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Update
JD Sports upgrades profit outlook after bumper Christmas
JD Sports (JD.) released an upbeat Christmas trading update this morning.
The sportswear retailer upgraded its profit outlook after sales grew by more than 20% in the six-week run up to Christmas.
Total revenue growth for the second half of the calendar year was 10%, compared to 5% in the first half.
JD now expect full year pretax profit before tax to come in at the top end of the current range of £933m-£985m for the 12 months to the end of January.
Régis Schultz, CEO of JD, said:
“The engagement and commitment of our teams through the peak trading period has been phenomenal with many of our stores and websites delivering record sales and JD’s market-leading product and retail experience capturing the imagination of customers globally like never before.”
“Our strategic focus on the international and digital expansion of our global premium sports fascias is underpinned by the continued strength of these businesses.”
JD. Daily Candle Chart
Vodafone to receive $1.8bn from sale of Hungarian unit
On Monday, Vodafone (VOD) announced it had agreed the sale of its Hungarian business to local IT company 4iG and the Hungarian state.
Vodafone will receive a total cash consideration of 1.7bn euros ($1.82bn) from the deal which will be used to pay down debt.
This is a continuation of Vodafone’s long-term strategy to sell non-core assets and focus on its more profitable European and African operations.
Margherita Della Valle, Vodafone’s interim CEO said:
“This combination establishes a scaled converged operator across mobile and fixed communications and supports the Hungarian government’s goal of creating a national Information and Communications Technology champion. The combined entity will increase competition and accelerate investment in the ongoing digitalisation of Hungary.”
VOD Daily Candle Chart
AstraZeneca boosts portfolio with CinCor deal
AstraZeneca (AZN) has agreed to buy US biotech CinCor in a deal worth up to $1.8bn.
At the heart of the deal is CinCor’s experimental therapy baxdrostat, which is in development to treat conditions including high blood pressure and chronic kidney disease.
AstraZeneca believe baxdrostat will complement the momentum of Farxiga, a diabetes drug whose sales ballooned after it was also shown to benefit patients with heart failure and kidney disease.
Farxiga could face generic competition as early as 2024, but a combination of baxdrostat with Farxiga could enable AstraZeneca to prolong its Farxiga franchise.
On the price chart, AstraZeneca has started the New Year as it ended the last one. The shares have shown high levels of relative strength with prices breaking and holding above key resistance last week.
AZN Daily Candle Chart
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