Stocks

We downgrade EA from BUY to HOLD. The company reported Q2 earnings that missed analyst estimates ($1.25 vs. an expected $1.35) a slight drop in revenue to $1.78B.

Warner Music Group (WMG) reported stellar results for Q4; the stock rallied +14% post-results. The company reported revenues of $1.5B vs. estimates which sat in the low 1.4B range, whilst earnings per share sat at $0.28 vs. the street’s estimates of $0.12. We reiterate our BUY rating.

Ebos shares have climbed higher recently following its entry into the MSCI Word Index seeing large amounts of passive buying. EBOS remains our most preferred healthcare stock in NZ, the stock has now broke over $40 a share again and we think it is an opportune time for investors to take ‘some’ profit given its ‘fair valuation’ and heightened volatility in the markets it is unlikely to hold up for so long like it has done so in the past. 

TJX reported EPS of 91 cents vs. analyst estimates of 80 cents, whilst revenue slid -2.9% to $12.17B. We reiterate our buy rating for the company – its differentiated cut-price business model and strong stock-handling policy makes it a durable business as we enter a quarter with mixed retail data. Also evident on its performance around GFC and stronger bounce back after.

We initiate coverage of Costco (COST) with a BUY (underweight) rating. The company is engaged in the sale of groceries, home goods and apparel via a membership programme. It has 842 warehouses across the world, and 118.9M members.

WarnerBrothersDiscovery (WBD) reported disappointing earnings amidst a difficult turnaround story. The company’s revenue came in below the street’s expectations, at $9.82B vs. and expected $10.36B. Per share loss was 95 cents, mainly due to write-downs which management had previously signaled.

Elders plunged 22.9% after reporting its annual results despite the result coming in on the top end of guidance, the planned departure of its CEO Mark Alisson and uncertain outlook worried investors. Elders revenue rose +35% and operating earnings (EBITDA) increased +39% and the company were able to declare a 56 cent per share final dividend, an increase of +33% from last year.