Newsquawk Daily European Equity Opening News

25th October 2023

ASIA

APAC stocks traded mixed following a firmer lead from Wall Street as eyes turned to earnings from heavyweights Microsoft and Alphabet. Shares of the former rose 3.9% and the latter tumbled 5.9% with cloud growth in focus. ASX 200 slipped into the red after Aussie CPI topped expectations across the board, which led to hawkish revisions to some analysts' RBA calls. Real Estate led sectoral losses, but the index was cushioned by outperformance in its Mining sector. Nikkei 225 was supported by recent JPY weakening as export-related sectors outperformed with some potential tailwinds after Bloomberg sources yesterday suggested that the BoJ saw little need to change its "will not hesitate to take additional monetary easing measures" forward guidance. Hang Seng and Shanghai Comp surged at the open with sentiment in the region boosted by reports that Chinese President Xi made an unprecedented visit to the PBoC in a "sign of focus on the economy." Hong Kong markets outperformed as large-caps posted gains between 4-6%, and tech also felt some tailwinds from Microsoft's earnings and guidance.

Property Stocks - Hong Kong is to cut the home purchase tax by half to 7.5%, according to local press Sing Tao. (Sing Tao)

EUROPEAN CLOSES

CLOSES: DAX +0.54% at 14,879.94, FTSE 100 +0.20% at 7,389.70, CAC 40 +0.63% at 6,893.65, Euro Stoxx 50 +0.55% at 4,064.05, IBEX 35 -0.22% at 8,975.80, FTSE MIB +0.05% at 27,572.74, SMI +0.45% at 10,378.70.

SECTORS: Utilities 1.59%, IT 1.31%, Materials 1.08%, Consumer Disc 0.94%, Healthcare 0.78%, Consumer Stpl 0.60%, Telecoms 0.28%, Industrials -0.27%, Energy -0.32%, Financials -0.39%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Beiersdorf (BEI GY) - 9-month (EUR): Revenue 7.3bln, +11.2%; Nivea +17.5%, Derma +24.8%, Healthcare +4.3%, La Prairie -15.8%. FY23 Guidance: upgrades sales forecast to low-double-digit organic sales growth. (Newswires)

Deutsche Bank (DBK GY) Q3 (EUR): Net Revenue 7.13bln (exp. 7.11bln). Pre-tax profit 1.72bln (exp. 1.6bln). CET1 ratio 13.9% (exp. 13.6%). FICC Sales & Trading Revenue -12% Y/Y; says further buybacks anticipated in Q4. (Newswires)

Fresenius Medical Care (FMC GY) - Recalls some Hemodialysis Machines for potential exposure to toxic compounds. (FDA)

Porsche AG (P911 GY) - 9-month (EUR): Revenue 30.1bln, +12.6%; Operating Profit 5.5bln, +9%. Confirms FY23 guidance. (Newswires)

OTHER GERMAN COMPANIES

DWS (DWS GY) - Q3 (EUR): Revenue 666mln (exp. 645mln), Net Income 147mln (exp. 128mln), adj. PBT 246mln (exp. 209mln). FY23 guidance: still expects the adj. cost-income ratio to remain below 65% in 2023. (Newswires)

Uniper (UN01 GY) - Expects extraordinary positive results for the first nine months of FY23; expects adj. EBIT EUR 5.484bln (prev. -5.086bln Y/Y) and adj. net income EUR 3.741bln (prev. -3.445bln Y/Y). Expects adj. EBIT between EUR 6-7bln and adj. net income EUR 4-5bln for FY23. (Newswires)

BROKER MOVES

CAC

Air Liquide (AI FP) - Q3 (EUR): Revenue 6.8bln (exp. 6.8bln). Project backlog of 4.2bln, investment decisions at 1.3bln. (Newswires)

Dassault Systemes (DSY FP) - Q3 (EUR): Revenue 1.42bln (exp. 1.42bln), Operating Income 442mln (prev. 434mln), EPS 0.18 (prev. 0.16). Confirms revenue growth outlook, increases EPS guidance by 0.01 for FY23. (Newswires)

Kering (KER FP) - Q3 2023 (EUR): Revenue 4.46bln (exp. 4.55bln), -13% Y/Y, Comparable revenue -9% (exp. -5.97%). COMP. REVENUES: Gucci Q3 -7% (exp. -6.22%). Yves Saint Laurent -12% (exp. -11%). Bottega Veneta -7% (exp. -5.71%). Other Houses -15% (exp. -10.4%). Eyewear & corporate +3% (exp. +16.8%). REVENUE BREAKDOWN: Gucci 2.22bln (exp. 2.26bln), -14% Y/Y. Yves Saint Laurent 768mln (exp. 779.9mln), -16%. Bottega Veneta 381mln (exp. 393.3mln), -13%. Other Houses 805mln (exp. 850.3mln), -19%. Eyewear & corporate 333mln (exp. 361.9mln), +32%. Exec says North American traffic has been weak on average; geopolitical risk may hurt consumer sentiment. Co. has firepower for M&A but already has a lot to do. (Kering IR/Newswires)

