Newsquawk Daily European Equity Opening News - 7th February 2025

ASIA

APAC stocks traded mixed following the similar performance stateside where price action was choppy amid soft data and as participants looked ahead to the latest key US jobs report. ASX 200 struggled for direction as strength in tech and consumer staples offset the losses in energy and healthcare. Nikkei 225 was pressured by recent currency strength and mild upside in yields but with losses cushioned by stronger-than-expected Household Spending data which showed a surprise M/M growth and the fastest Y/Y pace of increase since August 2022. Hang Seng and Shanghai Comp were on the front foot despite the absence of any major fresh catalysts with participants potentially taking solace from the lack of trade war escalation, while the gains in Hong Kong were led by advances in tech and auto names.

EUROPEAN CLOSES

CLOSES: DAX: +1.52% at 21,913, FTSE 100: +1.21% at 8,727, CAC 40: +1.47% at 8,008, Euro Stoxx 50: +1.60% at 5,356, AEX: +0.62% at 925, IBEX 35: +1.61% at 12,739, FTSE MIB: +1.48% at 37,122, SMI: +0.48% at 12,620, PSI: +0.05% at 6,534

SECTORS: Materials 3.03%, Financials 2.12%, Industrials 1.17%, IT 1.10%, Consumer Stpl 0.95%, Consumer Disc 0.92%, Healthcare 0.81%, Telecoms 0.61%, Energy 0.38%, Utilities -1.34%

FTSE 100

Anglo American (AAL LN) - De Beers CEO Cook said the Botswana government has "expressed an interest to increase its stake". (FT)

HSBC (HSBA LN) - The board is testing whether investors would be receptive to a pay increase for CEO Elhedery, which could raise his theoretical max package by 43%. (Guardian)

OTHER UK COMPANIES

BROKER MOVES

Wizz Air (WIZZ LN) upgraded to Buy from Hold at HSBC

DAX

Porsche Automobil Holding (PAH3 GY) - Updates expected impairments of investments in in Porsche AG and Volkswagen; expects impairment of EUR 2.5-3.5bln in Porsche AG (P911 GY) and towards EUR 20bln in Volkswagen (VOW3 GY).

Porsche (P911 GY) - To propose dividend at previous year's level and FY25 revenue seen between EUR 39-40bln; expects significant additional expenditures in 2025. Expects Profit Margin 10-12% (exp. 14.8%). (Newswires)

OTHER GERMAN COMPANIES

Talanx (TLX GY) - FY (EUR): Net Income 1.97bln (exp. 1.97bln); proposes dividend of EUR 2.7/shr (exp. 2.82/shr). (Newswires)

BROKER MOVES

Siemens Healthineers (SHL GY) downgraded to Hold from Buy at HSBC

CAC

Eutelsat (ETL FP)/SES (SESG FP) - FT write-up on the cost of buying insurance against the Cos defaulting on their bonds cites a credit investor who states "Europe's incumbents are in danger of being left behind", in the context of US advances. (FT)

Sanofi (SAN FP) - Commences up to EUR 2bln of its share buyback agreement. (Newswires)

L'Oreal (OR FP) - FY24 (EUR): Revenue 43.48bln (exp. 43.33bln), EPS 12.66 (exp. 12.21), Operating margin 20%, Net cash flow 6.6bln, +8.6%. Q4 LFL sales +2.5% (exp. +3.83%). 2025 outlook: Confident in its ability to keep outperforming global beauty market. Confident in its ability to achieve another year of growth in sales and profit. Expects growth to accelerate progressively. (Newswires)

Vinci (DG FP) - FY24 (EUR): Revenue 71.62bln (exp. 71.12bln), Order intake 66.3bln, FCF 6.81bln, EBIT 9bln; 2025 outlook sees further increase expected in revenue and earnings, ex. impact of a higher corporate tax in France. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Bper Banca (BPE IM) - FY (EUR): Net Profit 1.40bln (exp. 1.96bln) +4% Y/Y. NII 3.37bln (exp. 3.1bln), +3.9% Y/Y. (Newswires)

Banco Sabadell (SAB SM) - Q4 (EUR): NII 1.28bln (exp. 1.25bln), CET1 Ratio 13% (exp. 14.1%). To propose two share buyback programmes; final dividend of EUR 12.44/shr. TSB plans to increase profit by around mid-teens in current year; expects to end this year with NII of more than EUR 4.9bln. (Newswires)

