US EARLY MORNING: Equity futures are slightly better than flat and Treasuries are rallying in wake of FOMC; more labour market data due today ahead of Apple earnings after the bell; traders will also be watching ECB meeting in Europe

OVERNIGHT: Asian stocks had a mixed session after the Fed’s 25bps rate hike (some of Powell’s commentary, particularly on banks, spooked some investors). Futures were volatile due to concerns about US regional banks. NAB's earnings also contributed to ASX 200's weakness, while mining names and improved trade data cushioned losses. Chinese markets shrugged off the contraction in Caixin Manufacturing PMI and HKMA's 25bps rate hike. In Europe, it was a slightly cautious start amid a busy earnings slate, and in wake of the FOMC’s policy announcement, and ahead of today’s ECB rate decision (+25bps more likely than +50bps), while the Norges Bank is also expected to lift rates by +25bps. Regional PMI data is being released, and the outcomes have been mixed: final services and composite PMI data for France and the Eurozone was revised lower, though Germany was nudged up; there was little market reaction to the data releases. 

US PRE-MARKETS: US equity futures are slightly better than flat, while Treasuries are rallying (yields lower by 2-8bps, with the short-end benefiting the most) following the Fed rate decision (which we recap on below), and amid further jitters on the regional banking front, with PACW's shares plunging over 50% in afterhours trade; the bank has considered strategic options, including a sale, which in this environment is difficult to take as a positive, analysts said. There is a lot of jobs data today (weekly claims, Q1 unit labour costs, Challenger layoffs) that sets the stage for tomorrow's NFP data, where expectations have been raised slightly after a blowout ADP report on Wednesday (cue the traditional discussions about how the ADP's data is not a reliable indicator for the official BLS jobs report, but that hasn't stopped the likes of Goldman Sachs from revising up its NFP projections based on the ADP beat). The ECB in Europe is also set to make a policy announcement before the US open, which could result in some macro ripples; we have a preview link for the ECB meeting in our day ahead section, below. Meanwhile, on the earnings front, Tech sector giant (or it is a Consumer Staples giant, in practice? Perhaps a Consumer Cyclical? Maybe even a Communications name?) Apple (AAPL) will report its Q2 numbers after the bell today; we have a brief preview below. 

PREVIEW - APPLE EARNINGS (21:30BST/16:30EDT): Apple Inc (AAPL) is expected to report Q2 EPS of 1.43 on revenues of USD 92.96bln. According to Refintiv data, iPhone sales are seen -3.3% Y/Y at USD 48.9bln, iPad sales seen -12.5% Y/Y at USD 6.69bln, Mac revenues are seen -25.1% Y/Y at 7.82bln, while Services revenue is expected ro rise +5.5% Y/Y to 20.91bln. In terms of other areas to watch Deepwater Asset Management said there is a growing interest in the company's active installed base, which increased +8% Y/Y in the December quarter, indicating that the Apple's product flywheel is functioning effectively. Deepwater says that this expanding customer base could provide a basis for Apple to shift its investment case toward being a consumer staples company that offers higher potential returns, stating that "Apple's growing active installed base is the substance of why it's becoming a consumer staples company." Moreover, Apple is making significant strides in AI, which investors may not fully appreciate. "Expect an inline March quarter and slight guide down for June revenue," Deepwater says, "key earnings commentary includes AI impact, the India opportunity, China diversification, and financial services roadmap." 

RECAP - FED RATE DECISION: The FOMC raised rates by 25bps to 5.00-5.25%, as expected, while also hinting at a rate pause by dropping the language about anticipating more policy firming. The Fed will determine further policy firming based on tightening to date, policy lags, and other developments, Fed Chair Powell said, adding that the central bank remains committed to bringing inflation back down to target, and will take a data-dependent approach to determine further rate hikes, and there will be an ongoing assessment of whether the Fed has reached a sufficiently restrictive level. The Senior Loan Officer Opinion Survey was consistent with banks tightening lending standards and the pace of lending slowing, while the Committee has a view that inflation is not going to come down so quickly. Powell also said that they are much closer to the end than the beginning, and feels like they are close or maybe even there. Our full summary can be accessed in our US wrap here.

