Newsquawk Daily European Equity Opening News - 24th April 2025

ASIA

APAC stocks were ultimately mixed despite the positive handover from Wall Street - the risk momentum waned overnight as trade uncertainty lingered owing to the mixed signals from the US. ASX 200 was led higher by outperformance in mining stocks and tech, with gold producers buoyed by a rebound in the precious metal. Nikkei 225 advanced at the open but gradually pared most of the gains following firmer Services PPI data from Japan and after a report that the US told Japan it cannot give it special treatment regarding tariffs during talks held earlier this month. Hang Seng and Shanghai Comp were subdued following the mixed signals from the US as a report noted the White House was mulling cutting China tariffs by around half to de-escalate the trade war although officials declared they are not considering something unilaterally. Furthermore, President Trump stated it depends on China how soon tariffs can come down and if they don't have a deal, they will set the tariff but said they are having daily talks with China.

Hyundai Motor (005380 KS) - Q1 (KRW) net 3.2tln (exp. 3.0tln), rev. 44.4tln (exp. 43.4tln). (Newswires)

Nissan (7201 JT) Co. is scrapping development of two sedan EV models planned to be produced at its Canton plant from 2028. (Newswires)

SK Hynix (000660 KS) - Q1 (KRW) net profit 8.1tln (exp. 5.1tln), rev. 17.6tln (exp. 17.3tln) Says: Q1 DRAM average selling price similar vs Q4. Q1 NAND average selling price about down 20% vs Q4. Elevated macro uncertainties such as tariff policy create volatility on 2H demand. Expects stronger demand for high-performance mobile DRAM. Big tech companies’ capex is expected to continue to capture initial AI market opportunities in server memory chips. Expects market recovery in 2025 more from supply factors in NAND. Q2 DRAM shipments to rise low teens percent vs Q1. Q2 NAND shipments to rise more than 20% vs Q1. To continue profit-oriented operational decisions for NAND and maintain a prudent approach in capex spending. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +3.00 % at 21,932, FTSE 100: +0.90 % at 8,403, CAC 40: +2.13 % at 7,482, Euro Stoxx 50: +2.86 % at 5,103, AEX: +1.45 % at 870, IBEX 35: +1.52 % at 13,208, FTSE MIB: +1.42 % at 36,458, SMI: +1.38 % at 11,807, PSI: +0.10 % at 6,837

SECTORS: IT 5.60%, Financials 2.35%, Consumer Disc 1.97%, Healthcare 1.83%, Industrials 1.81%, Materials 1.77%, Telecoms 0.63%, Energy 0.08%, Consumer Stpl -0.08%, Utilities -1.47%

FTSE 100

UK/US Trade - UK Chancellor Reeves says UK will not rush trade talks with US, UK will not relax food standards to secure deal UK borrowing data reinforce importance of controlling the public finances. Announces measures to prevent future dumping of unfairly priced imports. Will review customs treatment of low vale imports. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Adidas (ADS GY) - Q1 25 (EUR): Sales 6.153bln (exp. 6.11bln), Operating margin 9.9%, Gross margin 52.1% (exp. 51.8%); Q1 does not include any Yeezy contribution Operating profit improved strongly to EUR 610mln in Q1. (Newswires) Shares +4.3% in pre-market trade

Delivery Hero (DHER GY) - Q1 GMV 12.4bln (exp. 12.4bln). Confirms FY25 guidance. Notes that profitability continued to increase in Q1'25. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Evotec (EVT GY) upgraded to Hold from Sell at Deutsche Bank

CAC

Air Liquide (AI FP) - Q1 (EUR): Revenue 7.03bln (exp. 7.01bln). Affirms FY guidance. (Newswires)

BNP Paribas (BNP FP) Q1 (EUR) Net Income 2.95bln (exp. 2.94bln), Revenue 13bln (exp. 12.7bln), Op. Income 3.92bln (exp. 3.98bln), CET1 Ratio 12.4% (exp. 12.2%); confirms 2024-26 trajectory. (Newswires)

Dassault Systemes (DSY FP) - Q1 (EUR): EPS 0.32 (exp. 0.30), Revenue 1.57bln (exp. 1.51bln). Guides Q2 EPS 0.30-0.31 (exp. 0.30). (Newswires)

