Newsquawk Daily European Equity Opening News - 30th October 2024

ASIA

Samsung Electronics (005930 KS) - Smartphone crown slips as it loses market share to Apple (AAPL) and Chinese players, according to FT. (FT)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.44% at 4,948, DAX -0.25% at 19,483, SMI -1.11% at 12,102, FTSE MIB -0.26% at 34,926, FTSE 100 -0.80% at 8,220, CAC 40 -0.61% at 7,511, IBEX 35 -0.91% at 11,795, PSI -0.27% at 6,439

SECTORS: IT 0.20%, Financials -0.09%, Telecoms -0.33%, Consumer Disc -0.34%, Materials -0.42%, Industrials -0.69%, Consumer Stpl -1.09%, Utilities -1.12%, Healthcare -1.15%, Energy -1.31%

FTSE 100

BHP Group (BHP), Anglo American (AAL LN) - BHP Chairman said it has shifted focus to new growth opportunities after its USD 49bln bid for Anglo American was rejected earlier this year, Reuters reports. Chairman stated that BHP is now pursuing other deals, including a USD 3.25bln partnership with Lundin Mining. (Reuters)

Standard Chartered (2888 HK) - Q3 (USD) Adj. pre-tax 1.81bln (exp. 1.48bln), NII rose 9% Y/Y in constant currency to USD 2.6bln, upgrades 2024 income guidance which it sees an increase of towards 10%. Raises shareholder distribution target from at least USD 5bln to at least USD 8bln from 2024 to 2026. (Newswires)

UK Banks - Banks reportedly seek meeting with UK Treasury over car finance ruling with execs anxious about risks following court decision on secret commissions on auto loans, via FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

Admiral (ADM LN) upgraded to Buy from Hold at HSBC

easyJet (EZJ LN) initiated with Buy at Jefferies

IAG (IAG LN) initiated with Buy at Jefferies

Lloyds (LLOY LN) downgraded to Equal Weight from Overweight at Morgan Stanley

Wizz Air (WIZZ LN) initiated with Underperform at Jefferies

DAX

BASF (BASF GY) - Q3 (EUR): Net Income 287mln (exp. 178mln, prev. -249mln Y/Y), EBITDA 1.3bln (exp. 1.40bln, prev. 1.4bln Y/Y), Revenue 15.7bln (exp. 15.74bln, prev. 15.7bln Y/Y). Expects to reach the low end of Adj. EBITDA forecast range. Adjusts FY24 EBITDA low end of 8-8.6bln (prev. guided 8-8.6bln). (Newswires)

Daimler Trucks (DTG GY) - Is assessing the future of China operations noting it books a EUR -180mln adjustment in Q3 related to China ops.; says it is a one-time, extraordinary and non-cash adj. item and hence is not impacting the operational performance of the co. (Newswires) Shares -1.3% in pre-market trade

Siemens (SIE GY) - Reportedly near a deal to buy Altair Engineering (ALTR), according to Bloomberg citing sources. (Bloomberg)

Volkswagen (VOW3 GY) - Q3 (EUR): Op. Profit 2.855bln (exp. 2.8bln), Op. Profit margin 3.6% (exp. 3.7%); posts its lowest profit margin since the pandemic. FY outlook: Expects op. profit of around EUR 18bln. CFO: Says op. profit was just 2% in a 9m period, which shows an urgent need for significant cost reductions and efficiency improvements. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Capgemini (CAP FP) - Q3 (EUR): Revenue 5.38bln (exp. 5.48bln). Cuts FY Revenue outlook citing stronger headwinds than anticipated in some sectors, primarily in manufacturing. Cuts FY24 Revenue -2.4 to 2% (prev. guided -1.5 to -0.5%). Trims Op. margin 13.3-13.4% (prev. guided 13.3-13.6%). (Newswires)

Dassault Systems (DSYY FP) - Announces availability of the world's first guide for the medical device industry that outlines how to use virtual twins to accelerate clinical trials. (Newswires)

Kering (KER FP) - S&P cuts rating to BBB+ from A-. (Newswires)

Saint Gobain (SGO FP) - Q3 2024 (EUR): Sales 11.57bln (exp. 11.6bln), Volume -1.5% (exp. -1.6%); anticipates a downturn in some of its markets throughout 2024. (Newswires)

