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IBERIAN DAILY 25 JULY + 2Q’22 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, 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 2Q’22 results to be released over the coming days in Spain.

A volatile week marked by the ECB and Italy
A new week of volatility for European stock markets, the performance of which was marked by the ECB meeting that ended with a 50bps rise in interest rates and by the political risk in Italy after M. Draghi submitted his resignation before the president of the Republic S. Mattarella (with elections due on 25/09). Thus, the Ibex ended last week +1.46% higher, the Dax +3.34% and the Euro STOXX 50 +3.76%. In the Euro STOXX, Real Estate and Technology were the best-performing sectors whereas Household and Telecoms ended with the worst relative performance last week. On the macro side, in the euro zone, July’s preliminary manufacturing and services PMI came in worse than expected, hitting slowdown territory and erasing future interest rises in Europe. In Ukraine, Russia’s attack on Odesa increased the risk of a new blockade on grain exports from the Black Sea. In China, a plan to support real estate companies in trouble with the creation of a US$ 44 Bn fund was leaked to the press. In US business results Twitter and Verizon came in worse than expected and American Express better.
What we expect for today
The European stock markets would see a bearish opening in a key week of US business results (Alphabet, Apple, Amazon, Microsoft and Meta, among others) and the Fed messages. Currently, S&P futures are down -0.2% (the S&P 500 ended -0.21% lower vs. the European closing bell). Volatility in the US remained flat (VIX 0.23). Asian markets are falling (China’s CSI 300 -0.63% and Japan’s Nikkei -0.85%).
Today in Germany we will learn July’s IFO and in Mexico May’s IGAI. In US business results, Whirlpool Corp and NXP Semiconductors, among others, will release their earnings. As for auctions, Germany will issue € 6 Bn in 6 &12M T-bills.


COMPANY NEWS

ALMIRALL. 2Q’22 results in line on the operating level. Guidance’22 maintained. BUY.
The 2Q’22 results were in line on the operating level (€ 48 M of EBITDA vs. € 48 M BS(e) and € 47 M consensus) both in sales (+6% vs. +5% BS(e) and consensus) and in margins (22.0% vs. 21.9% consensus). Net Profit came in somewhat below expectations (€ 7 M vs. € 12 M BS(e)) due to higher financial expenses and NFD better than expected, falling by -23% to € 194 M (0.9x NFD/EBITDA; vs. € 240 M BS(e)) due to the reduction in pension plans. Despite the positive performance, the company keeps its guidance’22 unchanged (medium single-digit growth in sales and between € 190 M and € 210 M of EBITDA vs. e 195 M BS(e) and € 197 M consensus). We do not expect a significant market impact following the stock’s recent performance (-8% in 2022; +0% vs. IBEX).