Newsquawk Daily European Equity Opening News - 5th May 2023

5th May 2023

ASIA

APAC stocks traded mixed after the weak lead from the US where risk sentiment was subdued by banking-related headwinds and amid holiday-thinned conditions in Asia due to closures in Japan and South Korea. ASX 200 was choppy amid indecision in the top-weighted financial industry after ANZ Bank’s earnings which showed H1 cash profit rose to a record although the Co. warned of increased difficulties in H2, while the RBA’s quarterly Statement on Monetary Policy stuck to the hawkish script. Hang Seng and Shanghai Comp. diverged with the Hong Kong benchmark led higher by strength in tech and property stocks, while the mainland is pressured after Chinese Caixin Services and Composite PMI data which showed the pace of China’s services activity slowed by more than expected but remained at a firm expansion.

Alibaba (9988 HK) affiliate Ant Group is weighing introducing a investor in HK bank unit, according to Bloomberg. (Newswires)

ANZ Bank (ANZ AT) - H1 (AUD) cash profit rose 23% Y/Y to 3.82bln, statutory profit attributable 3.55bln (prev. AUD 3.53bln Y/Y), NII 8.50bln (prev. 7.10bln Y/Y), proposes interim dividend of 0.81/shr. (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.54% at 4,287, FTSE 100 -1.10% at 7,702, DAX 40 -0.51% at 15,734, CAC 40 -0.85% at 7,340, FTSE MIB -0.61% at 26,670, IBEX 35 -0.36% at 9,043, SMI -0.48% at 11,451.

SECTORS: Energy 0.28%, Healthcare -0.05%, Consumer Stpl -0.09%, IT -0.51%, Consumer Disc -0.72%, Materials -0.78%, Telecoms -0.86%, Industrials -1.00%, Utilities -1.00%, Financials -1.28%

FTSE 100

IAG (IAG LN) - Q1 2023 (EUR): Revenue 5.89bln (exp. 5.84bln). Adj. operating profit 9mln (exp. -183mln). Co. adjusts its FY23 Adj. Operating profit to the top end of its prior range. (Newswires)

OTHER UK COMPANIES

Capita (CPI LN) - In communication with trustees, Co. says it has identified that some pensions data is "likely to have been exfiltrated" by the cyber attack disclosed in March, via FT citing sources. (FT)

BROKER MOVES

DAX

Adidas (ADS GY) - Q1 2023 (EUR): Revenue 5.27bln (exp. 5.06bln). Operating profit 60mln (exp. 3.4mln). EPS -0.18 (exp. -0.10). Gross margin down 5.1pp to 44.8% due to higher supply chain costs, increased discounting, inventory allowances, adverse Yeezy impact and negative FX movements. "Total revenues in Greater China were still down 9%, but we achieved double-digit sell-out growth. This was better than expected and makes us optimistic for the rest of the year. The 20% sales decline in North America – down 5% excluding Yeezy – was in line with our conservative sell-in strategy due to the high levels of inventory and discounts in the market." (Newswires/Adidas) Co. has ~2% weighting in the DAX40

OTHER GERMAN COMPANIES

Software AG (SOW GY) - Software AG (SOW GY) says Silver Lake boosts its offer to EUR 32/shr, according to Bloomberg. Co. said media speculation about Bain Capital's offer at EUR 34/shr was a non-binding offer subject to specific conditions that were not achievable. (Newswires)

BROKER MOVES

Grenke (GLJ GY) downgraded to Hold from Buy at Pareto Securities

CAC

Thales (HO FP) - Q1 (EUR): Sales 4.03bln (exp. 3.9bln), Order Intake 3.42bln, +13%. All financial targets confirmed. (Newswires)

OTHER FRENCH COMPANIES

Air France-KLM (AF FP) - Q1 (EUR): Revenue 6.3bln (exp. 6.3bln), EBITDA 286mln (exp. 221mln), Net Income -344mln (exp. -340mln), Operating Result -306mln (exp. -282mln), adj. FCF 683mln. Affirms prior capacity of '90-95%' for Q2 2023. Cuts FY23 capacity to 95% (prev. 95-100%). Separately, Co. is said to be in talks with Apollo Global for a EUR 500mln capital injection for one of its engineering and maintenance units, according to Reuters sources. (Newswires)

Arkema (AKE FP) - Q1 (EUR): Sales 2.52bln (exp. 2.7bln), adj. Net Income 162mln (exp. 162mln), EBITDA 367mln (exp. 443mln). Will benefit from main expansion projects which should contribute to EBITDA, mainly in H2. Confirms FY23 guidance. (Newswires)

BROKER MOVES

PAN EUROPE

bpost (BPOST BB) - Q1 2023 (EUR): Revenue 1.05bln (exp. 1.05bln). Net 48.3mln (exp. 48.6mln). EBIT 77.6mln (prev. 79mln Y/Y). Co. withdraws guidance. (Newswires)

CaixaBank (CABK SM) - Q1 2023 (EUR): Core Income 3.45bln (prev. 2.65bln Y/Y). Net 855mln (prev. 706mln). NII 2.16bln (prev. 1.46bln). CET1 ratio 12.6% (prev. 12.8%). Co. cuts FY23 NII forecast to EUR 8.75bln (rev. EUR 9.0bln) and cuts recurring costs to EUR 5.8bln (prev. 6.3-6.4bln). (Newswires)

Just Eat Takeaway (JET LN)/Delivery Hero (DHER GY)/ Deliveroo (ROO LN) - DoorDash (DASH) reported Q1 2023 (USD): Adj. Gross margin 49.1% (exp. 46.7%), EPS -0.41 (exp. -0.48), Revenue 2.04bln (exp. 1.92bln). CO. sees FY gross order value USD 63-63.5bln (exp. 61.37bln). (Newswires) DoorDash shares rose 4.7% after-market.

