IBERIAN DAILY 25 FEBRUARY + 4Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: GREENING, ROVI, TALGO, TELEFÓNICA.At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’24 results to be released over the coming days in Spain.
US drags down Europe
Despite the positive initial reaction by European stock markets to the result of the German election, the session ended with losses in most indices, except for the DAX and IBEX, which managed to close in positive numbers. In the STOXX 600, Utilities and Food posted the biggest gains, with Basic Materials and Technology falling the most. On the macro side, in the euro zone January’s final inflation confirmed the preliminary 2.5% YoY, with the core figure at 2.7%. In Germany, February’s IFO stagnated unexpectedly, dragged down by the current conditions index. The future German chancellor is considering the possibility of creating a special defence fund with € 200 Bn, whereas the EU and UK are studying the idea of a single defence fund. In the US, the Govt. would be mulling a toughening of microchip export restrictions on China and also charging a tariff to Chinese ships reaching the country’s ports. In US business results, Domino’s Pizza and Realty Income released disappointing earnings.
What we expect for today
European stock markets would open with drops of up to -0.3%. Currently, S&P futures are up +0.20% (the S&P 500 ended -0.48% lower vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.90% and Japan’s Nikkei -1.30%).
Today in Germany we will learn the final 4Q’24 GDP data and in the US February’s consumer confidence and December’s housing prices. In US business results, Home Depot, American Tower and Sempra Energy, among others, will release their earnings.
COMPANY NEWS
ROVI, OVERWEIGHT
The 4Q’24 results were in line on the operating level (€ 40 M of EBITDA vs. € 38 M BS(e) and € 39 M consensus), where CDMO saw sales fall -38% vs. 4Q’23 (vs. -34% BS(e)). NFD fell by € -24 M to € 85 M, beating our estimate of € 125 M, and the company announced a dividend’24 of € 0.9351/sh. /-15% vs. 2023; 1.7% yield; 35% payout), slightly below expectations (€ 1.05/sh. consensus). On the outlook level, ROVI maintains its guidance’25 of operating revenues falling at a mid-single-digit pace (vs. -3% consensus and -5% BS(e)).
We do not expect a significant impact, despite the poor recent performance (-12% in 2025, -24% vs. IBEX).
Laboratorios Farmaceuticos Rovi is engaged in the sale of its own pharmaceutical products and the distribution of other products for which it holds licenses granted by other laboratories for specific periods, in accordance with the terms and conditions contained in the agreements entered into with said laboratories.
Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.
Telefonica is engaged in the provision of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. Co.'s fixed business includes: traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-aplications services, and wholesale services for telecommunication operators. Co. also provides a range of mobile and related services and products to consumer and business customers, including mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and, trunking and paging.
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