Newsquawk Daily European Equity Opening News - 26th January 2024

26th January 2024

ASIA

APAC stocks failed to sustain the broad positive momentum from Wall St with the region mostly lower in quietened conditions amid a lack of fresh drivers and as markets in Australia and India were closed for holiday. Nikkei 225 was pressured and retreated beneath the 36,000 level despite softer-than-expected Tokyo inflation data which showed the slowest pace of core inflation in Japan's capital area since March 2022. Hang Seng and Shanghai Comp were choppy as the effects of recent Chinese support measures waned.

LG Energy Solution (373220 KS) - Q4 final net (KRW) 190bln (exp. 227bln), oper. profit 338bln (prelim. 338bln), rev. 8tln (prelim. 8tln rev. 8.00tln (exp. 8.48tln). (Newswires)

Samsung Electronics (005930 KS) - China arm and Baidu (9888 HK) AI Cloud announced a strategic partnership on AI ecosystems, co-creating a transformative AI experience for Samsung’s latest flagship smartphone, according to Global Times. (Global Times)

EUROPEAN CLOSES

CLOSES: DAX +0.10% at 16,906.92, FTSE 100 +0.03% at 7,529.73, CAC 40 +0.11% at 7,464.20, Euro Stoxx 50 +0.37% at 4,580.95, IBEX 35 -0.58% at 9,916.60, FTSE MIB -0.60% at 30,157.80, SMI +0.12% at 11,210.50.

SECTORS: IT 2.32%, Materials 0.92%, Energy 0.53%, Telecoms 0.47%, Consumer Stpl 0.28%, Industrials 0.25%, Consumer Disc 0.23%, Financials -0.14%, Utilities -0.42%, Healthcare -0.43%

FTSE 100

BP (BL/ LN) - Is to independently pursue US offshore wind opportunities; sees a pre-tax impairment charge of around USD 600mln. (Newswires)

OTHER UK COMPANIES

Saga (SAGA LN) - Co. is reportedly working on ways to release money from its cruise operation, options include selling a stake in the division, selling its flagship vessels or offloading the entirety of the business, via Sky News citing sources. (Sky News)

BROKER MOVES

Tullow Oil (TLW LN) downgraded to Sell from Hold at Stifel

DAX

Sartorius (SRT GY) - FY23 (EUR): Net 339mln (exp. 655mln Y/Y), EBITDA 963mln (exp. 961mln), Revenue 3.4bln (exp. 3.42bln), Orden intake 3.07bln, -21.5% Y/Y. Guides FY24 Revenue in the "mid to high single digit % range". Expects profitable growth in 2024. (Newswires) Shares +1.8% in pre-market trade

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

LVMH (MC FP) - FY 2023 (EUR): Revenue 86.153bln (exp. 85.626bln); FCF 8.104bln, -20%; Net Income 15.174bln, +8%; Is confident in continued growth in 2024. Q4 RESULTS: Revenue 23.95bln (exp. 23.72bln). Organic revenue +10% (exp. +8.17%). Fashion & Leather Goods organic sales +9% (exp. +9.14%). Wines & Spirits organic sales +4% (exp. -7.47%). Perfumes & Cosmetics organic sales +10% (exp. +9.41%). Watches & Jewelry organic sales +3% (exp. +2.93%). Selective Retailing organic sales +21% (exp. +14%). FY23 OPERATING INCOME: Recurring 22.80B (exp. 22.46bln). Fashion & Leather Goods 16.84bln (exp. 16.9bln). Wines & Spirits 2.11bln (exp. 1.85bln). Perfume & Cosmetics 713mln (exp. 769mln). Watches & Jewelry 2.16bln (exp. 2.02bln). Selective Retailing 1.39bln (exp. 1.51bln). FY23 REVENUE BREAKDOWN: Revenue 86.15bln (exp. 85.88bln). Fashion & Leather Goods 42.17bln (exp. 42.47bln). Wines & Spirits 6.60bln (exp. 6.46bln). Perfume & Cosmetics 8.27bln (exp. 8.3bln). Watches & Jewelry 10.90bln (exp. 10.97bln). Selective Retailing 17.89bln (exp. 17.61bln). Dividend per share 13 (exp. 13.59). Net income 15.17bln (exp. 15.67bln). CEO Arnault does not intend to leave in the near or medium term. CFO says sales trends with Chinese clientele remained good; doesn't expect Chinese groups to return soon to Europe but managing to make 'significant' business with wealthy Chinese in Europe. CEO says Co. is definitely not considering an asset spin-off, it would be a mistake. Co. not planning additional price hikes this year. (LVMH) Co. holds a 6.5% weighting in the Eurostoxx50; 12% in the CAC40; fifth largest in the Stoxx600

Remy Cointreau (RCO FP) - Q3 (EUR): Revenue 319.9mln (exp. 320.7mln), Notes major destocking in China ahead of Chinese New Year. Cooperating with the Chinese authorities in anti-dumping investigation. Cuts FY23/24 Organic Revenue guidance to "lower end" -20% to -15% (prev. guidance -20% to -15%). Cognac +31.4% Y/Y, Liqueurs +1.5%, Partner Brands -7.3% Y/Y, Group Brands -22.9% Y/Y. (Newswires)

Teleperformance (TEP FP) - Launches digital services arm, TP Infinity, to better serve clients globally through consulting, design and system integration services. (Newswires)

OTHER FRENCH COMPANIES

Casino (CO FP) - Sells its stake in Exito Group for gross proceeds of USD 400mln. (Newswires)

JC Decaux (DEC FP) - Q4 (EUR): Revenue 1.13bln, +9.4%, Organic Revenue +10.3% Y/Y. Will provide Q1'24 revenue guidance on March 7th, 2024. (Newswires)