DAY AHEAD:

• Our interactive Day Ahead calendar is here; a pdf version can be accessed here.


• 
  EUROPEAN DATA/SPEAKERS: Final Eurozone services and composite PMI data is out in the more, before the ECB rate decision at 13:15BST/08:15EDT. The central bank is expected to lift rates by 25bps; some still look for a +50bps increase. Market pricing concurs with the consensus, with 25bps priced with around 78% certainty, vs around 22% certainty for the larger 50bps move. Given the political nature of the GC, it is expected that 25bps will be the compromise between the hawks and doves who will also be jostling over how high the terminal rate will reach in the coming months, with markets currently priced for the Deposit Rate to reach 3.65% in July, which would imply 25bps hikes in May and June with a 60% chance of a further 25bps increase in July. Our full preview is here. ECB’s Lagarde will give her post meeting press conference at 13:45BST/08:45BST. Ahead of the ECB, the Norges Bank is expected to lift its Key Policy Rate to 3.25% from 3.00%; our preview can be accessed here. Sticking with central banks, the Bank of England’s Decision Maker Panel for April is also due in the morning. Elsewhere, German Economy Minister Habeck is due to give remarks on inflation. On the supply front, France will sell between EUR 10-11.5bln of 2033, 2039, 2054, and 2072 debt. Spain will sell EUR 5-6bln of 2026, 2028, 2040 debt, as well as between EUR 250-750mln of 2027 linkers.


• 
  US DATA/SPEAKERS: There is more labour market data, by way of the weekly initial jobless claims and continuing claims data; neither coincide with the BLS survey window for the jobs data due Friday, but do offer a more timely gauge on the health of the labour market health. There is also the Challenger job cuts data out before the market open, while traders will also note the prelim release of Q1 Unit Labour Costs. From Canada, trade data and the Ivey PMI, while BoC chief Macklem is on the slate to deliver remarks. Today’s corporate earnings slate includes MRNA, REGN, COP, MNST, AAPL, BKNG; our daily US earnings estimates note can be accessed here.


• 
  ENERGY: The EIA NatGas storage change for the week ending  April 24th is expected to show a build of 52BCF.

EQUITY NEWS:

FINANCIALS:

• 
  PacWest Bancorp (PACW) - PacWest has weighed strategic, options including a sale, Bloomberg reports. Share plunged 50% in afterhours trading on the news. The FT said that no formal sale process had been initiated yet, and the bank was also considering raising fresh capital just six weeks after it shored up its access to cash by raising USD 1.4bln via a lending facility from Apollo-backed investment firm Atlas SP Partners. The bank itself confirmed the reporting, and said it has explored strategic asset sales. The bank has seen deposit outflows of more than USD 5bln in Q1, though outflows had stemmed, and it has seen more than USD 1bln of inflows since March, taking total desposits to almost USD 29bln. Said it would continue to evaluate all options to maximise shareholder value.


• 
  Western Alliance (WAL) - The regional bank said it had not experienced unusual deposit outflows following sale of First Republic and other recent industry news. Said deposits as of Tuesday rose to USD 48.8bln vs USD 48.2bln on Monday, and QTD deposits are up by USD 1.2bln.


• 
  Bank of America Corporation (BAC) - Moody's upgrades Bank of America senior debt from A2 to A1; Outlook Stable. The rating action concludes the review for upgrade of BAC's ratings that was initiated in January 2023. Moody's upgraded BAC due to its stronger capital, better earnings profile, restrained risk appetite, and expected strong liquidity and funding profile despite challenging conditions in the US banking system. BAC's conservative risk appetite and strict limits on concentrations make it more resilient to economic downturns, as evidenced by its performance under the Federal Reserve's stress tests.


• 
  JPMorgan (JPM) - Expects to be subjected to special assessment by the FDIC due to estimated losses incurred by deposit insurance fund from recent bank failures. JPM said that 80% of losses on commercial loans of First Republic will be covered by FDIC for five years, and 80% of losses on First Republic's single family residential mortgage loans will be covered by the FDIC for 7 years.


