Newsquawk Daily European Equity Opening News - 26th April 2024

26th April 2024

ASIA

APAC stocks were mostly higher as the region digested recent market themes including disappointing US data, strong big tech earnings and the BoJ policy announcement. ASX 200 underperformed after the prior day's losses caught up with the index on its return from holiday. Nikkei 225 was initially choppy and briefly dipped into negative territory as participants braced for the BoJ policy announcement and whether the central bank flags a reduction in bond buying, but then surged as the central bank kept policy settings unchanged and refrained from any major hawkish surprises. Hang Seng and Shanghai Comp. were underpinned by strength in tech and property, while the constructive mood was also facilitated by a meeting between US Secretary of State Blinken and Chinese Foreign Minister Wang where it was stated that the US-China relationship has stabilised although negative factors are building.

EUROPEAN CLOSES

CLOSES: DAX: -0.91% at 17,723.79 FTSE 100: +0.48% at 8,078.86 CAC 40: -0.93% at 8,016.65 Euro Stoxx 50: -1.01% at 4,939.65 IBEX 35: -0.40% at 10,983.70 FTSE MIB: -0.97% at 33,939.75 SMI: -0.97% at 11,260.61 PSI: +0.19% at 6,542.23.

SECTORS: Healthcare 0.29%, Energy -0.01%, Materials -0.16%, Consumer Stpl -0.22%, Utilities -0.46%, Telecoms -0.72%, Financials -0.84%, IT -0.97%, Industrials -1.32%, Consumer Disc -1.44%

FTSE 100

Anglo American (AAL LN) - Anglo American does not find BHP Group's (BHP AT) proposed USD 39bln attractive, according to Reuters sources. (Reuters) South Africa’s minerals resources minister said that he opposed the bid because his country’s experience with BHP was “not positive”, but he said this was not an official government position. (FT)

OTHER UK COMPANIES

BROKER MOVES

abrdn (ABDN LN) upgraded to Hold from Reduce at HSBC

DAX

Deutsche Telekom (DTE GY) - T-Mobile (TMUS) shares fell 1.1% after-hours. Deutsche Telekom is TMUS' majority shareholder

OTHER GERMAN COMPANIES

Duerr (DUE GY) – Sells Danish subsidiary; terms not disclosed. (Newswires)

Thyssenkrupp (TKA GY) – Co. is to sell a 20% stake in its steel business to EP Corp as part of a strategic partnership; the aim is to form an equal 50/50 JV. EP Corporate confirms the acquisition and adds that further talks about the acquisition of a further 30% are ongoing. (Newswires)

BROKER MOVES

CAC

Accor (AC FP) – Q1 (EUR): Revenue 1.24bln (exp. 1.2bln). Guides initial FY24 EBITDA growth between 9-12%. (Newswires)

Airbus (AIR FP) - Q1 24 (USD): Adj. EBIT 600mln (exp. 789mln), Revenue 12.80bln (exp. 12.87bln), Gross Orders 170 (prev. 156), Net Orders 170 (prev. 142), Deliveries 142. Reaffirms 2024 guidance. Increases A350 output target to 12 per month for 2028. Continues to target A330 output target of four. A220 ramp-up continues towards a monthly production rate of 14 aircraft in 2026. On the A320 Family programme, said making progress towards the rate of 75 aircraft per month in 2026. GUIDANCE: Reaffirms FY24 deliveries view of 800 aircraft, Reaffirms FY24 adj. EBIT view of 6.5-7.0bln, reaffirm FY24 FCF view of 4bln. CEO said the overall supply chain situation is not improving, all problems are manageable but the environment is challenging; the engine supply situation is stable or slightly improving. Pratt & Whitney (RTX) is meeting contractual commitments on GTF engines for 2024. The A350 production system was originally designed for 13 jets per month. The new A350 target represents a marginal increase in tooling and industrial investment but will require more hiring in the supply chain. Airbus said the Spirit AeroSystems (SPR) situation is very much something they are looking at; they are building up buffer inventory due to a stressed supply chain. (Newswires)

Kering (KER FP) – The CEO said not satisfied with the share price performance and working on Gucci to improve the share price and reduce volatility. Authorises repurchase program of up to 10% of shares. (Newswires)

L’Oreal (OR FP) – La Roche-Posay unveils breakthrough dark spot innovation. (Newswires)

Remy Cointreau (RCO FP) – FY23 (EUR): Revenue 1.19bln (prev. 1.55bln Y/Y). Affirms guidance. Cost-cutting plan of 100mln confirmed. (Newswires)

Safran (SAF FP) – Q1 (EUR): Adj. Revenue 6.22bln (exp. 6.14bln, prev. 5.27bln Y/Y), Organic Revenue +19.1%. Affirms guidance. (Newswires). OUTLOOK: The main risk factor remains the supply chain production capabilities. CEO said problems of supply chain are not behind us and the situation remains difficult across the board. Said change in leap delivery is linked to change in demand rather than supply chain issues. (Newswires)

Saint Gobain (SGO FP) – Q1 (EUR): Revenue 11.4bln (exp. 11.4bln), LFL -5.8% Y/Y, impacted by decline in new construction in Europe but supported in APAC. Affirms FY24 Op. margin. (Newswires)

