Market Update
Europe Movers: Ferrari, Julius Baer, Sanofi, TomTom
Bridgette Randall
03 Feb, 2023
Frankfurt
TomTom NV increased 4% to €7.26 after the mobility device maker reported narrower loss in its latest quarter.
Revenue in the fourth quarter rose 21% to €139 million and net loss narrowed to €8.8 from €38.8 million a year ago.
For the full-year 2022, revenue increased 5.7% to €536 million and loss expanded 9% to €102.7 million.
The company guided 2023 revenue in the range of €540 million and €580 million.
Sanofi SA declined 1.8% to €85.14 after the French drugmaker estimated 2023 revenue growth in "low single-digit" in constant currency.
Net sales in the fourth quarter increased 7.3% to €10.7 billion and net income rose 29.1% to €1.46 billion and diluted earnings per share rose 28.9% to €1.16.
Ferrari NV declined 1.8% to €242.10 after the Italian sports car maker reported quarterly results.
Shipments in the fourth quarter increased 13% to 3,327 and for the full-year 2022 rose 19% to 13,221.
Revenue in the fourth quarter increased 17% from a year ago to €1.4 billion and net income rose 3% to €221 million.
Diluted earnings per share increased to €1.21 from €1.16 a year ago.
In full-year 2022, revenue increased 19% to €5.1 billion and net income rose 13% to €939 million and diluted earnings per share increased to 13% to 5.09 from €4.50 a year ago.
The product portfolio in the year included nine internal combustion engine models and three hybrid engine models, which represented 78% and 22% of total shipments, respectively.
The increase in shipments during the year was driven by the Ferrari Portofino M and the SF90 family, as well as the 296 GTB and the 812 Competizione, which were in the ramp up phase.
Deliveries of the Ferrari Monza SP1 and SP2 declined from the previous year.
Sales rose across all regions and EMEA sales rose 8.5%, Americas increased 21.8%, Mainland China, Hong Kong and Taiwan soared 72.6% and Rest of Asia Pacific sales increased 17.1%.
The Company repurchased 123,760 common shares for a total consideration of €26.8 million in January 2023.
Julius Baer Gruppe AG increased 2.8% to 63.42 Swiss francs after the Swiss private banking group reported better-than-expected quarterly results.
Assets under management declined 12$ to 424 million Swiss francs and net new inflow was 9 billion Swiss francs in the year 2022.
Operating income declined marginally to 3.9 billion Swiss francs and net profit attributable to shareholders fell 12%, to 950 million Swiss francs.
Earnings per share decreased 10% to 4.56 Swiss francs and the company proposed to pay a dividend of 2.60 Swiss francs despite the fall in earnings.
Optimism Drove European Markets to Weekly Gains
Bridgette Randall
03 Feb, 2023
Frankfurt
European markets closed lower on Friday following weaker-than-expected earnings from the U.S. tech companies and strong U.S. jobs report.
The Euro Area private sector activities expanded in January after shrinking for seven months in a row, the latest survey from S&P Global showed on Friday.
The PMI Composite Output Index for January was revised higher in the final estimate to 50.3 from the previous estimate of 50.2, and moved from 49.3 in December.
The rebound in total activities was driven by resurgence in services but manufacturing contracted in the month.
The rebound in activities after seven months raised hopes that the currency block's economy may be able to avoid a recession.
European Indexes Extend Weekly Gains
Benchmark indexes were under pressure in Germany but advanced in France and the UK.
The DAX index decreased 0.2% to 15,476.43, the CAC-40 index increased 1.0% and the FTSE 100 index advanced 1% to 7,901.80.
For the week, the DAX index increased 1.8%, the CAC-40 index rose 1.5% and the FTSE 100 index advanced 1.6%.
The euro edged down to $1.08, the British pound eased to $1.22 and the Swiss franc edged lower to 92.54 U.S. cents.
Crude oil advanced in early trading after the U.S. jobs data showed a sharp jump in payrolls in January raising hopes of stable demand in the world's largest economy.