Michelin (ML FP) - 9-month 2023 (EUR): Revenue 21.15bln (exp. 21.2bln), Automotive Revenue 10.61bln (exp. 12.24bln), Road Transportation Revenue 5.17bln (exp. 6.08bln), Specialty Business revenue 5.37bln (exp. 6.28bln). Raises FY adj. FCF view to "above" 2.3bln from "above" 2bln. Reaffirms total segment operating income view of "above" 3.4bln (exp. 3.42bln). CFO says it upgraded FCF forecast mainly due to lower volumes than expected and lower costs per unit. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Akzo Nobel (AKZA NA) - Q3 (EUR): Revenue 2.74bln (exp. 2.77bln), adj. EBITDA 414mln (exp. 412mln), adj. Operating Income 324mln (exp. 322mln). FY23 guidance: adj. EBITDA 1.45bln (exp. 1.46bln). Expect ongoing macro uncertainties to continue and weigh on organic volume growth. (Newswires)

ASM International (ASM NA) - Q3 2023 (EUR): Revenue 622mln (exp. 602mln). Operating profit 157mln (prev. 160mln). Q4 adj. revenue view 600-640mln (exp. 614mln) Affirms FY25 and FY27 guidance. COMMENTARY: Against the backdrop of continued economic pressure and geopolitical tensions, large parts of the semiconductor end markets are still sluggish and the timing and strength of recovery is still uncertain. Demand from customers in the leading-edge logic/foundry segment remains relatively soft, and this also includes the earlier reported pushouts due to delays in fab readiness. On the positive side, leading logic/foundry customers remain committed to transitioning to the next node which will be based on gate-all-around (GAA) technology. Continue to expect to outperform the WFE market this year. (ASM International)

Grifols (GFS SM) - Araclon Biotech, a Grifols Group company, announced its Phase 2 ABvac40 Alzheimer’s vaccine trial met primary endpoints, confirming the vaccine’s safety, tolerability and robust immune response against the Aβ40 peptide in early-stage Alzheimer's patients. (Grifols)

Santander (SAN SM) Q3 (EUR): Net Income 2.90bln (exp. 2.79bln). Pretax profit 4.447bln (exp. 4.348bln). Revenue 14.9bln (exp. 14.7bln). CE1 Ratio 12.3% (exp. 12.2%). Net loan-loss provisions 3.27bln (exp. 3.06bln). NII 11.2bln (exp. 10.9bln). (Newswires)

Stellantis (STLA) - Furloughs another 525 workers in Michigan due to the UAW strike. (Newswires)

UniCredit (UCG IM) - CEO says they will have over EUR 10bln of excess capital by end-2023. (Newswires)

Koninklijke Vopak (VPK NA) - Q3 (EUR): Revenue 352mln (prev. 349mln Y/Y), EBITDA 240.5mln (prev. 226mln), EBIT 158mln (prev. 140mln), Net 97mln (prev. 77mln). FY 2023 EBITDA outlook increased to around 970mln (exp. 877mln).

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Sulzer (SUN SW) - 9-month (CHF): Order Intake 2.8bln. Confirm increased FY guidance, as provided in July. (Newswires)

BROKER MOVES

SCANDINAVIA

Alfa Laval (ALFA SS) - Q3 (SEK): Sales 15.8bln (exp. 16.2bln), Net 1.78bln (exp. 1.68bln), adj. EBITA 2.6bln. Q4 Guidance: expect demand to be around the same Q/Q. Delivery performance has improved significantly since supply chain disruptions during COVID, with just a few bottlenecks remaining. (Newswires)

Konecranes Abp (KCR FH) - Q3 (EUR): Sales 1.05bln (exp. 0.885bln), Orders 0.85bln (exp. 1.08bln), adj. EBITA 123mln (exp. 95mln), PBT 93mln (exp. 83mln), Net Income 70mln (exp. 61mln). FY23 guidance: Net Sales & EBITDA margin to improve Y/Y. (Newswires)

Nokian Tyres (TYRES FH) - Cuts FY23 guidance: Sales now seen between EUR 1.15-1.20bln, operating margin seen between 5.5-6.0%. Preliminary Q3 Sales EUR 275mln (prev. 333mln Y/Y), Q3 Operating Profit EUR 19.5mln (prev. -17.9mln Y/Y). (Newswires)

Schibsted (SCHA NO) - Q3 (NOK): Revenue 3.85bln (exp. 3.86bln), EBITDA 741mln (exp. 652mln). (Newswires)

SEB (SEB SS) - Q3 (SEK): NII 12.2bln (exp. 12.2bln), Net Income 10.588bln (exp. 8.87bln), Net Fee/Commission Income 5.3bln (exp. 5.3bln). FY23 Guidance: cost target unchanged. (Newswires)

