EUR 100.00 For Business Accounts Only

IBERIAN DAILY 20 FEBRUARY + 4Q’22 RESULTS. HIGHLIGHTS AND PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL.

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 4Q’22 results to be released over the coming days in Spain.

IBEX consolidates 9,300 point support level
The latest comments from several Fed members and the strong US macro data have led to widening along debt curves and better weekly performance by peripheral nation stock markets. The Euro STOXX ended with gains on the week thanks to the surprises in the results calendar, with Household Goods and Travel & Leisure the best performers, whereas Energy and Real Estate were the only sectors to end with losses. On the macro side, from the ECB, I. Schnabel stated that financial markets could be underestimating the persistence of inflation, and thus more robust action from the ECB. In the US, from the Fed, M. Bowman bet on rate hikes in upcoming meetings given inflation levels, whereas T. Barkin bet on +25bps in order to maintain some flexibility, although he admitted that the decision will depend on macro performance. By contrast, J. Bullard suggested the Fed would not rule out a hike of +50bps to reach a maximum rate of 5.25-5.50% as soon as possible. On the geopolitical front, the Biden administration would be readying a new round of sanctions against Russia, focused on the defense, energy and financial sectors. In China, the PBoC kept reference rates for 1Y and 5Y mortgages unchanged at 3.65% and 4.3%, respectively. Most analysts see room for new cuts this year in the reserve coefficient and in reference rates in order to aid the real estate market. In US business results, John Deere beat expectations and PPL was in line.
What we expect for today
Stock markets would open with sharp increases, following in the steps of the Asian stock exchanges. Currently, S&P futures are flat (the S&P 500 ended +0.6% higher vs. the European closing bell). Volatility in the US decreased (VIX 20.02). Asian markets are rising (China’s CSI 300 +2.1% and Japan’s Nikkei +0.1%).
Today in the euro zone we will learn February’s consumer confidence. In US business results, Williams Cos and Nordson, among others, will release their earnings. In debt auctions: Germany (€ 5 Bn in 12M T-bills).


COMPANY NEWS

ALMIRALL. 4Q’22 results in line on the operating level. Guidance’23 below expectations. BUY.
The 4Q’22 results were in line in EBITDA (€ 52 M vs. € 54 M BS(e) and € 48 M consensus), fuelled by the sale of Motilex (€+18.5 M), but below in Net Profit (€-7 M vs. € 14 M BS(e)) due to higher tax expenses. NFD increased (+6% to € 168 M vs. € 157 M BS(e)), but the debt ratio remained flat (€~0.8x NFD/EBITDA). The company has announced a DPS’22 of € 0.19/sh. (+2.2% vs. 2021; 2.2% yield), as expected, and a guidance’23 of low single-digit growth in sales and between € 165 M and € 180 M in EBITDA, meaning a mid range of € 172 M (-13% vs. 2022), below expectations (€ 177 M). We expect a negative share price reaction despite the stock’s recent lacklustre performance (-4% in 2021; -17% vs. IBEX).