Inditex Misses Estimates, Rolls Royce Soars 5% on Forecast

Sarla Buch
12 Dec, 2018
New York City

Dixons Carphone net swung to a loss on weak revenues. Marshalls said revenues surged 14% and the company agreed to acquire concrete brick maker Edenhall. Inditex missed earnings estimates. Rolls-Royce soared on strong operating profit forecasted.

[R]4:00 PM Frankfurt – Dixons Carphone net swung to a loss on weak revenues. Marshalls said revenues surged 14% and the company agreed to acquire concrete brick maker Edenhall. Inditex missed earnings estimates. Rolls-Royce soared on strong operating profit forecasted.[/R]

In London trading, FTSE 100 index increased 82.44 or 1.2% to 6,889.64 and in Frankfurt the DAX index soared 149.96 or 1.4% to 10,929.66.

In Paris, CAC 40 index jumped 103.63 or 2.2% to 4,909.91.

Dixons Carphone Plc plunged 7.9% to 139 pence after the U.K.-based electrical and telecommunications retailer said revenues in the first-half ending on October 27 fell 0.4% from a year ago to £4.89 billion

Net in the period swing to a loss of £460 million from profit of £52 million in the same period a year ago and diluted loss per share swung to 39.7 pence from diluted earnings per share of 4.5 pence.

The retailer said pre-tax loss in the period was about £440 million compared to profit of £54 million and the retailer had booked £490 million of non-cash impairments.

Dixons Carphone reaffirmed fiscal 2018 pretax profit forecast of about £300 million and additional capital expenditures of about £200 million for next three-years.

Marshalls Plc surged 13.6% to 473.60 pence after the U.K.-based hard landscaping products manufacturer said revenues in the eleven-month ending in November revenues surged 14% from a year ago to £465 million from £407 million in the same period a year ago.

Separately today, Marshalls said it had agreed to acquire concrete brick manufacturer Edenhall for up to £17.2 million on a debt and cash free basis.

Inditex SA declined 5% to €25.01 after Spain-based fashion retailer reported revenues in the nine-month period ending in October advanced 3% from a year ago to €18.4 billion.

Net profit in the period jumped 4% to €2.4 billion from €2.3 billion in a year ago period and diluted earnings per share increased to €0.78 from €0.75.

Inditex said gross profit in the period soared 4% to €10.7 billion and gross margin increased 56 basis points to 58% from the same period a year ago.

Rolls-Royce Holdings Plc soared 4.7% to 817.80 pence after the U.K.-based jet engine manufacturer forecasted fiscal 2018 operating profit between £300 million and £500 million and free cash flow of between £450 million to £550 million.

The jet engine maker said core operating profit in L''Orange and the commercial marine business is expected to be between £450 million to £550 million.

Tui AG jumped 3.6% to €12.79 after Germany-based travel and tourism services provider is scheduled to release its annual financial results of 2018 tomorrow.