IBERIAN DAILY 03 MAY + 1Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, PRISA, SIEMENS GAMESA.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 1Q’21 results to be released over the coming days in Spain.
MARKETS YESTERDAY AND TODAY
A week marked by business results and the Fed
It was a week of transition on global stock markets (except the IBEX 35, which rose around +2.3% thanks to the solid performance by banks), underpinned by the solid business results, the fiscal stimulus plans announced and a dovish message from the Fed. The best-performing sectors in the Euro STOXX were Banks and Telecoms, whereas Utilities and Autos ended the week as the worst performers. On the macro side, the 1Q’21 GDP in the euro zone fell less than expected, whereas inflation rose with expectations due to a rise in energy prices. In Mexico, the 1Q’21 GDP fell -0.4% QoQ (slightly better than expected) vs. the previous -1.8%. In US business results, Colgate, Exxon and Philips beat expectations.
What we expect for today
European stock markets would open flat or with slight gains on a day that is a holiday in many countries. Currently, S&P futures are up +0.23% (the S&P 500 ended down -0.1% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 18.61). The main Asian markets are closed today.
Today in Germany and the euro zone we will learn April’s final manufacturing PMI, in the US March’s construction spending and April’s manufacturing ISM. In US business results, Estee Lauder and Lowe’s, among others, will release their earnings. Debt auctions: Germany (€ 6 Bn in 3M and 9M t-bills), Netherlands (€ 2 Bn in 3M and 6M t-bills) and France (€ 5.4 Bn in 3M, 6M and 12M t-bills).
COMPANY NEWS
SIEMENS GAMESA. Better 2Q’21 results in adjusted EBIT, although with a cut to the guidance’21 in sales. SELL
At Friday’s closing bell the company released 2Q’21 results that beat expectations in adjusted EBIT (€ 111 M vs. € 90 M BS(e) and € 89 M consensus) and our estimate in net debt (€ 771 M vs € 935 M). However, the high end of the sales guidance’21 was cut (between € 10.2-10.5 Bn vs. € 10.2-11.2 Bn previously; €10.8 Bn BS(e); €10.6 Bn consensus), maintaining the guidance for the adjusted EBIT margin (between 3-5% vs. 5% in 1H’21), despite the solid performance in 1H’21, in view of possible rising procurement costs (as a result of raw material prices). Despite the fact that the results were better than expected in adjusted EBIT, the cut to the guidance and the comments on pressured margins could cool the market reaction (to neutral or slightly positive). SGRE has fallen -9% YtD (-18% vs. IBEX).
ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.
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