SSAB AB (SSABA SS) - Q3 (SEK): Revenue 29.3bln (exp. 28.3bln), Operating Result 4.4bln (prev. 6.6bln). Weak market within Europe, seasonal slowdown more pronounced than normal. Cost cutting target of 500mln, circa. 200mln of which are structural on an annual basis. Measures include temporary and permanent layoffs, use of working hours banks, a restrictive approach to recruitment and other fixed costs. SSAB Special Steels' market: customers have adopted a more cautious approach, especially in Europe. The heavy plate market in North America was more stable during the quarter. (Newswires/Cision)

Telenor (TEL NO) - Q3 (NOK): Revenue 20.1bln (exp. 20.2bln), adj. EBITDA 9.3bln (exp. 8.95bln), FCF 4.3bln. FY23 Guidance: upgrades organic EBITDA growth to 3-4% (prev. guided low-to-mid-single digit), above 3% revenue growth in Nordic Service. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.73% at 4,247, NDX +0.97% at 14,745, DJIA +0.62% at 33,141, RUT +0.82% at 1,679.

SECTORS: Utilities +2.57%, Communication Services +1.38%, Real Estate +1.19%, Materials +1.13%, Consumer Discretionary +1.04%, Consumer Staples +0.96%, Industrials +0.72%, Technology +0.71%, Financials +0.67%, Health +0.29%, Energy -1.42%.

Alphabet Inc (GOOGL) - Q3 2023 (USD): EPS 1.55 (exp. 1.45), Revenue 76.69bln (exp. 75.9bln), Revenue ex-TAC 64.05bln (exp. 63.04bln). Operating income 21.34bln (exp. 21.44bln). Google Services operating income 23.94bln (exp. 22.89bln). Google Cloud operating income 266mln (exp. 433.6mln). Operating margin 28% (exp. 28.1%). Click here for the full earnings. GUIDANCE: Q3 cloud growth reflects customer optimization efforts; expects Q4 headwinds in hardware segment. CEO says customers are 'starting to optimize spend' on cloud computing. CFO feels "good about where we're sitting" with cloud computing growth - Shares fell 5.9% after-market.

Microsoft Corp (MSFT) - Q1 2024 (USD): EPS 2.99 (exp. 2.65), Revenue 56.5bln (exp. 54.5bln). Cloud Revenue 31.8bln (exp. 31.19bln). Productivity Revenue 18.59bln (exp. 18.29bln). Returned USD 9.1bln to holder. Dynamics products and cloud services revenue increased 22%. Click here for the full earnings. GUIDANCE: Q2 Productivity and Business 188.8-19.1bln (exp. 18.83bln). Intelligent Cloud 25.1-25.4bln (exp. 24.94bln). More Personal Computing 16.5-16.9bln (exp. 14.52bln). Bookings growth guided about flat Y/Y. Operating Expenses 15.5-15.6bln (exp. 15.06bln). COGS 19.4-19.6bln (exp. 19.09bln) - Shares rose 3.9% after-market.

Snap Inc (SNAP) - Q3 2023 (USD): Adj. EPS +0.02 (exp. -0.04), Revenue 1.19bln (exp. 1.11bln); announces 500mln share buyback programme. KEY METRICS: Adj. EBITDA 40.1mln (exp. loss 64.2mln). DAUs 406mln (exp. 405.79mln). Q4 GUIDANCE: Revenue view 1.32-1.38bln (exp. 1.33bln). Adj. EBITDA 65-105mln (exp. 100.6mln). DAUs 410-412mln (exp. 415.2mln). COMMENTARY: Expect muted spending from many brand-oriented ad campaigns following the onset of the war in the Middle East. - Shares rose 0.4% after-market.

Visa (V) - Q4 2023 (USD): Adj. EPS 2.33 (exp. 2.24), Revenue 8.6bln (exp. 8.55bln); authorised a new 25bln multi-year share buyback programme CFO says consumer spending has remained stable across all segments - conference call; says travel volume into Asia continued to improve; Visa is not assuming a recession in its outlook Travel volume outbound from the US to all geographies continued to be strong. US inbound travel recovery accelerated in the quarter - Shares fell 0.5% after-market.

Texas Instruments (TXN) - Q3 2023 (USD): EPS 1.85 (exp. 1.81), Revenue 4.53bln (exp. 4.58bln) Q4 GUIDANCE: Revenue view 3.93-4.27bln (exp. 4.49bln). EPS 1.35-1.57 (exp. 1.76).COMMENTARY: Demand suffers across its key markets including industrial as vendors pull back on orders. CFO maintains USD 5bln capex and says underloading impact will increase - Shares fell 4.4% after-market.

25 Oct 2023 - 06:50- Research Sheet- Source: Newsquawk