IBERIAN DAILY 10 MAY + 1Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, AEDAS, AENA, ALMIRALL, BANKING SECTOR, ROVI, 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 1Q’21 results to be released over the coming days in Spain.
MARKETS YESTERDAY AND TODAY
Stock markets continue to benefit from economic recovery
European stock markets closed with substantial gains on Friday despite the poor reading of US employment data, ending another week up +1.5% on average, where the Dow Jones reached a new record high. In the Euro STOXX, the rise in raw materials has benefited cyclical sectors like Basic Materials and Energy, which led the weekly gains vs. defensive sectors like Real Estate and Pharma. On the macro side, in Germany the CDU/CSU plummeted to lows in the election for PM (23%). In Mexico inflation rose to 6% (in line with expectations) and could pressure the BoM to raise rates. In the US, non-farm job creation saw “only” 266,000 new jobs (vs. 1 million expected), while the unemployment rate rose +0.1%. All this means the debate on tapering will be delayed until 4Q’21 at the earliest. In US business results, Cigna beat expectations, Edison Energy was in line and Ventas released disappointing earnings.
What we expect for today
European stock markets would open with gains of less than +0.5%, with banks underpinned by the rise in debt yields and basic materials aided by the rise in raw material prices. Currently, S&P futures are up +0.17% (the S&P 500 ended down -0.1% vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 16.69). Asian markets are trading with mixed results (China’s CSI -0.75% and Japan’s Nikkei +0.5%).
Today in the euro zone we will learn the SENTIX index for May. In US business results, Eversource, among others, will release its earnings. In debt auctions: Germany (€ 4 Bn in 6M t-bills) and France (€ 5.4 Bn in 3M, 6M and 12 M t-bills).
COMPANY NEWS
AEDAS HOMES. 20/21 Results above expectations.
The company has released a good set of results and positive pre-sales data in the latest quarter of its fiscal year (Jan-Mar’21). Although the number of deliveries was already known (1,963 units on the year), EBITDA came in above expectations: € 133 M vs. € 128 M BS(e) and € 126 M consensus. We also highlight the quarter’s good pre-sales data: 617 units (with a very strong March: 253 units). The company has also announced a higher DPS’20 than expected: € 1.40/sh. (vs. guidance and BS(e) of € 1.00/sh.; 6.5% yield). For 21/22, the company expects to deliver between 2,200 and 2,300 units (unchanged vs. 2,150 units BS(e)).
ALMIRALL. Slightly better 1Q’21 results on operating level thanks to one-offs. Guidance’21 reiterated. BUY.
The 1Q’21 results beat expectations on the operating level (€ 74 M of EBITDA vs. € 55 M BS(e) and € 56 M consensus) thanks to € 16 M of one-offs, without which they would have been very much in line. Without these one-offs margins would stand at 28.4% (vs. 26.7% BS(e) and 27.5% consensus), slightly better thanks to lower R&D spending (-37% vs. 1Q’20). NFD performed well, falling -16% to € 257 M excl. pension plans (1.2x NFD/EBITDA vs. € 304 M BS(e)). The company maintains its guidance’21 of EBITDA between € 215-235 M (vs. € 225 M BS(e) and € 227 M consensus). We expect a slightly positive reception due to the effect from the one-offs and despite the recent performance (+9% since 4Q’20 results; -2% 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.
Aedas Homes is engaged in the housing development business in Spain. The company has a portfolio of approximately 1.5 million square meters of land that it develops for residential purpose. Co. develops multifamily homes for the housing market in Madrid, Catalonia, Levante and Majorca, Costa del Sol and Seville.
Aena SME SA, formerly Aena SA, is a Spain-based company primarily engaged in the airports operation. Its activities are divided into four segments: Airports, which comprises Aeronautical subdivision, responsible for the management of airports, jetways, security, handling, cargo and fuel services, among others, as well as Commercial subdivision, including duty-free and specialty stores, restaurant services, car rental, as well as banking services and advertising; Services outside the terminal, which manages real estate assets, such as parking lots, warehouses and lands; International, which comprises operations of Company's subsidiary, Aena Desarrollo Internacional SA, that invests in other airport owners principally in Mexico, Colombia and the United Kingdom; and Others, encompassing corporate activities. It manages tourism, hub and regional airports, as well as heliports and general aviation areas. Furthermore, its destination range comprises Europe, the Americas, Asia and Africa.
Almirall is engaged in the acquisition, manufacture, storage, sale and mediation in the sale of pharmaceutical specialties and products and all manner of raw materials used to prepare pharmaceutical specialties and products. Also, Co. acquires, manufactures, storages, sales and mediates in the sale of cosmetics, chemical, biotechnological and diagnostic products for human, veterinary, agrochemical and food-industry use, as well as all manner of utensils, complements and accessories for the chemical, pharmaceutical and clinical industries. In addition, Co. is engaged in the acquisition, sale, lease, subdivision and development of land lots, land and properties of all kinds.
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.
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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