Newsquawk Daily European Equity Opening News - 1st May 2024

1st May 2024

ASIA

APAC stocks took their cues from the losses on Wall St amid a hawkish impulse owing to the firmer-than-expected Employment Cost data heading into today's FOMC and with trade mired by mass holiday closures. ASX 200 was pressured as gold miners led the declines after the precious metal slid beneath the USD 2,300/oz level, with underperformance also seen in rate-sensitive sectors. Nikkei 225 slipped at the open but held on to 38,000 status and briefly clawed back all of its losses with the downside cushioned by a weaker currency and as participants digested another batch of earnings releases, while it was also reported that Japan could provide tax breaks for companies repatriating foreign profits into the JPY.

EUROPEAN CLOSES

CLOSES: DAX: -1.08% at 17,921.95, FTSE 100: -0.04% at 8,144.13, CAC 40: -0.99% at 7,984.93, Euro Stoxx 50: -1.22% at 4,920.55, IBEX 35: -2.22% at 10,854.40, FTSE MIB: -1.60% at 33,746.66, SMI: -0.65% at 11,259.10.

SECTORS: Consumer Disc -1.91%, IT -1.44%, Telecoms -1.13%, Materials -0.91%, Energy -0.86%, Financials -0.75%, Industrials -0.68%, Utilities -0.64%, Healthcare 0.21%, Consumer Stpl 0.34%

FTSE 100

GSK (GSK LN) – The trial regarding Zantac, a heartburn drug that was once sold by the Co., is to begin this week. Trial is in Chicago and concerns plaintiff Valadez who alleges that she developed colorectal cancer after taking Zantac and generics between 1995-2014. (Newswires) Previous cases which were heading for trial were either dropped or settled while around 50k claims were dismissed in Florida during 2022; the ruling is also potentially of note for Sanofi (SAN FP), Haleon (HLN LN) and Pfizer (PFE).

UK Cos – Chancellor Hunt has warned the FCA against plans to “name and shame” firms under investigation, remarking that it does not seem consistent with the new secondary growth responsibilities the FCA has. (FT)

OTHER UK COMPANIES

BROKER MOVES

Darktrace (DARK LN) downgraded to Hold from Buy at HSBC

*All markets below (ex-Denmark) are shut for Labour Day

DAX

Commerzbank (CBK GY) – Shareholders approved a dividend of EUR 0.35/shr and authorisation of further share buybacks. To acquire its own shares up to a volume of 10% of share capital. (Newswires)

Mercedes Benz (MBG GY) – Named Federico Kochlowski as CEO of Mercedes Benz US. (Newswires)

OTHER GERMAN COMPANIES

DHL (DHL GY) – The Teamsters union is to present a countermotion urging investors to reject the DHL remuneration report at the AGM on May 3. (Newswires)

Prosiebensat 1 Media SE (PSM GY) – 70.95% of shareholders voted for MediaForEurope’s (MFE IM) motion for a split of the Co. (Newswires) 75% of votes were required

BROKER MOVES

CAC

Airbus (AIR FP) - Spirit AeroSystems (SPR) and Airbus sent senior executives to New York to chart a path for a takeover of key aircraft-manufacturing assets, according to Bloomberg. (Bloomberg)

Teleperformance (TEP FP) – Q1 (EUR): Revenue 2.54bln, +0.9% Y/Y. Confirmed FY24 outlook. Improved performance expected in Q2. (Newswires)

OTHER FRENCH COMPANIES

Casino (CO FP) - Announced disposal of 121 stores to ITM, Auchan, and Carrefour; the transaction is based on an enterprise value of stores sold of EUR 698mln. (Newswires)

Lagardere (MMB FP) – The Board unanimously decided to co-opt Jean-Christophe Theiry as director and to appoint him as CEO. (Newswires)

BROKER MOVES

PAN EUROPE

Aena (AENA SM) – Q1 (EUR): EBITDA 581.1mln (exp. 964.4mln), Net Income 261mln (exp. 551mln), Pretax profit 346.7mln (exp. 711mln). (Newswires)

NN Group (NN NA) – Moody’s ratings affirmed NN’s LT issuer rating at Aa3; outlook stable. (Newswires)

Stellantis' (STLAM IM/STLAP FP) - UAW said members at Stellantis' Warren Stamping plant to take strike authorisation vote over health and safety grievances. (Newswires)

BROKER MOVES

SNAM (SNAM IM) upgraded to Buy from Hold at HSBC

Acciona Energy (ANE SM) upgraded to Hold from Reduce at HSBC

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA (Denmark open)

BROKER MOVES

US

CLOSES: SPX -1.57% at 5,035, NDX -1.92% at 17,440, DJIA -1.49% at 37,815, RUT -2.09% at 1,973.

