- Scott Peters
- 26 Jul, 2022
- New York City
UBS AG dropped 10.9% to $15.04 after the Swiss bank reported sharply lower-than-expected earnings in its latest quarter.
Total revenues in the June quarter were essentially flat at $8.9 billion and net income gained 5% to $2.1 billion from $2.01 a year ago.
Many analysts were looking for earnings to fall between $2.2 billion and $2.45 billion in an informal poll conducted by Ticker.com in the U.S. and Switzerland.
Diluted earnings per share rose to 61 cents from 55 cents a year ago.
Fee generating assets in its global wealth management unit, fee-generating assets decreased by 12% or $169.5 billion to $1,244 billion, almost entirely driven by market decline and foreign currency effects.
The earnings were supported by a one-time gain of $848 million from the sale of its minority stake in its real estate joint venture in Japan with Mitsubishi.
Investment banking revenues declined 14% to $2.1 billion and wealth management unit revenues dropped to $4.7 billion from $4.8 billion a year ago.
UBS said assets under management declined $12 billion, mostly driven by outflows in equities assets.
- Barry Adams
- 26 Jul, 2022
- New York City
Benchmark indexes traded lower ahead of the Fed's rate decision on Wednesday followed by the GDP data on Thursday.
The S&P 500 index declined 1.1% to 3,921.26 and the Nasdaq Composite index fell 1.9% to 11,569.95.
Futures of crude oil declined $1.20 to $95.10 a barrel and natural gas rose 22 cents to $8.95 a thermal unit.
Natural gas futures surged Russia controlled Gazprom throttled down gas flow to 20% of capacity of the Nord Stream 1.
3M increased 6.3% to $142.72 after the company reported better-than-expected earnings and said it plans to separate its healthcare unit as a separate independent company.
Coca-Cola Company gained 1.8% to $63.33 after the beverage maker said second quarter revenues rose 12% to $11.3 billion and net income dropped 28% to $1.9 billion from $2.6 billion a year ago.
Diluted earnings per share declined to 44 cents from 61 cents a year ago.
The concentrate volume sales increase of 4 percentage points and acquisition related sales increase of 2 percentage points was offset by 6 percentage points decline in sales from the stronger dollar.
The increase in price and volume mix of 12 percentage points drove all of the total sales increase in the quarter.
Unit case volumes across all geographies rose 8% and in the North America rose 2%.
The company guided organic revenues in the full-year to increase between 12% and 13%, an increase from the previous estimate between 7% and 8%.
Coca-Cola guided its adjusted earnings per share based on constant currency to increase to between 14% and 15% from the previous estimate of between 8% and 10%.
General Electric increased 6.9% to $73.10 after the company reported higher earnings and cash flow on the recovery in its aviation engine business.
General Motors declined 2.8% to $33.75 and the vehicle maker said June quarter revenues increased 4.6% to $35.8 billion and net income plunged 40% to $1.7 billion from $2.8 billion a year ago.
The company blamed the earnings fall on China lockdown and parts shortages preventing the automaker from shipping 100,000 vehicles.
The automaker said it has secured materials needed to make one million electric vehicles by 2025.
General Motors guided full-year net income between $9.6 billion and $11.2 billion and adjusted operating earnings between $13.0 billion and $15.0 billion.
The company also guided full-year diluted earnings per share between $5.76 and $6.76 and adjusted earnings per share between $6.50 and $7.50.
Shopify plunged 15.5% to $31.02 after the e-commerce platform operator announced a layoff of 10% or about 1,000 employees.
Walmart Inc declined 7.9% to $121.62 after the retailer lowered its outlook for the fiscal year second quarter and said consumers are sticking to basic necessities because of high food and energy prices.
The shifting consumer pattern is also forcing the retailer to mark down several items including apparel and other discretionary items.
- Bridgette Randall
- 26 Jul, 2022
- New York City
European markets traded down ahead of the U.S. GDP data and interest rate decision.
Stocks in Frankfurt edged lower after Russia -controlled Gazprom throttled down natural gas flow to 20% of the capacity of Nord Stream 1 pipeline network.
The DAX index fell 0.8% to 13,102.31, the CAC-40 index declined 0.4% to 6,210.59, and the FTSE index was nearly unchanged 7,306.28.
Lindt & Spruengli increased to 107,825 Swiss francs after the chocolate maker released a stock repurchase plan of up to one billion swiss francs.
For the full-year, the chocolate maker revised its sales growth outlook to between 8% and 10% from the previous estimate between 6% and 8%.
