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The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
IAG offers €0.35 special div and final ordinary div of €0.165 (+13.8%), doubling yield to 9%. 2018 passenger revs +6.2%, op profit +9.5%; Avg Seat KM +6.1%, passenger revs per ASK +0.1%, non fuel costs per ASK -2.2%. At current fuel prices and FX rates, expects 2019 operating profit broadly in line with 2018. Passenger unit revenue and ex-fuel unit cost to improve at constant FX.
Mondi FY revenue +5% missed +6.7% est, underlying EBITDA +19% beat +17.5% est., underlying op. profit +28% missed +25.5% est. FY div +23%, but no special dividend. Confident in packaging growth, but pricing mixed and plans longer maintenance and project shutdowns in 2019.
Rolls Royce 2018 underlying financials ahead of expectations; Core cash flow more than doubled, taking net debt to net cash; Withdraws from NMA engine competition, unable to commit to timetable; restructuring on-track.Expects 2019 higher operating profits and free cash flow in 2019.
Rio Tinto reports a +3.4% growth in Pilbara mineral resources after higher iron ore finds at Music Hall, Old Vic and Western Hill sectors.
British American Tobacco FY revenue +25.2% (adj. +3.5%), op. profit +45.2% (adj. +4%), net op. cash +92.5%, dividend +4%. Competitor took vapour market share, but Vuse vol +36% (70% mkt share). Expects 2019 earnings up high single digits like-for-like. Confident managing menthol ban.
Aston Martin swings to 2018 pre-tax loss hit by IPO costs although adjusted profits rose; backs 2019 sales targets.
RSA Insurance FY net written premiums -3% (in-line), underwriting profit -36%, pre-tax profit +7.1% (missing +16.3% est.), underlying return on tangible equity +15.5%. Interim dividend +10.6%, final dividend +5.3%. Notes volatile market conditions, but 2019 results to be substantially improved.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Code | Close | High | Low |
| MARKS & SPENCER | MKS | -9.6% | -3.0% | -10.2% |
| RIO TINTO | RIO | 0.0% | 1.2% | -0.9% |
| WEIR | WEIR | 1.3% | 3.2% | -2.7% |
| METRO BANK | MTRO | -38.1% | -24.5% | -40.1% |
| TAYLOR WIMPEY | TW/ | 7.0% | 7.7% | 3.0% |
| ITV | ITV | -3.8% | -1.3% | -6.4% |
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Prepared by Michael van Dulken, Head of Research