ASML Stretches Profit Streak, Novartis Profit Jumps

Sarla Buch
18 Jul, 2018
New York City

ASML profit surged on 24% jump in revenues. Electrolux profit tumbled after the appliance maker took a provision for unfavorable court ruling in France. EasyJet said revenues soared. Ericsson net loss widened. Novartis reported strong growth.

[R]4:00 PM Frankfurt – ASML profit surged on 24% jump in revenues. Electrolux profit tumbled after the appliance maker took a provision for unfavorable court ruling in France. EasyJet said revenues soared. Ericsson net loss widened. Novartis reported strong growth.[/R]

In London trading, FTSE 100 index increased 48.85 or 0.6% to 7,675.39 and in Frankfurt the DAX index advanced 88.96 or 0.7% to 12,750.50.

In Paris, CAC 40 index gained 22.06 or 0.4% to 5,444.60.

ASML Holding NV surged 7.5% to €184.85 after the Netherlands-based chipmaker reported revenues in the first-half ending on July 2 soared 24.2% from a year ago to €5 billion.

Net profit in the period surged 21.9% to €1.1 billion from €918.4 million in a year ago period and diluted earnings per share advanced to €2.62 from €2.12.

ASML forecasted third-quarter net sales in the range of €2.7 billion to €2.8 billion and gross margin growth between of 47% and 48%.

Electrolux AB gained 1.9% to 206.70 Swedish kronor after Sweden-based home appliance manufacturer reported revenues in the first-half ending in June increased 1.6% from a year ago to 31.4 billion kronor.

Net income in the period tumbled 59.9% to 517 million kronor from 1.3 billion kronor in the same period a year ago and diluted earnings per share slumped to 1.78 kronor from 4.47 kronor.

Separately today, the home appliance maker said it had set a provision of 254 million kronor or €25 million to cover the potential costs of unfavorable court ruling and 564 million kronor related to competition probe.

EasyJet Plc advanced 2.3% to 1,691 pence after the U.K.-based low-cost airline carrier said total revenue in the third-quarter ending in June soared 14% from a year ago to £1.6 billion.

Passenger numbers in the quarter jumped 9.3% to 24.4 million, driven by an increase in capacity of 8.9% to 26.2 million seats, lower than originally planned due to disruptions, and load factor increased by 0.3 percentage points to 93.4%.

Despite the disruptions, airliner lifted fiscal 2018 pretax profit forecast between £550 million and £590 million and total fuel bill is expected to be about £1.12 billion.

Ericsson AB soared 9% to 73.64 Swedish kronor after Sweden-based communications equipment maker said sales in the second-quarter ending in June fell 1% from a year ago to 49.81 billion kronor.

Net loss in the quarter widened to 1.8 billion kronor from 457 million kronor in the same period a year ago.

Ericsson said gross margin growth surged 34.8% from 29.1% and operating margin increased to 0.3% from negative margin of 1.1% in the year ago period.

Novartis AG jumped 3.6% to 81 Swiss francs after Switzerland-based eye care and drug-maker reported net sales in the first-half ending in June jumped 5% from a year ago to $25.9 billion.

Net income in the period soared to $9.8 billion from $3.6 billion in the same period a year ago and diluted earnings per share increased to $4.21 from $1.54.