SK Hynix: Healthy Profit

SK Hynix: Healthy Profit

Reporting on Thursday, Nvidia [NVDA] supplier SK Hynix [000660:KS] posted its biggest quarterly profit since 2018, citing artificial intelligence (AI) demand. Moreover, “We expect next year’s high bandwidth memory shipments to more than double this year’s,” Head of DRAM Marketing Kim Kyu Hyun said on an earnings call, as reported by Reuters. Elsewhere, Dutch chipmaking parts supplier BE Semiconductor Industries [BESIY] forecast flat sales for Q3, while STMicroelectronics [STM] reported revenue of $3.2bn, missing consensus estimates by $40m.

What’s Behind the AZN Selloff, Despite Earnings Beat?

AstraZeneca [AZN] reported Q2 earnings that beat top-line estimates, driven by a spike in revenue from new medicines. It also issued better-than-expected forward guidance for both total revenue and core EPS. Nevertheless, AZN fell more than 4% Thursday morning; the reason for this “seems to be higher than expected costs, which have contributed to lower net income margins… The market is scrutinising earnings reports and punishing pockets of weakness,” Kathleen Brooks, Research Director at XTB, told City AM.

UK Fintechs on the Up

London-based fintech Revolut has been granted a UK banking licence by the Prudential Regulation Authority, more than three years after it first applied for one. The fintech already has both a European and a Mexican banking licence. Elsewhere, Morgan Stanley’s [MS] investment arm has made a $31m investment into London-based international payments fintech Sokin. Other investors include former PayPal [PYPL] Chief Commercial Officer Gary Marino, who will be on Sokin’s board.

Automakers: Q2 Winners and Losers (Mainly Losers)

Hyundai [HYMTF] posted record quarterly profit, Bloomberg reported, driven by strong demand for hybrids. By contrast Nissan [NSANY] reported Thursday that discounting in the US had all but eliminated its Q1 profit; analysts had expected profit to grow year-on year. Stellantis [STLA], meanwhile, saw its income fall 48% in the first half of the year; the stock shed nearly 6% on the news. Ford [F] shares similarly fell almost 12% on Wednesday, after Q2 earnings missed expectations.

Telcos Lose Customers

Reporting Thursday, Vodafone Group [VOD] said service revenue in Germany, its largest market, decreased by 1.5% in its fiscal Q1. A recent law change in the country, which prevents housing associations bundling TV and internet subscriptions with rent, could cause the firm to lose millions of customers. Elsewhere, BT [BTGOF] said it lost broadband and mobile customers in the most recent quarter; revenue fell 2% from a year earlier to £5.1bn the company said Thursday.