Ryanair stock jumps on new non-EU shareholder policy

Investing.com -- Shares of Watches of Switzerland Group PLC (LSE:WOSG) climbed 4% today after the company announced a share buyback program, signaling a potential end to its near-term capital expenditure cycle.

The luxury watch retailer has recently completed several large projects, including new Rolex boutiques in Old Bond Street, Plano Texas, Jacksonville, and Mayors locations in Florida and Atlanta.

The move is seen as a small positive by RBC analysts, considering WOSG’s strong balance sheet and cash generation capabilities, alongside its currently low share price.

The buyback announcement comes at a time when WOSG’s stock had seen a decline of 21% over the last three months. The company’s management appears to be taking steps to convey confidence to investors amidst this recent weakness.

However, some bearish investors are concerned that this buyback could signal a reduced likelihood of large-scale mergers and acquisitions, which may be necessary for WOSG to achieve its ambitious revenue target of £3 billion by the fiscal year 2028.

RBC’s estimates fall short of this goal, projecting revenue of £2.08 billion, which is in line with the consensus estimate of £2.1 billion.

RBC analysts commented on the financial impact of the buyback, stating, "We estimate ~3% EPS accretion to FY25E and FY26E consensus estimates."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Informa (LSE:LON:INF) fell by 1.5% today, despite the company reporting robust financial results for fiscal year 2024.

The global information services group announced underlying growth that exceeded consensus estimates of 10.8%, registering an 11.6% increase. Adjusted earnings before interest and taxes (EBIT) and adjusted earnings per share (EPS) were reported largely in line with consensus.

The company also achieved approximately an 8% free cash flow (FCF) beat compared to previous fiscal year 2025 guidance. This was attributed to improvements in working capital and a lower cash tax rate. Additionally, Informa indicated a potential £200 million-plus buyback for 2025, which could be seen as an incremental positive by investors.

Looking ahead, Informa’s fiscal year 2025 growth guidance appears to reaffirm market confidence, with a reiteration of 5%+ underlying revenue growth and a stated target of over 15%. The company is aiming for double-digit adjusted diluted EPS growth.

The projected adjusted diluted EPS for FY25 is approximately 56-57p, which is slightly below the Visible Alpha median consensus of 57.6p, prior to the disposal of Curinos.

Morgan Stanley commented on the results, stating: "Given the 10% pull-back from highs (mainly macro, partly FX), results should reassure and we would argue for low single-digit % outperformance today."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Schroders PLC (LSE:LON:SDR) climbed 5% today, following the announcement of an operating profit that surpassed consensus estimates and a significant cost savings plan.

The asset management firm reported an operating profit of £626 million, a 2% improvement over consensus expectations, with revenues slightly ahead and costs in line with forecasts. The company’s assets under management (AuM) stood at £779 billion, closely aligning with the consensus figure of £778 billion.

In a move that underscores its commitment to efficiency, Schroders outlined a strategy to save £150 million in costs over the next three years, aiming to achieve a cost-income ratio of under 70%, compared to the consensus estimate of 72.3%. This guidance implies an approximate 9% upside to consensus, signaling a robust outlook for the firm’s operational performance.

However, the company’s forecast for mutual funds, solutions, and institutional revenues to remain broadly flat through 2027 compared to 2024 introduces some uncertainty regarding the extent of potential upgrades. This projection suggests that while the company is on track to improve its cost structure, revenue growth may face challenges in the coming years.

Morgan Stanley weighed in on the announcement, noting the positive initial reaction to Schroders’ cost management efforts.

"Debate likely to focus on top line deliverability given ongoing challenges to active, but initial reaction we expect positive given costs, despite share run up."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Rentokil (LSE:RTO) dropped 3% following the release of its full-year 2024 financial results.

The company’s performance revealed a mixed picture, with North America profits slightly exceeding expectations, but weaker international trading and a free cash flow (FCF) miss contributed to the stock’s decline.

Rentokil’s second-half profits in North America were approximately 3% above projections, but this was overshadowed by lower-than-expected trading in international markets, with earnings before interest, taxes, and amortization (EBITA) coming in line overall due to reduced central costs.

The fourth quarter saw group organic growth of 2.8%, yet both Europe & Latin America and the UK underperformed. Despite these setbacks, the overall profit before tax (PBT) for the full year aligned with forecasts.

A notable area of concern was the company’s free cash flow, which fell around 10% short of estimates at £410m, primarily due to a higher working capital outflow. Net debt ended up £146m higher than anticipated at £3.2bn, resulting in a leverage ratio of 2.9 times, slightly above the estimated 2.8 times.

Consequently, Rentokil has adjusted its free cash flow conversion expectation for 2025 to 80%, down from a previously modeled 92%.

In response to these challenges, Rentokil is making strategic changes, including a renewed focus on customer retention and a revised brand strategy that will maintain nine specific regional core brands alongside Rentokil and Terminix.

The company also plans to increase its branch network, adding 100 branches to the original target of 400, which will result in a post-integration network of 500 branches. This expansion includes keeping some branches open that were slated for closure and opening new small satellite branch locations, with 10 already piloted and 22 operational.

Despite the financial miss, Rentokil anticipates its profit before tax for FY25 to meet market expectations, which currently stand at £734m.

Barclays commented on the strategic updates, stating, "Our view - these are all positive developments."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Entain PLC (LSE:ENT) climbed on Thursday as the company reported its financial results for FY24, aligning with consensus estimates and providing a stable outlook for FY25.

The gaming company’s announcement highlighted a 9% increase in group net gaming revenue (NGR), matching company-compiled consensus figures at £5,162 million.

Entain’s online NGR saw a 9% rise, with a 12% increase on a constant currency basis, and a 6% rise on a proforma basis. Retail NGR also experienced growth, up by 2%, although on a proforma constant currency basis, it remained flat.

The company’s EBITDA for the fiscal year stood at £1,089 million, slightly above the consensus of £1,083 million and within the upper range of its January guidance.

Looking ahead, Entain has expressed confidence in meeting the FY25 consensus EBITDA expectations of £1,109 million.

Analysts from Jefferies have commented on the valuation and strategic direction of Entain in light of recent changes in leadership. "We view the valuation as low and confidence in numbers being re-established after a long period of downgrades.

CEO changes undermine the story, but comfort is derived from Chair Stella David stepping back into the interim CEO role. We do not expect a material change in strategic direction," stated Jefferies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Galliford Try Holdings PLC (LSE:LON:GFRD) climbed 7.5% as the construction company reported a significant increase in pretax profit and revenue for the six months ended December 31.

The company’s pretax profit soared to 20.0 million pounds ($25.6 million), a notable leap from the 13.0 million pounds reported in the same period last year.

Galliford Try’s revenue witnessed a 13% uptick to 923.2 million pounds, buoyed by growth in both infrastructure and building segments. The firm’s order book also reflected positive momentum, standing at 3.9 billion pounds at the end of December, an increase from 3.7 billion pounds.

Moreover, the company has successfully secured 98% of its projected revenue for fiscal 2025 and 81% for fiscal 2026.

In a gesture that underscores confidence in the company’s financial health and future prospects, Galliford Try’s board announced an interim dividend of 5.5 pence per share, which is up from the previous 4.0 pence.

Chief Executive Bill Hocking expressed optimism about the company’s performance and future outlook, stating, "Our performance and future outlook give us confidence to improve our expectations for the full year to June 30, 2025, and we are committed to delivering long-term sustainable value for our stakeholders."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.