Newsquawk Daily European Equity Opening News

7th August 2024

ASIA

APAC stocks continued their recent rebound but with some of the gains capped as markets digested mixed Chinese trade data. ASX 200 was positive albeit with the upside limited as participants reflected on the key data from Australia's largest trading partner. Nikkei 225 saw two-way price action in which initially suffered losses but then staged a gradual recovery and was further boosted following comments from BoJ Deputy Governor Uchida who said they won't hike rates when markets are unstable. Hang Seng and Shanghai Comp. conformed to the upbeat mood although the advances in the mainland are limited after the PBoC refrained from injecting funds and the latest Chinese trade data printed mixed.

EUROPEAN CLOSES

CLOSES: DAX: -0.10% at 17,321, FTSE 100: +0.23% at 8,027, CAC 40: -0.27% at 7,130, Euro Stoxx 50: +0.08% at 4,575, AEX: +0.73% at 867, IBEX 35: -0.32% at 10,391, FTSE MIB: -0.60% at 31,107, SMI: -0.53% at 11,502, PSI: -0.19% at 6,456.

SECTORS: IT 2.58%, Healthcare 0.69%, Industrials 0.23%, Consumer Stpl 0.17%, Energy 0.13%, Utilities 0.01%, Financials -0.20%, Telecoms -0.21%, Materials -0.27%, Consumer Disc -0.53%                         

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Britvic (BVIC LN) downgraded to Neutral from Buy at Citi

Just Eat Takeaway (JET LN) upgraded to Overweight from Neutral at JPMorgan

DAX

Continental (CON GY) - Q2 (EUR): Sales 10.0bln (exp. 10.27bln), adj. EBIT 704mln (exp. 670mln), adj. EBIT Margin 7.0% (exp. 6.5%). FY Guidance: Sales 40-42.5bln (prev. guided 41-44bln, exp. 41.43bln), auto sales 19.5-21.0bln (prev. guided 20-22bln). (Newswires)

Siemens Energy (SIE GY) - Q3 (EUR): Revenue 8.79bln (exp. 8.6bln), Net -102mln (exp. -128mln), EPS -0.16 (exp. -0.148), On track to meet FY guidance, incl. an improved cash outlook; now expect positive FCF in a 1.0-1.5bln range (prev. guided 1.0bln). (Siemens Energy)

OTHER GERMAN COMPANIES

Commerzbank (CBK GY) - Q2 (EUR): Revenue 2.67bln (exp. 2.6bln), NII 2.07bln (exp. 2.09bln), PBT 869mln (exp. 891mln), Operating Profit 870mln (exp. 952mln), CET 14.8% (exp. 14.8%). Best H1 in 15yrs, confirms FY outlook. Intends to apply for a second tranche of the third buyback, will be based on Q3 results; targeting EUR 600mln for the buyback. (Newswires)

Evotec (EVT GY) - FY Guidance Update (EUR): Revenue 790-820mln (exp. 880mln), adj. EBITDA 15-35mln (exp. 91mln). (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ABN AMRO (ABN NA) - Q2 (EUR): Net 642mln (exp. 542mln), Revenue 2.17bln (exp. 2.12bln), EBIT 908mln (exp. 849mln), CET1 13.8% (exp. 14.0%). FY Guidance: Upgrades NII view to above 6.4bln (exp. 6.25bln). (Newswires)

Ahold Delhaize (AD NA) - Q2 (EUR): Revenue 22.3bln (exp. 22.1bln), EBIT 790mln (exp. 855mln), adj. EBIT Margin 4.2% (exp. 3.9%). Reiterates FY outlook. Interim dividend of 0.50/shr (prev. 0.49/shr). (Newswires)

Andritz (ANDR AV) - Appoints Hellwing as the new CFO, from March 2025. (Newswires)

Austrian Post (POST AV) - H1 (EUR): Revenue 1.5bln (prev. 1.28bln), EBITDA 211mln (prev. 189mln), EBIT 105mln (prev. 95mln), PBT 104mln (prev. 100mln), EPS 1.12 (prev. 1.13). FY Outlook: revenue increase at least in the upper single-digit range & EBIT growth expected in the mid-single-digit range. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Clas Ohlson (CLASB SS) - July: Sales SEK 2.4bln (prev. 2.19bln); see a continued negative FX impact and a more turbulent macro situation. (Newswires)

Novo Nordisk (NOVOB DC) Q2 (DKK): Sales 68.06bln (exp. 68.65bln), EBIT 25.94bln (exp. 26.85bln), Wegovy Sales 11.66bln (exp. 13.54bln). New share buyback programme for up to DKK 2.4bln will occur between 7th August and 4th November. Growth is being driven by increased demand for GLP-1 based diabetes and obesity treatments. In the US, demand for Wegovy exceeds supply, as such the supply of initiation dose strength remains capped. Investing in internal and external capacity to increase supply both short and long term. FY Guidance: Sales growth 22-28% at CER (prev. guided 19-27%); Operating Profit growth 20-28% at CER (prev. view 22-30%), CAPEX ~45bln. FCF 59-69bln. Outlook reflects expected continued periodic supply constraints, and related drug shortage notifications across a number of products/geographies. Elsewhere, the US FDA announces that two more doses of the weight loss drug are now available. (Newswires) Index Weightings: Stoxx 600: 3.3% (Largest), Stoxx 600 Health Care: 24.6% (Largest)

BROKER MOVES

US

CLOSES: SPX +1.04% at 5,240, NDX +1.02% at 18,078, DJI +0.76% at 38,998, RUT +1.23% at 2,064.

SECTORS: Real Estate +2.30%, Financials +1.46%, Communication Services +1.22%, Industrials +1.18%, Technology +1.11%, Consumer Discretionary +1.04%, Utilities +0.82%, Materials +0.56%, Consumer Staples +0.55%, Health +0.48%, Energy +0.40%.

Amgen (AMGN) - Q2 EPS 4.97 (exp. 5.01), Q2 revenue USD 8.39bln (exp. 8.33bln). CFO said its MariTide obesity drug advances in trials, with plans for a broad phase three programme and a focus on obesity-related conditions; is confident in the differentiated profile of MariTide, and is looking forward to the top-line phase two data towards the end of this year. Sees FY EPS between 19.10-20.10 (exp. 19.50), and sees FY Revenue between USD 32.8-33.8bln (exp. 33.06bln). Sees FY CapEx at USD 1.3bln (prev. 1.1bln), and still sees buybacks of up to USD 500mln.

Super Micro (SMCI) - SMCI gave up knee jerk gains of as much as 18% in afterhours trade, finishing the extended session -13%, as traders focussed on weak profits and gross margins. Q4 adj. EPS 6.25 (exp. 8.07), Q4 revenue USD 5.31bln (exp. 5.30bln). Q4 adj. gross margin 11.3% (exp. 14%). Announces a 10-for-1 stock split. Exec said Q4 gross margins were impacted by higher initial costs in ramping production of new AI GPU clusters with direct liquid cooling, and by pricing products competitively. Added that certain margin pressures will end, and margins will return to normal range by the end of FY25. Shipments may continue to be constrained in the short-term due to supply chain bottlenecks for key new components. Sees Q1 adj. EPS between 6.69-8.27 (exp. 7.68), and sees Q1 revenue view 6.0-7.0bln (exp. 5.47bln). FY25 net sales view between 26-30bln (exp. 23.64bln). Sees Q1 gross margin above 12% (exp. 14%).

07 Aug 2024 - 06:50- EquitiesResearch Sheet- Source: Newsquawk