Essilor Luxottica (EL FP) - Q1 25 (EUR): Revenue 6.85bln (exp. 6.85bln), North America revenue 3.08bln (exp. 3.15bln), Revenue ex-FX +7.3% (exp. +7.1%). CEO on tariffs says moving to price adjustment in single digit territory in the US. (Newswires)

Kering (KER FP) - Q1 25 (EUR): Revenue -14% on comparable basis to 3.883bln (exp. 4.1bln), Gucci revenue -25% to 1.57bln (exp. -23.6%); Trends in APAC in line with Q4, Western Europe, North America and Japan saw sequential deceleration. CFO says co. is working on cost control while still supporting the top line, is working on cutting operational expenses; does not see real change in trends vs Q1 going into next quarter, neither in US nor other regions. Deputy CEO Bellettini says designer Demna will build on Gucci transformation and not "throw everything away"; doesn't expect any big disruptions at Gucci teams under new Gucci designer. Expect double digit decline in Q2. Economic environment has changes since last guidance. H2 should be better than H1. Low visibility on mainland Chinese demand at the moment. Carryover products business at Gucci continues to be slow. Experiencing 'big downtrend' in Gucci store traffic. Pushing on suppliers to decrease time to market at Gucci. Remains extremely cautious on US market, there is high volatility. They don't have to wait until 2026 to see some first products from new Gucci designer Demna. Deputy CEO says they will probably be able to have a H1 2025 margin higher than H2 2024; all of the brands are improving average ticket values. Making good progress on the balance sheet. End-March inventory is lower than it was at end-December. Jewellery continued to do well in Q1. (Newswires)

Renault (RNO FP) - Q1 (EUR): Revenue 11.68bln (exp. 11.7bln); maintains FY operating margin target of at least 7% (exp. 7.26%); confirms FY25 outlook Automotive revenue 10.13bln (exp. 10.26bln). In very unstable macro environment, decided to proactively engage additional cost reduction measures. CFO says prefers to be careful on costs and could delay some non-major projects. Says do not see any impact from tariffs yet, no supply chain disruption at this stage. May delay plan to sell Alpines in US over tariffs. (Newswires)

Sanofi (SAN FP) - Q1 (EUR): Net Sales 9.9bln (exp. 9.64bln), Business EPS 1.79 (exp. 1.70), Gross Profit 7.72bln (exp. 7.37bln). Confirms 2025 guidance. Closing of sale of controlling stake in Opella is expected in Q2. Intends to execute share buyback of EUR 5bln. (Newswires)

STMicroelectronics (STM FP) - Q1 (USD): Revenue 2.52bln (exp. 2.51bln), EPS 0.06 (exp. 0.05); guides Q2 revenue 2.71bln (exp. 2.59bln) , gross margin 33.2-33.6% (exp. 34.4%). Annual cost savings target in the high triple-digit million-dollar range exiting 2027 confirmed. (Newswires)

Thales (HO FP) - Q1 (EUR): Revenue 4.96bln (prev. 4.42bln Y/Y). Affirms guidance. (Newswires)

Orange (ORA FP) - Q1 (EUR): EBITDaL 2.48bln (exp. 2.40bln), Revenue 9.91bln (prev. 9.85bln Y/Y). Affirms FY guidance. (Newswires)

OTHER FRENCH COMPANIES

Bureau Veritas (BVI FP) - Q1 (EUR): Revenue 1.56bln (prev. 1.44bln Y/Y). Announces a EUR 200mln share buyback. (Newswires)

Getinge (GET FP) - Q1 (EUR): Revenue 328mln (exp. 334mln). (Newswires)

Klepierre (LI FP) - Q1 (EUR): Revenue 393.2mln (prev. 380.2mln Y/Y). Affirms guidance. (Newswires)

Worldline (WLN FP) - Q1 (EUR): Revenue 1.07bln (exp. 1.07bln). Postpones 2025 guidance as CEO works on new strategy. EUR 50mln cost-saving plan initiated. (Newswires)

BROKER MOVES

LVMH (MC FP) downgraded to Hold from Buy at HSBC; PT cut to EUR 575 (prev. 700).

