IBERIAN DAILY 05 MAY + 1Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, CAIXABANK, IAG, IBERDROLA, GRIFOLS, SOLARIA.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’23 results to be released over the coming days in Spain.
The ECB keeps its message unchanged
Markets continued to drop, apparently losing the momentum even though Central Banks suggest the end of rate rises. The banking crisis in the US remains present (with PacWest, Western Alliance and Keycorp sliding around -50%, -40% and -30%, respectively) and with the Ibex about to fall below the 9,000-point level. Thus, in the Euro STOXX, Food, Utilities and Pharma were the best-performing sectors vs. the bigger drops of Media and Basic Resources. In the euro zone, as expected, the ECB raised interest rates by +25bps, leaving the door open to repeat this rise in June’s meeting, with C. Lagarde warning that the end of rate rises would be near. On another note, April’s final services PMI was cut slightly. In Norway, the Central Bank also raised interest rates by 25bps to 3.25%. In the US, weekly jobless claims rose more than expected, the 1Q non-farm productivity fell more than expected (unit labour costs climbed significantly). In US Results, Moderna, Kellog, Apple, Booking and Royal Caribean came in better than expected, Zoetis in line.
What we expect for today
European stock markets would recover with gains of around +0.3% although with some defensive bias, awaiting the US job data. Currently, S&P futures are up +0.37% (the S&P 500 ended +0.16% higher vs. the European closing bell). Volatility in the US rose (VIX 20.09). Asian stock markets are falling (China’s CSI 300 -0.55%, Japan’s Nikkei closed but futures are sliding -1.37%).
Today in the Euro zone we will learn March’s retail sales, and in the US non-farm employment and April’s unemployment rate. In US business results, Warner Bros and Cigna Group, among others, will release their earnings.
COMPANY NEWS
CAIXABANK. Better 1Q’23 results than expected, but difficult to compare. BUY
The company has raised Operating Income by +33% (around +15% vs. consensus) and reached € 855 M of Net Profit (+21% vs. 1Q’22), around +18% above the consensus, thanks to better revenues, cost control and lower CoR (26bps vs. 35bps expected). Revenues performed better than expected (+12% vs. 1Q’22) thanks to NII (+40% vs. 1Q’22 in IFRS17, estimates in IFRS4 are not comparable) and one-offs. CABK has raised its NII guidance by around +3% and lowered CoR to
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.
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Solaria Energia y Medio Ambiente manufactures both solar and thermal cells and panels, rolls out turnkey projects for large installations, operates solar plants and generates electricity through its owned plants.
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