Newsquawk Daily European Equity Opening News - 28th April 2023

28th April 2023

ASIA

APAC stocks were positive after taking impetus from the rally on Wall St where the S&P 500 and DJIA posted their best daily performance since January as sentiment was fuelled by strong earnings results, while the region also digested a slew of earnings, month-end data releases and the BoJ policy decision. ASX 200 was initially led higher by outperformance in financials and tech, but then faded most of the gains. Nikkei 225 was lifted after Industrial Production and Retail Sales topped forecasts, while the BoJ kept also policy settings unchanged, tweaked its forward guidance which remained dovish and announced it is to conduct a policy review. Hang Seng and Shanghai Comp were firmer amid tech strength and an abundance of earnings releases, with sentiment also supported by the PBoC’s liquidity efforts ahead of the 5-day closure in the mainland.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.24% at 4,358, FTSE 100 -0.27% at 7,831, DAX 40 +0.03% at 15,800, CAC 40 +0.23% at 7,483, FTSE MIB +0.19% at 27,158, IBEX 35 +0.22% at 9,314, SMI +0.83% at 11,366.

SECTORS: Industrials 1.24%, Financials 0.57%, IT 0.53%, Utilities 0.50%, Consumer Disc 0.19%, Telecoms 0.04%, Healthcare -0.17%, Consumer Stpl -0.35%, Materials -0.51%, Energy -1.71%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Covestro (1COV GY) - Q1 (EUR): Net -26mln (exp. -89mln). Resuming buyback programme. FY23 guidance: EBITDA 1.1-1.6bln (exp. 1.2bln), FCF 0-500mln (exp. 126mln). (Newswires)

Deutsche Telekom (DTE GY) - T-Mobile (TMUS) shares fell 2.6% after revenue missed forecasts and postpaid phone net customer addition. Deutsche Telekom owns a 49.6% stake in T-Mobile.

Mercedes-Benz (MBG GY) - Q1 (EUR): Revenue 37.5bln (exp. 36.9bln), EPS 3.69 (exp. 3.18), adj. EBIT 5.4bln (exp. 4.7bln). Group outlook remains unchanged. Results driven by a rise in sales of top-end vehicles and premium vans. Improved pricing outweighed headwinds from material costs. Mercedes-Benz Vans adjusted RoS lifted to 11%-13% and at Mercedes-Benz Cars the adjusted RoS is seen at the upper end of 12%–14%. Co. sees higher demand in US and China. "The shift towards greater electrification continues, with sales of Battery Electric Vehicles at Mercedes-Benz Cars up 89% and rising 22% at Mercedes-Benz Vans." (businesswire/Mercedes-Benz IR) Mercedes-Benz holds a 4.9% weighting in the DAX 40, and a 1.9% weighting in the Eurostoxx 50.

OTHER GERMAN COMPANIES

Daimler Trucks (DTG GY) - From Q4 2023, Rizon Trucks will be distributed in the US via an exclusive agreement with Velocity. (Newswires)

Fuchs Petrolub (FPE3 GY) - Q1 (EUR): Sales 936mln (exp. 914mln), Net 73mln (exp. 73mln), EBIT 103mln (exp. 103mln). FCF ex-acquisitions at 52mln is significantly above the prior. (Newswires)

ProSiebenSat.1 (PSM GY) - Final FY22 (EUR): Revenue 4.16bln (exp. 4.16bln). Adj. EBITDA 678mln (exp. 655mln). (Newswires)

Software AG (SOW GY) - Elliott Investment Management has acquired a position in Software AG, with hopes of benefiting from the planned acquisition by US private equity firm, Silver Lake Management, or a potential counter offer, according to Bloomberg sources. (Newswires)

Wacker Chemie (WCH GY) - Q1 2023 (EUR): Revenue 1.74bln (prev. 2.08bln Y/Y). EBITDA 281mln (prev. 644mln). Co. has warned that its EBITDA margin will likely decline substantially Y/Y. (Newswires)

BROKER MOVES

CAC

Remy Cointreau (RCO FP) - FY (EUR): Sales 1.55bln (exp. 1.55bln, prev. 1.31bln). FY23/24 outlook: Strong sales decline in H1, strong sales recovery in H2. (Newswires)

OTHER FRENCH COMPANIES

Groupe SEB (SK FP) - Q1 2023 (EUR): Revenue 1.82bln (prev. 1.92bln Y/Y). Operating profit 65mln (prev. 140mln). LFL revenue -3.7% Y/Y. (Newswires)

Spie (SPIE FP) - Q1 2023 (EUR): Revenue 1.99bln (prev. 1.79bln Y/Y). EBITDA 84.6mln (prev. 70.4mln). Co. has affirmed FY23 organic growth and EBITDA margin guidance. (Newswires)

BROKER MOVES

PAN EUROPE

OMV (OMV AV) - Q1 2023 (EUR): Revenue 10.96bln (prev. 15.8bln Y/Y). Adj. net 1.03bln (prev. 1.07bln Y/Y). Operating profit 2.08bln (prev. 2.62bln). Average production 376k BOEPD (prev. 457k BOEPD). (Newswires)