Organic sales in the first half of 2022 ending in June increased 12.3% to 1.99 billion Swiss francs and operating profit rose 33.4% to 185.2 million Swiss francs.
Rolls Royce gained 1.5% to 93.34 pence after the aerospace and defense company appointed private equity partner and BP executive Tufan Erginbilgic as its chief executive .
Tufan will take up his new role on January 1, 2023, succeeding Warren East,
In February, East announced his intention to step down at the end of this year
Net income jumped 36.2% from a year ago to 138.4 million Swiss francs.
Stratec SE declined 11.9% to 84.60 euros after the maker of in-vitro diagnostics systems maker estimated first-half sales of 137.2 million euros compared to 155.8 million a year ago.
UBS AG dropped 10.9% to $15.04 after the Swiss bank reported sharply lower-than-expected earnings in its latest quarter.
Total revenues in the June quarter was essentially flat at $8.9 billion and net income gained 5% to $2.1 billion from $2.01 a year ago.
Many analysts were looking for earnings to fall between $2.2 billion and $2.45 billion in an informal poll conducted by Ticker.com in the U.S. and Switzerland.
Diluted earnings per share rose to 61 cents from 55 cents a year ago.
Fee generating assets in its global wealth management unit, fee-generating assets decreased by 12% or $169.5 billion to $1,244 billion, almost entirely driven by market decline and foreign currency effects.
The earnings were supported by one-time gain of $848 million from the sale of its minority stake in its real estate joint venture in Japan with Mitsubishi.
Investment banking revenues declined 14% to $2.1 billion and wealth management unit revenues dropped to $4.7 billion from $4.8 billion a year ago.
UBS said assets under management declined $12 billion, mostly driven by outflows in equities assets.
Zalando SE declined 9.8% to 25.99 euros on no corporate news. The e-commerce stocks in Europe were under pressure after the Canada-based Shopify announced a plan to layoff 10% or 1,000 employees.
- Barry Adams
- 26 Jul, 2022
- New York City
Benchmark indexes traded lower ahead of the Fed's rate decision on Wednesday followed by the GDP data on Thursday.
The S&P 500 index declined 1.1% to 3,921.26 and the Nasdaq Composite index fell 1.9% to 11,569.95.
Futures of crude oil declined $1.20 to $95.10 a barrel and natural gas rose 22 cents to $8.95 a thermal unit.
Natural gas futures surged Russia controlled Gazprom throttled down gas flow to 20% of capacity of the Nord Stream 1.
Separately, the EU member states agreed to lower natural gas consumption by 15% for the next eight months.
Russia supplies about 40% of natural gas needs of the European Union 27 member states and alternative supplies from Norway, U.S., Qatar and Algeria are likely to fall far short of the region's needs.
The yield on 10-year Treasury notes declined to 2.78% ahead of the Fed's rate decision tomorrow after a two-day meeting.
Investors are looking for the Fed to raise between 50 and 75 basis points to stem the sky-high inflation hovering near 8.6% for the last two months.
The inflation measure, Consumer Price Index, has been above the Fed's preferred target rate of 2% for the last 18 months in a row.
Walmart Inc declined 7.9% to $121.62 after the retailer lowered its outlook for the fiscal year second quarter and said consumers are sticking to basic necessities because of high food and energy prices.
The shifting consumer pattern is also forcing the retailer to mark down several items including apparel and other discretionary items.
Shopify plunged 15.5% to $31.02 after the e-commerce platform operator announced a layoff of 10% or about 1,000 employees.
3M increased 6.3% to $142.72 after the company reported better-than-expected earnings and said it plans to separate its healthcare unit as a separate independent company.
General Electric increased 6.9% to $73.10 after the company reported higher earnings and cash flow on the recovery in its aviation engine business.
General Motors declined 2.8% to $33.75 and the vehicle maker said June quarter revenues increased 4.6% to $35.8 billion and net income plunged 40% to $1.7 billion from $2.8 billion a year ago.
The company blamed the earnings fall on China lockdown and parts shortages also prevented the automaker from shipping 100,000 vehicles.
The vehicle maker said it has secured materials needed to make one million electric vehicles by 2025.
General Motors guided full-year net income between $9.6 billion and $11.2 billion and adjusted operating earnings between $13.0 billion and $15.0 billion.
The company also guided full-year diluted earnings per share between $5.76 and $6.76 and adjusted earnings per share between $6.50 and $7.50.
- Bridgette Randall
- 26 Jul, 2022
- New York City
European markets traded down ahead of the U.S. GDP data and interest rate decision.
