Tag Archives: Results Forecasts / Warnings

Exxon CEO sticks to spending targets as oil costs tumble

[ad_1]

NEW YORK (Reuters) – Two years into an formidable progress plan to revive earnings on the largest U.S. oil firm, Exxon Mobil (XOM.N) mentioned on Thursday it will persist with its spending plans whilst its rivals trim prices.

FILE PHOTO: Darren Woods, Chairman & CEO of Exxon Mobil Company attends a information convention on the New York Inventory Change (NYSE) in New York, U.S., March 1, 2017. REUTERS/Brendan McDermid

Exxon faces oil costs which have fallen over 20% this 12 months, the bottom pure gasoline costs in a long time, a long-term business outlook too is clouded by a push towards cleaner gas and stress from buyers for greater returns.

It plans to spend between $30 billion and $35 billion a 12 months by means of 2025, with about $33 billion in capital expenditure this 12 months.

The corporate’s progress technique “will result in sustained enchancment in shareholder worth,” Exxon’s Chief Government Officer Darren Woods mentioned in New York, the place the corporate held its annual investor day assembly.

Exxon’s progress plans embrace an enormous wager on U.S. shale, the place output has surged, making america the world’s largest oil producer, and on Guyana, the place an Exxon-led consortium has made one of many largest discoveries in years.

On Tuesday, Exxon’s closest U.S.-rival Chevron confirmed off its personal warfare chest by highlighting it has as much as $80 billion that it may use for shareholder returns over the following 5 years no matter buying and selling costs for oil.

As the 2 corporations race to turn out to be the primary to provide 1 million barrels of oil-equivalent per day in Permian, the highest U.S. oilfield, Exxon mentioned Thursday that it’s going to exceed that focus on by 2024.

The complete oil business has fallen out of favor with buyers, however Exxon, as soon as the business’s money stream and income chief, has tumbled significantly arduous.

Complete returns for Exxon over the past 5 years have fallen into destructive territory, whereas the S&P 500 returned 64%. Rivals Chevron, Complete and BP have seen constructive returns, whereas Royal Dutch Shell has been flat.

(This story corrects day in first paragraph to Thursday, not Tuesday)

Reporting by Jennifer Hiller in New York and Shariq Khan in Bengaluru; Enhancing by Arun Koyyur and Chizu Nomiyama

Our Requirements:The Thomson Reuters Belief Rules.

[ad_2]

Supply hyperlink

Apple unlikely to meet revenue guidance due to coronavirus impact

[ad_1]

(Reuters) – Apple Inc (AAPL.O) said on Monday it would not meet its revenue guidance for the March quarter because of the coronavirus outbreak slowing iPhone production and weakening demand in China.

FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo

Apple’s manufacturing facilities in China have begun to reopen, but they are ramping up more slowly than expected, the technology company said in a statement to its investors.

Global supplies of Apple’s iPhones will be limited as the sites work toward operating at full capacity, the company said.

“These iPhone supply shortages will temporarily affect revenues worldwide,” the company said.

In January, Apple forecast $63 billion to $67 billion in revenue for the second quarter ending in March, ahead of estimates of $62.4 billion.

The company said it would provide more information during its next earnings call in April.

Apple also said that store restrictions due to coronavirus precautions had affected its sales in China, with most retail stores either closed or operating at reduced hours.

“We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can,” the company said.

The disruptions follow a strong December quarter for iPhone sales, which were up for the first time in a year.

Analysts have estimated that the virus may slash demand for smartphones by half in the first quarter in China, the world’s biggest market for smartphones.

“While we have discussed a negative iPhone impact from the coronavirus over the past few weeks, the magnitude of this impact to miss its revenue guidance midway through February is clearly worse than feared,” Wedbush analyst Daniel Ives wrote in a note.

Apple’s stock is expected to face a knee-jerk reaction on Tuesday, when Wall Street reopens after the Presidents Day holiday, Ives said.

Wedbush said it remained optimistic that Apple would be able to recover from the coronavirus setback.

“While trying to gauge the impact of the iPhone miss and potential bounce back in the June quarter will be front and center for the Street, we remain bullish on Apple for the longer term,” Ives said.

The outbreak is expected to intensify pressure on China’s economy, with multiple companies struggling to restart production after an extended Chinese New Year holiday.

Fiat Chrysler, <FCHA.MI, Hyundai Motor Co (005380.KS) and General Motors Co (GM.N) have all said their auto production lines were, or could be, hit by Chinese factories that are slow to restart because of the virus.

