European Movers: Thomson Reuters, British Airways
Note: Apart from the UK, all European markets remain closed for May 1, Labour Day.
THOMSON REUTERS (TRI)
Up GBP0.52 to GBP16.15
Markets division boosts 1Q op profit 37%
Posts 1Q pro forma underlying operating profit US$579m, +37%; op profit US$428m, +195%; pro forma revenues US$3.3bn, +15%; markets division pro forma op profit US$353m, +187%. For FY08 expects revenue growth (ex fx) to be between 6%-8%; u/l operating profit margin between 19% and 21%; FCF margin, ex synergy and integration costs, between 11% and 12% of revenue. Estimates will achieve run rate savings of US$1bn by 31 December 2010, earlier than originally anticipated, and US$1.2bn by 31 December 31, 2011.
Up GBP0.17 to GBP2.43
Merger talks as Co. meets US rivals
Discussions between Co. and transatlantic competitots American Airlines and Continental Airlines could be the first step towards a merger, The Daily Telegraph reports citing well-placed sources.
SMITH & NEPHEW
Down GBP0.85 to GBP5.70
1Q sales miss ests, sees lower FY revenues - Posts 1Q trading profit US$182m, +23%; revenue US$911m, +22%; operating profit US$142m, +12%; adjusted EPS US$0.128, +14%. Says global market conditions continue to be favourable driven by underlying demographic trends which are creating strong demand for our products. Expects revenues, in a full 12M period, to be reduced by about US$100m. Adds reduction in sales relationships has been experienced in 1Q and expects some further reductions over the next two quarters. Analysts had forecast revenue of US$932m, adjusted EPS of US$0.128.
Down GBP0.13 to GBP9.95
Deutsche trims target to GBP13.60 from GBP14.0, retains buy. At current levels, believes UK REITs are already pricing in a good deal of the potential downside from an early 1990s-style property market meltdown. Sees value but says negative sentiment will be hard to overcome. Co. says aditional contracted income from developments will increase annual rents by GBP36m over the next few years. Adds the three major retail schemes in Bristol, Leicester and Paris open in September and are between 73% and 85% let. Says its portfolio continues to show a good operational performance.
Down GBP0.71 to GBP3.24
ABN Amro sees consensus EPS falling 20%-30%
ABN Amro says 1Q results were poor with sales in line but EPS well below consensus of US$0.10 on lower than expected gross margins (45% vs 46.5%) and slightly higher opex. Expects FY08 cons EPS of US$0.83 to fall by c. 20%-30% to around US$0.62 depending on gross margin and opex assumptions for rest of the year. Co. posts 1Q revenue of US$160.9m; u/l op profit US$8.5m, -58.33%; gross margin 45.1%; u/l dil EPS US$0.06. Adds it has maintained strong market share, despite challenging trading conditions. Adds although forecasting remains difficult, presently expects that 2Q08 revenues will be in the range of US$175m to US$200m.
Up GBP0.14 to GBP2.99
Performance in line
Co. says conditions in major markets have been broadly as anticipated in 1Q. Says 1Q sales and profits have shown good y/y growth. Looking forward for the year as a whole, market conditions remain generally supportive and order books are strong. Expects 2008 to be another year of solid progress with performance in line with earlier expectations.