Stocks in Frankfurt edged lower after Russia controlled Gazprom throttled down natural gas flow to 20% of the capacity of Nord Stream 1 pipeline network.
The widely anticipated move from Gazprom also lifted natural gas and crude oil prices in European trading.
The European Union member states agreed to cut natural gas consumption by 15% for the next eight months beginning next month.
Europe has been looking for alternative natural gas supplies from Norway, Algeria, Qatar, and the U.S.
Russia supplies about 40% of the natural gas consumption of the 27 member states of the European Union and alternative supplies from other nations can only provide less than 10% of Europe's needs.
Moreover, alternative supplies will be delivered in a liquid form and Europe lacks LNG processing facilities at ports.
The DAX index fell 0.8% to 13,102.31, the CAC-40 index declined 0.4% to 6,210.59, and the FTSE index was nearly unchanged 7,306.28.
Lindt & Spruengli increased 107,825 Swiss francs after the chocolate maker released a stock repurchase plan of up to one billion swiss francs.
For the full-year, the chocolate maker revised its sales growth outlook to between 8% and 10% from the previous estimate between 6% and 8%.
Organic sales in the first half of 2022 ending in June increased 12.3% to 1.99 billion Swiss francs and operating profit rose 33.4% to 185.2 million Swiss francs.
Net income jumped 36.2% from a year ago to 138.4 million Swiss francs.
UBS AG dropped 10.9% to $15.04 after the Swiss bank reported sharply lower-than-expected earnings in its latest quarter.
Total revenues in the June quarter was essentially flat at $8.9 billion and net income edged slightly to $2.1 billion from $2.01 a year ago.
Diluted earnings per share rose to 61 cents from 55 cents a year ago.
Fee generating assets in its global wealth management unit, fee-generating assets decreased by 12% or $169.5 billion to $1,244 billion, almost entirely driven by market decline and foreign currency effects.
- Arjun Pandit
- 26 Jul, 2022
- New York City
The Nikkei average eased 0.16% to 27,655.21 and the broader Topix index closed fractionally lower at 1,943.17.
The latest minutes of the meeting from the Bank of Japan highlighted the need to monitor the impact of the moves in the financial and currency markets on the broader economy.
SoftBank Group increased 3.2% to 9,984.20 yen and the company called off its plan to invest $1.6 billion in the U.K. based e-commerce company The Hut Group.
In broader trading in Tokyo, pharmaceutical and shipping sector stocks led the decliners.
The Shanghai Composite index rose 0.83% to 3,277.44 after local media reported that the financial and housing authorities are working together to establish a bailout fund for select real estate projects.
Hong Kong's Hang Seng index advanced 1.67% to 20,905.88 and Alibaba Group said it is looking for ways to make its Hong Kong traded shares more accessible to mainland Chinese investors.
The Kospi average inched higher 0.39% to 2,412.96 after South Korea's GDP expanded seasonally adjusted 2.9% from a year ago in the second quarter ending in June.
On a quarterly basis, the economy expanded unexpectedly at a faster pace 0.7% from the first quarter.
Economists were expecting the economy to grow at a 0.4% rate on a quarterly basis and 2.5% annually.
The Sensex index in Mumbai fell 497.73 or 0.89% to 55,268.49 and the Nifty index declined 147.15 or 0.88% to 16,483.85.
Despite the banks, vehicle makers and industrial companies reporting a surge in earnings, investors sold stocks ahead of the U.S. Fed's rate decision tomorrow.
- Scott Peters
- 25 Jul, 2022
- New York City
Walmart lowered its outlook for the fiscal year second quarter ending in July and for the full-year.
Accelerating food prices are forcing customers to spend less on other items forcing the retailer to markdown apparel and other discretionary items.
- Barry Adams
- 25 Jul, 2022
- New York City
U.S. stocks lacked direction ahead of the Fed's rate decision and the GDP data later in the week.
Investors have been battling worries of inflation, corporate earnings growth and the path of the economic growth.
About 450 companies including one-third of the companies listed in the S&P 500 index are scheduled to release quarterly results this week.
The S&P 500 index increased 2.46 to 3,963.91 and the Nasdaq Composite index declined 0.4% or 49.06 to 11,781.94.
Benchmark indexes in volatile trading hugged flat line and traders avoided bets ahead of the Fed's rate decision at the end of two-day meeting on July 27.
Economists are anticipating at least 50 basis points increase in the key lending rate and many are rooting for a larger 75 basis point hike in the rate helping the policymakers in front-loading inflation containment.