Reporting by Neha Malara in Bengaluru and Laila Kearney in New York; Editing by Dan Grebler and Peter Cooney

Our Standards:The Thomson Reuters Trust Principles.

[ad_2]

Source link

EA’s tepid forecast overshadows quarterly beat, shares slip

[ad_1]

(Reuters) – Electronic Arts Inc forecast fourth-quarter adjusted revenue below analysts’ estimates, weighed down by the delayed launch of its basketball title “NBA Live”, while its “Apex Legends” battles “Fortnite” and “PUBG” to attract young gamers.

FILE PHOTO: The Electronic Arts Inc., logo is displayed on a screen during a PlayStation 4 Pro launch event in New York City, U.S., September 7, 2016. REUTERS/Brendan McDermid/File Photo

Shares of the Redwood, California-based company fell about 2% after the bell on Thursday.

EA is working with a partner in China to bring its battle-royale title “Apex Legends” to PC and mobile in the country, Chief Financial Officer Blake Jorgensen told Reuters.

Earlier in 2019, EA revealed plans to launch the title, which had attracted 70 million players as of October, in China and also on mobile.

“The biggest unknown is how long does it take to get approval in China,” Jorgensen added.

China, which stopped approving the monetization of new video game titles in March 2018, resumed processing applications in December that year, with a huge backlog of games awaiting approval.

The videogame publisher behind franchises like “FIFA” and “Battlefield” said it expects current-quarter adjusted revenue to be about $1.15 billion, below analysts’ expectations of $1.20 billion, according to IBES data from Refinitiv.

The tepid forecast comes at a time when the dominance of console-based game franchises, including rivals Activision Blizzard and Take-Two Interactive Software Inc, is being threatened by mobile-based, free-to-play games with engaging formats.

EA has pushed back the release of “NBA Live” last quarter to coincide with the launch of new gaming consoles from Microsoft and Sony at the end of 2020.

The strong launch of “Star Wars Jedi: Fallen Order” during the crucial holiday season helped the company beat third-quarter adjusted revenue estimates.

The title, released in November, climbed its way to become the second best-selling game of December, according to data from research firm NPD.

Revenue from live services, the largest chunk of its sales, rose 41% to $677 million. The company expects growth for this unit to accelerate in fiscal 2022, led by a new Battlefield title.

EA raised its full-year adjusted revenue forecast to $5.15 billion from $5.13 billion, but was below analysts’ expectations of $5.21 billion.

On an adjusted basis, the company’s revenue jumped 22.9% to $1.98 billion, beating the analysts’ expectation of $1.97 billion.

Net income for the third quarter ended Dec. 31 rose to $346 million, or $1.18 per share, from $262 million, 86 cents per share, a year earlier.

Reporting by Ayanti Bera in Bengaluru; Editing by Maju Samuel and Uttaresh.V

Our Standards:The Thomson Reuters Trust Principles.

[ad_2]

Source link

BNP’s prime brokerage cope with Deutsche might switch as much as 1,000 workers

[ad_1]

FILE PHOTO: A person walks previous a Deutsche Financial institution workplace in London, July 8, 2019. REUTERS/Simon Dawson

PARIS/FRANKFURT (Reuters) – Deutsche Financial institution’s (DBKGn.DE) deal to switch its prime brokerage enterprise to BNP Paribas (BNPP.PA) may see the transfer of as much as 1,000 workers from the German lender to the French financial institution, a spokeswoman for BNP stated on Monday.

The 2 banks introduced on Monday that they’d reached an settlement that goals to smoothe the switch of the enterprise, which serves hedge funds.

Underneath the settlement, Deutsche Financial institution will proceed to function the platform for international prime finance and digital equities purchasers till the purchasers will be migrated to BNP.

Deutsche Financial institution stated in July it had struck a preliminary settlement with BNP masking the enterprise as a part of its 7.four billion euro ($8.16 billion) overhaul.

Reporting by Maya Nikolaeva in Paris, Tom Sims in Frankfurt; Further reporting by Riham Alkousaa in Berlin; Enhancing by Tassilo Hummel and Thomas Escritt

Our Requirements:The Thomson Reuters Belief Ideas.

[ad_2]

Supply hyperlink

Airbus sees no main 2019 impression from potential U.S. tariffs

[ad_1]

FILE PHOTO: Airbus CEO Guillaume Faury attends a information convention on the 53rd Worldwide Paris Air Present at Le Bourget Airport close to Paris, France June 20, 2019. REUTERS/Pascal Rossignol

BERLIN (Reuters) – Potential U.S. tariffs towards Airbus (AIR.PA) plane and European components are unlikely to have a significant impression on the European planemaker’s 2019 outcomes, however disruption can’t be dominated out, its chief government mentioned.