Defence Names - Russia's Kremlin says Russia and the US have not yet begun to discuss a possible Trump-Putin meeting and there have been no initial contacts about whether such a meeting is needed or where and how it might take place if it is, according to IFAX. (IFAX)

Generali (G IM) - Shareholder Caltagirone, on the co's largest shareholders, is considering challenging the reappointment of CEO Donnet, according to Reuters citing sources. (Reuters)

Telecom Italia (TIT IM) - France's Iliad has given a mandate to Boston Consulting Group to explore a potential consolidation with Telecom Italia, via Reuters citing newspapers. (Reuters)

BROKER MOVES

SMI

ABB (ABBN SW) - Launched a USD 1.5bln share buyback until Jan 28th 2026. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Danske Bank (DANSKE DC) - Q4 (DKK) Net Income 6bln (exp. 5.09bln), NII 9.24bln (exp. 9bln), Total Income 14.6bln (exp. 13.8bln). Guides initial FY25 Net Income 21-23bln. (Newswires)

Equinor (EQNR NO) - Brazil's Prio is in talks to buy Equinor's stake in the Peregrino field. (Newswires)

Konecranes (KCR FH) - Q4 (EUR): Net Profit 1.08bln (exp. 1.01bln), Sales 1.21bln (exp. 1.18bln); says demand environment within industrial customer segments has remained food and on a healthy level. 2025 guidance: expects net sales to remain approx. on the same level in 2025 vs 20254. (Newswires)

Kongsberg Gruppen (KOG NO) - Q4 (NOK): EPS 8.27 (exp. 8.38), Revenue 13.9bln (exp. 13.3bln); proposes a 1-for-5 stock split. (Newswires)

Schibstead (SCHA NO) - Q4 (NOK): Revenue 2.1bn (exp. 2.1bln), EBITDA 337mln (exp. 482.5mln). (Newswires)

Skanska (SKAB SS) - Q4 (SEK): Revenue 50.6bln (exp. 45.47bln), Op. Income 2.75bln (exp. 2.36bln) (Newswires)

Sweco (SWEC SS) - Q4 (SEK): EBITA 901mn (exp. 828.5mln), Revenue 8.1bln (exp. 8.1bln). Proposes dividend of SEK 3.3/shr. (Newswires)

SSAB (SSABB SS) - Q4 (SEK): Revenue 20.9bln (exp. 20.9bln), EBIT 1.95bln (exp. 1.99bln). Proposes a dividend for 2024 of SEK 2.00. 2025 Outlook: EBIT growth higher than organic sales growth and a positive operational cash flow. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.36% at 6,084, NDX +0.54% at 21,774, DJI -0.28% at 44,748, RUT -0.39% at 2,307.

SECTORS: Consumer Staples +0.88%, Financials +0.84%, Technology +0.66%, Communication Services +0.51%, Consumer Discretionary +0.45%, Industrials +0.42%, Materials +0.34%, Real Estate +0.30%, Utilities -0.06%, Health -0.94%, Energy -1.64%.

Amazon.com (AMZN) - Amazon's Q4 results beat expectations, but it issued weak guidance for Q1, and its stock declined 4% in afterhours trading; AWS revenue missed forecasts, and Amazon plans USD 105bln in FY25 capex, which will mainly be used for AWS, and tech upgrades. It reported Q4 adj. EPS of 1.86 (exp. 1.49), Q4 revenue of USD 187.8bln (exp. 187.3bln). Q4 AWS net sales +19% Y/Y to USD 28.79bln (exp. 28.82bln); online stores net sales +7.1% Y/Y to USD 75.56bln (exp. 74.71bln); physical stores net sales +8.3% Y/Y to USD 5.58bln (exp. 5.4bln); subscription services net sales +9.7% Y/Y to USD 11.51bln (exp. 11.58bln); third-party seller services net sales +9% Y/Y to USD 47.49bln (exp. 48.02bln). Sees Q1 net sales between USD 151-155.5bln (exp. 158.64bln), and sees operating income between USD 14.0-18.0bln (prev. 15.3bln Y/Y). Said it was seeing improved productivity across the business, and sees opportunity to reduce costs further in 2025. Exec said it sees an approx. USD 26bln run rate for capex in Q4, and is a good run rate for 2025. Expects AWS growth to be "lumpy" over next few years; signed AWS contracts with several major companies in Q4. Expects deep relationship with Nvidia (NVDA) to continue far into the future. Exec said that delivery speed was accelerating Prime membership rate, and it expects to continue to be partners with UPS (UPS) for many years. (Newswires)

Alphabet (GOOG) - Google is testing a new "Search AI Mode" with employees, allowing for open-ended and exploratory questions to receive AI-generated responses, according to an internal memo cited by 9to5Google.