Vinci (DG FP) - Q1 2024 (EUR): Revenue 15.7bln, Order book hit an all-time high of 66.7bln; affirms 2024 guidance. (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) – Q1 (EUR): Revenue 1.32bln (exp. 1.27bln). Affirms guidance. Passengers +11.3%, 77.1mln passengers in Q1. (Newswires)

Nexity (NXI FP) – Q1 (EUR): Revenue 770mln (exp. 676mln, prev. 893mln Y/Y). Affirms FY24 guidance. (Newswires)

SEB (SK FP) – Q1 (EUR): Sales 1.89bln, +7.3% LFL. Confirms guidance. (Newswires)

Valeo (FR FP) – Q1 (EUR): Revenue 5.43bln (exp. 5.42bln, prev. 5.48bln Y/Y). Affirms FY24/25 outlook. (Newswires)

Vallourec (VK FP) – Wins another major order from ExxonMobil Guyana. (Newswires)

Wendel Investment (MF FP) – Q1 (EUR): Revenue 1.85bln (prev. 1.65bln Y/Y). (Newswires) Affirms FY24 guidance. (Newswires)

BROKER MOVES

ADP (ADP FP) downgraded to Neutral from Buy at Citi

Dassault Systemes (DSY FP) downgraded to Neutral from Overweight at JP Morgan

PAN EUROPE

Bpost (BPOST BB) – Signs agreement with Flemish newspaper publishers. (Newswires)

OMV (OMV AV) - ADNOC and OMV chemical units merger talks have been delayed over valuation differences, according to Bloomberg. (Newswires)

Proximus (PROX BB) – Q1 (EUR): Adj. EBITDA 454mln (exp. 445mln), Revenue 1.5bln (prev. 1.49bln Y/Y). Affirms guidance. (Newswires)

Signify (LIGHT NA) – Q1 (EUR): Net 44mln (prev. 28mln Y/Y), Revenue 1.47bln (prev. 1.68bln Y/Y). Affirms guidance. (Newswires)

Umicore (UMI BB) – Q1 Update: The battery materials business group has started the execution of its order book, built on strategic customer agreements concluded over the past two years. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

ams-Osram (AMS SW) – Q1 (EUR): Adj. EBIT 44mln (prev. 41.1mln Y/Y), Revenue 847mln (exp. 842mln). Expects to exist noncore semiconductor businesses. Notes robust demand from automotive whilst the demand from industrial and medical markets remain muted. Guides Q2 Revenue 770-870mln (exp. 852mln). Cuts FY24 CAPEX <450mln (prev. 700mln). (Newswires)

SGS (SGSN SW) – Q1 (CHF): Revenue 1.58bln (exp. 1.58bln). Affirms FY24 guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

AB Electrolux (ELUXB SS) – President and CEO Samuelson to resign, effective Jan 1st 2025. (Newswires)

Schibsted (SCH NO) – Q1 (NOK): EBITDA 454mln (exp. 462mln), Revenue 3.79bln (exp. 3.47bln). (Newswires)

Saab (SAABB SS) – Q1 (SEK): Net 748mln (prev. 735mln Y/Y), EBIT 1.19bln (exp. 1.08bln), Revenue 14.2bln (exp. 13.1bln). Raises FY24 organic revenue +15-20% (prev. guidance +12-16%). (Newswires)

Tomra Systems (TOM NO) – Q1 (NOK): Adj. EBITA 176mln (prev. 277mln Y/Y), Revenue 3.32bln (exp. 3.27bln). (Newswires)

Wartsila (WRT1V FH) – Q1 (EUR): Adj. EBITA 137mln (prev. 93mln Y/Y), Revenue 1.32bln (prev. 1.47bln Y/Y). (Newswires)

BROKER MOVES

Alfa Laval (ALFA SS) upgraded to Buy from Hold at Pareto

Aker Solutions (AKSO NO) upgraded to Neutral from Underweight at JP Morgan

US

CLOSES: SPX -0.46% at 5,048, NDX -0.55% at 17,430, DJIA -0.98% at 38,085, RUT -0.72% at 1,981.

SECTORS: Communication Services -4.03%, Health -0.62%, Real Estate -0.52%, Financials -0.51%, Consumer Staples -0.29%, Consumer Discretionary -0.2%, Technology +0.15%, Utilities +0.27%, Industrials +0.29%, Energy +0.5%, Materials +0.69%

Alphabet Inc (GOOGL) - Q1 2024 (USD): EPS 1.89 (exp. 1.51), Revenue 80.54bln (exp. 78.59bln); board authorised Co. to repurchase up to an additional 70bln and declared a cash dividend of 0.20/shr. REVENUE BREAKDOWN: Google advertising 61.66bln (exp. 60.18bln). YouTube ads 8.09bln (exp. 7.73bln). Google Services 70.40bln (exp. 69.06bln). Google Cloud 9.57bln (exp. 9.37bln). Other Bets 495mln (exp. 372.4mln). KEY METRICS: Operating income 25.47bln (exp. 22.4bln). Google Services operating income 27.90bln (exp. 24.3bln).Google Cloud operating income 900mln (exp. 672.4mln). Other Bets operating loss 1.02bln (exp. loss 1.12bln). Operating margin 32% (exp. 28.6%). CapEx 12.01bln (exp. 10.32bln) (Alphabet IR) Alphabet (GOOGL) CFO expects quarterly capex to be roughly around Q1 level of USD 12bln and expects larger FX headwinds in Q2. Shares rose 11.4%