Sartorius Stedim Biotech (DIM FP) - FY23 (EUR): Underlying EBITDA 785mln, -35.7% Y/Y, Revenue 2.78bln (exp. 2.77bln). Expect to grow profitably in 2024 and beyond. (Newswires)

BROKER MOVES

STMicroelectronics (STM FP) downgraded to Equalweight from Overweight at Barclays

PAN EUROPE

Endesa (ELE SM) - Qatar informed Endesa of a 10-12 day delay of its LNG cargo due to the Red Sea conflict, according to Reuters sources. (Reuters)

Energias de Portugal (EDP PL) - Reports FY23 Electricity Generation 56.4TWh -8% Y/Y. (Newswires)

PostNL (PST NA) - Q4 (EUR): adj. EBIT 77mln (exp. 83.3mln), Revenue 889mln (exp. 907mln). (Newswires)

Signify (LIGHT NA) - Q4 (EUR): Revenue 1.73bln (exp. 1.76bln), Net 59mln. Expect challenging conditions to persist through the next year. (Newswires)

Salvatore Ferragamo (SFER IM) - FY (EUR): Revenue 1.16bln (exp. 1.15bln). (Newswires)

WDP (WDP BB) - FY23 (EUR): EPS 1.40 (exp. 1.40), Net Rental Income 337mln (exp. 339mln). (Newswires)

BROKER MOVES

Buzzi Unicem (BZU IM) upgraded to Buy from Hold at Berenberg

SMI

Lonza (LONN SW) - FY23 (CHF): Core EBITDA 2bln (exp. 1.90bln), Sales 6.7bln (exp. 6.52bln), CER Sales +7.9% (exp. 6.3%). Jean-Marc Huet is to succeed Baehny as Chairman, Huet is currently the Chairman of Heineken (HEIA NA). (Newswires)

Roche (ROG SW) - New long-term data for Genentech's Vabysmo show sustained retinal drying and vision improvements in RVO. (Newswires)

OTHER SWISS COMPANIES

SGS (SGSN SW) - FY23 (CHF): Adj. EBIT 971mln (prev. 1.02bln Y/Y), Revenue 6.62bln (prev. 6.64bln Y/Y). Names Picaud as CEO, effective March 26th. (Newswires)

BROKER MOVES

SCANDINAVIA

Elisa (ELISA FH) - Q4 (EUR): EPS 0.61 (exp. 0.59), EBIT 123mln (prev. 119mln Y/Y), Revenue 563mln (exp. 576mln). (Newswires)

Kone (KNEBV FH) - Q4 (EUR): Adj. EBIT 358.6mln (prev. 365mln Y/Y), Revenue 2.81bln (prev. 2.91bln Y/Y). (Newswires)

Telia (TELIA SS) - Q4 (SEK): Net -2.27bln (prev. -18.8bln Y/Y), Revenue 23.1bln (prev. 24.3bln Y/Y). (Newswires)

Volvo (VOLVB SS) - Q4 (SEK): Operating Profit 18.38bln (exp. 17.52bln), Revenue 148.1bln (exp. 137.4bln), EPS 5.93 (exp. 6.54). Dividend of 18/shr (exp. 17/shr). Q4 saw all segments, ex-construction equipment, increase net sales. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.53% at 4,894, NDX +0.10% at 17,516, DJIA +0.64% at 38,049, RUT +0.71% at 1,975.

SECTORS: Energy +2.23%, Communication Services +1.83%, Utilities +1.79%, Real Estate +1.31%, Materials +1.09%, Industrials +0.98%, Consumer Staples +0.92%, Financials +0.54%, Technology +0.38%, Health -0.23%, Consumer Discretionary -1.05%.

Apple (AAPL) says it will impose a new 'core technology fee' to large developers who bypass its App Store; will allow developers to distribute apps through alternative app stores in the EU. AAPL will allow EU users to choose the default web browser, email and contactless payment apps. (Newswires)

Intel Corp (INTC) - Q4 2023 (USD): EPS 0.63 (exp. 0.45), Revenue 15.4bln (exp. 15.16bln). Q1 adj. EPS view 0.13 (exp. 0.34).Q1 adj. revenue view 12.2-13.2bln (exp. 14.25bln). REVENUE BREAKDOWN: Client Computing 8.84bln (exp. 8.42bln). Datacenter & AI 4bln (exp. 4.08bln). Network & Edge 1.47bln (exp. 1.55bln). Mobileye 637mln (exp. 627.2mln). Intel Foundry Services 291mln (exp. 342.5mln). KEY METRICS: Adj. operating income 2.58bln (exp. 2.1bln). Adj. operating margin 16.7% (exp. 13.9%). Adj. gross margin 48.8% (exp. 46.5%). R&D expenses 3.99bln (exp. 3.9bln). COMMENTARY: On track to meet the goal of five nodes in four years. (Newswires)

PayPal (PYPL) - The CEO said it is launching new AI-driven products as well as a one-click checkout feature; revamping Venmo business profiles and offering cash-back rewards. (Newswires)

T-Mobile US Inc (TMUS) - Q4 2023 (USD): EPS 1.67 (exp. 1.90), Revenue 20.48bln (exp. 19.64bln). (Newswires)

Visa Inc (V) - Q1 2024 (USD): Adj. EPS 2.41 (exp. 2.34), Revenue 8.6bln (exp. 8.54bln). Guides Q2 net revenue growth to upper mid-to-high single-digit (exp. +8.67%). Q2 EPS growth high teens (exp. +12.15%). KEY METRICS: Payments volume at constant currency +8% (exp +8.03%). Cross-border volumes at constant currency +16% (exp. +14.9%). Total Visa processed transactions 57.5bln (exp. 57.77bln).

26 Jan 2024 - 06:53- Research Sheet- Source: Newsquawk