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FTSE 100 Gains as Lloyds, Oil Majors Rise; Rio Tinto Disappoints

07/27/2022 | 04:53am EDT

FTSE 100 Gains as Lloyds, Reckitt Rise; Rio Falls

0815 GMT - The FTSE 100 Index rises 0.5%, or 37 points to 7342 as gains for Lloyds Banking Group, Reckitt Benckiser and Smurfit Kappa offset losses for Rio Tinto and other miners. Lloyds advances 3.6% after the U.K. bank reported better-than-expected second-quarter earnings and upgraded full-year guidance. Reckitt shares tick up 4% after the consumer-goods group also reported a forecast-beating second quarter. Smurfit Kappa rises 6% after the packaging group reported higher first-half pretax profit and revenue, boosting shares in rivals such as Mondi and DS Smith. Still, Rio Tinto drops 2% after it reported a first-half profit hit from lower iron-ore prices and rising costs. BP and Shell rise as Brent crude increases 1% to $100.4 a barrel. (philip.waller@wsj.com)

 
Companies News: 

Fresnillo Backs Guidance as 2Q Production, Juanicipio Commissioning on Track

Fresnillo PLC on Wednesday reiterated 2022 guidance as its second quarter production was in line with expectations and the Juanicipio plant will start commissioning soon.

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Smurfit Kappa 1H Pretax Profit, Revenue Rose

Smurfit Kappa Group PLC said Wednesday that pretax profit rose on higher revenue in the first half of the year, and that its performance in the period has set a strong foundation for the remainder of 2022.

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Lloyds 2Q Pretax Profit Rose Ahead of Views, Outlook for 2022 Enhanced

Lloyds Banking Group PLC reported on Wednesday a slight increase in pretax profit for the second quarter of 2022, which came in ahead of market views, and said that it has strengthened its outlook for the whole year.

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GSK 2Q Operating Profit Slipped Despite Higher Sales; Raises 2022 Outlook

GSK PLC said Wednesday that its second quarter operating profit fell from the previous year though sales grew, and raised its outlook for 2022.

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Haleon 2Q Organic Revenue Boosted by Portfolio Strength, Innovation

Haleon PLC on Wednesday reported a 7.5% organic rise in second-quarter revenue, which it said reflected the strength of its portfolio, continued innovation and excellent commercial execution across its markets, and said that full-year growth is now expected to be 6%-8%.

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British American Tobacco 1H Pretax Profit Fell Despite Revenue Boost From New Categories

British American Tobacco PLC said Wednesday that first-half pretax profit fell on higher expenses, despite a robust increase of new categories revenue.

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Unite Group Posts Higher 1H Earnings, Raises Guidance for 2022-23 Academic Year

Unite Group PLC on Wednesday reported higher earnings for the first half of 2022 and raised its outlook for the 2022-23 academic year.

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Marston's: Like-For-Like Sales Down 2% on 2019 Due to Trading Restrictions, Consumer Sentiment

Marston's PLC said Wednesday that like-for-like sales for the 42-week period to July 23 were down 2% on 2019, reflecting the reintroduction of trading restrictions in December and January and the hit to consumer sentiment in the first half.

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Paragon Banking Backs FY 2022 Guidance After Strong 3Q

Paragon Banking Group PLC said Wednesday that its performance in the third quarter of fiscal 2022 was strong and that it continues to back its guidance for the whole year.

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Reckitt Benckiser Swung to 1H Pretax Profit, Upgrades Revenue Growth View

Reckitt Benckiser Group PLC reported Wednesday a swing to pretax profit for the first half of the year and upgraded its revenue growth expectations for the full year.

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Rio Tinto 1H Profit Falls 28%, Market Environment Worsens

Rio Tinto PLC said its first-half profit fell by 28% as iron-ore prices weren't as strong and it grappled with rising costs, prompting a sharp cut in its midyear payout to shareholders.

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Everyman Media 1H Revenue, Adjusted Ebitda Recover to Prepandemic Levels

Everyman Media Group PLC said Wednesday that revenue and adjusted earnings before interest, taxes, depreciation and amortization for the first half rose compared with 2019 after an increased number of venues, strong admissions and higher average spends.

