Newsquawk Daily European Equity Opening News - 8th May 2024

8th May 2024

ASIA

APAC stocks were mostly lower after the choppy US performance and in the absence of fresh catalysts. ASX 200 lacked firm direction with gains in industrials and energy offset by weakness in miners and financials. Nikkei 225 underperformed as participants digested earnings including disappointing guidance by Nintendo. Hang Seng & Shanghai Comp were ultimately lower amid trade and tech-related frictions after the US revoked export licences that allowed Intel (INTC) and Qualcomm (QCOM) to supply Huawei with semiconductors.

Toyota (7203 JT) - FY23 (JPY): Net profit 4.94tln (+101.7% Y/Y). Operating profit 5.35tln (+96.4%). Pretax profit 6.97tln (+89.8%). Sees FY operating income 4.30tln (exp. 5.34tln); Announces a JPY 1tln share buyback. (Newswires) Shares initially fell 3.1% before rising 2%

Tech Names - China March domestic mobile phone shipments fell 5.5% Y/Y to 21.38mln, according to the CAICT. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +1.45% at 18,438.53, FTSE 100: +1.22% at 8,313.67, CAC 40: +0.99% at 8,075.68, Euro Stoxx 50: +1.14% at 5,013.65, IBEX 35: +1.50% at 11,080.90,FTSE MIB: +0.75% at 34,242.49, SMI: +1.62% at 11,511.10.

SECTORS: IT 1.92%, Financials 1.79%, Utilities 1.70%, Healthcare 1.59%, Materials 1.21%, Industrials 0.93%, Consumer Stpl 0.80%, Consumer Disc 0.45%, Telecoms 0.13%, Energy 0.06%

FTSE 100

AstraZeneca (AZN LN) - Co. is withdrawing COVID-19 vaccine months after admitting a rare side effect, according to The Telegraph. Co. said the vaccine was being removed from markets for commercial reasons. (Telegraph)

Airlines - The UK Home Office announced on Tuesday night that it was aware of a technical issue affecting E-gates across the country, while it was working closely with the Border Force and affected airports to resolve the issue. However, Ferrovial's (FER SM) Heathrow Airport later stated that all Border Force systems were now running as usual and it did not expect any issues this morning when the operation starts up.

OTHER UK COMPANIES

DS Smith (SMDS LN) - International Paper (IP) offered no comment on rumours or speculation contained in recent media reports after Reuters sources yesterday reported that Brazil's Suzano (SUZB3 BR) approached International Paper (IP) with an acquisition offer of USD 42/shr or USD 15bln. (Newswires)

BROKER MOVES

DAX

BMW (BMW GY) - Q1 (EUR): Revenue 36.61bln (exp. 36.82bln). EBIT 4.05bln (exp. 3.96bln). Automotive Revenue 30.94bln (exp. 31.01bln). Automotive EBIT Margin 8.8% (exp. 9.05%). EBT Margin 11.4% (exp. 10.6%). BEV sales +28% Y/Y. 2024 outlook confirmed. (BMW IR)

Continental (CON GY) – Q1 (EUR): Net Income -53mln (exp. +205mln); Automative margin -4.1%, tires +11.7%, Conitech +5.4%. “Despite the weak first quarter, we see sufficient potential for improvement across all group sectors, which is why we are confirming our outlook for fiscal 2024”, said the CFO. (Newswires)

Fresenius SE (FRE GY) – Q1 (EUR): Revenue 5.7bln,+ 4% Y/Y (exp. 5.7bln), EBITDA 924mln, +13% Y/Y (exp. 769mln). Raises outlook for FY. Now expects revenue growth between 4-7% (prev. guided 3-6%), EBIT margin now exp. 15-16% (prev. guided around 15%).

