IBERIAN DAILY 23 JULY + 2Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, BANKING SECTOR, LIBERBANK, LOGISTA, TOURISM SECTOR, VIDRALA.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 2Q’20 results to be released over the coming days in Spain.
MARKETS YESTERDAY AND TODAY
Little news from the ECB
The European stock markets closed the session erasing part of the gains that they had posted early in the day following the ECB meeting, where the changes made to the statement, which forecast low rates for quite a long time, led banks to go from being the best-performing sectors to the worst-performing ones. Within the Euro STOXX, the best performers were Travel & Leisure and Technology, with rises higher than +2%. By contrast, Energy (despite the rise in the Brent price) and Telecoms ended the session in the red once again. On the macro level, the ECB changed its forward guidance to include the fact that rates will remain at the current levels until the target is met in a lasting way although with the unanimous support of its members. In the Euro zone, consumer confidence deteriorated unexpectedly in July. In the US, weekly jobless claims increased unexpectedly, the Chicago Fed index contracted much more than expected in June and second-hand home sales climbed somewhat less than expected in June. In US business results, Snap-on, DR Horton, AT&T, Twitter and Biogen came in above expectations, and American Electric and American Airlines in line. Intel beat expectations although with disappointing margins, warning that the chip problems will last through 2023.
What we expect for today
European indices would trade with slight gains in the Spanish tourism sector, awaiting Germany’s decision to classify Spain as high-risk region due to Covid-19. Currently, S&P futures are up +0.25% (the S&P 500 ended up +0.21% vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 17.61). Asian markets are sliding (China’s CSI -1.4% and Japan’s Nikkei is closed).
Today we will learn in the Euro zone the preliminary manufacturing and services PMIs. In US business results, American Express, Honeywell and Kimberly Clark, among others, will release their earnings.
COMPANY NEWS
VIDRALA. Better 1H’21 results than expected, but maintaining the guidance for the full year. BUY.
The company has released solid 1H’21 results that beat our expectations in both sales and margins. Sales: € 529.5 M (+11.6% vs. +6.1% BS(e)); EBITDA: € 149.4 M (+22.1% vs. +12.8% BS(e)). Organic sales growth reached +11.2%, with a slight negative impact from FX (+0.4%). We expect an improved margin thanks to operating efficiency, but it was even greater than expected (+241bps vs. +162bps BS(e)). The company maintains its guidance for the full year of stable margins (in line with BS(e)), due to the effect from inflationary pressures on costs in 2H’21.
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.
Vidrala SA is a Spain-based company principally engaged in the glass industry. The Company operates through two segments: Spain and European Union. The Company's activities include the production, distribution and sale of glass bottles and containers used in the food and beverages industries. The Company conducts its own research and development (R&D) operations. It operates production plants and melting furnaces located in such countries, as Portugal, France, Belgium and Italy. The Company owns such subsidiaries as Crisnova Vidrio SA, Inverbeira Sociedad de Promocion de Empresas SA, Gallo Vidro SA, Castellar Vidrio SA, Corsico Vetro SRL, MD Verre SA, Omega Immobiliere et Financiere SA, Investverre SA and CD Verre SA.
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