In an interview with Politico, launched by German stablemate Die Welt on Monday, CEO Guillaume Faury the primary danger was that airways would refuse to purchase Airbus jets due to the chance that repeat purchases could be rendered uneconomic by future tariffs.

The World Commerce Group has at the very least partially authorized a U.S. request to impose tariffs on European Union plane and different items as a part of a 15-year commerce dispute through which the EU can be getting ready related motion towards the U.S.

Analysts say airways are inclined to renew their fleets solely each 15 years or so, which means long-term dangers should factored in each time they’re making buy choices.

“For now it’s unlikely that there will likely be vital impression on 2019. However we will’t totally rule out disruptions,” Faury was quoted as saying.

Turning to the impression of Britain’s departure from the European Union, Faury mentioned that whereas it will be inconceivable to maneuver ongoing manufacturing of plane wings from Britain, Brexit might have an effect on future funding choices.

Airbus has repeatedly warned that future investments within the UK, the place it employs 14,000 employees, could possibly be in danger within the occasion of a disorderly Brexit. Some Brexit supporters have accused the France-based airplane large of exaggerating such dangers.

Reporting by Thomas Escritt, Modifying by Tim Hepher

Our Requirements:The Thomson Reuters Belief Rules.

[ad_2]

Supply hyperlink

Citigroup tempers net interest income guidance

[ad_1]

FILE PHOTO: The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

(Reuters) – Citigroup Inc (C.N) said on Monday that it expects net interest income to be up between 3% and 4% for the year, compared with prior guidance of 4% growth.

Speaking at the Barclays Financial Services Conference, Chief Financial Officer Mark Mason said the flattening of the yield curve and expectations of multiple interest rate cuts from the Federal Reserve by the end of the year have made the bank more cautious about its lending outlook.

Mason also said third quarter trading and investment banking fees are expected to be lower.

Our Standards:The Thomson Reuters Trust Principles.

[ad_2]

Source link

Bayer mediator dismisses report of $eight billion Roundup settlement

[ad_1]

NEW YORK/FRANKFURT (Reuters) – Bayer AG has not supplied to pay billions of {dollars} to settle claims in the USA associated to the Roundup herbicide, mediator Ken Feinberg mentioned, dismissing a report back to that impact which drove its shares as a lot as 11% increased.

FILE PHOTO: Monsanto Co’s Roundup is proven on the market in Encinitas, California, U.S., June 26, 2017. REUTERS/Mike Blake/File Picture

“Bayer has not proposed paying $eight billion to settle all of the U.S. Roundup most cancers claims. Such an announcement is pure fiction,” Feinberg mentioned in an e mail on Friday. “Compensation has not even been mentioned within the world mediation discussions.”

Bayer shares, which had shed a few of their features earlier than Feinberg’s assertion, retreated additional and closed up 1.7% at 64.63 euros.

Bayer, which acquired Roundup and different glyphosate-based weedkillers as a part of its $63 billion takeover of Monsanto final yr, declined touch upon the preliminary Bloomberg information report and on Feinberg’s response.

Bayer Chief Govt Werner Baumann final week mentioned the corporate would contemplate settling with U.S. plaintiffs solely on affordable phrases, and if it “achieves finality of the general litigation”.

He added on the time the group was “constructively participating” in a court-ordered course of with mediator Feinberg on the circumstances heard in federal courtroom. Many of the pending circumstances, nevertheless, have been filed with U.S. state courts.

Feinberg added that any efforts by Bayer towards a complete settlement have been tied in with the mediation proceedings overseen by him. “These are all a part of the identical mediation course of.”

Bayer shares have misplaced greater than a 3rd of their worth, or roughly 30 billion euros ($34 billion), since final August when a California jury within the first such lawsuit discovered Monsanto ought to have warned of the alleged most cancers dangers from Roundup.

HIGH EXPECTATIONS

The German medicine and pesticides firm has engaged in negotiations with plaintiffs’ legal professionals, two sources accustomed to the matter instructed Reuters.

“The issue is, how do you get the plaintiffs to climb down from their very excessive expectations? Not one of the jury verdicts to this point have been favorable for Bayer,” one of many sources mentioned, including that talks have been centered on fundamental questions corresponding to how one can deal with potential future claims.

Bayer mentioned on Friday that the following U.S. glyphosate lawsuit initially scheduled to be heard in St. Louis, Missouri, this month could be postponed to Jan. 27, 2020, and {that a} following St. Louis case slated for September had additionally been postponed.