Brent crude oil declined $2.35 to $79.82 a barrel and the Dutch TTF Spot price increased 0.9% to Є57.80 per MWh.
Europe Movers
TomTom NV increased 4% to €7.26 after the mobility device maker reported narrower loss in its latest quarter.
Revenue in the fourth quarter rose 21% to €139 million and net loss narrowed to €8.8 from €38.8 million a year ago.
For the full-year 2022, revenue increased 5.7% to €536 million and loss expanded 9% to €102.7 million.
The company guided 2023 revenue in the range of €540 million and €580 million.
Sanofi SA declined 1.8% to €85.14 after the French drugmaker estimated 2023 revenue growth in "low single-digit" in constant currency.
Net sales in the fourth quarter increased 7.3% to €10.7 billion and net income rose 29.1% to €1.46 billion and diluted earnings per share rose 28.9% to €1.16.
Ferrari NV declined 1.8% to €242.10 after the Italian sports car maker reported quarterly results.
Shipments in the fourth quarter increased 13% to 3,327 and for the full-year 2022 rose 19% to 13,221.
Revenue in the fourth quarter increased 17% from a year ago to €1.4 billion and net income rose 3% to €221 million.
Diluted earnings per share increased to €1.21 from €1.16 a year ago.
In full-year 2022, revenue increased 19% to €5.1 billion and net income rose 13% to €939 million and diluted earnings per share increased to 13% to 5.09 from €4.50 a year ago.
Julius Baer Gruppe AG increased 2.8% to 63.42 Swiss francs after the Swiss private banking group reported better-than-expected quarterly results.
Assets under management declined 12$ to 424 million Swiss francs and net new inflow was 9 billion Swiss francs in the year 2022.
Operating income declined marginally to 3.9 billion Swiss francs and net profit attributable to shareholders fell 12%, to 950 million Swiss francs.
Earnings per share decreased 10% to 4.56 Swiss francs and the company proposed to pay a dividend of 2.60 Swiss francs despite the fall in earnings.
January Payrolls Expanded 517,000, Jobless Rate Eased to 53-year Low
Brian Turner
03 Feb, 2023
New York City
The U.S. economy added 517,000 net new jobs in January, the strongest gains since July 2020, the Bureau of Labor Statistics reported Friday.
Net job additions in the non-farm payrolls were not expected to rise above 175,000 according to several economists and surpassed December's 260,000 net gains.
In a widespread job addition, the leisure and hospitality industry led the expansion with an addition of 128,000 followed by 82,000 gains in professional and business services, 58,000 in healthcare, 30,000 in retail trade and 25,000 in construction.
Governments at all levels also added 74,000 net new jobs, partially reflecting the return of 48,000 academic workers at the University of California.
The January report offers critical insight in the labor market as several large tech companies announce substantial layoffs as companies recalibrate business outlook and prepare for economic slowdown.
January job gains were ahead of the monthly average of 401,000 in 2022.
Both the unemployment rate, at 3.4%, and the number of unemployed persons, at 5.7 million, changed little in January.
The unemployment rate has shown little net movement since early 2022 and dropped to the lowest level since 1969.
Labor force participation rate edged higher to 62.4%, but still below the pre-pandemic level of 63.6%.
Wages rose 0.3% in January from the previous month and eased to 4.4% pace from a year ago from 4.6% in December.
In January, average hourly earnings for all employees on private nonfarm payrolls rose 10 cents, or 0.3%, to $33.03, an increase of 4.4% from a year ago.
In January, average hourly earnings of private sector production and nonsupervisory employees rose 7 cents or 0.2% to $28.26.
Jobs gains in November and December were revised higher by a total of 71,000, the report from the Labor Department noted.
The government agency also revised higher total jobs added over 12 months to March by 568,000, based on more complete tax-records and reflecting annual revision.
Strong Pace of Jobs Additions In January Raised Worries of Higher Rates
Barry Adams
03 Feb, 2023
New York City
Financial markets turned cautious after the U.S. economy added jobs at a surprisingly faster pace.
The pace of addition was last seen nearly two years ago and jobless rate dropped to a five-decade low.
