Newsquawk Daily European Equity Opening News - 9th November 2023

9th November 2023

ASIA

APAC stocks traded mostly firmer following a similar lead from Wall Street with most major APAC markets in the green although Chinese markets saw more of a muted performance. ASX 200 saw its upside supported by Health and Financials, with the latter as NAB rose post-earnings, although the IT and Energy sectors lagged. Nikkei 225 was firmer from the start as the recent JPY weakness lent exporters a hand and the index eventually topped 32,500. Hang Seng and Shanghai Comp were mixed with Mainland China flat/firmer whilst the latest Chinese inflation metrics painted a picture of a fragile economy as the nation fell back into deflation. Hong Kong underperformed as the Property sector dragged the index lower.

Sony (6758 JT) - Sees FY net JPY 880bln (exp. JPY 896.6bln, prev. JPY 860bln). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.51% at 15,229.60, FTSE 100 -0.11% at 7,401.72, CAC 40 +0.72% at 7,036.76, Euro Stoxx 50 +0.60% at 4,178.45, IBEX 35 +0.52% at 9,283.80, FTSE MIB +0.13% at 28,433.33, SMI +0.22% at 10,593.90.

SECTORS: Consumer Disc 0.86%, Industrials 0.81%, Healthcare 0.70%, IT 0.33%, Financials 0.26%, Materials 0.10%, Consumer Stpl 0.00%, Telecoms -0.01%, Energy -0.95%, Utilities -1.02%

FTSE 100

Ex-Dividends - HSBC (HSBA LN), Airtel Africa (AAF LN), BP (BP/ LN), and Sainsbury (SBRY LN) will trade without entitlement to their latest dividend payout. (Newswires)

Housing Names - UK RICS Housing Survey (Oct) -63 (Prev. -69.0); "Pace of house price falls ‘showing signs of steadying as the end of year approaches". (ITV)

OTHER UK COMPANIES

888 Holdings (888 LN) – DraftKings (DKNG) reportedly discussed a bid for the Co. during the summer, via FT citing sources; DraftKings reportedly walked away when the UK gambling regulator placed 888 under review. (FT)

BROKER MOVES

Asos (ASC LN) downgraded to Neutral from Buy at UBS

Unilever (ULVR LN) upgraded to Overweight from Equal Weight at Barclays

DAX

Brenntag (BRN GY) - Q3 (EUR): Net 179mln (prev. 249mln Y/Y), EBITDA 303mln (exp. 316mln), Revenue 4.09bln (exp. 4.30bln). Cuts FY23 Op. EBITA to the lower end of 1.3-1.4bln (prev. guidance 1.3-1.5bln) (Newswires)

Deutsche Telekom (DTE GY) – Q3 (EUR): Revenue 27.6bln (exp. 27.56bln), adj. EBITDA-AL 10.5bln (exp. 10.37bln). FY23 Guidance: adj. EBITDA-AL 41.1bln (prev. guided 41bln), FCF 16.1bln (prev. guided 16bln). (Newswires) Guidance was last updated in August.

Henkel (HEN3 GY) – Q3 (EUR): Sales 5.4bln, +2.8%. FY23 guidance raised: adj. EPS 15-25% (prev. guided 5-20%), adj. EBIT Margin 11.5-12.5% (prev. guided 11.0-12.5%). (Newswires)

Rheinmetall (RHM GY) – Order backlog at EUR 36.5bln as of end-September, +42% Y/Y. (Newswires)

Merck (MRK GY) - Q3 (EUR): EPS 1.70 (prev. 2.12 Y/Y), Adj. EBITDA 1.42bln (prev. 1.70bln Y/Y), Revenue 5.17bln (exp. 5.21bln). (Newswires)

OTHER GERMAN COMPANIES

Aurubis (NDA GY) - To invest around USD 700mln to build the first secondary smelter for complex recycling materials in North America. (Newswires)

Freenet (FNTN GY) - 9M (EUR): Revenue 1.69bln (prev. 1.67bln Y/Y). Raises FY23 outlook. (Newswires)

