British Sky Broadcasting: Investec keeps hold rating and 800p target; Numis upgrades to buy, 865p target kept; Jefferies keeps hold rating and 700p target.
BG Group: Jefferies cuts target from 1,800p to 1,700p, buy rating kept; UBS cuts target from 1,620p to 1,440p, buy rating unchanged; Societe Generale downgrades to hold, target cut from 1,650p to 1,300p.
Positive Points:
The group's efficiency and restructuring programme has helped the company to deliver growth in profits. Management previously stressed the benefits of its actions to reshape the group to provide the right commercial models, innovation and efficiencies required.
The company saw 2% growth in US sales, whilst in the Emerging and International Markets it reported 6% growth.
The group's Advanced Wound Management business continued to deliver strong underlying growth, with revenue growing at 4%.
The board's confidence in the future was previously expressed via a 50% hike to the half year dividend payment.
The group remains subject to occasional takeover speculation.
The group had $379 million net cash at the period end, against net cash of $150 million at the end of Q2 2012.
Negative Points:
Both sales and profits materialised at the lower end of analyst expectations.
The group's Advanced Surgical Devices business delivered total revenue of $698 million in the quarter, flat on last year on an underlying basis. Its Knee Implant franchise had a weaker quarter with a decline of 1% against a strong comparable.
The board noted that "conditions across our Established Markets remained challenging, particularly in Europe which has further deteriorated from the previous quarter."
Sales to emerging market regions still only represent a minority proportion – less than 15% as of half year 2012 reported sales.
The delicate state of the economic climate, ongoing UK and European government spending cuts and US government healthcare reforms continue to provide a degree of uncertainty.
Financial Highlights:
Revenue of $952 million reported, up 1% on an underlying basis.
Trading profit of $207 million, up 10% on an underlying basis.
Trading profit margin up 1.9% to 21.7%.
Third quarter results: Efficiencies battle difficulties in Europe at Smith & Nephew. The update continued to see operational efficiencies being pushed by management battling against difficulties in Europe. Progress in the Emerging Markets proved to be a feature, whilst the board highlighted its Advanced Wound Management business, which it noted "grew at twice the market rate."
As for the outlook, the group highlighted that it saw no change in the outlook for the group as a whole for 2012. However, the board continued to see variation in performance at a product franchise level.
In all, whilst concerns for cuts to government health budgets and the delay of treatment by patients thanks to the economic downturn continue to overshadow, management initiatives and expected long term drivers such as ageing populations currently underpin favourable consensus
Company overview
Smith & Nephew is a global medical technology company. It claims leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine, Trauma and Clinical Therapies. The group has almost 11,000 employees and a presence in more than 90 countries.
Positive Points:
Legal & General delivered record sales with management highlighting attractive opportunities for growth in each of its markets.
The group said it was on track to deliver operational cash generation from its UK Protection, Annuities and Insured Savings businesses of around £590 million in 2012.
L&G said it remained on course to launch its Retail Distribution Review (RDR) proposition on 19 November.
Management reported that its financial discipline resulted in a robust balance sheet and IGD surplus.
A progressive dividend policy is adopted by the board.
Negative Points:
The group lacks the scale of Asian geographical exposure currently enjoyed by rival Prudential. Asian and Emerging Market economies have been growing faster than Western counterparts.
With government debt levels at an all-time high in the UK coupled with potential increases in taxes and cuts to spending, all could undermine consumers' propensity to save.
In line with the broader industry, there are risks arising from exposure to bond markets, movements in interest rates, along with foreign currency exchange rate fluctuation.
A degree of uncertainty persists regarding the UK government's pending Retail Distribution Review.
Financial Highlights:
Legal & General reported an increase in pension assets to £429 million in the quarter, as a result of auto-enrolment.
The group saw record quarterly individual annuity sales up 10% to £350 million.
The group generated £533 million of annual premium equivalent sales in the three months to the end of September, up 28% from the same period in 2011.
L&G Investment Management had net inflows of £4.6 billion, up 28% year-on-year, a result of strong net inflows in its Liability Driven Investment (LDI) solutions and Active Fixed Income products of £3.3 billion, with the majority of this coming from international clients.
UK and US protection sales increased by 30% (to £56m) and 33% (to £24m).
Third quarter results: Legal & General delivers a record third quarter . Legal & General unveiled record sales for the quarter and for the year-to-date and said it continued to see attractive opportunities for growth in each of its markets. The announcement also revealed L&G Investment Management, (LGIM) and its savings division were both experiencing "strong customer demand for retirement solutions". Nigel Wilson, group chief executive, said - "Legal & General has delivered sustainable growth in cash and dividends. We are starting to accelerate the evolution of our business; our aim now is to translate strong operating performance into strong earnings growth"
Company overview
The Group's core activities are the provision of long term insurance, investment management and general insurance services. It has operations in the United Kingdom, France, the Gulf, India, Egypt the Netherlands and the United States. As at end-June 2012 it had total funds under management of £381 billion. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Positive Points:
The group's earnings materialized at the upper end of analyst forecasts.
Compared with the third quarter 2011, downstream earnings benefited from a recovery in industry refining margins and Shell's operating performance.
As part of its global exploration programme, Shell spent some $600 million on new acreage positions during the period, including positions in Benin deepwater, the Gulf of Mexico and onshore North America. New acreage positions were also added offshore Australia, China, Malaysia and Ukraine.
Shell has continuous improvement programmes in place to increase operational uptime and performance and to control costs.
Under its share buyback programme, some 4.3 million Class B shares were bought back for cancellation during the quarter.
The dividend yield remains attractive in a low interest rate environment