PAN EUROPE

Trade - White House Economic Advisor Hassett says the US Trade Representative has 14 meetings scheduled this week with foreign trade ministers and there are 18 written offers from foreign trade ministers, adds the Chinese are open to talks. White House Press Secretary says not fair to say US President Trump is not softening, via Fox News interview. (Fox News)

Autos - EU, UK and EFTA passenger car registrations rose 2.8% YY in March, according to ACEA (ACEA)

Bankinter (BKT SM) - Q1 (EUR): Net Income 270.1mln (exp. 216.3mln), NII 541mln (prev. 578mln Y/Y). (Newswires)

Eni (ENI IM) - Q1 (EUR): Adj. Net Income 1.41bln (exp. 1.24bln), Op. Profit 2.60bln (exp. 2.31bln). Co. is optimising its 2025 spending plan, amid economic uncertainty. Commences EUR 1.5bln buyback. Sees 2025 oil and gas production at 1.7mln boepd assuming FY Brent price of USD 65/bbl. (Newswires)

Koninklijke (KPN NA) - Q1 (EUR): Net Income 169mln (prev. 175mln Y/Y). Affirms guidance. (Newswires)

Fugro (FUR NA) - Q1 Revenue -11% Y/Y. FY Outlook: EBIT Margin within target range of 11-15% and will reassess rev. outlook amid market clarity. (Newswires)

Saipem (SPM IM) - Q1 25 (EUR): Positive net result of 77mln, revenue 3.518bln, adj. EBITDA 351mln; confirms 2025 guidance. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Q1 (CHF): Sales 15.44bln (exp. 15.3bln); affirms outlook. Pharmaceuticals division sales +8%. Says are expanding its already strong US footprint. CEO says the tariff impacts remain unclear. (Newswires)

Nestle (NESN SW) - Q1 (CHF) Organic Revenue +2.8% (exp. 2.57%), Sales 22.60bln (exp. 22.44bln); 2025 outlook unchanged. Expects 0.7bln cost savings in 2025. Expects improved organic sales growth in 2025. (Newswires)

OTHER SWISS COMPANIES

Galderma (GALD SW) - Q1 (USD): Revenue 1.13bln (prev. 1.07bln Y/Y). (Newswires)

Kuehne und Nagel (KNIN SW) - Q1 (CHF): Net Revenue 6.33bln (exp. 5.82bln), EBIT 402mln (exp. 395.5mln). (Newswires)

BROKER MOVES

SCANDINAVIA

Huhtamaki (HUH1V FH) - Q1 (EUR): EPS 0.59 (prev. 0.55 Y/Y), Revenue 1bln (prev. 1bln Y/Y). (Newswires)

Nokia (NOKIA FH) - Q1 (EUR): EPS 0.03 (exp. 0.05), Revenue 4.39bln (exp. 4.40); says reaching top-end of profit guidance is more challenging. (Newswires)

BROKER MOVES

Equinor (EQNR NO) downgraded to Hold from Buy at Norne

US

CLOSES: SPX +1.67% at 5,376, NDX +2.28% at 18,693, DJI +1.07% at 39,607, RUT +1.53% at 1,919

SECTORS: Consumer Staples -0.42%, Energy -0.27%, Materials +0.02%, Real Estate +0.13%, Utilities +0.41%, Health +0.54%, Financials +1.18%, Industrials +1.25%, Communication Services +2.27%, Consumer Discretionary +2.76%, Technology +2.92%.

International Business Machines Corp (IBM) Q1 2025 (USD): Adj. EPS 1.60 (exp. 1.4), Revenue 14.5bln (exp. 14.35bln) Shares -6.9% after-hours

Lam Research Corp (LRCX) Q3 2025 Adj. EPS 1.04 (exp. 1.00), Revenue 4.72bln (exp. 4.65bln)

Southwest Airlines (LUV) Q1 25 (USD): Adj. EPS -0.13 (exp. -0.18), revenue 6.40bln (exp. 6.4bln). Not reiterating FY 2025 or 2026 EBIT guides

Texas Instruments Inc (TXN) Q1 2025 (USD): 1.28 EPS (exp. 1.05), Revenue 4.07bln (exp. 3.90bln) Shares +4.9% after-hours

24 Apr 2025 - 06:59- Research Sheet- Source: Newsquawk