Shell Buyback Rate May Face Pressure as Economy Softens
0850 GMT - Shell shares rise 2% after reporting better-than-expected first-quarter earnings. Earnings in the period modestly exceeded market expectations driven, like most other oil companies this quarter, by trading gains, Citigroup says. The company maintained share buybacks at the 1Q run-rate of $4 billion for another quarter, though it's clear that in a tougher macro-economic environment, Shell will need to use its balance sheet if it wants to continue that sort of pace, Citi says. "There is some debate in the market on whether the [capital markets day] will bring with it a re-balance of distribution--currently one-third dividend, two-thirds buyback--perhaps more towards 50/50, although we're not convinced this move in itself would command a valuation uplift," Citi analysts write. (philip.waller@wsj.com)
Companies News:
Mondi 1Q Earnings Fell on Lower Prices, Weaker Demand
Mondi said Thursday that earnings fell in the first quarter of the year on lower average selling prices and soft demand.
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Next's 1Q Sales Fell, Backs FY 2024 Views
Next PLC said Thursday that full-price sales decreased in the first quarter of fiscal 2024, although it said it did better than feared, and backed its full-year pretax profit views.
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Shell 1Q Earnings Exceeded Market Views; Declares $4 Bln Share Buyback
Shell said Thursday that earnings fell on quarter for the first quarter of 2023 but beat market expectations, and declared a $4 billion share buyback program.
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Endeavour Mining Backs 2023 Views After 1Q Production Fall
Endeavour Mining backed its full-year targets on Thursday despite reporting a fall in gold production during the first quarter.
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Hargreaves Lansdown 3Q Revenue Grew on Net Interest Margin Rise
Hargreaves Lansdown said revenue rose 28% in the third quarter of fiscal 2023 on rising net interest margin, but that assets under management fell.
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Trainline Swung to FY 2023 Pretax Profit on Higher Ticket Sales Amid Pandemic Bounceback
Trainline said Thursday that it swung to a pretax profit in fiscal 2023 on significantly higher ticket sales as it bounced back from the effects of the Covid-19 pandemic.
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Glanbia Raises and Extends Its Buyback Program
Glanbia said Thursday that it has increased and extended its existing share buyback program of up to 50 million euros ($55.3 million) to EUR100 million.
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Virgin Money UK Raises FY 2023 Net Interest Margin Guidance
Virgin Money UK PLC on Thursday upgraded its net interest margin guidance for fiscal 2023 as it posted a fall in pretax profit for the first half of the year due to an impairment charge.
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Domino's Pizza 1Q Orders Rose; Launches GBP20 Mln Share Buyback
Domino's Pizza Group said Thursday that business in the first quarter was strong, with orders rising on year despite a robust comparative period and unveiled a new 20 million pound ($25.1 million) share buyback.
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Grafton 1Q Revenue Rose; Launches GBP50 Mln Buyback Program
Grafton Group said Thursday that first-quarter revenue rose in line with its expectations, and that it plans to launch a buyback program of up to 50 million pounds ($62.8 million).
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600 Group CFO Neil Carrick Departs With Immediate Effect
600 Group PLC said Thursday that Chief Financial Officer Neil Carrick has left the company with immediate effect.
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Spirent Communications 1Q Revenue Fell 20%; Customer Order Delays Continue
Spirent Communications said Thursday that revenue for the first quarter fell 20% and that customer order delays in the period continued.
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SIG Backs 2023 Views After 4-Month Revenue Increased on Higher Prices
SIG backed its full-year guidance on Thursday after reporting a performance for the four months in line with expectations.
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Glanbia Lifts 2023 EPS Guidance Despite 1Q Revenue Decline
Glanbia said Thursday that revenue declined in the first quarter, but that it lifted its full-year guidance for earnings per share as a result of improved margin outlook in the performance nutrition unit.
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AIB Group Raises 2023 Guidance on Interest-Rates Boost
AIB Group PLC on Thursday raised its full-year guidance as a higher interest-rate environment led to a jump in its first-quarter income.
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Morgan Sindall Says 1Q and 2023 Performance in Line With Views
Morgan Sindall Group said Thursday that its performance for the first quarter has been as expected and full-year performance will be in line with the board's views.
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Rathbones 1Q Funds Under Management and Administration Rose Slightly
Rathbones Group on Thursday said its total funds under management and administration rose slightly over the first quarter and that it is on track to meet its operating margin targets.
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Derwent London 1Q Letting Activity Rose, Vacancy Improved
Derwent London PLC said Thursday that first-quarter letting activity rose on year, and that its vacancy rate improved.
Market Talk:
Hargreaves Lansdown's Full-Year Revenue Could Top Guidance
0901 GMT - Hargreaves Lansdown's higher net flow in 3Q bodes well for 4Q, as full-year revenue could top guidance, RBC Capital Markets analyst Ben Bathurst writes in a research note. Key surprises in the retail-investment platform's 3Q results were the better-than-expected net revenue and platform investment account net flow, Bathurst says. "The higher 3Q net flows also arguably bode well for 4Q flows, with April also traditionally one of the busiest months of the year," he says. Following the stronger-than-expected revenues, "we would now expect group revenue margins to be at the top-end or slightly above the 50-55 bps previously guided range," he says. Shares are up 4% at 823.80 pence. (christian.moess@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
05-04-23 0716ET
