Newsquawk Daily European Equity Opening News

26th October 2023

ASIA

APAC stocks traded lower across the board, following the weak lead from Wall Street as participants juggle earnings, geopolitics, and data as major central banks line up for their next confabs, with the ECB due today, while the BoJ, FOMC, and BoE are slated for next week. ASX 200 was dragged lower by its Tech sector, mirroring a similar sectoral performance seen stateside. Energy, however, was among the better performers. Nikkei 225 also saw its losses led by the Tech sector, whilst the losses in the JPY vs the USD failed to cushion the downside for the index. KOSPI saw its chip sector languish, facing added headwinds as SK Hynix slumped over 4% post-earnings. Hang Seng and Shanghai Comp opened lower, but their losses were shallower than those of their regional peers, potentially amid stimulus optimism, while reports, before the Chinese market opened, suggested that US President Biden was expected to meet with Chinese Top Diplomat Wang Yi on Friday at the White House.

SK Hynix (000660 KS) - Q3 (KRW) Revenue at 9.1tln (exp. 8.17tln). Operating loss 1.8tln (exp. loss 1.7tln). Net loss 2.2tln (exp. loss 1.5tln); Sees about 10% rise in Q4 DRAM shipments vs Q3 due to the rise in sales. Q3 DRAM average selling price is up about 10% vs Q2. Q3 NAND average selling price is down slightly vs Q2. 2024 CAPEX to be higher than 2023, but to keep the hike to a minimum. Plans a fall of teens % in Q4 NAND shipments vs Q3, aiming to cut low-profit sales. Semiconductor prices are starting to stabilize.

EUROPEAN CLOSES

CLOSES: DAX +0.08% at 14,892.18, FTSE 100 +0.33% at 7,414.34, CAC 40 +0.31% at 6,914.94, Euro Stoxx 50 +0.15% at 4,071.55, IBEX 35 +0.10% at 8,984.80, FTSE MIB -0.52% at 27,428.60, SMI +0.16% at 10,393.60.

SECTORS: Healthcare 0.46%, Materials 0.39%, Consumer Stpl 0.34%, IT 0.29%, Utilities 0.28%, Telecoms 0.04%, Financials 0.01%, Energy -0.05%, Industrials -0.09%, Consumer Disc -0.44%

FTSE 100

Standard Chartered (STAN LN) Q3 (USD): Pre-tax 1.21bln (exp. 1.50bln). Revenue 4.40bln (exp. 4.51bln) ; All guidance reiterated. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Hellofresh (HFG GY) - Q3 (EUR): Revenue 1.8bln (exp. 1.83bln), adj. EBITDA 69mln (exp. 70mln), Active Customers 7.1mln (prev. 7.5mln). FY Guidance: Revenue growth 2-8%, adj. EBITDA 570-540mln (exp. 490mln). In Q3, records highest average order value to date, given investment into significant product improvements. Announces up to EUR 150mln buyback in shares and certain convertible bonds. (Newswires)

Mercedes-Benz (MBG GY) - Q3 (EUR): Revenue 37.2bln (exp. 37.28bln). Adj. EBIT 4.92bln (exp. 4.63bln). Net 3.72bln (prev. 4.0bln Y/Y); Outlook unchanged. The adjusted RoS is expected in the range of 13% – 15% and is seen at the upper end of this range. Hybrid and electric cars accounted for 20% of overall sales in Q3; Mercedes-Benz Passenger Car battery electric vehicle (BEV) sales up 97% in the January to September period; electric van sales rose by 46% in the first nine months; product momentum to continue in 2024 with electric G-Class. The rate of sales from the first three quarters in 2023 is seen remaining at approximately the same pace. Full-year sales are thus expected at the prior-year level. (Newswires) -2.2% in pre-market trade

Rheinmetall (RHM GY) - Q3 FY23 operating profit expected to be EUR 191mln (exp. 165mln) and Q3 Sales at EUR 1.76bln "in line with expectation". Reaffirms FY23 OM of c. 12%. (Newswires)

