IBERIAN DAILY 08 MAY + 1Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: AENA, AMADEUS, ENDESA, FERROVIAL, FLUIDRA, NATURGY, ROVI, TALGO.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’24 results to be released over the coming days in Spain.
The rally in Europe continues
European stock markets continued to rally at the start of the week while sovereign debt yields continued to fall, bringing the IBEX back above 11,000 points. Within the STOXX 600, all the sectors closed in positive numbers, led by Financial Services and Technology, whereas Autos and Energy brought up the rear. On the macro side, in the euro zone March’s retail sales rose unexpectedly, whereas April’s construction PMI fell slightly to 41.9. In US business results, Walt Disney, NRG and Duke Energy beat expectations.
What we expect for today
Stock markets would open with drops of around -0.3%. Currently, S&P futures are down -0.10% (the S&P 500 ended down -0.15% vs. the European closing bell). Asian stock markets are falling (China’s CSI 300 -0.66%, Japan’s Nikkei -1.66%).
Today in Germany and Spain we will learn March’s industrial output and in Brazil March’s retail sales and the Central Bank will meet. In US business results, Uber, Fox and Airbnb, among others, will release their earnings.
COMPANY NEWS
AMADEUS. 1Q’24 Results slightly better than expected. 2024 guidance confirmed. BUY.
1Q’24 Results came in slightly better than expected in sales (+14.1% vs. +12.8% BS(e) and consensus), with the better performance of IT Solutions standing out (+8% vs. BS(e) and +3% vs consensus). In Airline Distribution, bookings are slightly lower (125.2 M vs. 128.7 M consensus and 131 M BS(e)), although revenues are slightly better vs. consensus (+0.4%). EBITDA came in slightly better than expected, rising +14.2% (vs. 13.2% BS(e) and +13% consensus), with the margin in line at 38.9% (+10bps vs. 1Q’23). The company kept the 2024 guidance unchanged. Even though these 1Q’24 results are slightly better than expected bookings continue to be weak, which could weigh on today’s market reaction (despite its -19% underperformance vs. IBEX in 2024).
FLUIDRA. Results basically in line with expectations, with the company reiterating its 2024 guidance. BUY.
Results are in line with the consensus and slightly below our estimates: Sales: € 527 M (-4.9% vs. -2.4% BS(e) and -3.6% consensus); EBITDA: € 118 M (+19.2% vs. +22.9% BS(e) and +18.8% consensus); Net Profit: € 37 M (-10% vs -12% BS(e) y -11% consensus). Lacklustre results due to adverse weather conditions in the US due to a calendar effect (Easter) and weakness in the new pools segment. On the positive side, the gross margin rises (+270bps vs. 1Q’23) thanks to the impact from the simplification programme and price rises to customers. The company reiterates its 2024 guidelines and we do not foresee any changes in consensus estimates after a quarter that is not the most relevant of the year due to seasonality. BUY.
ROVI, SELL
1Q’24 Results in line on the operating level (EBITDA € 26 M vs. € 25 M BS(e) and € 26 M consensus; -61% vs. 1Q’24) and marked by a sharp drop in CDMO sales (-48% vs. -50% BS(e)), which also had a negative impact on profitability (gross margin -554bps to 56.6% vs. 56.5% BS(e)). Despite the operating weakness, the company maintains its 2024 guidance of mid-single digit sales drop (vs. -3% BS(e) and -2% consensus). On another note, NFD was in line with expectations (rising € 29 M to € 67 M vs. € 62 M BS(e)) due to the greater progress of the buyback plan (€ -35 M).
We do not foresee a relevant impact despite the good share price performance (+38% YtD; +28% vs. IBEX).
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.
Amadeus is a transaction processor for the global travel and tourism industry. Co. provides transaction processing power and technology solutions to both travel providers (including full service carriers and low-cost airlines, hotels, rail operators, cruise and ferry operators, car rental companies and tour operators) and travel agencies (both online and offline). Co. acts both as a worldwide network connecting travel providers and travel agencies through a processing platform for the distribution of travel products and services (through the Distribution business), and as a provider of a portfolio of IT solutions which automate certain business processes (through the IT solutions business).
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
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.
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