IBERIAN DAILY 27 FEBRUARY + 4Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CAF, CELLNEX, COLONIAL, IBERDROLA, 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 4Q’23 results to be released over the coming days in Spain.
Awaiting drivers
European indices started the week with few macro references, without much movement and closing with slight losses. In the STOXX 600, only Technology and Financial Services recorded gains, while Basic Resources and Utilities ended with the biggest losses. On the macro side, in the US January’s new home sales recovered less than expected (due to the low temperatures), whereas February’s Dallas Fed manufacturing index recovered more than expected. From the ECB, C. Lagarde stated that there is still more work to do for inflation to fall back to 2%. In Japan, January’s general and inflation moderated less than expected. In US business results, Domino’s Pizza beat expectations.
What we expect for today
European stock markets would again open with losses of around -0.3%. Currently, S&P futures are down -0.10% (the S&P 500 ended -0.36% lower vs. the European closing bell). Asian stock markets are rising (China’s CSI 300 +0.60%, Japan’s Nikkei +0.10%).
Today in the euro zone we will learn the M3 and in the US January’s durable goods orders and February’s consumer confidence. In US business results, Pinnacle and Axon, among others, will release their earnings.
COMPANY NEWS
ROVI. 4Q’23 Results above consensus expectations on the operating level. 2024 Guidance unchanged. We downgrade our recommendation to SELL.
4Q’23 Results came in above consensus expectations on the operating level (EBITDA € 73 M vs. € 74 M BS(e) and € 66 M consensus), with a slightly weaker performance of net debt (€ 39 M; vs. € 6 M BS(e)) due to the greater progress of the buyback plan. The company announced a € 1.1037/sh. dividend (-15% vs. 2022; 1.5% yield), in line with expectations (1.10 consensus), keeping its mid-single digit sales drop guidance’24 (vs. -5% BS(e) and -3% consensus). We do not foresee a relevant impact. We raise our EBITDA/Net Profit estimates’24-26 by +3% thanks to the better operating performance, including the roll-over, and thus we raise our T.P. by € 68.00/sh. (+9.5% vs. previous T.P.). After the good share price performance (+105% from 2023 lows), our T.P. lacks upside (-4.5%) and we downgrade our recommendation to SELL awaiting drivers such as the new contracts in CDMO.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.
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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