Apple (AAPL) plans to unveil long-anticipated overhaul of its cheaper iPhone SE model as early as next week, according to Bloomberg. (Bloomberg)

Elf Beauty (ELF) - Shares fell over 20% in extended trading after it lowered guidance based on soft January sales trends. Q3 adj. EPS 0.74 (exp. 0.76), Q3 revenue USD 355.3mln (exp. 330.4mln). Lowers FY25 adj. EPS view to USD 3.27-3.32 (prev. saw 3.47-3.53), and lowers FY25 revenue outlook to USD 1.3-1.31bln (prev. saw 1.315-1.335bln); said the lowered guidance was due to softer than expected trends in January.

Expedia Group (EXPE) - Expedia shares rose over 11% in extended trading after topping profit estimates, despite warning of weaker demand due to inflation and high borrowing costs. It also lowered its FY24 bookings forecast. Board reinstated a dividend, and declared a dividend of USD 0.40/shr. It reported Q4 adj. EPS of 2.39 (exp. 2.04), Q4 revenue USD 3.18bln (exp. 3.07bln); Q4 gross bookings USD 24.42bln (exp. 23.25bln); Q4 adj. EBITDA 643mln (exp. 571mln), and Q4 adj. net income USD 315mln (exp. 257.5mln). Sees Q1 revenue growth between +3-5%, and sees Q1 gross bookings growth between 4-6% (exp. +5.3%), with Q1 EBITDA margins flat to slightly up Y/Y. FY25 is seen being a record year for adj. EBITDA; exec said it sees tremendous opportunities in AI. (Newswires)

Tesla (TSLA) - Tesla raised the prices of its Model X cars in the US by USD 5,000, with the all-wheel drive now priced at USD 84,990 and the Plaid variant at USD 99,990, Reuters reports. It follows a similar price hike for the Model S in December.

Pinterest (PINS) - Pinterest shares rose over 18% in afterhours trading following a Q4 revenue beat, though reported an earnings miss. PINS also sees higher-than-expected Q1 sales and profit, while monthly active users grew +11%, surpassing projections. Q4 adj. EPS 0.56 (exp. 0.65), Q4 revenue USD 1.15bln (exp. 1.14bln); Q4 monthly active users +11% Y/Y at 553mln (exp. 547mln). Sees Q1 revenue between 837-852mln (exp. 835mln), and sees Q1 adj. EBITDA between USD 155-170mln (exp. 141.5mln). (Newswires)

Skechers USA (SKX) - Shares tumbled 12% in extended trading after it reported in line sales, but EPS missed expectations, while it guided FY below expectations. Q4 EPS 0.65 (exp. 0.75), Q4 revenue USD 2.21bln (exp. 2.22bln). Sees Q1 EPS between 1.10-1.15 (exp. 1.56). Sees FY EPS between 4.30-4.50 (exp. 4.85), and sees FY revenue between USD 9.70-9.80bln (exp. 9.87bln). (Newswires)

Take-Two Interactive (TTWO) - Take-Two forecast Q4 bookings below estimates due to weak mobile spending but reiterated GTA VI’s fall 2025 release, sending shares higher in extended trading. It reported Q3 EPS of -0.71 (exp. 0.57), Q3 revenue of USD 1.36bln (exp. 1.39bln); Q3 net bookings USD 1.37bln (exp. 1.39bln). Sees Q4 net bookings between USD 1.48-1.58bln (exp. 1.54bln), and sees Q4 adj. EPS 0.91-1.16 (exp. 1.22). Still sees FY net bookings between 5.55-5.65bln (exp. 5.63bln). (Newswires)

Xiaomi (XIACY) - Xiaomi is working to increase its EV production capacity, with CEO noting plans to ramp up manufacturing at their Beijing plant, CNEVpost reports. The factory's first phase can produce 150,000 units annually, while the second phase, set to finish in 2025, is also expected to boost output.

07 Feb 2025 - 06:59- Research Sheet- Source: Newsquawk