Inflation has stayed above the Fed's target rate of 2% for 18 months in a row and surged as high as 8.6% in the last two months.
The Bureau of Economic Analysis is set to release the second quarter GDP estimate at 8:30 a.m. on July 28,
Futures of crude oil increased $1.56 to $96.24 a barrel and natural gas rose 36 cents to $8.66 a unit.
The yield on 10-year Treasury notes edged up 3 ticks to 2.82%.
The euro traded at $1.0216 and the Japanese yen dropped to 136.71 against one U.S. dollar.
Energy stocks traded higher after crude oil prices rebounded from the lows of last week.
Hess, Marathon Oil, Valero Energy, and Diamondback Energy gained more than 4%.
Newmont Corporation dropped 12.8% to $44.86 after the resource company reported flat sales of $3.06 billion and net income declined to $387 million from $650 million a year ago.
Diluted earnings per share fell to 49 cents from 81 cents a year ago.
The gold mining company also trimmed its annual capital expenditure plan to $1.1 billion from the previous $1.4 billion released at the end of 2021.
World Wrestling Entertainment Inc increased 7.3% to $71.21 after the company said its chief executive Vince McMahon retired on Friday amid an internal investigation of sexual misconduct.
The company also disclosed previously unrecorded $14.6 million expenses paid personally by McMahon.
The company also said it "is facing or may face additional investigations from regulatory agencies and other entities" in a regulatory filing with the SEC.
Philips NV declined 7.9% to $20.80 after the medical equipment maker swung to a quarterly loss and said comparable sales fell 7% in its latest quarter ending in June.
Ryanair gained 4.6% to $74.22 after the discount airline operator reported better-than-expected earnings and estimated passenger traffic to rebound to the pre-Covid 2019 levels either this or the next year.
Germany's Business Confidence at 25-month Low
European markets lacked direction in volatile trading as investors digest another batch of corporate earnings in the region.
A private survey showed confidence in the business community dropped to the lowest level in the last 25 months.
The business confidence index declined to 88.6 in July from a revised 92.2 in June.
Higher energy prices and uncertainties linked to the natural gas deliveries and rising wage pressures are worrying business leaders.
The DAX index declined 0.3% to 13,210.46, the CAC-40 index inched up 0.3% to 6,237.55, and the FTSE 100 index increased 0.4% to 7,306.30.
Volkswagen AG declined 3.9% to 183.0 euros after the automaker said that the chief executive Herbert Diess will be replaced by Oliver Blume, head of Porsche.
In another management shake up, the company appointed chief financial officer Arno Antlitz as chief operating officer.
Under Diess, VW accelerated its investment and migration to electric vehicle production and in 2021 sold 450,000 units, surpassing Tesla sales in Europe.
Schaeffler AG declined 1.2% to 5.52 euros and the German industrial products maker signed an agreement with an affiliate of Triton Fund V for the acquisition of the Ewellix Group for 582 million euros and assume debt of 120 million euros.
In 2018, Triton acquired the linear actuators maker Ewellix Group from the Swedish bearings maker SKF.
Philips AG declined 7.7% to 20.08 euros after the medical equipment and systems maker reported sharply lower-than-expected earnings.
Revenues in the second quarter declined 1% or 7% on a comparable basis to 4.2 billion euros.
In the quarter, the company swung to a net loss of 20 million euros from 153 million profit a year ago.
Sales in Western Europe declined 6% to 873 million euros and in North America increased 11% to 1.7 billion euros.
Telefonica S.A. increased 1.9% to 4.42 euros after the company agreed to sell its rural fiber network in Spain to a consortium for around 1 billion euros.
Orange S.A. increased 1.5% to 10.27 euros after the French telecom operator agreed to merge its unit in Spain with MasMovil.
The equally-owned joint venture values Orange's Spain business at 7.8 billion euros and Masmovil at 10.9 billion euros.
China Worries Hobble Asian Markets
Asian markets traded lower and indexes in China led the declines in the region after real estate and banking crises.deepen in China
Investors also awaited the restructuring plan from the troubled China Evergrande Group.
At least four smaller banks in Henan and three additional banks in Anhui are restricting customer withdrawals.
Moreover, mortgage boycotts are spreading in central and southern China as investors await the fate of completion of 249 real estate projects reflecting over 1 million apartment units.
The Shanghai Composite index fell 0.60% to 3,250.39 and the Hang Seng index in Hong Kong closed down 0.22% to 20,562.94.