• 
  MetLife Inc (MET) - Profit disappointed, with premiums and fees falling. Q1 adj. EPS 1.52 (exp. 1.83), Q1 revenue USD 15.39bln (exp. 16.87bln). Announces USD 3bln share buyback.


• 
  Allstate Corp (ALL) - Q1 EPS -1.30 (exp. -1.42), Q1 revenue USD 13.8bln (exp. 11.75bln).


• 
  Globe Life Inc (GL) - Q1 EPS 2.28 (exp. 2.47), Q1 revenue 1.32bln (exp. 1.36bln).

TECH:

• 
  Qualcomm Inc (QCOM) - Fell almost 7% in afterhours as its guidance missed expectations amid weakness in smartphone demand. Q2 adj. EPS 2.15 (exp. 2.15), Q2 revenue USD 9.28bln (exp. 9.1bln). Sees Q3 adj. EPS between 1.70-1.90 (exp. 2.20), and sees Q3 revenue between USD 8.1bln-8.9bln (exp. 9.25bln). Boosts annual dividend +7% to USD 3.20/shr. Exec said that the evolving macroeconomic backdrop has resulted in further demand deterioration, particularly in handsets, at a magnitude greater than previously forecasted. QCOM said it was operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters. It adds that while expectations are for a rebound in China demand in H2, it has not seen evidence of meaningful recovery, and is not incorporating improvements into its assumptions. Q3 QCT revenues are expected between USD 6.9-7.5bln, QTL revenues seen between 1.15-1.35bln in Q3. It estimates a larger-than-normal sequential decline in QCT revenues, primarily due to the timing of purchases by a modem-only handset customer. CEO said inventory drawdown dynamics will remain a significant factor for at least the next couple of quarters, and they have not seen evidence of a meaningful recovery in China market yet. QCOM will boost chip performance in the coming months to rub larger AI models on smartphones. CFO says expect 3G, 4G and 5G handset unit sales in 2023 to fall at least high-single-digit percentage Y/Y, lower than prior expectation.


• 
  Microsoft (MSFT) - Announced the next wave of AI innovation with Microsoft Bing and Edge; opening up Bing to more people by moving people from limited review and removing the waitlist for a trial.


• 
  Infineon (IFNNY) - Lifts FY guidance after better than expected sales. Q1 revenue EUR 4.1bln (exp. 4.0bln). Sees Q3 segment result margin around 26.0% (exp. 25.1%). Sees Q3 revenue around EUR 4bln (exp. 4bln). Raises FY revenue outlook to around EUR 16.2bln (prev. 15.5bln), and raises adj. gross margin guidance to around 47% (prev. around 45%).


• 
  ANSYS Inc (ANSS) - Q1 2023 (USD): Adj. EPS 1.85 (exp. 1.61), Revenue 509.4mln (exp. 492.2mln). Sees FY adj. EPS between 8.36-8.91 (prev. 8.34-8.86, exp. 8.64), and sees FY revenue between USD 2.24-2.32bln (exp. 2.28bln).


• 
  Axcelis Technologies (ACLS) - Q1 EPS USD 1.43 (exp. 1.26), Q1 revenue USD 254mln (exp. 240.6mln). Q2 EPS seen between 1.44-1.48 (exp. 1.46), and Q2 revenue seen between USD 255-260mln (exp. 249.6mln). FY23 revenue seen above USD 1.03bln (exp. 1.0bln).


• 
  HubSpot (HUBS) - Q1 adj. EPS 1.20 (exp. 0.83), Q1 revenue USD 501.6mln (exp. 474.8mln). Q2 adj. EPS view 0.98-1.00 (exp. 0.88), Q2 revenue view USD 503-505mln (exp. 497.9mln). Boosts FY23 EPS view, sees 4.80-4.85 (exp. 4.27) from 4.24-4.32, and FY23 revenue view lifted to USD 2.08-2.088bln (exp. 2.1bln) from 2.05-2.06bln.


• 
  Ceridian HCM Holding Inc (CDAY) - Q1 adj. EPS 0.31 (exp. 0.31), Q1 revenue USD 0.37bln (exp. 0.36bln).


