Hiscox Shares Fall After Earnings Missed Consensus, Retail Growth Slowed

Hiscox Shares Fall After Earnings Missed Consensus, Retail Growth Slowed

0733 GMT - Hiscox shares fall 3.5% and is one of the FTSE 100 worst performers in morning trade after the specialist insurer reported first-half results. Citi points out that the group's first-half earnings missed consensus and it posted slower growth in its retail division as it prioritized quality of earnings over growth. "A headline [pretax profit] miss (5%) on Visible Alpha consensus along with a [dividend] miss and worse retail performance suggests to us that the shares will be under pressure despite the acceleration in U.S. [Direct & Partnerships Division] growth across 1H," analyst Alexander Evans writes. Citi rates the stock neutral. Share trade at 1,074 pence. ([e-mail])

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TP ICAP Pretax Profit Rose, Launches GBP30 Mln Share Buyback

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4imprint Pretax Profit, Revenue Rose as Customer Demand Reached Record Levels

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Polymetal International Backs Production Guidance on Russian Operations Boost

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Codex Acquisitions Shares Leap as Trading Resumes

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Secure Trust Bank Sees Better Profitability in 2H After Charge Hits Pretax Profit

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D4t4 Solutions Gets Contract That Was Delayed From FY 2023

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RM PLC Shares Tumble After Going-Concern Warning

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Inspired PLC Confident of Meeting Forecasts on Continued Momentum

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Bank of Cyprus Pretax Profit Jumped on Interest Rates Boost

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MARKET TALK:

Coca-Cola HBC's Guidance Signals Sharp Slowdown

0741 GMT - Coca-Cola HBC strongly beat first-half expectations, but organic EBIT growth guidance for the full year was only reiterated, suggesting a sharp slowdown in 2H, Citi analysts say in a note. The London and Athens-listed bottler for Coca-Cola reported 1H organic EBIT growth of 17.7%, well ahead of market consensus of 10.8%, they say. However, management has only reiterated its 2023 organic EBIT growth guidance range of 9%-12%, which would indicate an unexplained 2H slowdown of around 6% in order for the company to meet the top end of the range, the analysts say. This implies the potential presence of one-offs in 1H, they add. Shares are up 2.5%. ([e-mail])

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Hiscox's Retail Growth Guidance Might Disappoint

0739 GMT - Hiscox's retail growth guidance might disappoint some despite its first-half results coming in line with estimates, RBC Capital Markets says in a note. The specialist insurer's stronger combined ratios across all divisions stand out, analyst Derald Goh says. "Although this might be overshadowed by a weaker Retail growth guidance which is now expected to be in-line with 1H trend of mid-single digits," the analyst says. This implies a downgrade from the previous around 10% range, despite an improvement in U.S. Direct & Partnerships division growth, he adds. RBC rates the stock sector-perform. Shares fall 4.3% at 1,065 pence. ([e-mail])

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TUI Shares Rise on Solid 3Q Results

0724 GMT - TUI's 3Q solid results are seen as a small positive with limited financial and bookings impact stemming from the wildfires in Greece and year-on-year guidance progression in key metrics in 4Q, Citi analysts Leo Carrington and Daniela Riu say in a note. The travel operator had already reported a bookings recovery for the quarter last week, with pricing 26% higher than in 2019 and in line with May's level, which reassuringly suggests no elevated discounts or negative mix shifts, the analysts say. Divisional EBIT expectations are consistent with FY 2023 EBIT of around EUR1 billion and potentially suggest low single-digit consensus upgrades are possible, they say. Shares are up 3.6% at 602.50 pence. ([e-mail])

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(END) Dow Jones Newswires

08-09-23 0419ET