Intel Corp (INTC) - Q1 2024 (USD): Adj. EPS 0.18 (exp. 0.14), Revenue 12.70bln (exp. 12.78bln). Sees Q2 Adj. EPS USD 0.10 (exp. 0.24). Sees Q2 rev. USD 12.5bln-13.5bln (exp. 13.63bln). Expect strong growth in H2 with momentum into 2025 for Intel products. Expects to deliver Adj. EPS and revenue growth for FY2024. Intel forecasts more than USD 500mln of Gaudi AI chip sales this year, according to the CEO. Intel executive said wafer level assembly supply is unable to meet the demand for AI PC chips in Q2. CFO said could have sold more AI PC processors and H1 was softer than had been expected but notes expect stronger H2 performance and margin improvements to accelerate. Executive said Co. sees Q1 as the bottom and expects sequential revenue growth throughout the year and into 2025. Foundry Services signed an unnamed aerospace and defence industry customer. (businesswire) Shares fell 7.8%

Microsoft Corp (MSFT) - Q3 2024 (USD): EPS 2.94 (exp. 2.82), Revenue 61.86bln (exp. 60.8bln). REVENUE BREAKDOWN:Productivity and Business Processes 19.57bln (exp. 19.54bln). Intelligent Cloud 26.71bln (exp. 26.25bln). More Personal Computing 15.58bln (exp. 15.07bln). KEY METRICS: Operating income 27.58bln (exp. 26.22bln).CapEx 10.95bln (exp. 11.28bln). GUIDANCE: Sees Q4 rev. USD 63.5bln-64.5bln (exp. 64.57bln). Sees Q4 Productivity and Business Processes rev. 19.9bln-20.2bln (exp. 20.5bln). Sees Q4 Intelligent Cloud rev. 28.4bln-28.7bln (exp. 28.5bln). Sees Q4 More Personal Computing rev. 15.2bln-15.6bln (exp. 15.6bln). Sees Q4 COGS 19.6bln-19.8bln (exp. 20.1bln). Sees Q4 Operating Expenses 17.15bln-17.25bln. Sees FY25 total revenue expected to grow double-digits (exp. 14%). Sees FY25 operating income expected to grow double-digits. Sees FY25 oper. margins expected to be down about 1 point. Sees FY25 capital expenditure to be higher than FY24. Shares rose 4.3%

Paramount (PARA) - Co. and Skydance reportedly inch closer to a merger as key hurdle looms, according to CNBC citing sources; Skydance Media and its private equity backers are targeting May to finalize terms on a deal with Paramount. (CNBC)

Snap Inc (SNAP) - Q1 2024 (USD): Adj. EPS 0.03 (exp. -0.05), Revenue 1.19bln (exp. 1.12bln). GEOGRAPHICAL BREAKDOWN: North America revenue 743.1mln (exp. 707.4mln). Europe revenue 195.8mln (exp. 179.6mln). Rest of the world revenue 255.8mln (exp. 223.3mln). KEY METRICS: Adj. EBITDA 45.7mln (exp. loss 67.6mln). DAUs 422mln (exp. 149.83mln).ARPU 2.83 (exp. 2.66). Q2 GUIDANCE: Revenue 1.23-1.26bln (exp. 1.21bln). Adj. EBITDA 15-45mln (exp. 10.6mln). DAUs 431mln (exp. 429.06mln). Shares rose 25%

T-Mobile US Inc (TMUS) - Q1 2024 (USD): EPS 2.00 (exp. 1.87), Revenue 19.59bln (exp. 19.81bln). KEY METRICS:Service revenue 16.10bln (exp. 16.12bln). Total net customers +1.17mln (exp. +1.11mln). Postpaid net customers +1.22mln (exp. +1.10mln). Postpaid phone net customers +532,000 (exp. +479,768). Postpaid other net customers +688,000 (exp. +611,248). Prepaid net customers -48,000 (exp. +45,444). Adj. EBITDA 7.65bln (exp. 7.58bln). Postpaid monthly ARPA 140.88 (exp. 140.77).Postpaid phone ARPU 48.79 (exp. 48.73). FY GUIDANCE: Postpaid net customers +5.2-5.6mln (prev. +5-5.5mln, exp. +5.28mln). Core adj. EBITDA 31.4-31.9bln (prev. 31.3-31.9bln, exp. 31.61bln). Adj. FCF 16.4-16.9bln (prev. 16.30-16.90bln, exp. 16.77bln). Still sees CapEx 8.6-9.4bln (exp. 9.09bln). (TMUS IR) Shares fell 1.1%

26 Apr 2024 - 06:55- EquitiesResearch Sheet- Source: Newsquawk