• 
  Cognizant (CTSH) - Q1 adj. EPS 1.11 (exp. 1.04), Q1 revenue USD 4.8bln (exp. 4.7bln). Announced a programme to lower costs. FY23 adj. EPS seen between 4.11-4.34 (exp. 4.43), and FY23 revenue between USD 19.2-19.6bln (exp. 19.6bln).


• 
  Confluent (CFLT) - Q1 EPS -0.09 (exp. -0.14), Q1 revenue USD 174.3mln (exp. 167.3mln). Sees Q2 EPS between USD -0.08 and -0.06 (exp. -0.10), Q2 revenue USD 181-183mln (exp. 181.4mln). For the FY23, EPS seen between -0.20 and -0.14 (exp. -0.26), and revenue expected between USD 760-765mln (exp. 761.8mln).


• 
  Fleetcor Technologies Inc (FLT) - Q1 adj. EPS 3.80 (exp. 3.69), Q1 revenue USD 0.9bln (exp. 0.88bln). Raises FY guidance. Said the outlook for the balance of the year remains positive, expects strong business trends from Q1 to continue. "Despite the notable revenue beat in Q1, our increased guidance is limited to the over performance in the first quarter in order to maintain discipline in context of macro economic uncertainty."


• 
  MKS Instruments (MKSI) - Q1 EPS 0.48 (exp. -0.18), Q1 revenue USD 794mln (exp. 769.8mln). Said it has restored global operations following ransomware incident in February, on track to meet goal to substantially recover revenue by the end of Q2.


• 
  Qorvo Inc (QRVO) - Q1 adj. EPS 0.26 (exp. 0.13), Q1 revenue USD 632.7mln (exp. 622.2mln). Qorvo said it had outperformed the midpoint of its revenue guidance in the quarter while reducing channel inventory of its components in the Android ecosystem by approximately 25%. Anticipates continued progress reducing Android channel inventory in the coming quarters. Noted ongoing weakness in end markets. Sees next quarter revenues between USD 620-660mln (exp. 628.5mln), and sees EPS at 0.15 (exp. 0.19).


• 
  SolarEdge (SEDG) - Q1 EPS 2.90 (exp. 1.92), Q1 revenue USD 943.9mln (exp. 932.5mln). Exec sees supply chain challenges gradually improving, remains focused on execution and efficiencies to drive up margins and profitability. Q2 revenue seen between USD 970M-1.01bln (exp. 986.4mln).


• 
  Synaptics (SYNA) - Q3 EPS 1.89 (exp. 1.86), Q3 revenue USD 326.6mln (exp. 325.5mln). Announces USD +500mln increase to its share buyback programme, now has a total authorisation to repurchase up to USD 2.3bln, of which around 977mln remains available. Exec said customer forecasts are being moderated in response to the current economic slowdown, inventories are being worked down across the entire supply chain, expects June quarter revenue to decline sequentially, has begun to implement spending controls. Sees Q4 revenue between USD 210-240mln (exp. 330.4mln).


• 
  Universal Display (OLED) - Acquires Merck KGaA's phosphorescent OLED emitter IP assets. Reports Q1 EPS 0.83 (exp. 0.82), Q1 revenue USD 130.5mln (exp. 135.9mln). Reiterates FY23 revenue outlook for USD 550-600mln (exp. 577.4mln).

CONSUMER STAPLES:

• 
  AB InBev (BUD) - The world's largest brewer AB InBev saw profit rise above analyst expectations. Q1 organic revenue growth +13.2% (exp. +10.9%), organic adj. EBITDA +13.6% (exp. +4.9%). Maintains its FY organic Adj. EBITDA and revenue guidance.


• 
  Costco (COST) - April sales +3% Y/Y at USD 17.85bln. Total SSS +4.3% (ex-gas and FX), US SSS +2.9%, E-Commerce -4.9%.


• 
  Kenvue Inc. (KVUE), Johnson & Johnson (JNJ) - JNJ announced pricing of an upsized Kenvue IPO of 172.8mln shares at a price of USD 22/shr (markets were expecting a range of between USD 20-23/shr). JNJ will own 90.9% of Kenvue's total outstanding shares after the IPO.