Despite the tight labor market conditions, employment participation rate remained weak, making the Federal Reserve's task harder in balancing economic growth while controlling inflation.
U.S. Hirings Surged, Jobless Rate Dropped to 53-year Low
The U.S. economy added 517,000 net new jobs in January, the strongest gains since July 2020, the Bureau of Labor Statistics reported Friday.
Net job additions in the non-farm payrolls were not expected to rise above 175,000 according to several economists and surpassed December's 260,000 net gains.
In a widespread job addition, the leisure and hospitality industry led the expansion with an addition of 128,000 followed by 82,000 gains in professional and business services, 58,000 in healthcare, 30,000 in retail trade and 25,000 in construction.
Governments at all levels also added 74,000 net new jobs, partially reflecting the return of 48,000 academic workers at the University of California.
The January report offers critical insight in the labor market as several large tech companies announce substantial layoffs as companies recalibrate business outlook and prepare for economic slowdown.
January job gains were ahead of the monthly average of 385,000 in 2022, reflecting the latest revisions in data for the last two months of 2022.
Both the unemployment rate, at 3.4%, and the number of unemployed persons, at 5.7 million, changed little in January.
The unemployment rate has shown little net movement since early 2022 and dropped to the lowest level since 1969.
Labor force participation rate edged higher to 62.4%, but still below the pre-pandemic level of 63.6%.
Wages rose 0.3% in January from the previous month and surged 4.4% from a year ago.
U.S. Indexes In Review
The S&P 500 index decreased 0.2% to 4,173.08 and the Nasdaq Composite index declined 0.1% to 12,190.85.
Crude oil inched lower by $2.0 to $73.91 a barrel and natural gas futures for immediate month delivery fell 10 cents to $2.35 a thermal unit.
The yield on 2-year treasury notes inched higher to 4.27%, 10-year treasury notes edged higher to 3.52% and 30-year treasury bonds to 3.62%.
U.S. Movers
Alphabet Inc declined 4% to $103.29 after the parent of Google reported a decline in earnings driven by general weakness in advertising revenue and a larger decline in video ads on its popular YouTube platform.
Alphabet Inc said revenue in the December quarter rose 1% to $76 billion and net income plunged 34% to $13.6 billion from $20.6 billion and diluted EPS dropped to $1.05 from $1.53 a year ago.
Amazon.com, Inc dropped 6.3% to $112.91 after the online retailer reported a sharp plunge in earnings partly driven by writing down the value of its stake in the electric vehicle maker Rivian Automotive.
Amazon.com said sales in the fourth quarter increased 9% to $149.2 billion and net income fell to $0.3 billion from $14.3 billion and diluted EPS fell to 3 cents from $1.39 from a year ago.
North America sales increased 13% from a year ago to $315.9 billion and international sales fell 8% to $118.0 billion, or increased 4% excluding changes in foreign exchange rates.
AWS segment sales increased 29% from a year ago to $80.1 billion.
Net sales in full-year 2022 increased 9% to $514.0 billion from $469.8 billion in 2021.
Net loss was $2.7 billion in 2022 or $0.27 per diluted share, compared to net income of $33.4 billion, or $3.24 per diluted share in 2021.
Apple Inc declined 1.6% to $148.26 after the computing devices maker reported a rare quarterly revenue decline and fell for the first time since 2019.
Apple Inc said revenue in the December quarter fell 5% from the previous year to $117.2 billion.
Net income dropped 13.2% to $30 billion from $34.6 billion and diluted EPS fell to $1.88 from $2.10 a year ago.
Movers: Alphabet, Amazon.com, Apple, Ford, Sally Beauty, Skechers, Starbucks, Qualcomm
Scott Peters
03 Feb, 2023
New York City
Alphabet Inc declined 4% to $103.29 after the parent of Google reported a decline in earnings driven by general weakness in advertising revenue and a larger decline in video ads on its popular YouTube platform.
Alphabet Inc said revenue in the December quarter rose 1% to $76 billion and net income plunged 34% to $13.6 billion from $20.6 billion and diluted EPS dropped to $1.05 from $1.53 a year ago.
