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Calamatta Cuschieri
4 August 2017, 12:51pm
European markets were mixed on Thursday at the end of the trading session, as a string of economic data came in and the earnings season carries on. Investors were focused on Bank of England's decision to keep its monetary policy in place, preserving the current interest rates at 0.25%, but also slashing its annual growth forecast to below 1.75%. Meanwhile, German service sector reported a slower expansion in July, and the Eurozone activity growth data was revised down for the same period. However, the UK services sector improved its growth rate, while Euro area retail sales climbed 0.5% in June. In a busy earnings day, BMW, Deutsche Telekom, Siemens, UniCredit, Credit Agricole, Axa, Allergan, were among the companies to reveal their results yesterday.

The DAX finished lower, shedding 0.20%, with Siemens being the biggest flopper after it reported an order decline in the last quarter. The French CAC 40 gained 0.55% to finish in the green, with LVMH as the best performer. Meanwhile, the British FTSE closed with gains following the BoE's decision, adding 0.89%.

Allergan

The Dublin based pharmaceutical company reported a loss per share at $2.14 in the second quarter of this year, declining further from a loss of $1.07 reported in the same period last year. Meanwhile, the company announced an increase in net revenue of 9% to $4 billion year on year. The growth in revenue was mostly due to key brands and the addition of CoolSculpting and ALLODERM products.

UniCredit SpA

Italy's under stress bank remains dedicated to its restructuring strategy. Commercial activity improved across sectors in the second quarter. The Net Income of €945 million was 3.3% up from the same period a year ago. Amongst other transactions, a positive on-off impact from German operations of €170 million and a drop of €135 million from the write-down of the Atlande fund left their mark. Operating costs were also driven 4.2% lower to €2.86 billion.

BMW

The German Car manufacturer reported its earnings at €3.34 per share for the second quarter of 2017, increasing from €2.95 reported in the same period last year. The net profit amounted to €2.2 billion improving from €1.9 billion reported the previous year. Sales grew to 587,200 units in this quarter from 557,600 recorded in the second three months of 2016.

Deutsche Telekom

The Telecommunications Giant reported a net revenue of €18.9 billion for the second quarter, increasing 6% year on year. Adding to this, the company's adjusted net income with interest tax, depreciation, and amortization, EBITDA improved to €5.9billion when compared to the same period a year ago. Net profit stood at €874 million. The firm reported a strong customer growth across Europe, with T-Mobile leading as the main advance in the U.S.

 

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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