CONSUMER CYCLICAL:

• 
  Volkswagen (VWAGY) - Sales rose and it confirmed FY23 guidance. Q1 revenue EUR 76.2bln (exp. 72.3bln). Adj. operating profit EUR 5.8bln (exp. 5.5bln). Adj. operating margin 7.5% (exp. 6.9%). Maintains its FY outlook from March.


• 
  BMW (BMWYY) - Results noted an earnings rise in its car segment on higher pricing and EV sales. Q1 revenue EUR 36.9bln (exp. 35.5bln). EBIT EUR 5.4bln (exp. 3.7bln). Auto Revenue EUR 31.3bln (exp. 30.1bln). Sees FY Auto EBIT growth between 8-10% (exp. 9%). Confirms FY outlook. Approves second buyback programme of up to EUR 2bln.


• 
  Next (NXGPY) - Quarterly sales fell, but it maintained its guidance. Q1 full price sales -0.7% Y/Y (exp. -2.0%). Maintains sales/profit guidance for FY; says that although Q1 was better, believes it is to early to alter overall expectations.


• 
  Hugo Boss (BOSSY) - Sales jumped in the quarter, and it raised profit view. Q1 revenue EUR 968mln (Exp. 879mln), EBIT 65mln (exp. 60mln). Raises FY EBIT and revenue forecast, notes strong performance. Also noted a significant uptick in consumer sentiment in China.


• 
  Zalando (ZLNDY) - Europe's biggest online fashion retailer Zalando was close to breakeven in Q1, topping estimates. Q1 revenue EUR 2.26bln (exp. 2.23bln), net EUR -28.5mln (exp. -61mln), GMV +2.8% Y/Y at EUR 3.24bln. FY23 guidance confirmed.


• 
  Marriott Vacations (VAC) - Q1 adj. EPS 2.54 (exp. 1.94), Q1 revenue USD 1.17bln (exp. 1.1bln). Exec said consumers continue to prioritise travel, which is being seen in VAC's occupancies. Lifts FY23 EPS outlook to 11.05-11.85 (exp. 11.02) from 10.75-11.54.


• 
  MercadoLibre Inc (MELI) - Q1 adj. EPS 3.97 (exp. 3.08), Q1 revenue USD 3.0bln (exp. 2.87bln); Q1 GMV USD 9.43bln (exp. 8.96bln); Q1 new active users 3.9mln.

INDUSTRIALS:

• 
  A.P. Moeller-Maersk (AMKBY) - Profits topped expectations in Q1, leaves FY guide unchanged despite lower container volumes. Q1 revenue USD 14.21bln (14.54bln); Q1 profit decreased due to lower volumes, increased cos base as logistics/services continues to scale for growth. More normal business environment expected in H2. Q1 expected to be the best quarter of the year. Maintains FY container volume forecast; guidance unchanged.


• 
  Airbus (EADSY) - Announced lower profits in the quarter, and said there would be delays on its A350 freighter jet. Q1 EPS 0.59 (exp. 0.69), revenue EUR 11.8bln (exp. 11.37bln). Affirms FY23 outlook. Targets a rate of 4 for A330 in 2023, and rate of 9 for A350 at the end of 2025. Production planning for A320 has not changed recently. Notes issues with in-service support of Pratt & Whitney (RTX) GTF engines. H1 2023 deliveries to be significantly lower than H2 2023. Supply chain problems include electronic chips, aerostructures, engines, labour, and seats; sees supply chain pressures likely lasting throughout 2023. Execution of A350 freighter taking slightly longer than expected; first freighter expected to be delivered beginning in 2026.


• 
  BAE Systems (BAESY) - Maintains guidance. Trading thus far was in-line with expectations.


• 
  Ingersoll Rand Inc (IR) - Q1 adj. EPS 0.65 (exp. 0.52), Q1 revenue USD 1.629bln (exp. 1.48bln). Raises FY23 revenue growth, adj. EPS guidance and adj. EBITDA guidance.


