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Analysis: Sainsbury, Vodafone & Aviva

Morningstar analysts give their opinions on the latest quarterly updates from Sainsbury, Vodafone and Aviva

Alanna Petroff 15 November, 2012 | 3:31PM

Morningstar analysts have reviewed all the numbers and come back with their opinions on the latest quarterly updates from Sainsbury, Vodafone and Aviva. Find out what they have to say below:

J Sainsbury (SBRY)
Sainsbury's latest interim results showed the high-street retailer again increased like-for-like sales.

"The company has now reported positive like-for-like sales for more than 30 straight quarters, which suggests market share gains versus UK industry peers," said Morningstar analyst Michael Keara.

While market share gains may sound like a positive, Keara points out that there are risks that come with this. "Going forward, we believe share gains will have to come at the expense of profits from an increased promotional pricing and tough macro-economic environment," he said.

To read Kearas' full analysis, Premium subscribers can find his report here
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Vodafone (VOD)
Morningstar analyst Allan Nichols described Vodafone's fist-half revenue as "weak", saying that a strengthening British pound hurt revenue. Sales for the six-month period declined by 7.4% compared to the previous year.

"Europe as a whole struggled more than we anticipated. Germany was the only major country that outperformed our expectations, while the UK, Italy, and Spain were all worse ... The debt crisis and corresponding government austerity measures are clearly having a greater impact than we anticipated as customers cut back on their phone usage. While data revenue continues to increase, it is not sufficient to offset the lower voice and texting revenue. As more subscribers move to bundles of services, this pressure will likely continue."

To read Nichols' full analysis, Premium subscribers can find his report here

Aviva (AV.)
The latest interim management statement from the insurer revealed it is unloading "noncore" businesses, retreating from unprofitable markets, increasing its economic capital ratio and working to fill its CEO position, stated Morningstar analyst Vincent Lui.

"We are encouraged by the operational overhaul and the actions taken by management to improve financial strength and returns," said Lui after reviewing the latest interim management statement. "We think the progress so far has been encouraging."

To read Lui's full analysis, Premium subscribers can find his report here

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Aviva PLC495.00 GBX3.00
Sainsbury (J) PLC239.80 GBX2.04
Vodafone Group PLC225.00 GBX-0.27
About Author Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.