Miners Drop After BHP, Antofagasta Earnings Fall Short

Miners Drop After BHP, Antofagasta Earnings Fall Short

1025 GMT - Mining shares fall after BHP posted lower-than-expected first-half profit and Chilean copper miner Antofagasta's annual earnings fell short of market forecasts. BHP's 1H EBITDA modestly missed Citigroup and market expectations and the miner's net debt was higher than expected, Citi says. Meanwhile, Antofagasta's full-year EBITDA of $2.93 billion was below expectations, RBC Capital Markets says. Antofagasta has taken a hit from weather and production issues and lower copper prices, financial-services firm eToro says. Still, China's economic re-opening and a potentially shallower-than-expected recession in the U.S. and Europe could support metal prices, it says. "Therefore, if Antofagasta can avoid any major production-process disruption, we should see copper and gold production increase in 2023," eToro analyst Adam Vettese writes. ([e-mail])

 
Companies News: 

HSBC Posts Higher Profit After Rise in Global Interest Rates -- WSJ

Global banking giant HSBC Holdings PLC reported a sharp rise in fourth-quarter profit, driven by higher interest rates.

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Intermediate Capital COO, CFO Vijay Bharadia to Step Down

Intermediate Capital Group PLC said Tuesday that Chief Financial and Operating Officer Vijay Bharadia has decided to step down following the company's annual general meeting in July.

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Antofagasta 2022 Pretax Profit Fell on Lower Copper Prices

Antofagasta PLC said Tuesday that pretax profit for 2022 fell due to lower copper prices, and reduced its dividend payout.

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InterContinental Hotels Launches $750 Mln Buyback Program; 2022 Pretax Profit Rose, Missed Consensus

InterContinental Hotels Group PLC said Tuesday that it was launching a $750 million share buyback program for 2023 as it reported a rise in 2022 pretax profit driven by strong demand but missed consensus.

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Finsbury Food 1H Pretax Profit Rose on Price Recovery

Finsbury Food Group PLC said Tuesday that pretax profit for the first half of fiscal 2023 rose, driven by price recovery initiatives, and that it remains on track to meet full-year market expectations.

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Smith & Nephew Posts 2022 Pretax Profit Drop, Updates Midterm Targets

Smith & Nephew PLC on Tuesday reported a drop in pretax profit for 2022 due an associate's loss as it outlined guidance for 2023 and updated its midterm targets.

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Safestore Holdings Had Solid 1Q; Expects to Meet FY 2023 Consensus

Safestore Holdings PLC said Tuesday that it had a solid first quarter with revenue growth of 9.4% and it expects to meet consensus adjusted earnings per share for the year.

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Carr's Group Names Peter Page CEO; 2022 Pretax Profit, Revenue Rose

Carr's Group PLC on Tuesday said executive chairman Peter Page is relinquishing the role as he becomes chief executive officer and named David White as chief financial officer, both with immediate effect, and reported a rise in pretax profit for fiscal 2022.

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Petra Diamonds Swung to Pretax Loss on Higher Costs, Lower Sales

Petra Diamonds Ltd. reported a swing to pretax loss in the first half of fiscal 2023, in line with expectations, dragged by higher costs and lower diamond sales.

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GB Group 2023 Revenue to Rise on Year But Miss Forecasts

GB Group PLC said Tuesday that it expects fiscal 2023 revenue to rise, despite challenging conditions for cryptocurrency and macroeconomic uncertainty in its key North America market.

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Blancco Technology 1H Revenue, Profit Rose Amid Broad Growth

Blancco Technology Group PLC said Tuesday that revenue and profit rose for the first half of fiscal 2023 as it booked double-digit constant currency growth in each of its three geographies.

 
Market Talk: 

UK's January Tax Revenue Rises From a Year Ago

1047 GMT - The latest public finances data show the U.K.'s tax revenue in January rose from a year ago, supported by a high inflation rate and strong labor market, says Investec chief economist Philip Shaw in a note. "Total tax revenues, excluding APF (QE) inflows, rose by 13.2% from a year ago. Corporation tax was 27.9% higher, self-assessed income tax 33.3% up and PAYE income tax 10.6% above January 2022," he says. However, tax revenues are likely to weaken through the course of 2023 "as the economy finds the going tougher." ([e-mail])