Munich Re (MUV2 GY) – Q1 (EUR): Net result 2.14bln (prev. 1.27bln Y/Y). CFO said still expects profit of EUR 5bln in 2024. (Newswires)

Siemens Energy (ENR GY) – Q2 (EUR): FCF 483mln (prev. -294mln Y/Y), Profit before special items 170mln (prev. 41mln Y/Y), Net Profit 108mln (exp. -11mln). Outlook: Expects sales growth 10-12% (exp. +6%), Profit margin of -1% to +1% (prev. guided -2% to +1%). Now expects FCF pretax of up to 1bln (prev. guided negative at up to 1bln). CEO of Siemens Gamesa Jochen Eickholt to step down on July 31 and Vinod Philip to take over as Siemens Gamesa CEO. (Newswires)

OTHER GERMAN COMPANIES

Aurubis (NDA GY) – Q2 (EUR): Revenue 4.35bln (exp. 4.44bln). Says Co. achieved strong results in H1 23/24; net cash flow 5mln (prev. 19mln Y/Y), Op. pretax profit 242mln. FY outlook pretax profit 380-480mln. (Newswires)

Bechtle (BC8 GY) – Q1 (EUR): Revenue 1.50bln (exp. 1.61bln), Net Income 58.5mln (exp. 60mln), Pretax Profit 81.9bln (exp. 83mln). Affirms FY24 guidance. Anticipates positive business compared to market in 2024. Sees business volume and revenue increasing, whilst EBIT margin to remain at same level as prior year. (Newswires)

Carl Zeiss Meditec (AFX GY) – 6M (EUR): Revenue 947.2mln (prev. 974.2mln Y/Y), EBIT -108.2mln (prev. 143.9mln Y/Y). FY forecast revenue 2.1-2.15bln. (Newswires)

DWS (DWS GY) – Deutsche Bank’s (DBK GY) asset management arm DWS failed to disclose an accounting approach used to inflate the amount of money it had won from clients – which reportedly fed into executives’ bonus calculations, according to the FT. Sources suggested the size of DWS’ advisory assets had grown disproportionately over the recent years. (FT)

Evonik (EVK GY) – Q1 (EUR): Adj. EBITDA 522mln (exp. 472mln), Net Income 160mln (exp. 126mln), Confirms FY outlook. (Newswires)

Knorr Bremse (KBX GY) – Q1 (EUR): Revenue 1.97bln, +1.35% Y/Y, Op. EBIT 238mln, +24% Y/Y. Confirms FY guidance. (Newswires)

Lanxess (LSX GY) – Q1 (EUR): EBITDA 101mln (exp. 99mln), Sales 1.6bln (exp. 1.58bln). (Newswires)

Metro AG (B4B GY) - Q2 24 (EUR): Net -139mln (prev. -107mln Y/Y), Adj. EBITDA 73mln (prev. 111mln). Reaffirms FY guidance. (Newswires)

BROKER MOVES

CAC

French Stocks - French Finance Minister Le Maire said they are considering the possibility of a tax on share buybacks. (Newswires)

Ubisoft (UBI FP) - Electronic Arts Inc (EA) shares fell 4% after hours after EPS and Q1 guidance missed forecasts.

OTHER FRENCH COMPANIES

Alstom (ALO FP) – FY (EUR): Sales 17.62bln (exp. 17.36bln), Net Income 44mln (exp. 316mln). No dividend proposed with re. to FY23/24. Outlook 24/25: EBIT margin around 6.5%, FCF within range 300-500mln. Plans a EUR 1bln capital increase in deleveraging plan (Newswires)

BROKER MOVES

PAN EUROPE

AB InBev (ABI BB) - Q1 (EUR): Organic Adj. +5.4% (exp. +2.75%). Organic volume growth +0.6% (exp. +1.26%). Organic revenue +2.6% (exp. +2.73%). Reaffirms FY Adj. EBITDA guidance. (Newswires)

Auto Names - Toyota (7203 JT) shares rose 2% in Tokyo trade after initially falling over 3% on softer-than-expected operating income guidance.

