Aviva Shares Rise, RBC Sees Five Years of Longevity Releases

RBC Sees Five Years of Longevity Releases at Aviva

0855 GMT - Aviva's longevity release shouldn't be viewed as low quality, says RBC Capital Markets in a note after the insurer reported an operating profit beat in its 2022 results on a GBP537 million release from a change in its life expectancy assumptions and modelling. "We expect it will take 5 years for Aviva to introduce the 2025 [mortality] model so we expect 5 years of longevity releases," say analysts Mandeep Jagpal and Gordon Aitken, adding their view doesn't make any comment about future life expectancy. RBC rates the stock outperform. Shares rise 3.7% at 466.8 pence and is the second-best performer of the FTSE 100 index. ([e-mail])

 
Companies News: 

ConvaTec Group 2022 Pretax Profit Fell on Higher Charges; Revenue Rose

ConvaTec Group PLC said Thursday that pretax profit fell in 2022 on higher expenses and charges, despite higher revenue, and raised its dividend payout.

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Aviva Swung to 2022 Pretax Loss; Launches GBP300 Mln Buyback

Aviva PLC on Thursday posted a swing to pretax loss for 2022 as it was hit by adverse market movements and launched a 300 million-pound ($355.3 million) share buyback.

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DS Smith Says Positive 1H Trends Have Continued Into 2H

DS Smith PLC said Thursday that positive trends experienced in the first half of the year have continued into the second, and performance has been in line with the board's expectations.

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Informa 2022 Pretax Profit, Revenue Rose; Buys Tarsus for $940 Mln

Informa PLC said Thursday that pretax profit and revenue rose for 2022 and that it was buying Tarsus for $940 million.

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Spirax-Sarco Engineering 2022 Pretax Profit Fell, Missed Consensus on Higher Costs

Spirax-Sarco Engineering PLC said Thursday that 2022 pretax profit fell and missed consensus after booking higher costs, and that it expects sales and adjusted operating profit to be more weighted toward the second half of 2023.

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Endeavour Mining 4Q Profit Fell on Impairments; Revenue Rose

Endeavour Mining PLC said Thursday that it swung to a fourth quarter pretax loss on a one-off impairment of goodwill, though revenue rose.

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Entain 2022 Revenue, Earnings Rose: US JV Set to Be Ebitda Positive in 2H 2023

Entain PLC said Thursday that revenue and underlying earnings rose in 2022 and that it expects its U.S. joint venture to be Ebitda positive in the second half of 2023.

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M&G Swung To 2022 Pretax Loss; Says On Track To Meet 2024 Capital Generation Target

M&G PLC on Thursday reported a swing to 2022 pretax loss and said it is on track to meet its capital generation target by the end of 2024.

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Hammerson 2022 Net Loss Narrows on Lower JV Losses, Property Revaluations

Hammerson PLC on Thursday reported a narrowed net loss for last year--beating market forecasts--after reporting lower losses from joint ventures and revaluations on properties.

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Alliance Trust Swung to 2022 Pretax Loss Amid Inflation, Ukraine War, Higher Interest Rates

Alliance Trust PLC said Thursday that it swung to a pretax loss in 2022 amid high inflation, the war in Ukraine and higher interest rates.

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Harbour Energy 2022 Net Profit Fell Due to UK Tax Charge; Launches $200 Mln Buyback Program

Harbour Energy PLC said Thursday that 2022 net profit fell and missed consensus after booking a $1.5 billion one-off non-cash deferred tax charge associated with the U.K.'s Energy Profits Levy, and that it was launching a $200 million share buyback program.

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HSBC Says IFRS 17 Implies Lower 2023 Net Interest Income Guidance, 1H 2022 Figures

HSBC Holdings PLC on Thursday said its net interest income guidance for 2023 is expected to be lower under the IFRS 17 accounting standard, which it said will only change the timing of profit recognition.

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Franchise Brands 2022 Pretax Profit, Revenue Rose Driven by B2B Division

Franchise Brands PLC said Thursday that pretax profit rose significantly in 2022 on higher revenue, beating expectations and driven by record growth at its business-to-business division.

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Kier Group 1H Profit Doubled on Strong Operations; Order Book Grows

Kier Group PLC said Thursday that its pretax profit for the first half of fiscal 2023 doubled despite flat revenue, and its order book rose.

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Domino's Pizza FY 2022 Pretax Profit Fell on Costs, Interest Rates; Sees Higher FY 2023 Ebitda

Domino's Pizza Group PLC said Thursday that fiscal 2022 pretax profit fell on technology platform costs and interest rates, and that it expects higher profitability for the year ahead.

