On Friday, MasterCard beat consensus expectations by announcing a Q3 dividend of $1.08 per share on revenue of $2.88 billion on an 18% increase in consumer spending within their network during the reporting period.
Analysts expected the credit provider to report earnings of 98 cents per share on revenue of $2.75 billion. The net revenue number marked a 14% increase over the same period last year.
Shares of MasterCard posted a 3% gain on the day and reached a new all-time high of $107.70 on an intraday basis. As of September 30th, the company announced a total issuance of 2.3 billion MasterCard and Maestro branded cards worldwide.
Despite a 2% fall in earnings for the first half of 2016, Maquarie Group announced an interim dividend of $1.90 per share, up from $1.60 per share in the corresponding period last year and above market estimates for a $1.73 per share dividend.
The investment bank also reaffirmed its guidance for the full year, with expectations of matching the the record $2.06 billion profit it posted in fiscal 2016. For the six months to September 30, the bank recorded earnings of $1.05 billion, down 1.9% from the same period last year but materially better than the forecasts of a drop to $994.5 million.
Macquarie’s tier 1 capital ratio was seen at 10.4% versus 10.7% when it last reported in May, while assets under management rose 3% to $493.1 billion. The modest decline in earnings was driven by an 18% drop in net interest and trading income and a 21% slump in fee and commissions down to $2.2 billion.
As long as the group meets its own forward forecasts that FY 17 will be broadly in line with FY 16 results, the share price valuation will remain reasonable at 12.5X forward earnings for a 5.5% dividend yield.
With around 60% of its total expected income to be earned overseas in H1 17, the company could get a bit of a tailwind if the Australian Dollar continues to track lower versus the US Dollar over the next six months.
Shares of the National Australia Bank (NAB) are pushing back toward the $28.00 level after announcing that its final dividend will be unchanged at 99 cents per share as full-year cash earnings rose 4.2% to $6.48 billion.
Forward guidance suggests a drop in FY17 dividend to 85 cents as bad and doubtful debt charges rose 7.0% to $800 million, expenses rose 2.2% and net interest fell to 1.88%. Based on these figures, the FY17 growth forecast of -1% is the lowest in the sector, which is likely to limit further out performance to peer banks in the near-term.
The forward guidance equates to NAB trading on a P/E multiple of 12x , which is a 6% discount to peers, and a forward yield of 6.2%
Amazon shares are down over 5% after the company reported earnings below consensus expectations and sales numbers which were barely in line with forecasts.
The e-commerce giant announced it earned $252 million during Q3, or 52 cents per share, compared with 17 cents per share on revenue of $79 million in the third quarter of 2015. Net sales rose 29% to $32.7 billion, compared with $25.4 billion a year ago.
However, analysts had expected the company to report earnings of 77 cents per share on sales of $32.69 billion for Q3.
Comments from chart technicians suggest a key price support level of $810.00 followed by the September low of $765.00
Shares of Alphabet, the parent company of Google, are down over 4% in aftermarket trade even thought the company beat Q3 earnings expectations.
The search engine conglomerate posted Q3 earnings of $9.06 per share, adjusted, on revenue of $22.45 billion. Analysts were expecting the company to report earnings of $8.63 per share on revenue of $22.05 billion.
Today’s results compare to $7.35 per share, with revenue up 20% from last year’s $18.68 billion. The company also announced the approval of a buy-back of over $7 billion of its Class C shares over the next three months.
The share price initially spiked higher, posting a new high for the year at $837.35, before reversing back below $820.00 in after hours trade.
Shares of Coca-Cola dropped slightly to 42.50 on weaker year-on-year profit guidance even though Q3 earnings were slightly higher.
The beverage maker announced a profit of $1.05 billion, or 24 cents per share, down from $1.45 billion, or 33 cents per share in Q3 2015. Excluding one-off tax items, per share earnings were 49 cents per share, while revenue declined 6.9% to $10.63 billion.
Analysts had forecast adjusted earnings of 40 cents on revenue of $10.51 billion. It was the seventh straight quarter that the firm beat expectations; if only slightly. However, when announcing their 2017 guidance, the company warned of a potential 4% to 7% decline in comparable earnings over the medium-term.
This negative guidance gives scope for a pullback in the share price to the $40.00 area last seen in January of this year.
Boeing shares jumped over 4% to post a new high for the year at $148.00 as the company beat expectations for Q3 earnings.
Despite a decline in revenue, the aircraft manufacturer said earnings rose to $2.28 billion, or $3.60 per share, from $1.70 billion, or $2.47 per share during Q3 2015. Core earnings, which exclude some pension and other costs, rose to $3.51 per share from $2.52 a year ago.
Both figures include a special gain of 70 cents per share, reflecting a tax benefit Boeing received by claiming depreciation on plants and equipment.
Positive forward guidance brought in longer term buyers as the company raised its target for jetliner deliveries for the year to 750 from 740 and lifted its year-end revenue estimate to 95.5 billion from 93.5 billion.
Ramsay 1Q17 earnings results were in line with market expectations and the company reaffirmed core NPAT and EPS growth should be in the range of 10-12% for FY17.
RHC.ASX should start to build support at or near $70, upside is limited and covered calls should be used to enhance the yield.
Shares of Lockheed Martin closed 5% higher at $243.00 after the defense contractor beat Q3 earnings expectations.
The company reported adjusted earnings of $3.61 per share, well above the consensus of $2.89 per share. It reported sales of $11.55 billion, up from $10.06 billion in the year earlier period and above the consensus of $11.45 billion.
Lockheed said it expects overall 2016 earnings per share of $12.10 and sales of $46.5 billion, as adjusted for divested business. The company expects ongoing operations to lift 2017 net sales by 7%.
The strong price response was welcomed as shares of Lockheed have fallen 9% in the last three months from the August high of $264.00.
The price of Apple shares traded in a wide range after the company reported slightly better earnings but the lower quarterly results marked the third quarter of year-over-year revenue declines.
The iPhone maker reported earnings of $1.67 per share, just above the $1.66 expected consensus. Revenues came in at $46.90 billion, just shy of the 46.94 billion expected. That’s down from the comparable figure of $1.96 per share on sales of $51.5 billion a year ago.
Apple shares rose briefly to $119.00 in after hours trading, but were last seen down more than 2% and dipping below the mid-September support area at $115.00. The company reported that it shipped 44.8 million iPhones, which is down from 48.04 million a year ago.
Chart Apple
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