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Research Tree provides access to ongoing research coverage, media content and regulatory news on VOLVO AB-B SHS. We currently have 24 research reports from 1 professional analysts.
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VOLVO AB-B SHS
VOLVO AB-B SHS
Good Q1 profit numbers and strong asset control
25 Apr 17
Volvo’s revenue increased by 8% to SEK77.4bn, which allowed earnings to increase strongly. EBIT was up by 32% to SEK7.0bn and net profit by 26% to SEK4.73bn. In addition, cash from operations was a positive SEK8.6bn compared to a negative SEK6.0bn in Q1 16. As a result, the group’s net debt fell from SEK116bn at the end of Q1 and Q4 16 to SEK109bn. All these numbers are better than we had anticipated.
Orders from the Asian construction industry recover
25 Apr 17
Caterpillar’s latest numbers show a sharp 56% increase in orders from that regional segment of the industry. While orders continued falling in all other regions, worldwide orders for construction machinery were up by 7% in March. The respective February and January numbers were +2% and -8%. The picture continues to be very different for machinery from the resources industry. In fact, this trend is again deteriorating. While orders in APAC were up by 26% in January and by 1% in February, they fell by 1% in March and this trend was significantly worse in Nafta. As a result, worldwide orders were down by ‘only’ 7% in both January and February, but by 19% in March. As a result of the above, Caterpillar’s total orders (in volume terms) were down by 1% in both February and March, while they had fallen by 8% in January.
Mixed picture from J Deere for Q1 16/17
18 Feb 17
The group’s revenue increased by 2% to $5.63bn in the quarter through to 29 January while net earnings fell by 24% to $194m. Agricultural and turf revenue was unchanged at $3.6bn, whereas it fell in the construction and forestry division by 6% to $1.1bn. Positive consolidated growth exclusively stemmed from a rise in financial services (+9% to $696m) and ‘other’ (+93% to $231m). The group’s operating earnings were up by 2% to $416m, but this number excludes certain head office costs. Agricultural and turf achieved a 48% profit increase to $213m, while it fell in both construction and forestry (-51% to $34m) and financial services (-13% to $169m). Management blames continuously soft conditions in farming and construction for the profit setback, in particular in the USA and Canada.
Except for cash generation, most 2016 numbers were fine
01 Feb 17
Volvo’s revenue and profit growth numbers have recovered in Q4 16. This has resulted in a full-year sales decrease of ‘only’ 3.4% to SEK302bn (-5.8% in 9M 16) and an EBIT fall of 19% to SEK21bn (-27% in 9M). Both numbers are ahead of our projected SEK296bn and SEK17.4bn (excluding disposal gains of SEK2.26bn). As management is also quite optimistic for 2017, it proposes to increase the dividend from SEK3 to SEK3.25 (we had expected an unchanged dividend).
Dismal 2016 results from Caterpillar
26 Jan 17
The group’s revenue fell by 13% to $9.57bn in Q4 and by 18% to $38.5bn in the full-year. As total costs were hardly down in Q4, the operating loss amounted to $1.26bn (loss of $175m in Q4 15). However, the latest number included impairment charges of $595m vs. zero a year ago and also a considerable market-to-market loss related to pensions. Excluding the impairment charge, the operating loss was $667m. The full-year EBIT was +$498m compared to a profit of $3.8bn in 2015. The group’s net loss after minorities was $1.17bn in Q4 (loss of $94m in Q4 15) and $67m in the full-year (profit of $2.5bn in 2015).
Truck delivery fall accelerates in Q3, but prices stabilise
21 Oct 16
The group’s consolidated accounts showed a Q3 revenue fall of 6.2% to SEK68.8bn which brought the ytd number to SEK219bn, a fall of 5.8%. Simultaneously, the EBIT numbers were SEK4.66bn (unchanged) and SEK13.8bn (-27%), respectively. While the 9M profit number is slightly ahead of our expectation (€13.35bn), the sales number is marginally lower (SEK221.8bn).
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
Panmure Morning Note 26-04-2017
26 Apr 17
The interims highlighted the dilutive impact of equity raise in November 2016 with profit before tax growing by 9% yoy but EPS growing by just 5% yoy. At end-February, the cash balance had reached £15m, of which £5.5m is earmarked for the completion of the new factory. As the company remains cash generative, we expect the company to end fiscal 2017 with just under £13m of cash. We eagerly wait to see how this cash will be invested and drive returns.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
Profit improvement impacted by dollar
04 Apr 17
Sprue’s 2016 adj. PBT was slightly better than anticipated at £2.3m on £57.1m of sales. With battery warranty issue worries abating we believe sales in Europe will increase in 2017. While we have made no significant changes to our sales forecasts, the dollar strength has led to reduced profit forecasts for 2017 and 2018 (despite the net benefit from Newell Brands ending its agreements from 31 March 2018). However, with the strong balance sheet and dividend yield and profit growth to come, we retain our 250p target price and Buy rating.
N+1 Singer - Trifast - FY17 results ahead of expectations
20 Apr 17
Trifast has provided a positive year end trading update, with good performances across all geographies. Results for FY17 are guided to be ahead of expectations, with year end net debt also lower than previously expected. FY18 has also started well, although management has reiterated slight caution regarding margins due to rising input costs. We anticipate increasing our PBT forecasts by a mid-single digit percentage, and also reducing our net debt estimates. We remain positive on prospects for Trifast and expect the share price to respond positively today.