South Africa

Trading Day – Tsogo Sun continues its rebound

Tsogo Sun continued its incredible Covid rebound. EPS more than doubled, increasing to R0.64. Revenue increased 43% to R5.5 billion.

Mr Price reported strong earnings growth, with EPS increasing 13.7% to R5.00. Revenue grew 6.5% to R13.3 billion.

Meanwhile, John Deere shares climbed 5% in the US after beating expectations with EPS of $7.44 and strong revenue growth to $14.35 billion.

US markets are up after Fed minutes reiterated that they expect to shift to smaller rate hikes “soon”. The S&P 500 closed 0.6% higher, and the Nasdaq climbed by 1%.

The Nikkei 225 is up 1% in early morning trade, while the Hang Seng index increased 0.5%.

Here is the biggest news of the day.

  • Tsogo Sun continues its incredible Covid rebound. Earnings per share (EPS) for the half-year period ended September more than doubled, increasing 106% to R0.64. Revenue increased 43% to R5.5 billion. Tsogo Sun doubled its dividend to R0.30 per share.
  • Mr Price reports strong earnings growth. Earnings per share (EPS) for the half-year period ended September increased 13.7% from last year to R5.00. Revenue also showed healthy growth, increasing 6.5% to R13.3 billion, and the company was able to improve its gross margin by 0.6%. Mr Price was able to increase its dividend by 10.6% to R3.13 per share.
  • John Deere shares climbed 5% after beating on earnings. Earnings per share (EPS) for the quarter came in at $7.44, beating analyst estimates of $7.10. Quarterly revenue grew 40% from last year to $14.35 billion. The company is investing $30 million to begin shifting some of its harvester production from China to the US, expanding its factory in Thibodaux, Louisiana.
  • Kaap Agri reports very strong earnings growth. Revenue for the year increased by 48% to R15.7 billion. Earnings per share (EPS) increased 23% to R5.63. The company declared a final dividend of R1.22 per share. It brings the total dividend for the year to R1.68, 11% more than last year.
  • Lewis maintains stable earnings. While headline earnings per share (HEPS) for the half-year period ended September increased 19.2% to R3.93, basic earnings per share (EPS) remained flat at R3.42. Revenue showed a reasonable 4% increase to R3.5 billion. Lewis maintained its interim dividend at the same level of R1.95 per share.
  • Stefanutti Stocks manages to stem some losses but is still struggling. Contract revenue for the half-year period ended August declined by 9% to R2.87 billion. While net income for the period turned from a loss of R188.5 million to a profit of R9.2 million, this was largely due to discontinued operations. Losses from continuing operations narrowed from R97.9 million to R33.5 million. Basic earnings per share (EPS) turned from a loss of R1.13 to a profit of R0.06 per share, while headline earnings per share (HEPS) showed a smaller loss of R0.25 compared to R0.67 last year. No dividend was declared.
  • Grindrod has declared a special ordinary dividend of R0.56 per share, representing a cash return of 25% of the consideration received from the sale of Grindrod Bank.
  • NEPI Rockcastle expects distributable earnings to increase by 48% after settling the discontinued acquisition of two shopping centres in Poland. The company made a provision of €37.3 million for the settlement that has now been finalized for only €16 million. This will result in a €21.3 million reversal in the current year’s distributable earnings. NEPI Rockcastle, therefore, expects distributable earnings per share to be 48% higher.