Schneider Electric (SU FP) - Q3 (EUR): Revenue 9.31bln (exp. 9.28bln, prev. 8.79bln Y/Y). Affirms guidance. (Newswires)

Vivendi (VIV FP) - Activist holder CIAM is to appeal to France's watchdog AMF to ensure shareholder rights are respected amid Vivendi's plan to split up, according to Reuters. (Reuters)

OTHER FRENCH COMPANIES

Amundi (AMUN FP) - Q3 (EUR): Adj. Net 337mln (prev. 290mln Y/Y), Net Revenue 862mln (prev. 780mln Y/Y). (Newswires)

BioMerieux (BIM FP) - Q3 (EUR): Revenue 969mln (prev. 898mln Y/Y). Affirms guidance. (Newswires)

Eutelsat (ETL FP) - Q1 (EUR): Revenue 300mln (exp. 303mln). Backlog 3.9bln (prev. 3.9bln Y/Y). Affirms guidance. (Newswires)

Nexans (NEX FP) - 9m (EUR): Revenue 5.23bln (prev. 4.92bln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

Hermes (RMS FP) initiated with Buy at Berenberg

Kering (KER FP) initiated with Hold at Berenberg

LVMH (MC FP) initiated with Buy at Berenberg

PAN EUROPE

ASM International (ASM NA) - Q4 2024 (EUR): Revenue 779mln (exp. 767mln), Net income 127.9mln (exp. 172mln), Gross margin 49.4%. Q4 revenue seen between EUR 770-810mln. For WFE spending, a slight increase is expected in 2024 followed by continued growth in 2025.Now expect revenue to be in the range of EUR 3.2-3.6bln for 2025. Oder intake expect level in Q4 to be again solid, albeit lower than in Q3.Raises midpoint of FY25 revenue guidance as seen between EUR 3.2-3.6bln (prev. 3-3.6bln). (Newswires)

Endesa (ELE SM) - 9M (EUR): Net Income 1.4bn (prev. 1.06bln Y/Y). Affirms guidance. (Newswires)

Moncler (MONC IM) - 9m (EUR): Revenue 1.87bln, -3% Y/Y, Moncler brand revenue 1.57bln, Stone Island revenue 292.4mln. Exec says China's Golden Week was 'good and better than last year'. (Newswires)

Tech names - Alphabet Inc (GOOGL) shares rose 5.8% in afterhours trading following a Q3 earnings beat. details below

BROKER MOVES

SMI

Novartis (NOVN SW) - Scemblix was FDA-approved in newly diagnosed CML, offering superior efficacy and a favourable safety and tolerability profile. (Newswires)

UBS (UBSG SW) Q3 (USD) EPS +0.43 (exp. 0.34, prev. -0.24 Y/Y), Net Income 1.43bln (exp. 740mln), underlying profit before tax 2.4bln (exp. 1.7bln), rev. 12.33bln (exp. 11.54bln). CET1 Ratio 14.3% (exp. 14.9%). Confirms goal of USD 13bln in cost saves by FY26. Notes that upcoming US elections are creating uncertainties that are likely to affect investor behaviour. Raises again end-24 cumulative cost savings USD 7.5bln (prev. guided 7bln). (Newswires)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - 9m (CHF): Revenue 7.64bln (prev. 7.1bln Y/Y). Raises FY24 revenue "high single-digit growth" (prev. guided "mid-single-digit". (Newswires)

BROKER MOVES

Richemont (CFR SW) initiated with Hold at Berenberg

Swatch (UHR SW) initiated  with Sell at Berenberg

SCANDINAVIA

Kesko (KESKOB FH) - Q3 (EUR): EPS 0.34 (prev. 0.38 Y/Y), Revenue 3.03bln (prev. 2.95bn Y/Y). Raises FY adj. EBIT 630-680mln (prev. guided "adj. EBIT 620-680mln"). (Newswires)

Telenor (TEL NO) - Q3 (NOK): Net Income 3.27bln (prev. 2.45bln Y/Y), Revenue 20bln (prev. 20.1bln Y/Y). Narrows FY24 Nordic Service Revenue +3-4% (prev. guided "low single-digit"). (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.16% at 5,833, NDX +0.98% at 20,551, DJI -0.36% at 42,233, RUT -0.27% at 2,238.

