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IBERIAN DAILY 23 APRIL + 1Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS, ENCE, IAG, NATURGY, 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.

Rally on the market
European stock markets recovered part of the losses from last week and gold recorded its biggest drop of the year, following the correction in public debt and oil prices after tensions in the Middle East eased. In the STOXX 600, the best-performing sectors were defensive ones like Telecoms and Household Goods, whereas cyclical sectors were hit the hardest, with Autos and Basic Materials posting the biggest drops. On the macro side, in the euro zone April’s preliminary consumer confidence improved, but less than expected. From the ECB, L. de Guindos was in favour of cutting rates in June, but he insisted, as have other members, that subsequent cuts are unclear. In the US, the Chicago Fed activity index for March recovered unexpectedly. In Mexico, the IGAE activity index rose more than expected in February. In Japan, the manufacturing and services PMIs rose in April to 49.9 and 54.6, respectively, from the previous 48.2 and 54.1. Meanwhile, the BoJ governor stated in the Parliament that there will be more rate hikes if inflation rises, as expected. On the geopolitical side, the US will impose sanctions on Chinese banks that would leave them outside the global financial system for collaborating with Russia. In US business results, Verizon earned -6.3% less through March, but beat forecasts.
What we expect for today
Stock markets would open with gains of up to +0.5% that would be reeled in throughout the session. Currently, S&P futures are down -0.03% (the S&P 500 ended up +0.45% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.68%, Japan’s Nikkei +0.42%).
Today in the euro zone we will learn April’s manufacturing and services PMI and in the US March’s building permits and new home sales. In US business results, Visa, Tesla, PepsiCo and General Electric, among others, will release their earnings.


COMPANY NEWS

ENAGAS. 1Q’24 results beating expectations, although in line with the annual guidance. BUY
The 1Q’24 results were better than expected, mainly in Net Profit, thanks to the better Financial Result and lower taxes. EBITDA came in at € 178.3 M (vs. € 174 M BS(e) and consensus) and Net Profit at € 65.2 M (vs. € 57 M consensus and BS(e). NFD remained stable at € 3.34 Bn and the NFD/EBITDA ratio at 4.3x. The results would be in line with the annual guidance of € 750-760 M of EBITDA and € 260-270 M of Net Profit. We would expect a positive reaction.