STMicroelectronics (STM FP) - Q3 (EUR): Revenue 4.43bln (exp. 4.36bln). EPS 1.16 (exp. 1.08). Gross Margin 47.6% (exp. 47.5%). Sees Q4 Net Revenue at USD 4.30bln (exp. 4.46bln); Sees FY Gross Margin at 48.1% (exp. 48%), Net Revenue 17.3bln (prev. 17.4bln). (Newswires)

Volkswagen (VOW3 GY) - Q3 (EUR): Revenue 78.8bln (exp. 77.1bln), adj. Operating 4.89bln (exp. 6.09bln), Deliveries 2.34mln, +7.4%. Confirms updated outlook. (Newswires)

Vonovia (VNA GY) - CEO expects to see a shortage of new building construction lasting into 2025. (Newswires)

OTHER GERMAN COMPANIES

Siltronic (WAF GY) - Q3 (EUR): Revenue 350mln (exp. 347mln), EBITDA 99mln (exp. 85mln). FY outlook confirmed and specified. (Newswires)

Software AG (SWO GY) - Q3 (EUR): Revenue 228mln (exp. 230mln), adj. Net Income 27mln (exp. 17mln), EBIT -7mln (exp. 18mln). FY23 guidance confirmed. (Newswires)

Wacher Chemie (WCH GY) - Q3 (EUR): Revenue 1.5bln (exp. 1.55bln), Net Income 34mln (exp. 33mln), EBITDA 152mln (exp. 157mln), EPS 0.56 (exp. 0.66). FY guidance confirmed in lower-half of range sales ~6.5bln (exp. 6.55bln), EBITDA 0.8-0.9bln (exp. 0.9bln). (Newswires)

BROKER MOVES

Puma (PUM GY) downgraded to Add from Buy at Baader Helvea

CAC

BNP Paribas (BNP FP) - Q3 (EUR): Revenue 11.58bln (exp. 11.52bln), Net Income 2.66bln (exp. 2.61bln), CET1 13.4% (exp. 13.23%), Cost of Risk 734mln (exp. 815mln). Global banking revenue +19.9%, FICC Revenue -14.3%; loan loss provision 7.34mln (exp. 7.59mln). Completed over 85% of the EUR 5.0bln share buyback programme. (Newswires)

Carrefour (CA FP) - Q3 2023 (EUR): Sales 23.63bln (exp. 23.65bln); LFL sales ex-fuel & ex-calendar +9% (exp. 7.47%); France LFL sales ex-fuel & ex-calendar +4.3%. Reaffirms FY23 guidance targets. Says cost savings initiatives are progressing well, reaffirms EUR 1bln cost savings target. (Carrefour IR)

Danone (BN FP) - Q3 (EUR): Revenue 6.9bln (exp. 6.9bln). FY guidance raised, LFL growth 6-7% (prev. guided 4-6%). (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - Q3 (EUR): Revenue 2.59bln prev. 2.82bln), Order Entry 2.2bln, +10% Y/Y. Confirms FY guidance. (Newswires)

Ipsen (IPN FP) - Q3 (EUR): Revenue 772mln. Confirms FY guidance. (Newswires)

BROKER MOVES

PAN EUROPE

Sabadell (SAB SM) - Q3 (EUR): NII 1.24bln (exp. 1.2bln), Net 464mln (exp. 381mln), CET1 13.13% (exp. 13.4% at end-2023). 2023 guidance: NII improves again to ~25% growth, on track to meet 3.5% Y/Y cost guidance. (Newswires)

Saipem (SPM IM) - Q3 (EUR): Adj. EBITDA 230mln (exp. 243mln). Revenue 3.02bln (exp. 2.98bln). Co. affirmed FY23 guidance. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Confirmed it is to acquire a stake in Leapmotor (9863 HK) for HKD 8.5bln. (Newswires)

