Newsquawk Daily European Equity Opening News - 27th February 2025

ASIA

APAC stocks followed suit to the mixed performance stateside for most of the session after tariff-related confusion and NVIDIA's earnings. ASX 200 edged mild gains amid outperformance in Consumer Staples following earnings from supermarket heavyweight Coles but with the upside limited amid losses in tech and after disappointing capex data. Nikkei 225 swung between gains and losses amid a quiet calendar and choppy currency, while Seven & I Holdings was the worst performer after the founding family's management buyout fell through. Hang Seng and Shanghai Comp were initially pressured as trade frictions remain in the spotlight with US Commerce Secretary Lutnick recently commenting that China is his biggest concern and that they will prevent Chinese vehicles from entering the US market, while it was also reported that China is putting the breaks on US stock listings for domestic companies.

Nissan (7201 JT) January global sales fell 6% Y/Y to 251.1k and global production fell 11% Y/Y to 243.4k units. Co. is reportedly considering replacing its CEO Uchida, according to Bloomberg. (Bloomberg)

China - China puts the breaks on US stock listings for domestic companies, according to Financial Times. (Financial Times)

EUROPEAN CLOSES

CLOSES: DAX: +1.73% at 22,797, FTSE 100: +0.72% at 8,731, CAC 40: +1.15% at 8,144, Euro Stoxx 50: +1.43% at 5,531, AEX: +0.25% at 932, IBEX 35: +1.67% at 13,336, FTSE MIB: +1.32% at 39,225, SMI: +0.17% at 13,036, PSI: +1.00% at 6,988.

SECTORS: Financials 2.14%, Materials 1.56%, Industrials 1.32%, Consumer Disc 1.29%, IT 1.23%, Utilities 0.60%, Energy 0.35%, Consumer Stpl 0.25%, Healthcare -0.63%, Telecoms -0.88%

FTSE 100

Rolls Royce (RR/ LN) - UAW reaches a tentative agreement with Rolls Royce; includes elimination of wage tiers and double digit wage increases. (Newswires)

Ex-Dividends - Alliance Witan (ALW LN), Diageo (DGE LN), Barclays (BARC LN), Unilever (ULVR LN) will all trade without entitlement to their latest dividend payout.

OTHER UK COMPANIES

BROKER MOVES

DAX

Nordex (NDX1 GY) - FY (EUR): Sales 7.29bln (exp. 7.32bln), Net Income 9mln. Outlook 2025: Revenue 7.4-7.9bln (exp. 7.72bln). Company expects a slightly stronger H2, in terms of sales and profitability. (Newswires) Shares +1.8% in pre-market trade

Kion (KGX GY) - FY (EUR): Revenue 11.5bln (exp. 11.05bln), Adj. EBIT 917.2mln (exp. 688mln), Dividend 0.82. 2025: Adj. EBIT 720-870mln. (Newswires)

Mercedes Benz (MBG GY) - Co. plans to cut 15% jobs in China, according to Bloomberg. (Bloomberg)

OTHER GERMAN COMPANIES

Aixtron (AIXA GY) - FY24 (EUR): EBIT 131.2mln (exp. 137.4mln), Revenue 633mln (exp. 625mln). Guides Q1 Revenue 90-110mln. (Newswires)

Sixt (SIX2 GY) - Prelim. FY (EUR): Revenue 4bln (exp. 3.95bln), PBT 335mln (prev. 464mln). (Newswires)

Hella (HLE GY) - FY (EUR): Sales 8.1bln (exp. 7.94bln). 2025: Adj. Sales between 7.6-8bln. (Newswires)

BROKER MOVES

CAC

AXA (AXA FP) - FY (EUR): Revenue 110.32bln (exp. 109.75bln), Net Income 7.89bln (exp. 7.85bln), Underlying Profit 8.08bln (exp. 7.91bln), Dividend/shr 2.15 (exp. 2.15). Announces annual share buyback program up to EUR 1.2bln. LA wildfire related losses of EUR 0.1bln. (Newswires)

Engie (ENGI FP) - FY24 (EUR): Recurring Net Income 5.5bln (exp. 5.44bln), EBIT (ex-nuclear) 8.9bln (exp. 8.84bn), Revenue 73.8bln (exp. 78.7bln). Raises FY25 recurring Net Income 4.4-5bln (prev. guided 3.9-4.5bln). (Newswires)

Technip Energies (TE FP) FY (EUR): Revenue 6.85bln (prev. 6bln), Net 0.39bln (exp. 0.3bln). (Newswires)

OTHER FRENCH COMPANIES

Arkema (AKE FP) - FY (EUR): Adj. Net Income 616mln (prev. 653mln Y/Y), EBITDA 1.53bln (prev. 1.50bln Y/Y), Revenue 9.54bln (prev. 9.51bln Y/Y). (Newswires)

Eiffage (FGR FP) - FY24 (EUR): Sales 23.42bln (exp. 24.28bln), order book 28.9bln; proposes dividend of 4.70/shr (+15%), FCF 2.63bln