AstraZeneca's Long-Term Ambition Depends on Trials Beyond 2024

1041 GMT - AstraZeneca said in its fourth-quarter results that it would start more than 30 phase-3 trials this year, 10 of which are for blockbusters, and that is impressive, UBS analysts say in a note. However, the company's ambition to grow faster than peers post 2028 depends on trials that will be out beyond 2024, the analysts say. In the meantime, the company should focus on its late-stage oncology pipeline, according to UBS. While there are significant late-stage pipeline options that aren't yet included in consensus, it will take some time for them to emerge, the analysts say. ([e-mail])

UK PMIs Beat Expectations But Recession Still Looms

1036 GMT - U.K. PMIs in February were well above consensus, but it would be premature to conclude that the economy has avoided a recession, Pantheon Macroeconomics economist Gabriella Dickens says in a note. Purchasing managers are probably relieved that the economic outlook is not as bad as seemed likely in 4Q, given interest-rate expectations and wholesale energy prices have fallen since then, Dickens says. The composite PMI doesn't include retail or construction, nor the public sector, where output likely will fall in 1Q due to increased strike action, she says. This means U.K. GDP will still likely drop in 1Q and 2Q as households' real disposable incomes continue to decline in response to further increases in consumer energy prices, and as households refinancing mortgages cut back on spending, she adds. ([e-mail])

Gilts Rally Briefly After Better-Than-Expected UK Public Finances Data

1006 GMT - U.K. gilts stage a brief rally after data showed U.K. public sector net borrowing recorded a GBP5.4 billion surplus in January compared to the consensus forecast for a GBP6.1 billion deficit in a WSJ poll. "Ahead of next month's Budget, the U.K.'s fiscal figures beat expectations again despite another monthly record for debt interest," Daiwa Capital Markets analysts say in a note. The U.K. 10-year gilt yield--which moves inversely to prices--declined to 3.468% in the wake of the data, before tracking eurozone yields higher to last trade up 4.7 basis points at 3.537%, according to Tradeweb. ([e-mail])

Sterling Rises After UK PMI Data Beat Forecasts

0948 GMT - Sterling rises after the latest U.K. purchasing managers' index survey exceeded expectations. The composite PMI, which measures services and manufacturing activity, rose to 53.0 in February from 48.5 in January, according to S&P, above the 49.0 reading expected in a WSJ survey of analysts. A level above 50 indicates an expansion in activity. The "resilience of the economy and the stickiness of the survey's inflation gauges add to the likelihood of the Bank of England tightening policy further, and potentially more aggressively," S&P economist Chris Williamson says in the survey's press release. GBP/USD rises to a six-day high of 1.2077 after the data, from 1.1998 beforehand, according to FactSet. EUR/GBP falls to a six-day low of 0.8834, from 0.8880 beforehand. ([e-mail])

Smith & Nephew Gains After Upbeat Sales Outlook

0939 GMT - Smith & Nephew shares top the FTSE 100 risers, up 5% after the artificial-joint maker gave an upbeat sales outlook, but cut margin guidance. S&N issued 2023 organic sales growth guidance modestly ahead of consensus, Citigroup says. The company also revised its mid-term guidance, predicting higher sales growth but lower margins as expected, Citi says. "All-in, we see 4Q/2H22 as solid, with the better-than-expected top line key and 2023 guidance as implying upside to consensus trading profit expectations," Citi analysts say in a note, reiterating their buy recommendation. ([e-mail])

UK Government Unlikely to Ease Fiscal Policy Significantly Despite January's Surplus

0933 GMT - The U.K.'s public sector ran a surplus in January, but this is unlikely to give the government much scope for higher spending, Capital Economics deputy chief U.K. economist Ruth Gregory says in a note. Less costly energy price subsidies and stronger income tax receipts contributed to January's surplus, and total deficit for fiscal 2023 is likely to be well below the forecasts of the Office for Budget Responsibility, she says. "It's likely that the Chancellor will have some wiggle-room in the Budget to fund near-term tax cuts and/or spending rises," Gregory says. "But with the OBR poised to slash its medium-term growth forecasts, any hopes [the Chancellor] might be able to give away a significant amount of money... may be disappointed," she says. ([e-mail])

UK January 2029 Gilt Trades Cheap Ahead of Auction

0923 GMT - The U.K. 0.5% January 2029 gilt trades cheap ahead of the Debt Management Office's planned sale of GBP3.5 billion in this bond on Tuesday, say RBC Capital Markets analysts in a note. "We expect decent demand at Tuesday's auction," they say. "Given the cheapening of the bond on the asset swap spread and its attractiveness on relative value terms, we think the auction should go relatively well," the analysts say. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

02-21-23 0608ET