The German firm might profit from having circumstances heard within the metropolis the place Monsanto was headquartered and the place Bayer manages its world seeds enterprise. However Missouri can be identified for juries that usually hit firms with large damages.

Bloomberg mentioned the delays had been pursued by Bayer to permit for undisturbed settlement talks.

The preliminary unfavorable courtroom rulings within the first three glyphosate circumstances, heard in California, have at occasions dragged Bayer’s market worth under what it paid for Monsanto, though the shares at the moment are buying and selling above that stage.

The corporate, which says regulators and in depth analysis have discovered glyphosate to be protected, has beforehand mentioned it was banking on U.S. appeals courts to reverse or tone down three preliminary courtroom rulings which have to this point awarded tens of hundreds of thousands of {dollars} to every plaintiff.

Bloomberg cited three sources accustomed to the discussions as saying Bayer’s legal professionals have been in search of an accord to resolve all present and future circumstances. Talks over circumstances which have but to be filed have been notably difficult, the report added.

Whereas Bayer has indicated it may pay $6-$eight billion, plaintiffs’ legal professionals need greater than $10 billion to drop their claims, the report mentioned.

FILE PHOTO: The emblem of Bayer AG is pictured on the facade of the historic headquarters of the German pharmaceutical and chemical maker in Leverkusen, Germany, Could 14, 2019. REUTERS/Wolfgang Rattay/File Picture

An estimate of a $20 billion hit from the litigation has beforehand been mirrored within the share value, whereas a possible litigation settlement legal responsibility was within the mid single-digit billion greenback vary, Financial institution of America analysts mentioned in observe.

They saved a “impartial” ranking on the inventory, citing uncertainty over Bayer’s fortunes within the appeals course of – with the primary appeals verdict anticipated by the top of the yr – and whether or not a settlement may very well be achieved earlier than that.

The variety of U.S. plaintiffs blaming Roundup and different glyphosate-based weedkillers for most cancers had continued to rise by 5,000 to 18,400, Bayer mentioned final week.

Further reporting by Tina Bellon; Enhancing by David Evans and David Holmes

Our Requirements:The Thomson Reuters Belief Rules.

[ad_2]

Supply hyperlink

LSE’s bid for Refinitiv spotlights quest for knowledge, globality

[ad_1]

LONDON/NEW YORK (Reuters) – London Inventory Alternate Group Plc’s (LSE.L) deliberate buy of Refinitiv in a $27 billion deal is the most recent signal that trade operators are focusing extra on knowledge merchandise to extend income, whereas additionally attempting to develop their international attain.

FILE PHOTO: An commercial for Refinitiv is seen on a display screen in London’s Canary Wharf monetary centre, London, Britain, October 2, 2018. REUTERS/Russell Boyce

For greater than a decade, trade operators across the globe have been attempting to consolidate. However proposed tie-ups between main rivals have failed a number of instances up to now due to resistance from authorities authorities who both had antitrust issues or didn’t desire a international firm working what was typically seen as a nationwide image.

On the identical time, earnings from the normal enterprise of facilitating transactions like inventory trades have fallen, pushing the business to search for associated companies for development, analysts and business sources mentioned.

As a result of income from knowledge merchandise has been rising and is predicted to proceed doing so, exchanges are actually hungry for these merchandise in addition to promoting companies primarily based off that knowledge and data, similar to indexes and fee-based companies they’ll supply as soon as a commerce has cleared.

“Information is the lifeblood of monetary markets immediately now greater than ever – and that knowledge is getting increasingly helpful,” mentioned Kevin McPartland, head of market construction and expertise analysis at Greenwich Associates.

If accomplished, LSE’s deal to purchase Refinitiv, a worldwide monetary knowledge analytics supplier, from buyout agency Blackstone Group Inc (BX.N) and Thomson Reuters Corp (TRI.TO) will match that mould, the analysts mentioned.

“It simply makes them extra aggressive and extra interesting as a companion for purchasers as a result of it brings collectively much more than what LSE had earlier than,” mentioned Spencer Mindlin, an Aite Group analyst who focuses on capital markets buying and selling expertise.

LSE and Thomson Reuters declined to remark for this text, referring to their earlier statements that confirmed they have been in discussions for a deal. Blackstone didn’t have an instantaneous remark.

In its assertion, LSE mentioned a deal would assist develop its knowledge and distribution capabilities, diversify buying and selling capabilities and improve international footprint, permitting it to learn from “future data- and technology-enabled development alternatives.”