• 
  Leonardo (FINMY) - Saw orders rise, bit posted lower profits. Q1 net EUR 542mln, EBITA EUR 105mln (prev. 132mln), revenue EUR 3.0bln (exp. 3.1bln); March-end backlog at USD 39.1bln, equal to more than 2.5yrs of production. CEO rules out Hensoldt buying its defence electronics segment.

MATERIALS:

• 
  Albemarle Corp (ALB) - Q1 profits topped expectations, but the materials company lowered its FY outlook to reflect slumping lithium prices. Q1 adj. EPS 10.32 (exp. 7.03), Q1 revenue USD 2.58bln (exp. 2.73bln). Sees FY adj. EPS between 20.75-25.75, and sees FY net sales between USD 9.8-11.5bln (prev. 11.3-12.9bln).


• 
  ArcelorMittal (MT) - Topped profit expectations on higher steel demand. Q1 revenue EUR 18.5bln (exp. 17.6bln), EBITDA EUR 1.8bln (exp. 1.7bln). To buyback up to 85mln shares through to May 2025. Said world ex-China apparent steel consumption growth for FY23 forecast at 2-3% vs 2022. Overall economic sentiment has improved, driven by Europe, but remains relatively subdued. Automotive recovery is supportive to flat rolled products. Destocking has concluded, resulting in an improvement in apparent demand and tightening supply/demand. Inventories lower than normal as restocking is yet to take place.


• 
  Rio Tinto (RIO) - Said it stabilised its performance in H2, and has carried strong momentum into 2023. Added that it was under immense pressure to continue US Resolution project given the copper reserves.


• 
  Corteva (CTVA) - Q1 adj. EPS 1.16 (exp. 0.93), Q1 revenue USD 4.88bln (exp. 4.76bln). Exec said that the outlook for agriculture remains robust in 2023, with record demand for grain and oilseeds as ending stocks continue to be under pressure. Commodity prices are above historical averages, farm balance sheets and income levels remain healthy, leading growers to prioritise technology to maximise return. CTVA expects an increase in US planted area. Lifts FY23 operating EPS outlook to 2.80-3.00 (exp. 2.89) from 2.70-2.90, and raises FY23 revenue outlook to UDS 18.6-18.9bln (exp. 18.5bln) from 18.1-18.4bln.


• 
  Mosaic Co (MOS) - Q1 adj. EPS 1.14 (exp. 1.29), Q1 revenue USD 3.60bln (exp. 3.28bln), Q1 gross margin 18.6% (exp. 24.3%). Q1 potash sales volume +5.6% Y/Y at 1.90mln T (exp. 1.82mln), Q1 phosphates volumes 1.80mln T (exp. 1.79mln).

COMMUNICATIONS:

• 
  ETSY Inc (ETSY) - Q1 EPS 0.53 (exp. 0.53), Q1 revenue USD 640.9mln (exp. 621.1mln). Q1 Gross merchandise sales -6% Y/Y at USD 3.1bln (exp. 3.06bln). Exec said Q1 GMS was a bit above the midpoint of its guidance as some of the Etsy marketplace volatility and headwinds experienced in February eased in March. Remains cautious on the broader macroeconomic climate, but is pleased to see positive trends in Q1 buyer data, particularly the return to Y/Y in the Etsy marketplace's active buyer base. Sees Q2 revenue between USD 590-640mln (exp. 623.7mln).


• 
  Zillow Group (ZG) - Q1 revenue USD 469mln (exp. 424.1mln), Q1 adj. EBITDA USD 104mln (exp. 60mln). Residential revenue -14% Y/Y to USD 361mln. Zillow mobile apps and websites Q1 MAU 212mln, Q1 visits -5% Y/Y at 2.5bln. Exec notes challenging housing macro environment, with no clear indications of a turn. Said Transactions continue to be low, and high rates had locked sellers into their existing low-rate mortgages. Exec sees record new inventory on the way, but it will take some time for supply and demand to balance out. "And, while we may see rates come down at any time, we are certainly not counting on it."