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Anglo American's De Beers Reports Diamond Sales of $630 Mln for Cycle 6

Anglo American PLC on Wednesday reported revenue of $630 million for the sixth diamond sales cycle of 2022 which ran from July 11 to July 26.

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Wizz Air 1Q Pretax Loss Widened on Higher Costs

Wizz Air Holdings PLC said Wednesday that its pretax loss widened for the first quarter of fiscal 2023 after booking higher costs, and that it was affected by lingering Covid-19 restrictions and the effect of the war in Ukraine.

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FirstGroup Says FY 2023 Performance in Line With Views So Far

FirstGroup PLC said Wednesday that its fiscal 2023 performance in the year-to-date has been in line with the board's expectations.

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WH Ireland FY 2022 Pretax Profit Fell Sharply

W.H. Ireland Group PLC reported on Wednesday a significant decline in pretax profit for fiscal 2022 but said its aim is to return to sustainable profitability.

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Motorpoint Group 1Q Revenue Rose on Strong Growth, Vehicle Price Inflation

Motorpoint Group PLC said Wednesday that first-quarter revenue rose around 30% after it booked strong growth supported by vehicle price inflation.

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Parsley Box Shares Drop After Lowered 2022 Guidance, 1H Revenue Fall

Shares in Parsley Box Group PLC dropped 19% on Wednesday morning after the company lowered full-year guidance and said first-half revenue fell.

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Ibstock 1H Pretax Profit Rose, Expects to Beat 2022 Earnings Views

Ibstock PLC said Wednesday that pretax profit for the first half of 2022 rose due to a strong performance in the period, and that it expects adjusted Ebitda for the year to be ahead of views.

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Nichols 1H Pretax Profit Rose on Higher Revenue, Raises Dividend

Nichols PLC said Wednesday that pretax profit for the first half rose on increased revenue, and that it raised its dividend payout despite inflationary pressures.

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Provident Financial 1H Pretax Profit Fell; CET 1 Ratio Weaker

Provident Financial PLC on Wednesday reported a decline in pretax profit for the first half of 2022 and a weaker balance sheet, though it said it is confident about its outlook.

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Lancashire Holdings 1H Pretax Profit Rose; Losses From Ukraine War at Lower End of Guidance

Lancashire Holdings Ltd. said Wednesday that first-half pretax profit rose, and that net losses stemming from the war in Ukraine were toward the lower end of guidance.

 
Market Talk: 

Smurfit Kappa Shares Look Compelling After Upbeat 1H

0814 GMT - Smurfit Kappa Group had a "blow-out" second quarter, Davy says after the packaging group reported higher first-half pretax profit and revenue and said it was well-placed for the rest of 2022. The results represent further proof of the underlying transformation of the company's business model, Davy says. Smurfit hit new 'highs' in terms of EBITDA, margins and return-on-capital-employed. "As a result, we're upgrading our FY22 EBITDA numbers from EUR2,050m to EUR2,200m," Davy analysts say in a note. "And, while macro-economic uncertainty abounds into FY23, SKG's current valuation of 5.0x 2022 EV/EBITDA is already pricing in a very negative outlook. We think these are compelling valuations for long-term investors." (philip.waller@wsj.com)

Rio Tinto Earnings, Cash Flow May Fall Further

0759 GMT - Rio Tinto is likely to continue to experience falling earnings and cash flow in 2H, with a trough not likely until 4Q, Jefferies analysts say in a note. They cite a combination of declining prices and rising costs as drivers for a weak 1H result from the miner. The analysts expect investors will react negatively to a smaller-than-anticipated dividend, especially given some other miners have been increasing capital returns. "The company was clearly being conservative with its capital return in light of the macro risks, and the bulk of the discretionary capital return really should not have been expected until full year results anyway," the analysts say. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

Reckitt Looks Set For Earnings Upgrades After Upbeat 1H

0741 GMT - Shares in Reckitt Benckiser rise 6% after the consumer-goods group reported a swing to first-half pretax profit and upgraded its full-year revenue growth expectations. Reckitt achieved a very strong 2Q, well above expectations and more importantly across the board including in the company's hygiene business, Citigroup says. The results support the thesis of Reckitt having finally completed a successful turnaround, Citi says. "The new outlook should support low- to mid-single-digit earnings upgrades," Citi analysts say in a note. (philip.waller@wsj.com)