In Tokyo, benchmark indexes lower ahead of the U.S. Fed's rate decision and the release of the U.S. GDP data later in the week
The Nikkei average fell 0.77% to 27,699.25 to snap a seven-day advance while the broader Topix index dropped 0.65% to 1,943.21.
The Sensex index in India declined 0.6% to 55,766.20 after the industrial, telecom, and retail conglomerate Reliance Industries reported a 40% surge in earnings on the back of a 65% jump in crude oil prices.
In addition, tech service companies Infosys and Tech Mahindra reported sharply lower-than-expected earnings in the latest quarter ending in June.
- Bridgette Randall
- 25 Jul, 2022
- Frankfurt
European markets lacked direction in volatile trading as investors digest another batch of corporate earnings in the region.
The DAX index declined 0.3% to 13,210.46, the CAC-40 index inched up 0.3% to 6,237.55, and the FTSE 100 index increased 0.4% to 7,306.30.
Volkswagen AG declined 3.9% to 183.0 euros after the automaker said that the chief executive Herbert Diess will be replaced by Oliver Blume, head of Porsche.
In another management shake up, the company appointed chief financial officer Arno Antlitz as chief operating officer.
Under Diess, VW accelerated its investment and migration to electric vehicle production and in 2021 sold 450,000 units, surpassing Tesla sales in Europe.
Schaeffler AG declined 1.2% to 5.52 euros and the German industrial products maker signed an agreement with an affiliate of Triton Fund V for the acquisition of the Ewellix Group for 582 million euros and assume debt of 120 million euros.
In 2018, Triton acquired the linear actuators maker Ewellix Group from the Swedish bearings maker SKF.
Philips AG declined 7.7% to 20.08 euros after the medical equipment and systems maker reported sharply lower-than-expected earnings.
Revenues in the second quarter declined 1% or 7% on a comparable basis to 4.2 billion euros.
In the quarter, the company swung to a net loss of 20 million euros from 153 million profit a year ago.
Sales in Western Europe declined 6% to 873 million euros and in North America increased 11% to 1.7 billion euros.
Telefonica S.A. increased 1.9% to 4.42 euros after the company agreed to sell its rural fiber network in Spain to a consortium for around 1 billion euros.
Orange S.A. increased 1.5% to 10.27 euros after the French telecom operator agreed to merge its unit in Spain with MasMovil.
The equally-owned joint venture values Orange's Spain business at 7.8 billion euros and Masmovil at 10.9 billion euros.
- Bridgette Randall
- 25 Jul, 2022
- Frankfurt
European markets lacked direction in volatile trading as investors digest another batch of corporate earnings in the region.
A private survey showed confidence in the business community dropped to the lowest level in the last 25 months.
The business confidence index declined to 88.6 in July from a revised 92.2 in June.
Higher energy prices and uncertainties linked to the natural gas deliveries and rising wage pressures are worrying business leaders.
The DAX index declined 0.3% to 13,210.46, the CAC-40 index inched up 0.3% to 6,237.55, and the FTSE 100 index increased 0.4% to 7,306.30.
Volkswagen AG declined 3.9% to 183.0 euros after the automaker said that the chief executive Herbert Diess will be replaced by Oliver Blume, head of Porsche.
In another management shake up, the company appointed chief financial officer Arno Antlitz as chief operating officer.
Under Diess, VW accelerated its investment and migration to electric vehicle production and in 2021 sold 450,000 units, surpassing Tesla sales in Europe.
Schaeffler AG declined 1.2% to 5.52 euros and the German industrial products maker signed an agreement with an affiliate of Triton Fund V for the acquisition of the Ewellix Group for 582 million euros and assume debt of 120 million euros.
In 2018, Triton acquired the linear actuators maker Ewellix Group from the Swedish bearings maker SKF.
Philips AG declined 7.7% to 20.08 euros after the medical equipment and systems maker reported sharply lower-than-expected earnings.
Revenues in the second quarter declined 1% or 7% on a comparable basis to 4.2 billion euros.
In the quarter, the company swung to a net loss of 20 million euros from 153 million profit a year ago.
Sales in Western Europe declined 6% to 873 million euros and in North America increased 11% to 1.7 billion euros.
Telefonica S.A. increased 1.9% to 4.42 euros after the company agreed to sell its rural fiber network in Spain to a consortium for around 1 billion euros.
Orange S.A. increased 1.5% to 10.27 euros after the French telecom operator agreed to merge its unit in Spain with MasMovil.
The equally-owned joint venture values Orange's Spain business at 7.8 billion euros and Masmovil at 10.9 billion euros.