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PageGroup 2022 Pretax Profit, Revenue Rose Amid Record Performance

PageGroup PLC said Thursday that pretax profit and revenue rose in 2022, with a record performance in 27 countries.

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Town Centre Securities Swung to 1H Loss on Property Valuation Losses

Town Centre Securities PLC said Thursday that it swung to a pretax loss in the first half of fiscal 2023, driven by property valuation falls.

 
Market Talk: 

DS Smith's Outlook Looks Rosy on Strong Prices

0851 GMT - DS Smith is benefiting from a favorable price-to-cost spread in fiscal 2023 2H, and despite weaker industry box volumes--compounded by destocking--Jefferies expects record full-year earnings. The packaging company reported an encouraging outlook in its third-quarter results and reassured earnings are meeting expectations, and with demand recovery expected throughout fiscal 2024 DS Smith is set to be a relative winner compared to smaller industry peers, Jefferies analysts say in a note. If the company can demonstrate more resilient box price to mix and volumes, its share price should rise over this containerboard pricing cycle as market conviction in earnings delivery builds, the U.S. bank says. Jefferies retains its buy rating and 400 pence price target on the stock. Shares are down 3% at 332.7 pence. ([e-mail])

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Entain Starts 2023 Well Despite Headwinds

0838 GMT - Entain's 2022 results are consistent with recent upwardly revised guidance and, despite a number of headwinds, the current year is said to have started well, Shore Capital research analyst Greg Johnson says in a research note. Key for the FTSE 100 betting-and-gambling group in 2023 will be improving digital growth throughout the year and U.S. joint venture BetMGM turning profitable in the second half, he adds. Group underlying Ebitda of GBP993.2 million, up around GBP110 million on year, was a highlight, Johnson says. Digital Ebitda fell 8%, with the shortfall reflecting tough comparatives and a number of regulatory headwinds during the year, he adds. Shore Capital has a buy rating on the stock. ([e-mail])

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Hammerson's 2022 Shows Some Stability But Big Challenges Remain

0838 GMT - Hammerson's 2022 earnings per share rose 62% on year, but net asset values declined, missing market expectations, and it didn't declare a dividend, RBC Capital Markets says. The shopping-center operator's results show some stability but financial gearing and variable rent levels remain high, and challenging market conditions are likely to hamper progress with the restructuring, RBC analysts say in a research note. "Despite no significant near-term refinancing needs, we believe deeply discounted share price multiples are likely for as long as such uncertainties remain," the Canadian bank says. RBC retains its underperform rating and 15.5 pence price target. Shares are down 8.5% at26.81 pence. ([e-mail])

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M&G's Operating Profit Beat Driven by One-Off, Says RBC

0835 GMT - M&G's longevity changes drove its earnings beat but assumptions remain prudent in that area, RBC Capital Markets says in a note after the savings-and-investments business posted an adjusted operating profit for 2022 ahead of consensus. "11% operating profit beat is driven by performance fees and longevity improvement assumption changes, which may be considered as one-off by investors and therefore low quality (note we believe that longevity releases will be recurring for a number of years)," say analysts Mandeep Jagpal and Gordon Aitken. They add that M&G's Solvency II ratio was strong at 199% but missed consensus and is likely to weigh on sentiment. Shares edge up 0.2% at 216.5 pence, paring earlier losses after opening around 3% lower. ([e-mail])

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Aviva's Results Were Reassuring Enough, Says Citi

0834 GMT - Aviva's results were reassuring enough with no obvious issues, says Citi in a note after the insurer reported 2022 results and launched a share buyback in line with expectations sending shares to their highest in over six months. "There are a lot of moving pieces but with no obvious issues, we expect the combination of the underlying operating profit beat, the modest dividend upgrade and the 2024 [own funds generation] commentary to be well received," says analyst James Shuck. Citi rates the stock neutral. Shares rise 3.0% at 463.4 pence to its highest since mid-August. ([e-mail])

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ConvaTec's 2022 Results Meet Market Views But More Needed on Outlook

0814 GMT - ConvaTec's 2022 revenue and earnings per share were in line with market expectations, as was its organic revenue growth, RBC Capital Markets says. The medical products and technologies company's outlook for 2023 also met current consensus expectations on organic revenue growth and operating margin, RBC analysts say in a research note. "We think these results will be taken well by investors, but we continue to think that more granularity is needed on the timings of mid-term guidance of 'mid-20s operating margin' before the company's valuation can re-rate," the Canadian bank says. RBC retains its sector perform rating and 215 pence price target on the stock. Shares are up 1.7% at 228.2 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-09-23 0413ET