Kernel, Astarta Earnings Disappoint; Ferrexpo, MHP Lead Decliners Amid Broader Market Rebound
Ukrainian agro companies Kernel and Astarta both reported weaker-than-expected quarterly results. Astarta’s revenue dropped 25% year-on-year to EUR 125mn, while net profit fell nearly 30% to EUR 6.4mn, or PLN 1.1 per share. Despite the soft results, Astarta’s shares gained 1.5% over the week to PLN 59.00, valuing the company at USD 384mn.
Kernel’s net profit tumbled 60% to USD 41mn, even as revenue rose 14% to USD 1.14bn. The KER stock slipped 5.5% to PLN 18.40, bringing its market capitalization to USD 1.44bn.
Shares of poultry producer MHP (MHPC) declined 5.2% over the week to USD 5.12, while Ferrexpo (FXPO) slumped 10% to GBp 54, with MCap of USD 436mn. The drop in Ferrexpo was partly driven by weaker sentiment in the iron ore sector, as Morgan Stanley forecasts a 5% decline in average iron ore prices next year.
Globally, equity markets staged a moderate rebound following the preceding week’s losses. The S&P 500 rose 1.9%, recouping some ground after a 2.6% decline. Strong quarterly results from NVIDIA — now the world’s second-largest company by market cap after Microsoft — helped lift sentiment among active traders.
However, recent comments from President Trump alleging Chinese violations of trade agreements with the U.S. could pose downside risks for the S&P 500 index this week.
The S&P 500 will finish the year near current levels, according to a Reuters poll, after many strategists in recent months cut their 2025 forecast for the index. Based on the median forecast of 51 equity strategists, analysts, brokers and portfolio managers collected May 15-28, the year-end target for the benchmark S&P 500 is 5,900, down from 6,500 in a February poll by Reuters.
POLITICS AND ECONOMICS
- Round 2 of Umerov-Medinskiy Talks Under Way in Istanbul
STOCKS IN THE NEWS
- Kernel Misses Estimates With Quarterly Profit of PLN 0.56 a Share
full report
Eavex Capital welcomes any questions
or comments you may have regarding our research products.
Please contact us by email:
Dmitry Churin, Head of Research,
[email protected]