China Worries Hobble Asian Markets
Asian markets traded lower and indexes in China led the declines in the region after real estate and banking crises.deepen in China
Investors also awaited the restructuring plan from the troubled China Evergrande Group.
At least four smaller banks in Henan and three additional banks in Anhui are restricting customer withdrawals.
Moreover, mortgage boycotts are spreading in central and southern China as investors await the fate of completion of 249 real estate projects reflecting over 1 million apartment units.
The Shanghai Composite index fell 0.60% to 3,250.39 and the Hang Seng index in Hong Kong closed down 0.22% to 20,562.94.
In Tokyo, benchmark indexes lower ahead of the U.S. Fed's rate decision and the release of the U.S. GDP data later in the week
The Nikkei average fell 0.77% to 27,699.25 to snap a seven-day advance while the broader Topix index dropped 0.65% to 1,943.21.
The Sensex index in India declined 0.6% to 55,766.20 after the industrial, telecom, and retail conglomerate Reliance Industries reported a 40% surge in earnings on the back of a 65% jump in crude oil prices.
In addition, tech service companies Infosys and Tech Mahindra reported sharply lower-than-expected earnings in the latest quarter ending in June.
- Arjun Pandit
- 25 Jul, 2022
- Mumbai
Asian markets traded lower and indexes in China led the declines in the region after real estate and banking crises deepen in China.
Investors also awaited the restructuring plan from the troubled real estate company China Evergrande Group.
At least four smaller banks in Henan province and three banks in Anhui province are restricting customer withdrawals.
Moreover, mortgage boycotts are spreading in central and southern China as investors await the fate of completion of 249 real estate projects reflecting over 1 million apartment units.
The Shanghai Composite index fell 0.60% to 3,250.39 and the Hang Seng index in Hong Kong closed down 0.22% to 20,562.94.
In Tokyo, benchmark indexes lower ahead of the U.S. Fed's rate decision and the release of the U.S. GDP data later in the week
The Nikkei average fell 0.77% to 27,699.25 to snap a seven-day advance while the broader Topix index dropped 0.65% to 1,943.21.
The Sensex index in India declined 0.6% to 55,766.20 after the industrial, telecom, and retail conglomerate Reliance Industries reported a 40% surge in earnings on the back of a 65% jump in crude oil prices.
In addition, tech service companies, Infosys and Tech Mahindra, reported sharply lower-than-expected earnings in the latest quarter ending in June.
Stocks in Seoul closed slightly higher after institutional investors increased exposure.
The Kospi average closed up 0.44% to 2,403.69 led by advances in vehicles and parts makers.
- Anand Sheth
- 24 Jul, 2022
- Mumbai
Infosys said operating margin in the latest quarter dropped on the rising talent cost.
Total revenues in the first quarter ending in June increased 23.6% to 34,470 crore rupees.
Revenues on a sequential basis increased 6.8% from the previous quarter and rose 5.5% in constant currencies.
In the U.S. dollar terms, revenues increased 17.5% from a year ago to $4.44 billion.
Digital revenues accounted for 61.0% of total revenues in the period.
Operating margin in the quarter fell to 20.1%, a decline of 3.6 percentage points from a year ago and 1.4 percentage points from the previous quarter.
Net income after tax increased to 5,362 crore rupees from 5,201 crore rupees a year ago.
Net income in the U.S. dollar fell to $689.0 million from $704.0 million a year ago.
About 95.2% of the net income was free cash flow
Diluted earnings per share rose to 12.78 rupees from 12.21 a year ago.
Diluted earnings per share in the U.S. dollar fell to 16 cents from 17 cents a year ago.
The information and business services provider added a net 21,171 employees in the quarter.
- Barry Adams
- 22 Jul, 2022
- New York City
Benchmark indexes on Wall Street traded lower led by a decline in tech and advertising stocks after weak results from Snap and Twitter.
The S&P 500 index fell 0.6% to 3,973.73 and the Nasdaq Composite index declined 1.5% to 11,881.88.
For the week, the S&P 500 index increased 2.6% and the Nasdaq Composite rose 3.3%.
Better-than-expected earnings from Netflix and Tesla lifted tech stocks in the week but the market rally halted after Snap reported wider loss and Twitter said revenues fell last quarter.
Meta Platforms declined 7.8%, Pinterest plunged 13.5%, and Alphabet dropped 5.6%.
Futures of crude oil decreased $1.74 to $94.61 a barrel and natural gas advanced 37 cents to $8.30 a unit.
