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The Reporting Circus Is In Town

28 January 2015 by lberuti

With the emphasis put on macro factors recently - from the escalating conflict in Ukraine to results of the Greek elections or the launch of full blown QE in Europe -, one would be forgiven to forget about the reporting season which has been in full swing since the last few weeks. But today shows that results still matters and can impact the price of risky assets. For instance, FNCIM (Finmeccanica Spa) raised its 2014 revenues guidance to EUR14.4-14.7Bln, orders guidance to EUR15.2-15.5Bln and their Ebita estimate to EUR1.04-1.06bln. The management also announced that debt would go down from the current EUR4.1bln to less than EUR3.5bln by 2017. FNCIM will scale back its product line and focus on non-military markets. Investors showed their appreciation by sending the stock up 2.5% and the 5 year risk premium 12bps tighter to 134bps. If you play with the timeframe menu in the top left corner of the chart, you will see that is the tightest level since the beginning of 2011.