Rio Tinto FY Earnings Estimates Likely to Get Downgrade After Soft 1H

0745 GMT - It's likely Rio Tinto will face consensus earnings downgrades for fiscal year 2022 following a soft 1H result, Citi analysts say in a note. They highlight underlying Ebitda of $15.6 billion as being 3% below market consensus and 10% lower than their expectations. Cash returns were weaker than expected, they say, with a 50% payout well below market expectations the miner would hand out 65-70% of underlying earnings. Nevertheless, the "balance sheet continues to be healthy with a small net cash position, which is broadly in line with expectations," the analysts say. (rhiannon.hoyle@wsj.com)

Reckitt Looks Set For Earnings Upgrades After Upbeat 1H

0741 GMT - Shares in Reckitt Benckiser rise 6% after the consumer-goods group reported a swing to first-half pretax profit and upgraded its full-year revenue growth expectations. Reckitt achieved a very strong 2Q, well above expectations and more importantly across the board including in the company's hygiene business, Citigroup says. The results support the thesis of Reckitt having finally completed a successful turnaround, Citi says. "The new outlook should support low- to mid-single-digit earnings upgrades," Citi analysts say in a note. (philip.waller@wsj.com)


(MORE TO FOLLOW) Dow Jones Newswires

07-27-22 0452ET

Stocks mentioned in the article
ChangeLast1st jan.
0X (ZRX/USD) 0.26% 0.267 End-of-day quote.-69.46%
ANGLO AMERICAN PLC 1.15% 2760 Delayed Quote.-8.49%
BASICNET S.P.A. -0.20% 5.07 Delayed Quote.-11.65%
BRITISH AMERICAN TOBACCO PLC -2.04% 3269.5 Delayed Quote.19.61%
CITIGROUP INC. -2.33% 42.39 Delayed Quote.-29.81%
DS SMITH PLC -4.81% 249.2 Delayed Quote.-35.07%
EVERYMAN MEDIA GROUP PLC 0.00% 98 Delayed Quote.-24.03%
FIRSTGROUP PLC -3.33% 104.6 Delayed Quote.2.35%
FRESNILLO PLC -0.08% 747.8 Delayed Quote.-16.24%
FTSE 100 -1.77% 6881.59 Delayed Quote.-5.13%
GSK PLC -1.92% 1315.8 Delayed Quote.-19.94%
HALEON PLC 0.48% 280.05 Delayed Quote.0.00%
IBSTOCK PLC -4.01% 160.4 Delayed Quote.-21.30%
LANCASHIRE HOLDINGS LIMITED 0.40% 505.5 Delayed Quote.-4.62%
LLOYDS BANKING GROUP PLC -2.72% 40.715 Delayed Quote.-14.82%
LONDON BRENT OIL -0.56% 88.2 Delayed Quote.9.98%
MARSTON'S PLC -7.02% 34.42 Delayed Quote.-55.30%
MOTORPOINT GROUP PLC 0.00% 180 Delayed Quote.-48.57%
NICHOLS PLC -3.37% 1075 Delayed Quote.-27.97%
PARAGON BANKING GROUP PLC -5.43% 387 Delayed Quote.-31.69%
PARSLEY BOX GROUP PLC 0.00% 9.5 Delayed Quote.-71.64%
PROVIDENT FINANCIAL HOLDINGS, INC. -0.75% 14.6 Delayed Quote.-11.01%
PROVIDENT FINANCIAL PLC -7.14% 167.8 Delayed Quote.-53.29%
RECKITT BENCKISER GROUP PLC 0.92% 6124 Delayed Quote.-3.44%
RIO TINTO PLC 0.82% 4894 Delayed Quote.0.04%
S&P GSCI BRENT CRUDE INDEX 0.23% 743.1498 Real-time Quote.13.20%
SMURFIT KAPPA GROUP PLC -5.34% 28.37 Real-time Quote.-38.13%
UNITE GROUP PLC -3.44% 814.5 Delayed Quote.-26.65%
WH IRELAND GROUP PLC -6.06% 31 Delayed Quote.-36.08%
WIZZ AIR HOLDINGS PLC -4.41% 1602.5 Delayed Quote.-61.74%
WTI -0.59% 81.193 Delayed Quote.8.46%
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