Leg Immobilien (LEG GY) - Q3 (EUR): AFFO 0.79 (prev. 0.47 Y/Y), Adj. EBITDA 172.1mln (prev. 171.1mln Y/Y), Rental Income 209.2mln (prev. 200.4mln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Q3 2023 (EUR): Adj. EBIT 1.01bln (exp. 1.17bln), Revenue 14.9bln (exp. 15.0bln). Reaffirms guidance from February; expects supply chain to remain challenging as Co. progresses on production ramp-up. Says demand for Co.'s commercial aircraft is very strong with a continuing recovery in the widebody market. To raise the production rate for A2350 to ten aircraft per month in 2026. Continues to target four A330 per month in 2024. The ramp-up of the A220 programme is continuing towards a monthly production rate of 14 aircraft in 2024. Production of the A320 family programme is progressing well toward the previously announced rate of 75 aircraft per month in 2026. A321XLR progressing towards certification, with entry into service expected to occur in Q2. CEO says the operating environment remains complex and expected to remain challenging for a while. In other news, Co. has criticised the German government’s ban on exports of the new Eurofighter to Saudi Arabia. (Newswires/FT)

Legrand (LR FP) - Signs share buyback agreement. (Newswires)

Veolia (VIE FP) – 9-month (EUR): Revenue 33.2bln, +10.7% Y/Y; EBITDA 4.79bln, +7.7%. FY23 guidance confirmed. (Newswires)

OTHER FRENCH COMPANIES

Arkema (AKE FP) - Q3 (EUR): Adj. Net 177mln (prev. 260mln Y/Y), EBITDA 386mln (prev. 495mln Y/Y), Revenue 2.33bln (exp. 2.38bln). (Newswires)

Eiffage (FGR FP) - Q3 (EUR): Revenue 5.46bln (exp. 5.45bln). (Newswires)

Euronext (ENX FP) - Q3 (EUR): 1.38bln (exp. 1.37bln), Revenue 360mln (exp. 363mln). (Newswires)

BROKER MOVES

PAN EUROPE

ArcelorMittal (MT NA) - Q3 (USD): Net 929mln (prev. 1.86bln Y/Y), EBITDA 1.87bln (exp. 1.82bln), Revenue 16.6bln (exp. 17.3bln). Co. remains positive on medium/long-term steel outlook. Expect Q4'23 FCF to remain healthy. (Newswires)

Adyen (ADYEN NA) - Q3 (EUR): Revenue 414mln (exp. 422mln). FY guidance provided. Net Revenue low-to-high 20% (prev. guidance >25%), EBITDA margin above 50% (prev. guidance 65%). (Newswires)

BPER (BPER IM) - Q3 (EUR): Net 382mln (prev. 82mln Y/Y), Revenue 1.37bln (exp. 1.32bln). (Newswires)

KBC Groep (KBC BB) – Q3 (EUR): PBT 1.08bln (exp. 1.05bln), NII 1.38bln (exp. 1.38bln), EPS 2.07 (exp. 1.95), Revenue 2.7bln (exp. 2.69bln). FY23 Guidance: confirms operating expenses and credit cost ratio targets. (Newswires)

Nexi (NEXI IM) - Q3 (EUR): EBITDA 496mln (exp. 494mln), Revenue 871.7mln (exp. 876mln). (Newswires)

Prysmian (PRY IM) - Reviewing complaint by Shoals Technologies. Aware of issues with its harnesses and connectors. (Newswires)

InPost (INPST NA) - Q3 (PLN): Adj. EBITDA 639mln (exp. 648mln), Revenue 2.07bln (prev. 1.69bln Y/Y). (Newswires)

Steel Names - China Commerce Ministry says China is to re-investigate anti-dumping duties case on stainless steel billets and stainless steel hot-rolled sheets and coils imported from the EU, Japan, South Korea, and Indonesia. (Newswires)

Telecom Italia (TIT IM) - Q3 2023 (EUR): Revenue 4.11bln (prev. 3.97bln Y/Y), Net -331mln (prev. 2.25bln Y/Y), EBITDA 1.42bln (prev. 1.31bln Y/Y). Reaffirms guidance given in the 2023-25 industrial plan. (Newswires)

Wienerberger (WIE AV) - Q3 (EUR): Adj. EBITDA 665mln (prev. 820mln Y/Y), Revenue 3.29bln (prev. 3.85bln Y/Y). (Newswires)

BROKER MOVES

AB InBev (ABI BB) upgraded to Buy at HSBC

SMI

Roche (ROG SW) - Roche’s Elecsys NfL test, an important aid for those living with Multiple Sclerosis, is granted FDA Breakthrough Device Designation. (Roche)