Amazon.com, Inc dropped 6.3% to $112.91 after the online retailer reported a sharp plunge in earnings partly driven by writing down the value of its stake in the electric vehicle maker Rivian Automotive.
Amazon.com said sales in the fourth quarter increased 9% to $149.2 billion and net income fell to $0.3 billion from $14.3 billion and diluted EPS fell to 3 cents from $1.39 from a year ago.
North America sales increased 13% from a year ago to $315.9 billion and international sales fell 8% to $118.0 billion, or increased 4% excluding changes in foreign exchange rates.
AWS segment sales increased 29% from a year ago to $80.1 billion.
Net sales in full-year 2022 increased 9% to $514.0 billion from $469.8 billion in 2021.
Net loss was $2.7 billion in 2022 or $0.27 per diluted share, compared to net income of $33.4 billion, or $3.24 per diluted share in 2021.
Apple Inc declined 1.6% to $148.26 after the computing devices maker reported a rare quarterly revenue decline and fell for the first time since 2019.
Apple Inc said revenue in the December quarter fell 5% from the previous year to $117.2 billion.
Net income dropped 13.2% to $30 billion from $34.6 billion and diluted EPS fell to $1.88 from $2.10 a year ago.
Ford Motor Company declined 10% to $12.88 after the automaker missed its quarterly earnings and the management struggles to deal with long-term operating inefficiencies and persistent underperformance.
Ford Motor said revenue in the December quarter rose 17% from a year ago to $44 billion.
Net income plunged to $1.3 billion from $12.3 billion and diluted EPS fell to 32 cents from $3.02 a year ago.
Sally Beauty Holdings Inc declined 0.5% to $17.87 after the beauty products retailer reported a drop in earnings because of restructuring charges.
Sally Beauty said December quarter revenue declined 2.4% from the previous year to $957 million.
Net income dropped 27% to $50.3 million from $68.8 million and diluted earnings per share fell to 46 cents from 60 cents a year ago.
Skechers USA Inc fell 5.2% to $46.67 after the footwear retailer forecasted first quarter earnings and sales outlook that missed some investors expectations.
Skechers said the fourth quarter revenue increased 13.5% from a year ago to $1.88 billion.
Net income plunged to $75.5 million from $402.4 million and diluted earnings per share dropped to 48 cents from $2.56 a year ago.
Skechers guided first quarter revenue between $1.80 billion and $1.85 billion and diluted earnings per share between 55 cents and 60 cents a share and full EPS between $2.80 and $3.0.
Starbucks Corporation declined 3.6% to $105.14 after the coffeehouse chain operator reported weaker-than-expected quarterly results as China's "zero-covid" policy impacted sales.
Starbucks said revenue in the December quarter rose 8% from the previous year to $8.7 billion.
Net income increased 4.8% to $855 million from $816 million and diluted earnings per share rose to 74 cents from 69 cents a year ago.
North America and U.S. comparable store sales increased 10%, driven by a 9% increase in average ticket and a 1% increase in comparable transactions.
International comparable store sales fell 13%, driven by a 12% decline in comparable transactions and a 1% decline in average ticket.
China comparable store sales decreased 29%, driven by a 28% decline in comparable transactions and a 1% decline in average ticket.
At the end of 2022, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 15,952 stores in the U.S. and 6,090 stores in China.
Qualcomm Inc fell 0.6% to $135.10 after the chip maker's guidance indicated more struggles for the company reflecting ongoing weakness in the industry.
Qualcomm said revenue in the December quarter declined 12% to $9.5 billion.
Net income fell 34% to $2.2 billion and diluted earnings per share dropped to $1.98 from $2.98 a year ago.
In the December quarter, Qualcomm returned $2.1 billion to stockholders, including $842 million, or 75 cents a share in dividends and $1.3 billion through repurchases of 11 million shares.
Qualcomm guided fiscal second quarter revenue between $8.7 billion and $9.5 billion and diluted earnings per share between $1.53 and $1.73.