Pavan Sharma

The New Zealand market (NZX 50 Index, +0.5%) rose on Monday with some companies set to benefit from China relaxing its zero-covid policy performing the best. Auckland International Airport (+2.6%) and Air New Zealand (+0.6%) among the gainers. However, gains were muted due to the reports being unconfirmed. 

A mixed quarter from Amazon Inc. The company reported EPS of $0.31 per share or $2.9B, though this includes $1.1B in non-operating income from the company’s investment in Rivian, the electric truck manufacturer. “Actual” operating income was $1.8B. Net sales increased 15% to $127.1B; FX created a drag of ~$5B YoY. The company beat on EPS by ~36% while missing revenue expectations by about 0.29%. The stock sold off in the double digits after earnings, mostly on the back of management’s lowered guidance for Q4.

The New Zealand market (NZX 50 Index, +0.4%) moved slightly higher on Friday. Fisher & Paykel Healthcare (+0.8%) recouped some of its –3.5% loss on Thursday. At the same time, A2 Milk (-1.5%) pared some of its +4.2% gain from Thursday, after it announced that it had secured FDA approval to sell infant formula into the United States. 

Booking Holdings reported both a strong revenue and EPS beat for the third quarter of 2022 as consumers begin to travel again and more of the world opens up. We anticipated this in our last report on the company, seeing the stock as a reopening play. The company reported revenue of $6.05B vs estimates of ~$5.9B and earnings per share of $53.03 vs. the street’s estimates of $49.85. Room nights booked were up 8% on a three-year stack. Q3 revenue was 20% higher on a three-year stack and adjusted operating earnings (EBITDA) was 7% higher. These are stellar results and the stock as justifiably rallied in spite of the broader market selloff. We reiterate what we have said in our reports on Visa and Mastercard: consumer spend is shifting from “things” to experiences and Booking Holdings benefits from this.

The New Zealand market (NZX 50 Index, -0.9%) was dragged down by losses in heavyweights Fisher & Paykel Healthcare (-3.5%), Infratil (-2.9%), and Mainfreight (-2.7%).

Shares in church payment software business PPH jumped after receiving a $1.34 per share takeover bid from Sixth Street and BGH Capital, who currently hold 20.34% of shares outstanding.

The New Zealand market (NZX 50 Index, -0.3%) edged down slightly on Wednesday. Several stocks gave up bigger gains but still closed higher, including Move Logistics (+5.5%) and Pacific Edge (+1.2%), which peaked at ~10% and ~5%, respectively. NZ King Salmon (+7.1%) reversed Tuesday’s loss of -8.5% after its Chief Executive of 13 years resigned. 

Visa reported better-than-expected revenue and better-than-expected EPS. Revs were ~3% better than the street’s estimates, coming in at $7.79B, while EPS were ~3.5% better that what the street projected, coming in at $1.93 (non-gaap).