Moncler (MONC IM) - Q1 2023 (EUR): Revenue 726.4mln (exp. 688.8mln), Stone Island revenue 121.6mln (exp. 124.3mln), Moncler brand revenue 604.8mln (exp. 564.5mln). (Newswires)

Raiffeisen Bank International (RBI AV) Q1 2023 (EUR): Net 700mln (334mln), NII 1.39bln (exp. 1.22bln). FY23 NII view 3.6-3.7bln (exp. 4.21bln; prev. 5.05bln in FY22). (Newswires)

Tech Names - Apple (AAPL) shares rose 2.5% following its earnings. Apple said its supply chain had no material shortages at all during Q2. CEO Cook noted Apple is pleased with the re-acceleration in China with the reopening CFO said seeing the impact of the macroeconomic environment particularly in advertising and mobile gaming. CEO Cook said they view AI as huge and will continue weaving it in products on a very thoughtful basis. (businesswire/Newswires) CFO said the macro environment is tougher than it was, and that's affected PC and tablet sectors. (Newswires)

Telekom Austria (TKA AV) - Co. has named COO Plater as its new CEO. (Newswires)

Telecom Italia (TIT IM) - Telecom Italia said KKR and Macquarie Group offers for fixed-network assets aren’t yet adequate. (Newswires)

Telecom Names - Virgin Media O2 released findings which showed that millions of UK consumers are overpaying for their mobile phone contracts. (FT)

BROKER MOVES

Proximus (PROX BB) upgraded to Equal Weight from Underweight at Morgan Stanley

SMI

Clariant (CLN SW) - Q1 (CHF): Revenue 1.2bln (exp. 1.2bln), adj. EBITDA 184mln (exp. 210mln). Cash generation continues positive momentum Q1. FY23 guidance unchanged. (Newswires)

Credit Suisse (CSGN SW) - Announced results of the buyback offer of Ecuadorean debt, while it will pay 53.25 cent per USD 1 of 2030 notes, 38.5 cents for 2035 notes, 35.5 cents for 2040 notes. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker (AKER NO) - Q1 (NOK): NAV 59.7bln (prev. 66.9bln), before-tax result -914mln (prev. 697mln). (Newswires)

Clas Ohlson (CLASB SS) - April (SEK): Sales 612mln (prev. 607mln), Online Sales 79mln (prev. 74mln). Macro challenges in the form of inflation and unfavourable FX movements remain. (Newswires)

Novo Nordisk (NOVOB DC) - CFO said it plans a more gradual launch of Wegovy outside of the US, where the supply crunch is causing a slower international rollout. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.72% at 4061, NDX -0.37% at 12,982, DJIA -0.86% at 33,128, RUT -1.18% at 1,719

SECTORS: Financials -1.29%, Communication -1.26%, Energy -1.11%, Industrials -1.09%, Health Care -0.81%, Consumer Discretionary -0.71%, Materials -0.64%, Technology -0.49%, Consuemr Staples -0.29%, Utilities +0.73%, Real Estate +0.92%.

Apple (AAPL) - Q2 2023 (USD): EPS 1.52 (exp. 1.43), Revenue 94.84bln (exp. 92.96bln), Co. authorises an additional USD 90bln for share repurchases. Products revenue USD 73.93bln (exp. 71.91bln). iPhone revenue USD 51.33bln (exp. 48.97bln). IPad revenue USD 6.67bln (exp. 6.69bln). Mac revenue USD 7.17bln (exp. 7.74bln). Wearables, home and accessories USD 8.76bln (exp. 8.51bln). Service revenue USD 20.91bln (exp. 21.11bln). CEO Cook said the Co. set record in Q2 sales in all geographies and had strong sales in Q2 to new iPhone customers in Brazil, India and Mexico. Supply chain had no material shortages at all during Q2. Apple platform had 975mln subscribers in Q2 which is up 150mln subscribers Y/Y. CFO said Q3 revenue growth is expected to be similar to Q2 growth and expects gross margin of between 44%-44.5%, Co. notes iPhone base is well over 1bln active devices. CEO Cook said they view AI as huge and will continue weaving it in products on a very thoughtful basis, while he also said that they recaptured some amount of sales in Q2 regarding iPhone Pro models. CEO Cook noted Apple is pleased with the re-acceleration in China with the reopening CFO said seeing the impact of the macroeconomic environment particularly in advertising and mobile gaming. (businesswire/Newswires) Shares rose 2.5% after-market.

Booking Holdings Inc (BKNG) - Q1 2023 (USD): Adj. EPS 11.60 (exp. 10.61), Revenue 3.80bln (exp. 3.77bln). Gross bookings USD 39.43bln (exp. 35.89bln) Shares fell 3.5% after-market.

Microsoft (MSFT) - Co. is helping finance AMD's (AMD) expansion into AI processors; Microsoft working with AMD on bolstering options for AI chips, according to Bloomberg. (Newswires)

US Banks - FDIC is poised to release plan next week to refill insurance fund; Big banks will reportedly pay more to refill insurance fund and smaller banks with less than USD 10bln in assets avoid a fee, according to Bloomberg. (Newswires)

05 May 2023 - 06:51- Research Sheet- Source: Newsquawk