The yield on 10-year Treasury notes declined 11 ticks to 2.79%.
The euro inched higher to $1.0208 and the dollar eased against the Japanese yen to 136.04.
American Express rose 2.3% to $153.49 after the financial services company said total purchase volume on its network jumped 25% to $394 billion and revenues net of interest surged 31% to $13.4 billion..
Net income in the quarter declined to 14% to $1.96 billion or $2.57 a diluted share from $2.28 billion or $2.80 a diluted share.
Boston Beer fell 3.9% to $394.70 after the craft brewery said second quarter net revenues increased 2.2% to $616 million.
Net income decreased to $53.3 million or $4.31 per diluted share from $59.2 million or $4.75 per diluted share a year ago.
The revised guidance is based on the lowered estimate for the shipment and inventories held by distributors.
Boston Beer estimated depletions and shipments decrease of between 2% and 8% a change from the previous estimate of an increase of between 4% and 10%.
The revision is reflecting a change in expectations in the Company's Truly hard seltzer business and the launch timing of Hard Mountain Dew.
Snap Inc plunged 38.95% to $10.05 after the online chat platform reported slowest revenue growth since going public and sharply wider quarterly loss.
Snap was downgraded by a number of analysts after the weak quarterly results.
Twitter Inc declined 1.1% to $39.10 after the social media platform operator said second quarter revenues declined 1% to $1.18 billion.
Net loss in the quarter was $270 million or a loss of 35 cents a diluted share compared to net income of $66 million or 8 cents a diluted share.
Verizon Communications declined 6.7% to $44.45 after the company said higher prices slowed its phone subscriber growth and lowered its annual outlook.
Eurozone Growth Contracts
European markets inched higher and the latest private survey estimated economic growth is slowing in the eurozone.
Private sector contracted for the first time in 15 months on weaker output and new orders, the Purchasing Managers' Index released by S&P Global showed Friday.
The index for output declined to 49.4 in July from 52.0 in June, the index for service fell to 50.6 from 53.0, and manufacturing dropped to 49.6 from 52.1 in the corresponding months.
The flash estimate readings will be revised in the second estimate in the next few weeks.
The survey showed that the factory output decreased sharply and service output growth slowed.
The ECB also lifted its key lending rate for the first time in 11 years this week, and the rate increase of half-percentage point was larger than expected.
More worrisome, backlog of orders for both manufacturing and services also declined in the month, a first contraction in eighteen months.
The DAX index increased 0.3% to 13,284.77, the CAC-40 index gained 0.4% to 6,224.48.62, and the FTSE 100 index inched up 0.14% to 7,280.99.
For the week, the DAX and the CAC-40 added 2% and the FTSE gained 1.6%.
Schindler Holding AG declined 3.9% to 175.0 francs after the Swiss elevator and escalator maker cut its 2022 outlook citing China market contraction and Covid-19 related restrictions.
MTU Aero Engines AG increased 2.2% to 193.15 euros after the German aerospace company won orders worth $600 million of orders at the Farnborough International Airshow.
Asian Markets Rally
Asian markets generally closed higher and the Nikkei index in Tokyo advanced for the seventh session in a row.
Kawasaki Kisen soared 11% and Nippon Yusen increased 4.02% after the shipping companies lifted full-year earnings outlook.
Japan's core consumer inflation, excluding energy and food prices, remained above the Bank of Japan's target rate of 2% for the third month in a row in June.
A separate report showed Japan's manufacturing slowed to a 10-month low in July on the continued supply chain disruptions and slowing orders.
The Nikkei index increased 0.4% to 27,914.66, the Hang Seng index rose 0.2% to 20,609.14, and the Sensex index increased 0.7% to 56,072.23.
For the week, the Nikkei increased more than 4%, the Hang Seng advanced 0.6%, and the Sensex increased 3%.
China imposed 8 billion yen or $1.2 billion on taxi ride hailing platform Didi Global for cyber securities and data violations.
The Sensex index in Mumbai advanced for the sixth day in a row on the earnings optimism from banks and rising demand for vehicles and consumer goods.
- Barry Adams
- 22 Jul, 2022
- New York City
Benchmark indexes on Wall Street traded lower led by a decline in tech and advertising stocks after weak results from Snap and Twitter.
The S&P 500 index fell 0.6% to 3,973.73 and the Nasdaq Composite index declined 1.5% to 11,881.88.
Better-than-expected earnings from Netflix and Tesla lifted tech stocks in the week but the market rally halted after Snap reported wider loss and Twitter said revenues fell last quarter.