Sopra Steria (SOP FP) - FY (EUR): Revenue 5.78bln (prev. 5.47bln Y/Y). Affirms guidance. (Newswires)

Veolia (VIE FP) - FY (EUR): Revenue 44.7bln (exp. 45.4bln), Net 1.1bln (exp. 1.5bln), EBITDA 6.8bln (exp. 6.5bln). (Newswires)

Vallourec (VK FP) - FY (EUR): Revenue 1.07bln (exp. 1.3bln), EBITDA 2.14mln (exp. 208mln), Net 163mln (exp. 104mln). (Newswires)

BROKER MOVES

PAN EUROPE

US Trade - US President Trump says not stopping the tariffs; tariffs will go on, not all but a lot of them. US Commerce Secretary says that April 2nd is the baseline tariff and says China is his biggest concern and they will prevent Chinese vehicles from entering the US market. The White House still plans to implement 25% tariffs on imports from Canada and Mexico next week, at least for now — despite comments from US President Trump earlier that raised hopes of another delay, via Axios.

EU Trade - US President Trump says will be announcing tariffs on EU very soon; EU can try to retaliate on tariffs; EU tariffs to be 25% on autos and other things. EU will react 'firmly and immediately' to US tariff, according to AFP citing European Commission source.

argenx (ARGX BB) - FY24 (USD): Op. Income -21.7mln (exp. -48.9mln), Revenue 2.20bln (exp. 2.20bln). 2025: SG&A expenses approx. 2.5bln. (Newswires)

ageas (AGS BB) - FY (EUR): Net 1.1bln (exp. 0.95bln), Net Operating EPS 678 (prev. 6.35). (Newswires)

EDPR (EDPR PL) - FY (EUR): Revenue 2.23bln (exp. 2.37bln). (Newswires)

Endesa (ELE SM) - FY (EUR): Net Profit 1.89bln (exp. 1.86bln), EBITDA 5.3bln (5.24bln). Is progressing on the strategic driver of 2025-27 plan. (Newswires)

Eni (ENI IM) - Q4 (EUR): Adj. Operating Income 1.69bln (exp. 2.02bln), adj. Net 0.89bln (exp. 1.05bln), Production 1.716mln BOEPD (exp. 1.69mln BOEPD). Elsewhere, Co. and Petronas to combine upstream assets in Indonesia and Malaysia. (Newswires)

Ferrovial (FER SM) - Agreement for the sale of its entire stake in Heathrow Airport. Binding agreement reached with Ardian for the sale of its stake for GBP 445mln. (Newswires)

Grifols (GRF SM) - FY24 (EUR): Revenue 7.21bln (exp. 7.14bln), Adj. EBITDA 1.78bln (exp. 1.73bln). (Newswires)

Ferrari (RACE IM) - Following ABB offering announced by Exor intends to repurchase up to 10% of Exor's total offering up to a maximum of EUR 300mln. (Newswires)

Tech Names - Nvidia (NVDA) - Nvidia's Q4 revenue topped estimates, as Data Centre revenue surged, driven by AI chip demand, though the rate of expansion is slowing. And while Q1 sales guidance was above expectations, gross margins are seen easing in Q1, leading to shares slipping about 1.5% by the end of the extended trading session, with investors left slightly underwhelmed, according to Bloomberg. (Bloomberg)

Miners - Chilean copper mine Escondida restarts, according to Reuters source; expects to achieve normal operation in the next hours. (Newswires)

Prysimian (PRY IM) - Q4 (EUR): Adj. EBITDA 5.18bln (exp. 521mln), Sales 4.66bln (exp. 4.41bln). 2025: Ad. EBITDA in range of 2.25-2.35bln. Proposes dividend of EUR 0.8/shr. (Newswires)

Pirelli (PIRC IM) - Prelim Q4 24 (EUR): Adj. EBIT 244.6mln (exp. 222.8mln), revenue 1.59bln (exp. 1.53bln). Net income 130mln (exp. 112mln). Sees FY25 revenue of 6.8-7.0bln. (Newswires)

Leonardo (LDO IM) - Saudi PIF is reportedly in talks to invest in Leonardo's aerostructures unit, according to Bloomberg. (Bloomberg)

Telefonica (TEF SM) - FY (EUR): Revenue 41.3bln. Q4: Revenue 10.7bln, Adj. EBITDA 3.47bln. Co. achieved its 2024 guidance. Sees 2025 Revenue and EBITDA with organic growth Y/Y. Proposes dividend of EUR 0.30/shr. (Newswires)

UCB (UCB BB) - FY (EUR): Revenue 6.15bln, +17% Y/Y. 2025: Core EPS in range of 6.80-7.40. Proposes dividend of EUR 1.39/shr. (Newswires)

BROKER MOVES

SMI

ABB (ABBN SW) - FY (USD): Revenue 32.9bln (exp. 34.19bln), Op. EBITA Margin 18.1%. (Newswires)

Clariant (CLN SW) - Rejects TotalEnergies (TTE FP) allegations against four companies related to the 2020 competition law infringement. (Newswires)

Swiss Re (SREN SW) - FY24 (USD): Net Income 3.24bln (exp. 3.23bln), Insurance Revenue 45.6bln (prev. 43.9bln Y/Y), RoE 15% (exp. 15.4%). Dividend per share 7.35 (exp. 7.11). Estimates its prelim claims from the LA wildfires to be less than USD 700mln; will impact results in Q1'25. Affirms guidance. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.01% at 5,956, NDX +0.22% at 21,133, DJI -0.43% at 43,433, RUT +0.19% at 2,17.

