Every morning ValueWalk provides a wrap up of the latest company news, of US, European, and Asian Pacific corporation.
Company News Update
U.S.
- Wells Fargo & Company (NYSE:WFC), the largest U.S. home lender, said profit jumped 13 percent in the first three months of the year, as its loan portfolio continued to improve. It reported earnings of $4.2 billion, or 75 cents a share, narrowly beating the 73 cents a share that analysts were expecting.
- JPMorgan Chase & Co. (NYSE:JPM) said on Friday, first-quarter net profit fell 3 percent, but reported earnings of $1.31 a share, compared with $1.28 a share in the same period a year ago. Analysts were expecting $1.16 per share.
- Apple Inc. (NASDAQ:AAPL) has denied the U.S. Justice Department’s allegations that it colluded with publishers to hike prices for e-books.
- The Dow Chemical Company (NYSE:DOW), the largest U.S. chemicals producer, raised its quarterly dividend from 25 cents to 32 cents a share, and will be payable July 30 to shareholders of record on June 29.
- International Business Machines Corp. (NYSE:IBM) agreed to acquire Varicent Software Inc., a Canadian provider of software that analyzes compensation and sales performance
- Coinstar, Inc. (NASDAQ:CSTR), the owner of the Redbox movie-rental kiosks, said first- quarter sales and profit exceeded its February forecast, and raised its earnings forecast for 2012 to at least $4.40 a share, exceeding the average analyst estimate of $4.15.
- Johnson Controls, Inc. (NYSE:JCI), the largest U.S. auto supplier was upgraded to “buy” from “hold” at Deutsche Bank AG.
- Drug developer AVI BioPharma, Inc. (NASDAQ:AVII) said Chief Scientific Officer Peter Linsley plans to resign effective June 1.
- Powerwave Technologies, Inc. (NASDAQ:PWAV), the maker of wireless communications gear, said that it anticipates revenues for its fiscal first quarter ended April 1, 2012 to be in the range of $40 million to $45 million, lower than the average analyst estimate of $51.9 million
Europe
- SAP AG (FRA:SAP) (NYSE:SAP), the world’s largest maker of business-management software, reiterated its forecast for 2012, and said it expects strong sales in the second quarter, with software revenue growth in a range of 15 to 20 per cent year on year.
- L’Oreal (EPA:OR), the world’s largest cosmetics maker, reported a 9.4 percent rise in first-quarter sales, driven by booming sales in emerging markets. Sales for the first three months climbed to €5.64 billion, with emerging markets accounting for €2.09 billion in sales for the quarter, eclipsing for the first time Western Europe sales.
- Carrefour SA (EPA:CA), Europe’s biggest retailer, slumped in today’s trading after S&P Equity Research reiterated its “sell” rating on the stock and cut the target price to €14 from €16.
- French pharmaceutical company, Stallergenes SA (EPA:GENP), said first-quarter sales rose to 75.7 million euros from 70.9 million euros a year earlier.
- Banks added the heaviest pressure to the FTSE 100 index on the back of a surge in bank borrowing in Spain. Barclays PLC (LON:BARC) (NYSE:BCS) dropped 3.1 percent, Standard Chartered PLC (LON:STN) gave up 0.9 percent, while Royal Bank of Scotland Group plc (LON:RBS) (NYSE:RBS) shed 3.4.
- Royal Dutch Shell Plc (LON:RDSA) (NYSE:RDS.A) said the sheen of oil, 10 square miles in size that was spotted near its operations in the Gulf of Mexico, didn’t originate from its platforms, and was reportedly breaking up and dissipating.
- Jefferies Group Inc. downgraded The Sage Group plc (LON:SGE), U.K.’s largest software maker, to “hold” from “buy”.
- David Brennan, chief executive officer of London-based drugmaker AstraZeneca plc (LON:AZN) (NYSE:AZN), has shrugged off media reports that some shareholders are seeking a change.
Asia-Pacific
· Fast Retailing Co Ltd (TYO:9983), Asia’s biggest clothing retailer, was the biggest gainer on the Nikkei 225 after raising its net profit outlook for the full fiscal year and saying sales outside Japan will drive growth. Bank of America Merrill Lynch and Nomura increased their price targets on the retailer and maintained their “buy” rating.
· Japan’s biggest bank, Mitsubishi UFJ Financial Group Inc.’s (TYO:8306) (NYSE:MTU), trust banking arm, Mitsubishi UFJ Trust and Banking Corp., is planning to invest in a U.S. fund management firm. President Tatsuo Wakabayashi said the unit can spend upto 150 billion yen on investments over the next three years. Mitsubishi UFJ Trust already holds a 9.9 percent stake in Aberdeen Asset Management Plc of Scotland.
· Banking stocks were among the best performers in Hong Kong trading, after bank lending in China surged above 1 trillion yuan in March. China Construction Bank Corporation (HKG:0939) rose 2.3 percent, while larger rival Industrial and Commercial Bank of China (HKG:1398) rallied 3 percent and Agricultural Bank of China Limited (HKG:1288) gained 6.3 percent.
- China Cosco Holdings Company Limited (HKG:1919), the world’s largest operator of dry-bulk ships, could seek up to 10 billion yuan ($1.59 billion) from the Ministry of Finance after posting record losses in 2011.
- Infosys Ltd (NSE:INFY) (NASDAQ:INFY), India’s second- largest software-services exporter, reported quarterly profit of $463 million on Friday, in line with analyst expectations, but provided muted revenue guidance for the current fiscal.
- Australian mining company, Lynas Corporation Limited (ASX:LYC), building the world’s largest rare earths refinery in Malaysia, received a shot in the arm after a Kuala Lumpur court rejected an attempt to review its permit.
- Australia’s Qantas Airways Limited (ASX:QAN) on Friday launched the country’s first commercial flight using biofuel. The Airbus A330 left Sydney for Adelaide using a mixture of refined cooking oil and regular jet fuel, taking the first steps towards a sustainable aviation fuel industry in Australia.
