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Capital & Retail Sector •

One of the best mutual fund industries in Canada, the IGM Financial Inc., posted on Thursday its earnings for the third quarter, higher than before, meeting estimates, and indicated an increased quarterly dividend.

The company, based in Winnipeg, Manitoba said its net earnings for common shareholders was at 219.7 million Canadian dollars for the current quarter or 87-Canadian-cent per share, which is higher than the previous year.

IGM revenue was at 750.2 million Canadian dollars, higher than the 667.5 million the previous year. Meanwhile the average revenue forecast was expected at 755.1 million Canadian dollars and earnings at 87-Canadian-cent per share.

IGM is a Desmarais family division, with the Power Financial Corp as the umbrella, and operating mainly under the Mackenzie Investments, Invstors Group, and the Investment Planning Counsel brands.

As of Spetember 30, the company’s overall assets under management were at 140.6 billion Canadian dollars, higher than last year’s 126 billion. Under management, its mutual fund assets were at 125.2 billion Canadian dollars, higher than last year’s 111.2 billion.

The company board improved its dividend for the quarter of 2.5 cents, indicating a 56.25-cent a share for IMG’s common shares that are due on January 30, 2015 to its shareholders within the record as of December 31, 2014.

Fossil Group Incorporated, a leading retailer of fashion accessories, reported higher-than-expected overall profit and sales for the year’s third quarter because of recent strong demand when it comes to company’s jewelry and watches, sending Fossil’s shares increased by 18.5% during extended trading.

Fossil Group Incorporated, a seller of watches like Skagen and Fossil, also stated that their company has already authorized a $1B program aimed to repurchase shares that will end by Dec 2018.

The retailer based in Texas, stated that overall jewelry sales increased to 23% during this year’s quarter.

Fossil has been obtaining the many benefits of their move of revamping their jewelry line and shifted to “affordable luxury” that has led sales of handbags and watches to increase.

Overall watch sales increased to 12.4%, amounting to $696.3M during the year’s third quarter that ended October 4, contributing above 3 quarters of Fossil’s total revenue.

Because of these developments, Fossil has narrowed down their forecast for profit this year.

Thomson Reuters I/B/E/S stated that Fossil stated that they are now expecting to earn about $7.00 to $7.30 for every share this year, falling in expectations recorded by analysts, which is $7.15 for every share.

Fossil Group Incorporated earlier forecasted values from $6.95 to $7.35 for every share, and expects current overall quarter earnings amounting to $2.91 to $3.21 for every share. Overall sales growth, meanwhile, is expected to be 3% to 6%.

On Thursday, the EDF, a French utility industry, said that a robust French nuclear output recompensed the negative effects of adverse weather in its first 9-month sales for the year.

The company sales jumped only 0.4% to 52.3B euros or 65B dollars. Its sales, based on like-for-like, merger activity adjustments, and currency impact, dropped 1.3%.

The company said its nuclear plants’ output expanded to 305.1 terawatt per hour, up 2.5% from the previous period, after plans on reducing outage duration. The company also confirmed its 2014 guidance, targeting the upper range.

Henri Proglio, company CEO said EDF showed off a robust Q3 performance, despite weather conditions and economic challenges, also confirming the company’s 2014 targets.

Jean-Bernard Levy will replace the current CEO by month-end. Levy is the leader of Thales, an aerospace and defense company.

EDF expects its 2014 group consolidated earnings before EBITDA, except its Edison unit to indicate a primary increase of 3% at least.

However, the firm confirmed its review of its target to generate positive cash flows after dividends, except its Linky smart meters investment by 2018. The investment will be installed in households from 2016 to 2020, expecting to cost 5B euros.

Company shares drifted after the government of France scrapped a 5% plan of tariff increase last August, and allowed only a 2.5% increase beginning November 1. Shares dropped 11% to date, and rated as the third poorest performer in the utilities index .SX6P.

The theme park and media Walt Disney Co reported its quarterly profit, meeting the Wall Street forecast as the company’s box-office films “Guardians of the Galaxy” and “Maleficent” boosted its performance.

During the recent quarters, Disney has been beating analysts forecast, but its shares dropped 2.5% on Thursday during the after-hours tradeoff. The company stock closed at 92 dollars before the reported earnings.

Company CEO Bob Iger said Disney will not rush offering standalone subscriptions outside traditional bundles, which are offered by cable and satellite companies. He also said the company didn’t feel any compelling need for products that are direct challenges towards multichannel bundle.

Thus, the company would tryout with online products such as ESPN streaming service, but only for some of NBA games. Iger said that would be a bright approach as it will boost the company’s digital offerings.

Disney’s net income during the quarter ended September jumped 1.50 billion dollars or 80-cent a share from the previous year’s 1.39 billion dollars or 77-cent per share. Based on adjustments, company earnings were at 89-cent per share, meeting analysts’ expectations.

The generation of income was helped by its blockbuster movies “Maleficent” and “Guardians of the Galaxy”, creating 254 million dollars.

Disney’s largest unit, its cable networks, drove the company shares lower than expectations. Brett Harriss, analyst of Gabelli & Company said there was a weakening in cable networks. Harris also expected, ESPN to compensate Disney’s programming expenses because of higher fees collected from affiliates.

The park and resort unit’s operating income jumped 20% to 687 million dollars as attendance and ticket prices increased.

Disney’s revenue increased to 12.39 billion dollars, above average expectations of 12.37 billion. Up until Thursday’s close, the company shares earned 20% throughout the year.