SECTORS:Technology +0.89%, Utilities +0.37%, Communication Services +0.08%, Industrials +0.06%, Materials -0.07%, Financials -0.21%, Consumer Discretionary -0.39%, Energy -0.49%, Real Estate -0.59%, Health -0.69%, Consumer Staples -1.86%

eBay Inc (EBAY) - Shares fell 8.5% in extended trading after the it projected weaker-than-expected Q1 sales, citing soft demand in Germany and the UK. Q4 adj. EPS 1.25 (exp. 1.20), Q4 revenue USD 2.60bln (exp. 2.57bln); Q4 FCF USD 560mln (exp. 608.9mln). Q4 active buyers 134mln (exp. 133.21mln); Q4 GMV USD 19.32bln (exp. 19.07bln), with US GMV at USD 9.04bln (exp. 9.05bln), and international GMV at USD 10.28bln (exp. 10.03bln). Sees Q1 adj. EPS between 1.32-1.36 (exp. 1.33), and sees Q1 revenue between USD 2.52bln-2.56bln (exp. 2.60bln).

Nvidia (NVDA) - Nvidia's Q4 revenue topped estimates, as Data Centre revenue surged, driven by AI chip demand, though the rate of expansion is slowing. And while Q1 sales guidance was above expectations, gross margins are seen easing in Q1, leading to shares slipping about 1.5% by the end of the extended trading session, with investors left slightly underwhelmed, according to Bloomberg. Q4 adj. EPS 0.89 (exp. 0.83), Q4 revenue USD 39.33bln (exp. 37.61bln). Q4 Data Centre revenue +93% Y/Y at USD 35.6bln (exp. 34.09bln); Q4 Gaming revenue -14% Y/Y to USD 2.5bln (exp. 3.02bln); Q4 Professional Visualization revenue +10% Y/Y at USD 511mln (exp. 507.6mln); Q4 Automotive revenue USD 570mln (exp. 460.7mln). Q4 R&D expenses +51% y/y to USD 3.71bln (exp. 3.75bln); Q4 adj. operating expenses +53% Y/Y at USD 3.38bln (exp. 3.4bln), Q4 FCF +38% Y/Y at USD 15.52bln. Exec noted that it successfully ramped up Blackwell production massively, and it has been the fastest product ramp in the company’s history; it delivered USD 11bln of Blackwell architecture revenue in Q4. Sees Q1 revenue around USD 43bln +/-2% (exp. 41.56bln), sees Q1 adj. GM at 71% +/- 50bps. Sees Q1 adj. gross margin of 73.5% (exp. 73.5%); gross margins are expected to rebound into the mid-70 later in the FY, being weighed at present by the ramp in Blackwell production. CFO said that it expects China shipments to maintain current levels as a percentage of data centre revenue, while Stargate data centres will use Spectrum X ethernet networking; anticipates that its networking unit will resume growth in Q1. Meanwhile, CEO Jensen Huang said that next-gen AI requires 100 times more compute due to advanced reasoning processes, and also noted Nvidia’s China revenue halved due to export controls and competition.

Salesforce (CRM) - Salesforce missed revenue expectations and issued lower-than-expected guidance, resulting in shares falling by 5.5% in extended trading; although Q4 EPS topped expectations, Q4 revenue missed estimates, and its subscription and support revenue underperformed. Its Agentforce AI tool saw adoption, but is seen having limited near term impact financial. It reported Q4 adj. EPS of 2.78 (exp. 2.6), Q4 revenue of USD 10.0bln (exp. 10.02bln); Q4 FCF 3.82bln (exp. 3.49bln); Q4 adj. operating margin 33.1% (exp. 32.8%). Q4 Subscription and support revenue +8% Y/Y at USD at 9.45bln (exp. 9.52bln); Service revenue +7.8% Y/Y at USD 2.33bln (exp. 2.37bln); Professional Services revenue +0.6% Y/Y at USD 542mln (exp. 525.9mln). Sees Q1 revenue between USD 9.71-9.76bln (exp. 9.91bln). Despite missing revenue expectations, Salesforce CEO called Q4 the company’s best quarter, highlighting milestones such as closing 400+ USD 1mln deals. He emphasised Agentforce and Data Cloud’s billion-dollar potential, and announced Pfizer’s (PFE) adoption of its Life Sciences Cloud product; CRM expects professional services to impact FY26 revenue, though forecast increased Agentforce contributions in FY27.

27 Feb 2025 - 06:59- Data- Source: Newsquawk