• 
  TripAdvisor (TRIP) - Q1 adj. EPS 0.05 (exp. 0.07), Q1 revenue USD 371mln (exp. 359.4mln). Exec said travel demand remained healthy.


• 
  Vodafone (VOD), CK Hutchinson (1 HK) - Vodafone and CK Hutchinson reportedly poised to unveil a GBP 15bln UK mobile tie-up, with a likely to be announced in May, FT reports.


• 
  Altice USA (ATUS) - Q1 EPS 0.06 (exp. 0.04), Q1 revenue USD 2.29bln (exp. 2.32bln). Broadband subscriptions -16k, video subscriptions -58.6k, mobile subscriptions +248k. Backs FY CapEx view between USD 1.7-1.8bln.

HEALTH CARE:

• 
  AstraZeneca (AZN) - Chair believes that pay increases in recent years for CEO have removed the threat of him leaving for a US role. Recently, there had been some reporting suggesting that the CEO had early-stage talks with Biogen (BIIB) in 2022, FT said.


• 
  Amedisys (AMED), Option Care Health (OPCH) - Option Care Health and Amedisys announced that they have entered into a definitive merger agreement to combine in an all-stock transaction that values Amedisys at approximately USD 3.6bln, including the assumption of net debt.

ENERGY:

• 
  Equinor (EQNR) - Profits beat forecast amid higher production offsetting lower O&G prices. Q1 adj. operating profit USD 12bln (exp. 10.9bln). Adj. net USD 3.51bln (exp. 3.28bln). To pay an extraordinary cash dividend of USD 0.60/shr in Q1. will start second tranche of its 2023 share buyback for around USD 1.7bln.


• 
  Marathon Oil Corp (MRO) - Q1 adj. EPS 0.67 (exp. 0.60), Q1 revenue USD 1.68bln (exp. 1.62bln). Q1 net sales volume 397 MBOE/D, +16% Y/Y. Q1 oil Production 186 MBBLS/D, +11% Y/Y.


• 
  Shell (SHEL) - Fuel trading helped lift profits above expectations. Q1 adj. profit USD 9.65bln (exp. 8.14bln), adj. EBITDA USD 21.43bln (exp. 18.82bln); adj. EPS 1.39 (exp. 1.22), impacted by one-off tax charges. Announces USD 4bln share buyback. Dividend 0.28/shr (exp. 0.29/shr). Oil & gas output 2.9mln BOEPD (exp. 2.9mln BOEPD). Production 1.877mln BPD (prev. 1.859mln BPD Y/Y). Sees Q2 2023 lower between 1.6-1.8mln BPD. 2023 cash capex outlook is unchanged.


• 
  Williams Companies Inc (WMB) - Q1 adj. EPS 0.56 (exp. 0.46), Q1 revenue USD 3.08bln (exp. 2.63bln).

REAL ESTATE:

• 
  Equinix Inc (EQIX) - Q1 EPS 2.77 (exp. 2.19), Q1 revenue USD 2.00bln (exp. 1.98bln). Raises FY guidance. FY23 revenue seen between USD 8.175-8.275bln (exp. 8.2bln).


• 
  Host Hotels (HST) - Q1 adj. FFO/shr 0.55 (exp. 0.48), Q1 revenue USD 1.381bln (exp. 1.31bln). Comparable hotel RevPAR +31% Y/Y, exceeding its guidance. Raises FY23 adj. FFO/shr view, now sees between 1.84-1.95 (exp. 1.76) from prior 1.60-1.83.


• 
  Public Storage (PSA) - Q1 EPS 2.65 (exp. 2.69), Q1 Core FFO/shr 4.08, Q1 revenue USD 1.094bln (exp. 1.09bln).


• 
  Realty Income Corp (O) - Q1 EPS 0.34 (exp. 0.34), Q1 revenue USD 0.94bln (exp. 0.91bln). Q1 AFFO/share USD 0.98 (exp. 0 98). Q1 occupancy 99% (exp. 98.9%). Revises FY AFFO/share view to USD 3.94-4.03 (exp. 3.98) from 3.93-4.03.

04 May 2023 - 09:25- Research Sheet- Source: Newsquawk