Newsquawk Daily European Equity Opening News - 27th April 2023

27th April 2023

ASIA

APAC stocks traded mixed with most of the major indices subdued amid the banking sector headwinds in the US and as participants digested a deluge of earnings releases and quarterly performance updates. ASX 200 declined with the index pressured in early trade by weakness in the mining-related industries after a recent decline in underlying commodity prices and with gold miners hit after lower output and sales by Newcrest Mining and Northern Star Resources. Nikkei 225 was cautious as headlines were dominated by earnings and as the BoJ began its 2-day meeting. KOSPI was indecisive after earnings from index heavyweight Samsung Electronics which topped the preliminary release but confirmed an over-95% drop in its operating profit. Hang Seng and Shanghai Comp were somewhat mixed during the session with the biggest movers in Hong Kong driven by earnings releases, while the mainland was mildly underpinned by support measures after China's State Council unveiled a plan to stabilise employment and will support financial institutions to offer loans to businesses for expanding and stabilising jobs.

Samsung Electronics (005930 KS) - Q1 (KRW) net 1.6tln (exp. 704bln, prev. 11.3tln Y/Y), oper. profit 640bln (exp. 600bln, prev. 14.1tln Y/Y), rev. 63.7tln (exp. 63.0tln, prev. 77.8tln Y/Y). Co. said Q1 mobile business oper. profit 3.94tln. Q1 chip business oper. loss KRW 4.58tln. Co. expects limited demand of memory chip demand in Q2 but expects a gradual recovery in H2. For its Display business, Co. said there are hopes of a potential demand recovery in H2 due to improving market conditions in China. Mobile market demand is expected to recover during Q2 in the low-to-mid segment. Expects especially strong demand in the mobile premium segment in H2. Co. said Q1 smartphone shipments was at 60mln units and it expects a decline in shipments of smartphones and tablets in Q2. (Newswires)

Toyota (7203 JT) - March global parent-only vehicle production rose 3.8% to 899,684 units which is a record for a single month, while FY22/23 global parent-only vehicle production rose 6.5% Y/Y to a record 9.13mln units. FY22/23 global parent-only vehicle sales rose 1% Y/Y to a record 9.61mln units. (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.69% at 4,347, FTSE 100 -0.49% at 7,852, DAX 40 -0.48% at 15,795, CAC 40 -0.86% at 7,466, FTSE MIB -0.54% at 27,107, IBEX 35 +0.04% at 9,293, SMI -1.29% at 11,365.

SECTORS: Telecoms 1.09%, Energy 0.60%, Utilities -0.09%, Financials -0.32%, Materials -0.55%, Consumer Stpl -0.68%, Consumer Disc -0.69%, IT -1.07%, Industrials -1.42%, Healthcare -2.57%

FTSE 100

Gambling Names - UK Culture Secretary Frazer is to outline in Parliament today planned regulation which would include checks on gamblers who are losing GBP 1k/day alongside a mandatory levy on firms for addiction research/treatment. (BBC)

Flutter (FLTR LN) - To disclose this week that it has secured investors' backing to pursue a US listing, via Sky News citing sources. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

DAX

BASF (BAS GY) - Q1 2023 (EUR): Adj. EPS 1.93 (exp. 1.45), Revenue 19.99bln (exp. 21.55bln). BASF maintains FY Adj EBIT guidance between 4.8-5.4bln (exp. 5.08bln) and FY Sales between 84-87bln (exp. 83.73bln). (Newswires)

Deutsche Bank (DBK GY) - Q1 2023 (EUR): Revenue 7.7bln (exp. 4.46bln), FIC Sales & Trading Revenue 2.36bln (exp. 1.63bln), Net Income 1.3bln (exp. 0.9bln). Currently expects to commence buybacks in H2. (Newswires)

Deutsche Boerse (DB1 GY) - Q1 2023 (EUR): Adj. EPS 2.70, Revenue 1.23bln (exp. 1.20bln), Net income 473mln. Co. said they will be at the upper end of the forecast for 2023, or even slightly exceed it if strong cyclical tailwinds continue. (Newswires ) Shares seen opening higher by 1.5%