UniCredit (UCG IM) - S&P raised to "BBB+" from BBB. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Essity (ESSITYB SS) - Q3 (SEK)L Net Sales 43.5bln (exp. 43.7bln), adj. EBITDA 5.3bln (exp. 6.5bln). (Newswires)

Evolution (EVOG SS) - Q3 (EUR): Revenue 451mln (exp. 464mln), EBITDA 320mln (exp. 326mln), Net Income 272mln (exp. 278mln). CEO: expects, going into Q4, to be in the upper-end of the FY23 EBITDA Margin forecast interval of 68-71%, even given the focus on expansion. On track to exceed target of over 100 game releases in 2023. Need to increase pace of recruitment. Intend to open one European studio in 2023, and 3/4 in 2024 within Europe, N. America & LATAM. (Newswires)

Swedbank (SWEDA SS) - Q3 (SEK): NII 12.9bln (exp. 13.1bln), Net Commission Income 3.8bln (exp. 3.76bln), Net Income 9.1bln (exp. 8.5bln), CET1 18.7% (exp. 18.7%). Intend to separate out and create a business area for premium and private banking customer segment. (Newswires)

Volvo Car (VOLCARB SS) - Q3 (SEK): Revenue 92bln (exp. 93.9bln), adj. EBIT 6.1bln (exp. 5.3bln), Operating Income 6.1bln (prev. 3.5bln). Retail sales continued to improve in the quarter. Beginning to see benefit from lower lithium prices. Order book remains stable, managed to maintain premium pricing. Q3 pure EV sales shares 13%, almost double Y/Y. (Newswires)

Yara (YAR NO) - Co. received USD 650mln draft assessment from Norwegian Tax Authorities. (Newswires)

BROKER MOVES

Holmen (HOLMB SS) upgraded to Hold from Sell at SEB

US

CLOSES: SPX -1.43% at 4,186, NDX -2.47% at 14,381, DJIA -0.32% at 33,036, RUT -1.67% at 1,651.

SECTORS: Communication Services -5.89%, Consumer Discretionary -2.4%, Real Estate -2.07%, Industrials -1.27%, Technology -1.19%, Materials -1.14%, Health -0.9%, Financials -0.3%, Energy -0.16%, Consumer Staples +0.33%, Utilities +0.49%.

Meta Platforms Inc (META) Q3 2023 (USD): EPS 4.39 (exp. 3.63), Revenue 34.15bln (exp. 33.56bln); Q4 revenue view 36.5-40bln (exp. 38.76bln). Operating margin 40% (exp. 33.9%). REVENUE BREAKDOWN: Advertising 33.64bln (exp. 32.94bln). Family of Apps 33.94bln (exp. 33.08bln). Reality Labs 210mln (exp. 313.4mln). Other 293mln (exp. 212.7mln). Click here for the full earnings. Shares -3.4% after market - participants cited a cautious/conservative outlook.

International Business Machines Corp (IBM) Q3 2023 (USD): EPS 2.20 (exp. 2.13), Revenue 14.75bln (exp. 14.73bln); still sees FY revenue at constant FX +3-5% (exp. +3.01%) Adj. gross margin 55.5% (exp. 54.9%). FCF 1.68bln (exp. 1.35bln). REVENUE BREAKDOWN: Software 6.27bln (exp. 6.26bln). Consulting 4.96bln (exp. 5.1bln). Infrastructure 3.27bln (exp. 3.15bln). Financing 186mln (exp. 186mln).Shares +1.4% after market.

UAW confirms they have a tentative agreement with Ford (F), and said strikers should go back to work while voting for a deal. UAW's deal with Ford includes a 25% wage increase. Ford workers will receive an 11% immediate wage hike, according to Reuters.

Morgan Stanley (MS) announces Ted Pick to become Chief Executive Officer on January 1, 2024; James Gorman to become Executive Chairman. Incoming CEO Ted Pick says this is a 'volatile environment' for investment banking, according to Reuters.

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