3rd Aug 2022. 8.58am

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Regency View:


AstraZeneca beats Q2 profit and revenue estimates

AstraZeneca (AZN) topped analyst expectations for second-quarter profit and revenue, helped by higher demand for its cancer medicines…

Core earnings came in at $1.72 cents per share for the three months ended June 30, on revenue of about $10.8 billion.

Analysts on average were expecting profit of $1.56 cents per share on revenue of around $10.5 billion.

The pharma giant raised its full-year revenue guidance, saying it expects it to rise by a percentage in the low twenties rather than the high teens forecast previously.

AstraZeneca CEO, Pascal Soriot, said:

“AstraZeneca had a strong financial first half of 2022, and great pipeline delivery. We announced practice-changing data for several medicines including Enhertu in breast cancer, Farxiga in heart failure and Ultomiris in neuromyelitis optica spectrum disorder”.

“We look forward to announcing the results of several important late-stage trials this year and next”.

AZN Daily Candle Chart

AZN Daily Candle Chart

Qinetiq reports rise in expected revenue under contract

Qinetiq (QQ.) released a bullish trading statement last week in which it said “order intake has continued to remain strong and revenue, profit and cash are in-line with expectations”

“Our visibility on revenue under contract for FY23 has increased to £1.05bn, up from £900m at April 2022” read the statement.

“Consequently, we remain confident of delivering in-line with our expectations, with mid-single digit organic revenue growth and operating profit towards the mid-point of our 11% to 12% short-term operating profit margin target, rising to 12% to 13% operating profit margin in the medium term” it continued.

Once again, the market has enjoyed what Qinetiq had to say, and the shares have continued to trend higher.

QQ. Daily Candle Chart

QQ. Daily Candle Chart

Centrica restores dividend as profits soar

As anticipated, Centrica (CNA) reported a huge increase in first-half profit, boosted by asset sales and soaring energy prices, enabling it to restore its dividend.

“We’ve made significant progress de-risking the Group and building a stronger business for the benefit of all stakeholders,” CEO Chris O’Shea said in a statement.

Centrica’s adjusted operating profit for the first six months of 2022 rose to 1.34 billion pounds, up from 262 million a year earlier.

Group total free cash flow from continuing operations for the period HY22 came in at £643m (2021: £524m). And adjusted earnings per share was up from 1.7p to 11.0p.

Having paused its dividend in 2020, the British Gas owner said it would reinstate a progressive dividend, initially offering offer an interim payout of 1 pence per share.

The market enjoyed the numbers, and Centrica’s share price is currently consolidating near trend highs.

CNA Daily Candle Chart

CNA Daily Candle Chart

Vodafone drop on Q1 trading update

Vodafone’s (VOD) fell 4% on the publication of their quarterly trading numbers last Wednesday…

The telecom giant reported a drop in service revenue in its largest market Germany in the first quarter, reflecting broadband and TV losses after regulation changes.

Vodafone said its German TV customer base fell by 79,000 while its cable broadband service saw a 34,000 decline after regulatory changes ended processes like automatic recontracting, resulting in a 0.5% decline in service revenue in the country.

However, it wasn’t all doom and gloom as Vodafone did see overall service revenue increase quarter-on-quarter by 2.5%, helped by a strong performance in Turkey.

Vodafone also said it was on track to hit its full-year targets and CEO, Nick Read said the group had “executed in line with expectations”, with growth recorded in Europe and Africa.

“Our near-term focus on our operational and portfolio priorities remains unchanged” he added.

“We’ve made good progress towards stabilising our commercial performance in Germany, and we continue to actively pursue opportunities with Vantage Towers and to strengthen our market positions in Europe.”

VOD Daily Candle Chart

VOD Daily Candle Chart

Moneysupermarket surge 8% after upbeat Interim Results

Moneysupermarket’s (MONY) share price hit highest level in over six months as Half-Year earnings topped expectations…

The price-comparison group said Half-Year revenue increased 19% on strong performance in money and travel channels, partially offset by closure of energy switching market.

Adjusted earnings (EBITDA) for the period jumped 10% to £56.6m ($67.70m) – beating market expectations and causing a sharp rally in the shares.

Peter Duffy, CEO of Moneysupermarket Group, commented:

“We’ve performed well with strong profit growth despite some mixed end markets. At the same time, we’re making strategic progress towards becoming a flexible tech-led savings platform, with all our core data now in Google Cloud Platform.”

On outlook he said:

“Trading dynamics for the rest of the year will be influenced by macro developments in travel and the ongoing transition to a steady state in the car and home insurance markets following the introduction of the FCA General Insurance Pricing regulations. We continue to expect the energy switching market to remain closed this year. On this basis the Board is confident of delivering adjusted EBITDA around the upper end of market expectations for the year.”

MONY Daily Candle Chart

MONY Daily Candle Chart


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