FTSE 100 movers: Micro Focus feels the love; Coca-Cola goes flat
The FTSE 100 was flat in mid afternoon trade, being kept afloat by some well-received results from the likes of Micro Focus and AstraZeneca.
Micro Focus was feeling the Valentine's Day love, surging to the top of the FTSE 100 as the software company's full-year revenue beat analysts' expectations.
The company said it was getting on top of the integration of the acquired HPE software business as it reported that the rate of revenue decline had eased off as last year went on and was expected to improve in 2019.
Management said they will return the proceeds of the $2.5bn sale of its SUSE business after it completes before the end of March and will keep the share buyback scheme going.
For the pro-forma 12-month period to 31 October, including the HPE Software business acquired in September 2017, Micro Focus generated revenues of $4.1bn, down 5.3% on the previous year. Guidance had been given for a drop of 6-9%, after a profit warning almost a year ago due to troubles with the HPE integration.
AstraZeneca was also in the green as it reported a strong fourth quarter, beating analyst expectations for revenues and earnings, with the drugs colossus guiding to another strong year ahead.
Revenue came in at $6.4bn in the fourth quarter, up 11% and ahead of the average analyst forecast of $6.33bn. Product sales of $5.8bn were also ahead of consensus, boosted by 81% growth from new medicines, notably cancer drugs Tagrisso and Lynparza each doubling in sales, while immuno-oncology treatment Imfinzi saw sales rocket from $19m to $633m.
Core operating profit jumped 23% to $2.2bn, versus a consensus forecast of $2.4bn, and core earnings per share rising 22% to $1.58, compared to the expected $1.49.
Coca-Cola Company shares went flat as the company warned that organic growth would slow in the current year.
Net revenues fell 6% in the three months to December, to $7.1bn, hurt by currency headwinds and the refranchising of Coca-Cola's low-margin bottling operations. The fall was expected, however, with analysts looking for sales of around $7.03bn. For the full-year, net revenues fell 10% to $31.9bn.
Fourth-quarter earnings per share from continuing operations were $0.18 against a loss in the previous year of $0.66. Full-year comparable EPS meanwhile was ahead 9% at $2.08, impacted by a 4% currency headwind, the Atlanta-based company said
Smurfit Kappa shares were lower after the company on Wednesday fell to a paper loss last year due to charges from its unwanted exit from Venezuela, but the Irish packaging group's core businesses still delivered a strong improvement in profits and cash flow.
On a statutory basis there was a €639m pre-tax loss, due to a €1.3bn non-cash charge from the deconsolidation of Venezuelan operations in August "due to the continuing actions and interference of the government of Venezuela". International arbitration proceedings have been launched to seek compensation.
Market Movers
FTSE 100 (UKX) 7,187.89 -0.04%
FTSE 100 - Risers
Micro Focus International (MCRO) 1,720.00p 13.34%
AstraZeneca (AZN) 6,026.00p 5.33%
InterContinental Hotels Group (IHG) 4,624.50p 1.51%
Hikma Pharmaceuticals (HIK) 1,755.00p 1.50%
BAE Systems (BA.) 525.00p 1.47%
Spirax-Sarco Engineering (SPX) 6,700.00p 1.36%
Rolls-Royce Holdings (RR.) 951.80p 1.08%
GlaxoSmithKline (GSK) 1,563.00p 1.03%
ITV (ITV) 135.00p 1.01%
Sage Group (SGE) 661.60p 1.01%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 2,531.00p -6.05%
Smurfit Kappa Group (SKG) 2,336.00p -3.63%
Next (NXT) 4,870.00p -1.79%
RSA Insurance Group (RSA) 535.80p -1.76%
BP (BP.) 541.51p -1.76%
GVC Holdings (GVC) 643.50p -1.76%
Royal Dutch Shell 'B' (RDSB) 2,451.00p -1.57%
Anglo American (AAL) 1,919.00p -1.16%
Royal Dutch Shell 'A' (RDSA) 2,426.00p -1.16%
Tesco (TSCO) 216.80p -1.09%