Europe Movers: AXA, Essilor Luxottica, Rolls Royce, WPP

Bridgette Randall
23 Feb, 2023
Frankfurt

Essilor Luxottica SA declined 4.3% to €167.15 after the Franco-Italian eyewear maker reported an increase in fourth quarter earnings. 

Revenue in 2022 increased 13.9% to Є24.4 billion and net income increased 20.9% to Є3.0 billion from the previous year. 

The company proposed to increased dividend by 29% to Є3.23 a share.  

Stocks turned lower on the company's cautious outlook for 2023. 

The company reiterated its target "of mid-single-digit annual revenue growth from 2022 to 2026 at constant  exchange rates and estimated an adjusted operating profit  as a percentage of revenue in the range of 19% to 20% by the end of that period.

AXA SA increased 3.2% to €28.71 after the France-based property insurance company announced a stock repurchase plan. 

Gross revenue in 2022 increased 2% to €102 billion and underlying earnings per share increased 12% to €3.08 from a year ago. 

The underlying earnings increased 4% to Є7.3 billion but net income declined 11% to Є6.7 billion reflecting a decline in invested asset valuations and write-off of goodwill linked to Russia-based Reso Garantia. 

The insurance group also announced a stock repurchase program of up to 1.1 billion. 

WPP Plc increased 3.3% to  1,049.94 pence after the UK-based advertising company forecasted higher than expected in the year ahead. 

Gross revenue in 2022 increased 12.7% to 14.4 billion and profit before-tax increased 22% to 1.2 billion and diluted earnings per share increased to 61.2 pence from 52.5 pence a year ago. 

The advertising agency estimated comparable sales in 2023 to increase between 3% and 5%, slower than 6.7% in 2022 but ahead of expectations. 

The company also guided operating margin in 2023 to improve to 15% from 13.5% in 2022. 

Rolls Royce Holdings Plc soared 20.5% to  129.73 pence after the aerospace and defense company reported higher-than-expected earnings. 

The defense contractor and power systems maker guided underlying operating profit in 2023 between £0.8 billion and £1.0 billion and free cash flow between £0.6 billion and £0.8 billion. 

Total revenue in 2022 increased to £13.5 billion from £11.2 billion and pre-tax loss increased to £1.5 billion from £294 million in the previous year. 

The company swung to a loss per share of 14.4 pence from 1.48 pence in the previous year. 

Net debt declined to £3.2 billion at the end of 2022 from £5.2 billion at the end of 2021.