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Market Update

Thomas Cook Plunges 23% after Dividend Suspension, Accor Reaffirms Outlook

Author: Sarla Buch
Last Update: 10:27 AM EST November 27 2018

4:00 PM Frankfurt Accor reaffirmed to double profit by 2022. Greggs lifted profit forecast after strong sales in October and November. Pets at Home profit tumbled. Thomas Cook issued second profit warning in as many months.

In London trading, FTSE 100 index decreased 34.72 or 0.5% to 7,000.43 and in Frankfurt the DAX index dropped 71.61 or 0.6% to 11,285.26.

In Paris, CAC 40 index slumped 32.79 or 0.7% to 4,962.18.

Accor SA gained 1.7% to 40.18 after France-based hotel operator reaffirmed to double its operating profit forecast between 2017 and 2022 to reach 1.2 billion from 626 million in 2017.

Accor said higher operating profit estimate was driven by the increase in development and by the up-scaling the brand portfolio.

Separately yesterday, AccorHotels also filed a tender offer with the Polish Financial Supervision Authority to acquire the remaining stake of 47.31% for 87 Polish zloty or $22.98 per share or 442 million in cash.

Greggs Plc surged 10.1% to 1,362 pence after the U.K.-based bakery products retailer lifted fiscal 2018 pretax profit forecast of about 86 million from the earlier estimate of 81.8 million.

Greggs said total sales in the eight weeks to November 24 soared 9% from 8.2% in the same period a year ago.

Intertek Group Plc increased 1.8% to 4,730 pence after the U.K.-based total quality and safety solution provider said group revenues in the ten-month period ending in October jumped 5% from a year ago to 2.3 billion.

Intertek said revenues in the product business advanced 3.2% to 2.3 billion while revenues in the trade segment slumped 2.4% to 1.4 billion and revenues in the resource business dropped 4.4% to 394.2 million.

Pets at Home Group Plc fell 0.6% to 113.95 pence after the U.K.-based pet products retailer stated revenues in the first-half ending on October 28 soared 6.7% from a year ago to 499.3 million.

Profit in the period tumbled to 6.2 million from 32.5 million in the same period a year ago and diluted earnings per share declined to 1.2 pence from 6.5 pence.

The pet products retailer said veterinary revenue surged 12.3% and retail sales jumped 6%.

Thomas Cook Group Plc tumbled 23.2% to 37.26 pence after the U.K.-based tourism and travel services provider reported group revenues in the year ending in September jumped 6% from a year ago to 9.6 billion.

Thomas Cook said operating profit declined to 250 million from 258 million in the same period a year ago after exceptionally hot summer.

The travel services provider issued its second warning in as many months and said fiscal year profile is expected to be about 30 million lower than the earlier estimate and suspended its dividend.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc