Wednesday, August 21 12:42:22
The ISEQ fell deeper in to the red this morning, led by Glanbia stocks after it reported half yearly results.
By 12:30, the index was down 6.99 points to 4,172.58.
Shares in food giant, Glanbia, fell 39c to E9.97. With analysts calling it a solid interim statement with good top-line momentum across key divisions, investors nevertheless took profits. EBITA growth in Performance Nutrition (+18.3pc) and Global Ingredients (+6.0pc) helped deliver a 10.2pc increase in EPS to 30.39c. Performance Nutrition grew branded sales "in excess of" 20pc. Constant currency EPS guidance of 8-10pc growth is reiterated. "We think that our FY 2013 EPS forecast will remain broadly unchanged at 55.1c," said Davy.
Shares in CRH dipped 10c to E16.20. While the 8pc downgrade to CRH's FY 2013 EBITDA is disappointing, there is a sense that management is being very conservative, particularly given the on-going recovery in the US and the improving volume trends in Europe, Davy said. "Pricing power remains elusive in Europe and is likely to remain so until there is a meaningful recovery in underlying markets. It now seems that numbers are close to trough and our 93c EPS forecast for next year is based on relatively conservative assumptions, i.e. 2pc volume growth in Europe and 3pc in the US with positive pricing in both regions. This recovery in earnings should provide the share price with positive momentum," the broker said.