Compass Group Optimism Lifts Stock, Wirecard Falls on Weak Guidance

Sarla Buch
20 Nov, 2018
New York City

AVEVA first-half revenues surged after strong demand in industrial software. Compass reported better-than-expected results. Dermapharm net fell but forecasted improved fiscal revenues. EasyJet profit surged 41%. Wirecard plummeted on lower profit guidance.

[R]4:00 PM Frankfurt – AVEVA first-half revenues surged after strong demand in industrial software. Compass reported better-than-expected results. Dermapharm net fell but forecasted improved fiscal revenues. EasyJet profit surged 41%. Wirecard plummeted on lower profit guidance.[/R]

In London trading, FTSE 100 index decreased 88.71 or 1.3% to 6,914.07 and in Frankfurt the DAX index declined 186.07 or 1.7% to 11,051.30.

In Paris, CAC 40 index dropped 71.42 or 1.5% to 4,912.12.

AVEVA Group Plc slumped 1.3% to 2,650 pence after the U.K.-based engineering and industrial software provider reported revenues in the first-half ending in September surged 56.4% from a year ago to £336.5 million.

Net in the period swung to a loss of £5.8 million from £7.8 million in the same period a year ago and diluted loss per share swung to 3.61 pence from diluted earnings per share of 7 pence.

AVEVA said integration of the heritage AVEVA and Schneider Electric’s software businesses remains on track with new organizational structures in place across the group.

Compass Group Plc jumped 4.3% to 1,655.50 pence after the U.K.-based contract foodservice provider reported revenues in the year ending in September increased 1.8% from a year ago to £22.9 billion.

Net income in the year declined 3.4% to £1.3 billion from £1.7 billion in the same period a year ago and diluted earnings per share eased to 71 pence from 71.3 pence.

Compass forecasted fiscal 2019 organic growth in the range of 4% to 6% with modest margin.

Dermapharm Holding SE gained 0.5% to €23 after Germany-based generic pharmaceutical products maker said revenues in the nine-month period ending in September soared 22.7% from a year ago to €429 million.

Net income in the period dropped 4.5% to €60.1 million from €62.9 million in a year ago period and diluted earnings per share slumped to €1.13 from €1.26.

The patent-free drug maker said operating profit jumped 16.8% to €82.2 million from €70.4 million in the same period a year ago.

Dermapharm forecasted fiscal 2018 revenues growth between 20% and 25% and operating profit growth in the range of 22% to 27%.

Separately, on November 18, Dermapharm agreed to acquire Spain-based Euromed Botanicals S.A., the supplier of herbal extracts and natural active substances from the U.S.-based private equity firm The Riverside Company for undisclosed financial terms.

The transaction is expected to close before the end of this year.

EasyJet Plc plunged 6.4% to 1,100.25 pence after the U.K.-based low-cost airline services provider said total revenues in the year ending in September soared 16.8% from a year ago to £5.9 billion.

Net income in the year surged 17.4% to £358 million from £305 million in the same period a year ago and diluted earnings per share jumped to 90.2 pence from 76.8 pence.

The low-cost airliner said it carried record number of passengers 88.5 million, an increase of more than 10% from a year ago.

EasyJet estimated higher booking demand for summer 2019, despite consumer fear on the outcome of Brexit.

Wirecard AG plummeted 7.3% to €127.55 after Germany-based online payment processing services provider forecasted fiscal 2019 operating profit in the range of €740 million to €800 million.