SECTORS: Communication Services +1.56%, Technology +1.12%, Industrials -0.14%, Consumer Discretionary -0.20%, Health -0.29%, Financials -0.61%, Materials -0.67%, Real Estate -0.94%, Consumer Staples -0.96%, Energy -1.44%, Utilities -2.13%

Alphabet Inc (GOOGL) - Shares rose 5.8% in afterhours trading following a Q3 earnings beat. Q3 adj. EPS 2.12 (exp. 1.84), Q3 revenue USD 88.27bln (exp. 86.31bln). Q3 operating margin 32% (exp. 31.4%). Advertising revenue USD 65.85bln (exp. 65.5bln), Search & Other revenue USD 49.39bln (exp. 49.08bln), YouTube ads revenue USD 8.92bln (exp. 8.89bln), Network revenue USD 7.55bln (exp. 7.41bln), Subscriptions, Platforms, and Devices revenue USD 10.66bln (exp. 9.79bln), Services revenue USD 76.51bln (exp. 75.24bln), Cloud revenue USD 11.35bln (exp. 10.79bln). Q3 CapEx USD 13.06bln (exp. 12.88bln); it invested USD 13bln of CapEx in Q3, with 60% of investment in technical infrastructure going towards servers, and 40% towards data centre and network equipment. Q4 CapEx is seen at similar levels to Q3. Exec said momentum was extraordinary. Notes there will be a headwind to Y/Y growth in subscription platforms and devices revenue in Q4 due to pull forward of Made by Google launches into Q3 of this year. Exec was also positive on Waymo. Gemini app has strong momentum on user growth. (Newswires)

Advanced Micro Devices (AMD) - Shares slid 7.6% in afterhours trading following a soft outlook for Q4. It reported Q3 adj. EPS of 0.92 (exp. 0.92), Q3 revenue USD 6.82bln (exp. 6.71bln); Q3 adj. gross margin 54% (exp. 53.5%), CapEx USD 132mln (exp. 147.7mln), FCF USD 496mln (exp. 1.18bln), R&D expenses USD 1.64bln (exp. 1.61bln). By segment, data centre revenue USD 3.55bln (exp. 3.46bln), and client revenue USD 1.88bln (exp. 1.71bln). Exec notes record revenue led by higher sales of EPYC and Instinct data centre products and robust demand for our Ryzen PC processors. Sees Q4 revenue between USD 7.2-7.8bln (exp. 7.55bln); ahead execs see significant growth opportunities across data centre, client and embedded businesses, driven by the "insatiable demand" for more compute. Said it was on-track to deliver record annual revenue for 2024 based on significant growth in its Data Centre and Client segments. (Newswires)

Broadcom (AVGO) - Co. and OpenAI developing an AI inference chip, according to Reuters citing sources; OpenAI has reserved 2026 TSMC (TSM) manufacturing capacity, according to Reuters citing sources. (Reuters)

Snap Inc (SNAP) - Q3 2024 (USD): EPS 0.08 (exp. 0.05), Revenue 1.37bln (exp. 1.36bln). DAUS 443mln (exp. 441.16mln); Q4 revenue guide 1.51-1.56bln (exp. 1.56bln). (Newswires)

Visa (V) - Q4 adj. EPS 2.71 (exp. 2.58), Q4 revenue USD 9.6bln (exp. 9.49bln). Q3 total processed transactions USD 61.5bln (exp. 61.5bln). Board raises dividend +13% to 0.59/shr. Q3 total operating expenses USD 3.27bln (exp. 3.15bln). Exec said performance was driven by relatively stable growth in payments volume, cross border volume and processed transactions, plus strong momentum across new flows and value added services; payments volume +8% (exp. +7.55%), cross-border volumes +13% (exp. +12.3%). Q3 service revenue USD 4.20bln (exp. 4.13bln), data processing revenue USD 4.61bln (exp. 4.7bln), international transaction revenue USD 3.47bln (exp. 3.48bln). Sees Q1 adj. net revenue growth in the high single digits. (Newswires)

30 Oct 2024 - 07:01- Data- Source: Newsquawk