Proximus (PROX BB) - Q1 2023 (EUR): Adj. EBITDA 432mln (exp. 436mln). Revenue 1.49bln (prev. 1.40bln Y/Y). Domestic revenue +4.8% Y/Y. Co. affirmed its FY23 guidance. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Danske Bank (DANSKE DC) - Q1 2023 (DKK): Total income 13.41bln (exp. 12.94bln). Net Income 5.17bln (exp. 5.05bln). ROE 12.7% (prev. 6.2%). (Newswires)

Kesko (KESKO FH) - Q1 (EUR): Sales 2.8bln (exp. 2.8bln), adj. EBIT 125mln (exp. 126mln). Repeats outlook/guidance provided on 2nd February. (Newswires)

Norsk Hydro (NHY NO) - Q1 (NOK): Revenue 48.5bln (exp. 46bln), adj. EPS 1.70 (exp. 1.72), adj. Net Income 3.3bln (exp. 3.4bln), adj. EBITDA 7.5bln (exp. 7.3bln). Lower aluminium and alumina sales prices, and higher raw material costs negatively affected results, partly offset by positive currency effects. (GlobeNewswire)

Schibsted (SCHA NO) - Q1 (NOK): Revenue 3.77bln (exp. 3.69bln), EBITDA 423mln (exp. 429mln), EBITDA was subdued by higher personnel costs, inflation and revenue mix. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.96% at 4,135, NDX +2.76% at 13,160, DJIA +1.58% at 33,827, RUT +1.2% at 1,751.

SECTORS: Communication +5.55%, Consumer Discretionary +2.76%, Real Estate +2.44%, Technology +2.16%, Industrials +1.99%, Financials +1.62%, Materials +1.35%, Utilities +1.2%, Consumer Staples +1.03%, Health Care +0.53%, Energy +0.49%.

Amazon (AMZN) - Q1 2023 (USD): EPS 0.31 (exp. 0.21), Revenue 127.4bln (exp. 124.55bln). AWS +16% to 21.4bln (exp. 21.03bln); Q2 revenue view 127-133bln (exp. 129.83bln). Q1 OM 3.7% (exp. 2.4%), Q1 Fulfillment Expenses 20.91bln (exp. 20.72bln), Q1 Seller Unit Mix 59% (exp. 56.8%). Q1 Sales Segments: Online stores 51.10bln (exp. 50.57bln), Physical Stores 4.90bln (exp. 4.77bln), Third-Party Seller Services 29.82bln (exp. 28.7bln), Subscription Services 9.66bln (exp. 9.29bln), North America 76.88bln (75.54bln). International 29.12bln (exp. 27.65bln). Amazon's CFO observed consumer shifts towards lower-priced items, as well as cloud customers continuing to optimise their spending amid economic uncertainty. Despite this, they have noted no changes in the competitive balance among cloud providers and believe that the step down in discretionary spending in cloud services is still ongoing. However, Co. also mentioned that fuel impacts in Europe are starting to ease, and economic conditions have improved internationally in Q1. Advertising continues to experience strong growth, and as inflation decreases internationally, consumer confidence is reportedly on the rise. (Amazon IR/Newswires) Shares initially rose by some 9% after hours before sliding to losses of 2%. Newswires suggested Amazon shares fell amid Co. signalling lower AWS growth.

Amgen Inc (AMGN) - Q1 2023 (USD): EPS 3.98 (exp. 3.85), Revenue 6.11bln (exp. 6.17bln). FY EPS view 17.60-18.70 (exp. 17.72), FY Revenue view 26.2-27.3bln (exp. 26.7bln). (Amgen IR)

First Republic Bank (FRC) - US officials reportedly coordinate urgent rescue discussions for First Republic, via Reuters citing sources; FDIC, Fed and Treasury are among the bodies which in recent days have been putting together meetings with financial Cos regarding a lifeline. (Newswires_

Intel Corp (INTC) - Q1 2023 (USD): Adj. EPS -0.04 (exp. -0.15), Revenue 11.70bln (exp. 11.04bln). Co. said PC inventory correction as expected and PC usage remains strong. Co. sees Q2 Adj. EPS -0.04 (exp. -0.02), and sees Q2 rev. 11.5bln-12.5bln (exp. 11,7bln). PC usage remains strong and sees long term pc market to be about 300mln units a year. CFO said expect gross margin comfortably in the 40s percent range for H2 and inventory level is about 155 days on aggregate. (Intel IR/Newswires) Shares rose 5% after hours

Snap Inc (SNAP) - Q1 2023 (USD): Adj. EPS +0.01 (exp. -0.01), Revenue 0.989bln (exp. 1.01bln). Not providing formal guidance for revenue or adj. EBITDA for Q2. North America revenue 639.9mln, -16% y/y (exp. 680mln). Europe revenue 157.8mln, -2.7% y/y (exp. 161.7mln). Rest of the world revenue 191.0mln, +34% y/y (exp. 162mln). Adjusted EBITDA 0.81mln, -99% y/y (exp. 9.31mln). Daily active users 383.0mln, +15% y/y (exp. 383.2mln). (Snap IR) Shares fell 18% after hours

T-Mobile US Inc (TMUS) - Q1 2023 (USD): EPS 1.58 (exp. 1.48), Revenue 19.63bln (exp. 19.81bln). Q1 postpaid phone net customer additions 538,000 (prev. 589,000 Y/Y). Sees 2023 postpaid net customer additions between 5.3mln-5.7mln. (businesswire) Shares fell 2.6% after hours

28 Apr 2023 - 06:46- Exclusive- Source: Newsquawk