The two popular indexes are still set to close higher for the week and are hovering near the five-week high.
Futures of crude oil increased $1.63 to $94.78 a barrel and natural gas advanced 37 cents to $8.30 a unit.
The yield on 10-year Treasury notes declined 11 ticks to 2.79% and the euro inched higher to $1.0218 and the dollar eased against the Japanese yen to 136.14.
American Express rose 2.3% to $153.49 after the financial services company said total purchase volume on its network jumped 25% to $394 billion and revenues net of interest surged 31% to $13.4 billion..
Net income in the quarter declined to 14% to $1.96 billion or $2.57 a diluted share from $2.28 billion or $2.80 a diluted share.
Boston Beer fell 3.9% to $394.70 after the craft brewery said second quarter net revenues increased 2.2% to $616 million.
Net income decreased to $53.3 million or $4.31 per diluted share from $59.2 million or $4.75 per diluted share a year ago.
The revised guidance is based on the lowered estimate for the shipment and inventories held by distributors.
Boston Beer estimated depletions and shipments decrease of between 2% and 8% a change from the previous estimate of an increase of between 4% and 10%.
The revision is reflecting a change in expectations in the Company's Truly hard seltzer business and the launch timing of Hard Mountain Dew.
The company sharply lowered its estimate for full-year earnings and said non-GAAP earnings are estimated between $6.0 and $11.0 a share from the previous estimate between $11.0 and $16.0 a share.
Intuitive Surgical declined 5.7% to $211.85 after the surgical systems maker said second quarter revenues increased 4% to $1.52 billion.
Net income in the quarter fell to $308 million or $0.85 per diluted share compared to $517 million or $1.42 per diluted share a year ago.
In the second quarter, Intuitive repurchased $500 million of its own share and expanded its share repurchase program to $3.5 billion.
Seagate Technology declined 7.9% to $76.97 after the disk drive maker said fiscal fourth quarter revenues declined to $2.6 billion from $3.01 billion a year ago.
Net income fell to $276 million or $!.27 a diluted share from $482 million or $2.07 a share.
The disk drive maker also offered weaker-than-expected revenues outlook for the fiscal first quarter 2023 of $2.5 billion with a band of $150 million and non-GAAP diluted earnings per share of $1.40 with a band of 20 cents.
Schlumberger NV rose 4.2% to $35.08 after the oil field services company said second quarter revenues increased 20% to $6.8 billion and net income jumped 123% to $959 million from $431 million a year ago.
Diluted earnings per share jumped to 67 cents from 30 cents a year ago.
The company also lifted its annual revenues growth to be in "high teens" translating full-year revenues of at least $27 billion.
The company announced a quarterly cash dividend of 17.5 cents a share payable on October 13 to shareholders on record of September 7.
Snap Inc plunged 38.95% to $10.05 after the online chat platform reported slowest revenue growth since going public and sharply wider quarterly loss.
Snap was downgraded by a number of analysts after the weak quarterly results.
Twitter Inc declined 1.1% to $39.10 after the social media platform operator said second quarter revenues declined 1% to $1.18 billion.
Net loss in the quarter was $270 million or a loss of 35 cents a diluted share compared to net income of $66 million or 8 cents a diluted share.
- Bridgette Randall
- 22 Jul, 2022
- Frankfurt
European markets inched higher and the latest private survey estimated economic growth is slowing in the eurozone.
Private sector contracted for the first time in 15 months on weaker output and new orders, the Purchasing Managers' Index released by S&P Global showed Friday.
The DAX index increased 0.05% to 13,253.68, the CAC-40 index gained 0.3% to 6,216.82, and the FTSE 100 index inched up 0.08% to 7,276.37.
The euro edged lower and closed at $1.0193 and the British pound fetched $1.197.
Schindler Holding AG declined 3.9% to 175.0 francs after the Swiss elevator and escalator maker cut its 2022 outlook citing China market contraction and Covid-19 related restrictions.
Second quarter revenues declined 5.6% to 2.7 billion francs and net income fell 37.2% to 152 million francs.
Diluted earnings per share fell to 1.30 francs from 2.12 francs.
Schindler guided annual revenues to rise between -2% and 2% from the previous estimate between 1% and 6% in local currencies and full-year net income between 620 million and 660 million francs.
MTU Aero Engines AG increased 2.2% to 193.15 euros after the German aerospace company won orders worth $600 million of orders at the Farnborough International Airshow.
"New orders for the geared turbofan (GTF) make up the lion