Banco BPM (BAMI IM) – Q1 (EUR): Net Profit 370.2mln (prev. 265.3mln Y/Y), NII 864.4mln (prev. 743mln Y/Y). (Newswires)

Leonardo (LDO IM) - Q1 24 (EUR): EBITA 182mln (exp. 164mln), Adj. Net 93mln (exp. 64mln), Revenue 3.66bln (exp. 3.33bln; prev. 3.03bln). Reaffirms FY24 Revenue view 16.8bln (exp. 16.82bln), Reaffirms FY24 EBITA view 1.44bln (exp. 1.40bln).CEO said the Co. is waiting to see the impact of Boeing's (BA) troubles on production and will take action to mitigate fallouts; says numbers are very good so far. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Mowi (MOWI NO) – Q1 (EUR): 1.33bln (exp. 1.26bln). (Newswires)

Oil Names - Offshore Norway Industry Group agreed on a wage deal with all three labour unions, averting strikes. (Newswires)

Skanska (SKABB SS) – Builds data center in US for USD 238mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.13% at 5,187, NDX -0.01% at 18,091, DJIA +0.08% at 38,884, RUT +0.19% at 2,064.

SECTORS: Materials +1.17%, Utilities +1.12%, Consumer Staples +1.09%, Real Estate +1.07%, Health +0.81%, Communication Services +0.57%, Financials +0.32%, Industrials +0.24%, Energy -0.14%, Technology -0.53%, Consumer Discretionary -0.56%.

Boeing (BA) - FBN's Gasparino posts on X "Boeing (BA) looking for a strategic investment from WarrenBuffett to begin its corporate healing process". (X)

Chip Names - The Biden administration has revoked export licences that allow Intel (INTC) and Qualcomm (QCOM) to supply Huawei with semiconductors, as Washington increases the pressure on the Chinese telecoms equipment company, according to FT sources. The commerce department’s move affects the supply of chips for Huawei’s laptop computers and mobile phones. (FT)

Electronic Arts Inc (EA) - Q4 2024 (USD): Adj. EPS 1.37 (exp. 1.52), Revenue 1.78bln (exp. 1.77bln). Guides Q1 Adj. EPS USD 0.30-0.50 (exp. 0.80). Guides Q1 net bookings USD 1.15bln-1.25bln (exp. 1.45bln). Guides FY25 Adj. EPS USD 7.05-7.85 (exp. 7.52). Guides FY25 net bookings USD 7.3bln-7.7bln (exp. 7.77bln). Guides FY25 operating cash flow USD 2.05bln-2.25bln (exp. 2.16bln). (BusinessWire) Shares fell 4% after hours.

Ford (F) - Ford reportedly prepared to restrict UK sales of petrol cars to hit EV targets, according to FT. The move to restrict the sale of petrol models in the UK are likely to push prices up for consumers, warned Europe. (FT)

Lyft Inc (LYFT) - Q1 2024 (USD): Basic EPS 0.15 (exp. 0.03), Revenue 1.28bln (exp. 1.16bln). EBITDA 59.4mln (exp. 55mln). Gross bookings 3.7bln (exp. 3.6bln). Active riders 21.9mln (exp. 21.8mln). GUIDANCE: Q2 gross bookings about 4-4.1bln (exp. 3.96bln). Q2 adj, EBITDA 95-100mln (exp. 81.1mln). COMMENTARY: Continue to see demand for its platform increase. (Lyft IR) Shares rose 6.3% after hours

Pfizer (PFE) - Confirmed it paused its study of gene therapy after a boy died. (Newswires)

Tesla (TSLA) - Proposed to launch Robotaxis in China, while China may support Tesla's domestic testing and demonstration of Robotaxis but has not approved the full implementation of FSD in China, according to China Daily. China Daily, citing a source close to Baidu (BIDU; 9888 HK), says he hasn't seen "any new deal related to FSD functions" between Tesla (TSLA) and Baidu, says it has no direct relations with its FSD functions. (China Daily) Tesla is to send senior executive Tom Zhu to China, according to WSJ. (WSJ)

08 May 2024 - 06:54- Research Sheet- Source: Newsquawk