HelloFresh (HFG GY) - Q1 2023 (EUR): Revenue 2.02bln (prev. 1.92bln). Adj. EBTIDA 66.1mln (prev. 99.3mln). Adj. EBITDA margin 3.3% (prev. 5.2% Y/Y). Order numbers 32.8mln (prev. 34.6mln Y/Y). (Newswires)

OTHER GERMAN COMPANIES

DWS (DWS GY) - Q1 2023 (EUR): Revenue 610mln (prev. 634mln Y/Y). AUM 841bln (prev. 821blbln). Pretax 206mln (prev. 254mln). Co. has affirmed its FY23 revenue. (Newswires)

Hella (HLE GY) - Final Q1 2023 (EUR): Revenue 1.99bln (prev. 1.74bln Y/Y). Operating profit 111mln (prev. 101mln). (Newswires)

BROKER MOVES

CAC

Atos (ATO FP) - Q1 2023 (EUR): Revenue 2.81bln (prev. 2.75bln). Organic revenue +2.8% Y/Y. Co. confirmed its FY outlook. (Atos IR)

L'Air Liquide (AI FP) - Q1 2023 (EUR): Revenue 7.17bln (exp. 7.04bln). Comparable Revenue +6.2% Y/Y. Large Industries Revenue 2.20bln (exp. 2.33bln). Gas and Services Revenue 6.89bln (exp. 6.79bln). (Newswires)

Michelin (ML FP) - Q1 2023 (EUR): Revenue 6.96bln (+7.4%). Reaffirms FY Operating Income view above 3.2bln and adj. FCF view above 1.6bln. Co. expects the cost inflation impact to land at the lower end of the EUR 0.4-0.9bln range in 2023. Co. expects raw materials and transportation costs to improve in H2 but labour and energy costs to remain above historical trends. (Newswires)

STMicroelectronics (STM FP) - Q1 2023 (USD): Revenue 4.25bln (exp. 4.21bln, Gross Margin 49.7% (exp. 47.6%), Auto & Discrete Revenue 1.81bln (exp. 1.74bln). Co. has raised the lower end of its FY23 revenue guidance; and guides FY23 revenue between USD 17-17.8bln (exp. 16.7bln; prev. 16.8-17.8bln). Co. sees Q2 Net Revenue between 4.28bln (exp. 4.24bln). (Newswires/ STMicroelectronics IR)

OTHER FRENCH COMPANIES

Ipsen (IPN FP) - FY23 guidance confirmed. Regulatory decision dates within the US are confirmed by Bylvay in Alagille syndrome and Palovarotene in FOP. (Newswires)

BROKER MOVES

PAN EUROPE

Banca Sabadell (SAB SM) - Q1 2023 (EUR): NII 1.10bln (exp. 1.08bln). Net 205mln (prev. 142mln Y/Y). CET1 ratio +33bps Y/Y. (Newswires)

BBVA (BBVA SM) - Q1 2023 (EUR): Net Income 1.85bln (exp. 1.65bln), Net Interest Income 5.64bln (exp. 5.53bln). CET1 Ratio Fully-Loaded 13.1% (exp. 12.7%). NII +43.1% Y/Y. Adj. ROTE 16.3% (prev. 12.6% Y/Y). (Newswires)

Deutsche Bank (DBK GY)/Santander (SAN SM) - Deutsche Bank board member Riley is to join Santander, according to Handelsblatt. (Handelsblatt)

UCB (UCB BB) - Receives positive CHMP opinions for Bimekizumab for the treatment of adults with psoriatic arthritis and axial spondyloarthritis in the EU. (Newswires)

UMG (UMG NA) - Q1 2023 (EUR): Revenue 2.451bln (exp. 2.4bln). Adj. EBITDA 522mln (prev. 455mln). Adj. EBITDA margin 21.3% (prev. 20.7%). (Newswires)

BROKER MOVES

SMI

Swiss Re (SREN SW) - Ermotti to step down as Chairman on 30th April. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker BP (AKRBP NO) - Q1 (USD): Revenue 3.3bln (exp. 3.3bln), Net Income 187mln (exp. 245mln), EBITDA 2.93bln (exp. 2.86bln). FY23 guidance maintained. (Newswires)