SECTORS: Energy -2.91%, Consumer Discretionary -2.66%, Technology -2.16%, Real Estate -1.85%, Materials -1.81%, Industrials -1.64%, Communication Services -1.49%, Financials -0.95%, Utilities -0.57%, Consumer Staples -0.42%, Health -0.1%.

Advanced Micro Devices Inc (AMD) - Q1 2024 (USD): Adj. EPS 0.62 (exp. 0.61), Revenue 5.47bln (exp. 5.46bln). REVENUE BREAKDOWN: Data centre 2.34bln (exp. 2.31bln). Gaming 922mln (exp. 965.5mln). Client 1.37bln (exp. 1.29bln). Embedded 846mln (exp. 922.6mln). KEY METRICS: Adj. gross margin 52% (exp. 52%). CapEx 142mln (exp. 118.4mln). Adj. operating income 1.13bln (exp. 1.11bln). Adj. operating margin 21% (exp. 20.8%). FCF 379mln (exp. 2.22bln). Q2 GUIDANCE: Revenue 5.4-6bln (exp. 5.72bln). Adj. gross margin of about 53% (exp. 53%). Executive raises forecast for revenue from AI chips in 2024 to USD 4bln from a previous forecast of USD 3.5bln. (Newswires) Shares fell 6.9% after hours

Amazon.com Inc (AMZN) - Q1 2024 (USD): EPS 0.98 (exp. 0.83), Revenue 143.31bln (exp. 142.5bln); Q2 net sales view 144-149bln (exp. 150.13bln). SALES BREAKDOWN: Online stores 54.67bln (exp. 54.77bln). Third-Party Seller Services 34.60bln (exp. 34.63bln). AWS 25.04bln (exp. 24.11bln). Physical Stores 5.20bln (exp. 5.08bln). GEOGRAPHICAL BREAKDOWN: North America net sales 86.34bln (exp. 85.55bln). International net sales 31.94bln (exp. 32.47bln). KEY METRICS: Third-party seller services net sales excluding F/X +16% (exp. +15.8%). AWS net sales excluding F/X +17% (exp. +14.5%). Operating income 15.31bln (exp. 10.95bln). Operating margin 10.7% (exp. 7.63%). COMMENTARY: AWS’s growth rate is now at USD 100bln annual revenue run rate. Q2 GUIDANCE: Net sales 144-149bln (exp. 150.13bln). Operating income 10-14bln. (Newswires) Shares rose 1.3% after hours

Mondelez International Inc (MDLZ) - Q1 2024 (USD): Adj. EPS 0.95 (exp. 0.89), Revenue 9.29bln (exp. 9.16bln). Adj. gross margin 39.2% (exp. 36.6%). Adj. operating margin 18.5% (exp. 17.2%). FY organic net revenue view +3-5% (exp. +5.19%). (Mondelez IR) Shares fell -0.1% after hours

Nvidia (NVDA) - S&P upgrades Nvidia to 'AA-' on continued strong AI investment cycle; outlook stable. (Newswires)

Starbucks Corp (SBUX) - Q2 2024 (USD): Adj. EPS 0.68 (exp. 0.79), Revenue 8.56bln (exp. 9.13bln), Comp. sales -4% (exp. +1.46%) Executive says expects FY global and US comparable sales of low single-digit decline to flat vs prev. forecast for 4%-6% growth. Expects sequential revenue growth from Q3 to Q4. Expects FY EPS and non-GAAP EPS growth of flat to low single digits from the previous range of 15%-20%. Expects FY global revenue growth of low single digits from a previous range of 7%-10%. Expects FY China comp sales of single-digit decline from the previous expectation of low single-digit growth in Q2 through Q4. (Newswires) Shares fell 11.6% after hours

Super Micro (SMCI) - Q3 2024 (USD): Adj. EPS 6.65 (exp. 5.78), Revenue 3.85bln (exp. 3.95bln). Sees Q4 adj EPS USD 7.62-8.42 (exp. 6.97). Sees Q4 net sales USD 5.1bln-5.5bln (exp. 4.73bln). (BusinessWire) Shares fell 10.1% after hours

01 May 2024 - 06:45- Research Sheet- Source: Newsquawk