The Houston-based oil company, Apache Corp reported a net loss of 1.3 billion dollars on Thursday as the impact of tax, gas, and oil property charges, although the company is in the midst of selling its offshore operations.

Despite the company’s pressure from Jana Partners, an Apache activist stated in July its intentions of exiting two projects in Australia and Canada, those which are liquefied natural gas projects. Apache is also assessing the spin-off or sale of its global operations in order to concentrate on drilling in the North American shale shafts.

The company posted a 1.3 billion loss, equivalent to 3.50 dollars per share, compared to the 300 million profit, or 75-cent per share same quarter last year.

Apache generated a 1.38 dollar per share profit, excluding items that are included in the 1 billion dollar write-down of specific gas and oil assets because of low energy costs. Analysts estimated an average profit of 1.38 dollars per share.

The company’s overall gas and oil output for the quarter be around 637,000 barrels of oil equivalent per day or ‘boepd’, compared to the 784,000 ‘boepd’ last year.

Apache said it is now expecting its North American liquid production for 2014 to meet the estimated growth of between 15% and 18%.

Allianz, a German insurer, increased the amount of profit the company will give to its shareholders as dividends, promising to sustain the cash flow after reporting its increased net profit during the third quarter that beats estimates.

On Thursday, the biggest European insurer said it will reimburse 50% of its net profit as dividends, compared to the previous 40%. The move was surprising, and will help pacify the shareholders who are anxious about management turmoil as well as investor outflows in Pimco, the company’s management arm.

Dividend policy will be reviewed towards the year-end, after facing recommendations suggested by investors and analysts to deliver its dividend in line with competitors such as the Zurich Insurance that reimburses nearly 70% of its net results.

Allianz said the management intends to assess and reimburse the reserved budget earmarked for exterior growth every 3 years, with the first review by 2016’s end.

The company’s net profit and quarterly operating profit jumped 11% and 5%, respectively, beating the analysts’ estimate, including its operating profit in asset management and property-casualty insurance. However, an 8% drop in its asset management was posted the previous quarter.

Allianz is also expecting a 10.5B euros earning in its operating profit within the year. Company net profit rose to 1.6B euros during the quarter, from the previous quarter’s 1.45B euros, surpassing the average forecast of 1.54B euros.

On Tuesday, the Alibaba Group Holding Ltd, an electronic-commerce giant reported its 9-billion-dollar Singles’ Day sales in China, indicating the Chinese consumers’ buying power as well as the significance of the said event throughout the merchandising calendar.

The company’s 35 billion yuan sales record of 2013 was surpassed, recording 57.1 billion yuan or 9.3 billion dollars this year. This was achieved the midnight after the Chinese consumers, including foreign shoppers purchased heavily on discounted products online.

The Single’s Day event in China is almost similar to the United States’ Black Friday and Cyber Monday events, and is considered as the Chinese Valentine’s Day, although in 2009 it was converted into an online shopping event.

Jack Ma, founder and CEO of Alibaba, said that Alipay, the company’s financial services unit will likewise go public in China, while feeling a bit anxious about higher expectations and pressures since Alibaba is now a listed company. The company’s executive vice chairman, Joe Tsai, also emphasized the unleashed consumption power of Chinese consumers.

The current sales were helped by what they call the “pre-sales initiative” wherein merchants advertise their prices as soon as October 15, charging deposits for pre-sold items, however, the processing of full payments as well as shipping are done during the event itself.

Some of the 27,000 merchants have had complains about discounts from corporate rivalries, undercutting their benefits such as the Suning Commerce Group, Inc., and Wal-Mart Stores Inc. However, Tsai was optimistic of the company’s current position, saying that no other company can create another Single’s Day event as it has become global and reached overseas shoppers in over 200 countries.

Regal Entertainment is looking at the possibility of selling the entire company out for better profit.

This is a move that may not be very well accepted by the supporters of the products of any particular company. However, this is proven to be among the widely-accepted strategies in the world of business. Selling out does not really mean that the company has lost everything. It could just mean that they will have the same team – meaning the same theme for their movies, but not the same management. After all, money is still important to run the shows.

In the past nine months, the company has experienced a steady meltdown in its portfolio. It has been struggling as seen in the $2.3 to $2.2 billion decrease in its assets. It may be small when it comes to the net assets but this is equivalent to fifteen percent already. Coming back up to the market will be harder without some solid changes to come on the way.

In the meantime, there are no contracts released on whether they will pursue with the sale. However, there is already a team inside

ConocoPhillips has become more impressive in its third quarter outing after its decision to sell out units from its Nigeria base. The total increase that the company has experienced so far is equivalent to $71.32. This is already .8 percent of their total records.

This is also despite the plummeting of the prices of oil. Recently, the industry experienced a 20 percent melt down in the prices. This affects the trade because of the more expensive stocks that they have on hand. They will have to deal with the losses that will accrue in case the old expensive stock will be sold at a lower price.

The company is also expected to lose by $700 million dollars this year. They are projected to use up as much as $16 billion. The huge difference was recorded in the same time last year.

The reason for their cut portfolios is their new investments in relatively the same field. They have been looking at equipment and units for shale drilling. This is located in Southern Texas, in Eagle Ford exactly.

There is still a lot of chances under the pockets of this company. They have already predicted their numbers to go up come 2015. The only identifying circumstance right now would be the players around and the prices.

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