Essity (ESSITY SS) - Q1 (SEK): Sales 42.9bln (exp. 41.6bln), EPS 3.79 (exp. 3.61), Net Income 2.7bln (exp. 2.8bln). Sales prices were higher and the product mix was better in all business areas. (Newswires)

Nordea (NDA SS) - Q1 2023 (EUR): Net Interest Income 1.77bln (exp. 1.72bln). NII 1.77bln (prev. 1.31bln Y/Y). Operating Profit 1.48bln (exp. 1.27bln). Co. guides FY Cost to Income Ratio 45% to 47% (exp. 44%). Co. affirmed FY23 and FY25 ROE targets. (Newswires)

Swedbank (SWEDA SS) - Q1 (SEK): NII 11.9bln (exp. 11.3bln), EPS 6.71 (exp. 5.90), Net Income 7.5bln (exp. 6.6bln). Credit impairment increased due to a weaker macroeconomic outlook, alongside an increase in provisions of circa. SEK 200mln more than the model suggests. (Newswires)

Volvo Cars (VOLVB SS) - Q1 (SEK): Revenue 95.7bln (exp. 96.8bln), EBIT 5.1bln (exp. 3.6bln), EPS 1.21 (exp. 0.82). Cautiously optimistic re. 2023. In the next few months, will launch a fully electric small SUV; aiming to introduce at least one full-EV/year until the mid—decade. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.38% at 4,056, NDX +0.64% at 12,806, DJIA -0.68% at 33,301, RUT -0.89% at 1,730.

SECTORS: Utilities -2.37%, Industrials -1.87%, Health -1.41%, Energy -1.28%, Materials -1.18%, Financials -0.96%, Real Estate -0.83%, Consumer Staples -0.74%, Communication Services -0.62%, Consumer Discretionary -0.38%, Technology +1.73%.

eBay Inc (EBAY) - Q1 2023 (USD): Adj. EPS 1.11 (exp. 1.07), Revenue 2.43bln (exp. 2.48bln). Q2 revenue view 2.47-2.54bln (exp. 2.43bn).Q2 EPS view 0.96-1.01 (exp. 0.99). Gross merchandise volume 18.4bln (exp. 18.2bln), -5.2% Y/Y. US gross merchandise volume 9.01bln (exp. 8.89bln), -3.5% Y/Y. Active buyers 133mln (exp. 133.8mln), -6.3% Y/Y. Shares rose 2.6% after-market

First Republic (FRC) - Co. is to reportedly face a curb on Fed borrowings, according to Bloomberg; FDIC considers lowering Bank's ratings if a deal is not reached and the FDIC move would limit FRC's access to Fed facilities. (Newswires)

Meta (META) - Q1 2023 (USD): EPS 2.20 (exp. 2.03), Revenue 28.65bln (exp. 27.65bln). Advertising revenue 28.10bln (exp. 26.76bln), +4.1% Y/Y. Family of Apps revenue 28.31bln (exp. 26.88bln), +4% Y/Y. Reality Labs revenue 339mln (exp. 613.1mln), -51% Y/Y. Facebook DAUs 2.04bln (exp. 2.01bln), +4.1% Y/Y. Facebook MAUs 2.99bln (exp. 3bln). Q2 revenue view 29.5-32bln (exp. 29.48bln). Co. said AI recommendations have increased time spent on Instagram by 24%, and added they are no longer behind in AI infrastructure and the next milestone is the launch of next generation consumer virtual and mixed reality device later this year. Co. is seeing continued strong conversion growth for advertisers, and expects to evolve capital structure through periodically accessing debt markets to diversify funding. Co. said FY expenses will be between USD 86bln-90bln including USD 5bln of restructuring costs. Co. said it will resume hiring after layoffs complete in April and May. CFO expects headcount growth in excess of 1%-2% in 2024. (Newswires) Meta shares rose 11.7% after-market; Amazon (AMZN) also rose 1.5% ahead of earnings on Thursday.

Microsoft (MSFT) - Co. cut production of Surface accessories amid a PC slump, according to Nikkei. (Nikkei)

27 Apr 2023 - 06:50- Research Sheet- Source: Newsquawk