LSE mentioned it expects to chop greater than 350 million kilos in annual prices for 5 years after the deal closes, and add to its earnings per share within the first full 12 months after completion.

GLOBAL EXPANSION

Refinitiv relies in London and reaches greater than 40,000 shoppers, who’re largely merchants and funding professionals, in additional than 190 international locations.

Patrick Younger, an business guide at Alternate Make investments, mentioned LSE’s deal for Refinitiv can be “a significant pivot away from the EU” for the trade operator.

Simply final month, London Inventory Alternate Chief Govt David Schwimmer mentioned it was tough even to contemplate large mergers due to political opposition.

The corporate failed a number of instances to merge with Germany’s Deutsche Boerse AG .GDAXI and beforehand failed to amass Canada’s principal trade, TSX Inc.

These collapsed offers mirror proposed cross-border marriages that didn’t work, together with Singapore Alternate Ltd’s (SGXL.SI) try to purchase Australia’s ASX Ltd (ASX.AX) in 2011.

QUEST TO DIVERSIFY

Main exchanges, together with Intercontinental Alternate Inc (ICE.N), Nasdaq Inc (NDAQ.O) and Deutsche Boerse, have been extra profitable in inking smaller offers that diversify their companies away from fundamental inventory buying and selling.

Probably the most fundamental companies that exchanges present are real-time market knowledge feeds. In the US, that generates about $1.four billion in annual income for the business, in response to Greenwich Associates. Exchanges generate billions extra in knowledge income past that for associated services.

Buyers and banks that pay for the data have been pushing again on pricing. Some funding companies have known as on the European Union’s markets watchdog ESMA to overview market knowledge charges, saying they carry on rising regardless of falling prices of computing and knowledge storage.

At London Inventory Alternate, former chief government Xavier Rolet started to diversify income after taking the helm in 2009.

FILE PHOTO: The London Inventory Alternate Group places of work are seen within the Metropolis of London, Britain, December 29, 2017. REUTERS/Toby Melville

In the present day, info companies account for practically 40% of the group’s 2.14 billion kilos ($2.65 billion) in annual revenues, in response to its 2018 annual report. That portion is adopted by post-trade companies at simply over one-third.

Conventional capital markets enterprise like inventory buying and selling and preliminary public choices accounted for simply 19% of income final 12 months, in contrast with round 46% a decade in the past.

(This story corrects paragraph 19 to interchange reference to “consolidated market feeds” with “real-time market knowledge feeds”).

Further reporting by Michelle Worth in Washington D.C., Noor Zainab Hussain in Bangalore and Pamela Barbaglia in London; Modifying by Lauren LaCapra, Paritosh Bansal and Daniel Wallis

[ad_2]

Supply hyperlink

Hershey stories 38% rise in second-quarter revenue

[ad_1]

A Hershey’s chocolate bar is proven on this picture illustration in Encinitas, California January 29, 2015. Chocolate maker Hershey Co reported a lower-than-expected quarterly income as demand for bakery and meat snacks damage chocolate gross sales. REUTERS/Mike Blake/Recordsdata (UNITED STATES – Tags: BUSINESS LOGO)

(Reuters) – Chocolate maker Hershey Co (HSY.N) reported a 38% rise in quarterly revenue on Thursday, helped by worth hikes and decrease uncooked materials prices.

Internet revenue attributable to the corporate rose to $312.eight million, or $1.48 per share, within the second quarter ended June 30, from $226.9 million, or $1.08 per share, a 12 months earlier.

Gross sales rose about 1% to $1.77 billion, in keeping with the common analyst estimate, in response to Refinitiv knowledge.

Reporting by Soundarya J in Bengaluru; Enhancing by Arun Koyyur

[ad_2]

Supply hyperlink

AB InBev beats earnings expectations as beer gross sales spike

[ad_1]

FILE PHOTO: The emblem of Anheuser-Busch InBev is pictured exterior the brewer’s headquarters in Leuven, Belgium February 28, 2019. REUTERS/Francois Lenoir/File Photograph

BRUSSELS (Reuters) – Anheuser-Busch InBev (ABI.BR), the world’s largest brewer, beat earnings expectations within the second quarter after beer gross sales grew at their quickest tempo in 5 years.

The maker of Budweiser, Corona and Stella Artois stated on Thursday that earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) rose by 9.4% on a like-for-like foundation to $5.86 billion, in contrast with the $5.73 billion consensus primarily based on Refinitiv knowledge.

Reporting by Philip Blenkinsop; modifying by Gopakumar Warrier

[ad_2]

Supply hyperlink