Before the bell: strong corporate earnings push markets sharply higher

Several well-known names are posting solid gains on Wall Street. Today again, many listed companies are reporting results.

On Wall Street, both the S&P 500 and the Nasdaq performed strongly yesterday, rising 0.6% and 0.8% respectively. Booking Holdings (+3.1%) reported better-than-expected results, with net profit up 33.6% compared to last year. Garmin (+9.4%) performed even better. eBay also significantly beat expectations. The stock had already gained 2.8% during the trading session and added another 5.8% after the close. Food delivery company DoorDash, which had risen 6.8% on Wednesday, surged an additional 14.4% in after-hours trading. Palo Alto (-6.8%) also reported better-than-expected figures, but the cybersecurity company was not rewarded for it. In Europe, shares of the largest listed companies rose on average by 1.4% yesterday. Bayer (-7.1%) gave back almost all of the gains from earlier this week as investors once again question the billion-dollar Roundup settlement in the United States. In Brussels, the Bel20 added another 0.6%. Melexis (+4.4%) shone, while Azelis (-8.6%) was the biggest decliner in the index after disappointing results from Dutch peer IMCD (-4.7%).

In Tokyo, the Topix index is up another 0.9% this morning. So far this year, Japan’s main benchmark has already climbed 13%. Japan Steel Works (+9.7%) stands out, while Nissan Motor (-2.2%) moves lower. The Hong Kong exchange remains closed today for a third and final day due to Chinese New Year. Today, results are expected from Azelis, Gimv, Kinepolis, Materialise and VGP. In the Netherlands, Aegon, Arcadis, BAM, Besi and ForFarmers are reporting. We will also see figures from Airbus, Nestlé, Pernod Ricard and Renault, while on Wall Street attention turns to Deere & Company, Klarna and, above all, Walmart.

(No) drama at the cinema

Kinepolis saw the number of visitors fall by 1.9 million last year to 30.7 million. Net profit declined by 6.4% to 37.9 million euro and free cash flow in 2025 was 28.4% lower than in 2024. Yet the cinema chain is significantly increasing its dividend, from 55 cents to 65 cents per share. You could interpret that as a sign of confidence in the company’s future and in the sector. But I do have questions. With net debt of 595 million euro, I would be cautious about paying out dividends. Strangely enough, despite the acquisition of the US chain Emagine Entertainment, Kinepolis claims to have reduced its net debt last year from 674.6 million euro to 595.2 million euro. How is that possible? The acquisition cost at least 105 million dollar, potentially rising by another 15 million dollar. The deal was finalized last week, but the exact purchase price was not disclosed. Is it possible that the full impact of the acquisition was not yet reflected in the debt as of December 31? “The figures are solid,” says the CEO. With all due respect, I am not a fan of investing in the cinema chain.

Gimv outperforms Sofina and Brederode

I used to be a trader. That was my profession from 1993 to 2000. But that does not mean I am a trader with my investments. Those who trade frequently mainly enrich the government and their bank or broker. Do not be misled: most (day) traders are simply not very good at it. I trade little. And even then, I sometimes trade too much. Do you remember that about two years ago I adjusted my portfolio? I sold Gimv and bought Sofina instead. I have not yet calculated whether that was a good move. But I must admit that Gimv performed better last year than top performers such as Brederode and Sofina. The Antwerp-based investment company announced this morning that it increased its net asset value by 9% last year, even in a shortened financial year of nine instead of twelve months. Brederode and Sofina more or less stood still over the same period. And yet I have more confidence in Sofina than in Gimv. Not because I am stubborn, but because I believe Sofina’s investments will ultimately generate stronger returns. Let time do its work. Best of luck to Gimv. And even more success to Sofina.

Did you know…

that the figures Azelis published this morning are in line with expectations? Revenue declined by 2.4% last year and operating profit fell by 13%. The 8.6% share price drop yesterday, when investors anticipated even worse results, now seems exaggerated.

This article was translated from Dutch and was originally published on Spaarvarkens.be.