Novartis Beats Estimates and Lifts Dividend, Suez Tumble on Weaker Outlook

Sarla Buch
24 Jan, 2018
New York City

J D Wetherspoon reported better-than-expected first-half sales. Novartis profit more than doubled. The Sage Group revenue growth disappointed analysts. Suez warned of profit weakness. Secunet Security Networks revenues soared.

[R]4:00 PM Frankfurt – J D Wetherspoon reported better-than-expected first-half sales. Novartis profit more than doubled. The Sage Group revenue growth disappointed analysts. Suez warned of profit weakness. Secunet Security Networks revenues soared.[/R]

In London trading, FTSE 100 index slumped 46.80 or 0.6% to 7,685.03 and in Frankfurt the DAX index fell 15.09 to 13,544.71.

In Paris, CAC 40 index decreased 12.26 or 0.2% to 5,522.99.

J D Wetherspoon Plc increased 2.5% to 1,302 pence after the U.K.-based pubs operator said sales in the first-half ending in December jumped 4.3% and comparable sales soared 6% and added pre-tax profit will be slightly ahead of expectations.

The pub operator estimated operating profit in the first-half of about £70 million from £64 million in a year ago period and operating profit in the full-year of about £135 million.

Novartis AG advanced 3.4% to 86.40 Swiss francs after Switzerland-based healthcare products maker reported revenues in the fourth-quarter ending in December jumped 5% from a year ago to $12.9 billion.

Net income in the quarter more than doubled to $1.98 billion from $936 million and diluted earnings per share soared to 85 cents from 40 cents.

The Swiss drugs-maker forecasted fiscal 2018 net sales growth in low-to-mid single digit and operating income growth in mid-to-high single digit.

Suez SA tumbled 15.6% to €11.88 after France-based environmental services provider reported revenues in the year ending in December rose 1.5% from a year ago to €15.8 billion.

The water utility provider said operating profit fell 2% to €2.6 billion and net income of about €300 million, this including €45 million in costs related to the GE Water acquisition and €72 million in costs for the voluntary departure plan in France.

Secunet Security Networks AG jumped 3.6% to €103.40 after Germany-based security software provider said revenues in the year ending in December soared 37% from a year ago to €158.3 million and operating profit surged 72% to €23.5 million from a year ago period.

The Sage Group Plc plunged 9.3% to 745 pence after the U.K.-based payroll and payments software developer reported revenues in the first-quarter ending in December jumped 6.3% and recurring revenue soared 7% largely driven by software subscription revenue growth of 26%.

The software provider said as of December 30, financial position remains strong and net debt dropped to £794 million from £813 million in the fourth-quarter ending on September 30.