Zurich Insurance (ZURN SW) - 9M (EUR): P&C Gross Written Premium USD 34.6bln (prev. 32.1bln Y/Y). (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Coloplast (COLOB DC) – Q4 (DKK): Revenue 6.3bln (exp. 6.38bln), Net Income 1.2bln (exp. 1.35bln), adj. EBIT 17bln (exp. 1.84bln). Proposes an end-year dividend of 16/shr, total to 21/shr. (Newswires)

DNO (DNO DC) – Q3 (EUR): Revenue 141mln (exp. 148mln), Net -55mln (exp. 20mln), FCF -6mln). Spike in Q3 production and revenue, production at 37.15k BOEPD (prev. 95.69k Y/Y); production continues to increase, and thus far Q4 output is averaging double Q/Q. (Newswires)

FLSmidth (FLS DC) – Q3 (DKK): Revenue 5.7bln (exp. 5.87bln), Orders 5.6bln, FCF -151mln. FY23 guidance: non-core revenue 0.9-1.0bln (prev. guided 0.801.0bln), adj. EBITA Margin 10.5-11.0% (prev. guided 10.0-11.0%). (Newswires)

Salmar (SALM NO) - Q3 (NOK): EBIT 2.30bln (exp. 1.70bln), Revenue 7.51bln (exp. 7.36bln). Raises FY23 harvest volume 257kt (prev. guidance 243kt). (Newswires)

BROKER MOVES

Sampo (SAMAS FH) downgraded to Reduce from Accumulate at Inderes

US

CLOSES: SPX +0.10% at 4,382, NDX +0.11% at 15,313, DJIA -0.12% at 34,112, RUT -1.10% at 1,714.

SECTORS: Technology +0.64%, Real Estate +0.58%, Materials +0.26%, Industrials +0.27%, Communication Services +0.12%, Financials +0.06%, Health -0.14%, Consumer Discretionary -0.25%, Consumer Staples -0.42%, Utilities -0.73%, Energy -1.22%.

Arm Holdings (ARM) - Q2 2024 (USD): Adj. EPS 0.36 (exp. 0.26), Revenue 806mln (exp. 744.3mln); Q2 chips reported shipped 7.1bln, -6% Y/Y. GUIDANCE: Q3 adj. EPS view 0.21-0.28 (exp. 0.27). Q3 revenue view 720-800mln (exp. 767.8mln). FY24 adj. EPS view 1.00-1.10 (exp. 0.98). FY24 revenue view 2.96-3.08bln (exp. 2.95bln). (Newswires)

Eli Lilly (LLY) - UK'S MHRA authorizes Eli Lilly's (LLY) diabetes drug Mounjaro (Tirzepatide) for obese adult patients to aid with weight loss and weight management. Also authorised for adult patients with a BMI between 27-30kg/m² (overweight) who also have weight-related health problems. (Newswires)

Disney (DIS) - Q4 2023 (USD): Adj. EPS 0.82 (exp. 0.70), Revenue 21.24bln (exp. 21.35bln); on track to achieve 7.5bln in cost savings (prev. 5.5bln). REVENUE BREAKDOWN: Entertainment 9.52bln (exp. 9.77bln). Sports 3.91bln (exp. 3.89bln). Experiences 8.16bln (exp. 8.2bln). CEO Iger says more than 50% of new US Disney+ sign-ups in Q4 were ad-based - conference calls. Has eliminated over 8,000 roles, more than initially forecast. Forecasts a slight decline in Disney+ subscribers in fiscal Q1 vs Q4 because of price increases, end of promotion. Forecasts CAPEX spending of USD 6bln in 2024, an increase of USD 1bln from 2023. Will recommend the board declare a dividend; will recommend the board declare a dividend by the end of the calendar year. Says the studio will make less, and "focus more on quality". (Newswires)

MGM Resorts International (MGM) - Q3 2023 (USD): Adj. EPS 0.64 (exp. 0.49), Revenue 4bln (exp. 3.87bln); new 2bln share buyback programme. (Newswires)

Tesla (TSLA) - China raises Model 3 Long-range price by CNY 1,500 and raises Model Y Long-range price by CNY 2,500. (Newswires)

09 Nov 2023 - 06:51- Research Sheet- Source: Newsquawk