This week is the busiest in business results, including those of four giants of technology and internet: Facebook and Microsoft (Wednesday after market close) and Amazon and AMD (Thursday night). This week also marks the start of the results in the health sector, which has significantly underperformed the stock market since the beginning of the year.
Tuesday, the health insurers sector, attacked last week, has recovered significantly after the better than expected results of Centene (+4.6%). UnitedHealth gained 1.5% and Anthem (which will release its accounts Wednesday) climbed 2.7%.
The sector is disrupted by the health system reform projects put forward by the Democratic candidates in the presidential election of 2020. The Democratic Senator Bernie Sanders thus proposed last week a system of minimum health for all (Medicare for all ) that would virtually eliminate all private health insurance schemes for a public program open to all Americans.
Among the results to watch in the sector, we will follow Wednesday those of the biotechnology company Biogen, as well as the medical equipment manufacturer Boston Scientific and the Swiss laboratory Novartis.
Coca-Cola, the American giant of soft drinks, announced for the first quarter ended the end of March 2019 a net profit per share of 1.68 billion dollars or 39 cents, against 1.37 billion dollars and 32 cents per share a year before. Revenues climbed 5% to more than $8 billion, for adjusted earnings per share of 48 cents. The consensus was for its part housed at 46 cents of adjusted earnings per share for $7.9 billion in revenue over the period. Volumes increased by 2% YoY, supported by Europe and Asia.
Procter & Gamble, the leader in consumer products, released earnings and earnings above market expectations for its third fiscal quarter, helped by higher prices and strong demand. Over the three months ended March 2019, P&G posted net income of $2.75 billion, or $1.04 per share, compared to $2.51 billion and 95 cents per share a year earlier. Adjusted earnings per share were $1.06, 3 cents better than the consensus. Total revenues increased 1% to $16.5 billion ($16.4 billion consensus). Overall organic growth came out at 5%. P&G now anticipates growth for the year of up to 1%, for GAAP earnings per share up 17% to 24% and adjusted EPS up 3% to 8%.
Twitter surged after reporting a sharp increase in the number of users and its revenues. The California firm recorded a sales of $787 million, an increase of 18%, while the number of monthly active users reached 330 million (+9 million sequentially). Quarterly net income was $191 million or 25 cents per share, for adjusted earnings of $66 million and 9 cents per share. The microblogging site also unveiled a number of daily active users was 134 million, against 126 million in the previous quarter, and about 128.4 million expected by the consensus.
Twitter, which has focused on improving the quality of its platform by removing thousands of spam and suspicious accounts, will no longer disclose its data on the number of monthly active users from the next quarter. The group benefited from an 18% jump in advertising revenues, thanks in particular to ads in video format. In the current quarter, Twitter is counting on revenues ranging from $770 to $830 million, against a consensus of $820 million.