EUR 100.00 For Business Accounts Only

IBERIAN DAILY 06 NOVEMBER + 3Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, GRIFOLS, REPSOL, SACYR, 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 3Q’23 results to be released over the coming days in Spain.

From the worst October in 5 years to the best week of the year
European stock markets recovered from the lows seen at the beginning of the week thanks partially to the significant tightening in sovereign debt yields due to the halt in rate rises by the Fed, the lower-than-expected debt issuance programme and the disappointing macro data released in the US. Thus, the Euro STOXX 50 ended the week around +4.00% higher, in line with the rises of the Ibex that hovered the 9,300-point level. All sectors in the STOXX 600 ended with gains, led by Autos and Real Estate, with Energy and Media being the worst relative performers. On the macro side, in the US October’s job creation came in below expectations whereas the unemployment rate rose by one tenth unexpectedly and wage gains moderated more than expected. October’s non-manufacturing ISM fell more than expected in October. In the UK, October’s composite and services PMI recovered unexpectedly. From the Fed, R. Bostic bets on keeping rates unchanged at least for 8-10 months and N. Kashkari stressed that the cooling of the job market suggests lower inflationary pressures. In 3Q’23 US business results, Dominion Energy and Garnter beat expectations.
What we expect for today
European stock markets would open flat, with a slight bearish slant. Currently, S&P futures are up +0.10% (the S&P 500 ended -0.23% lower vs. the European closing bell). Volatility in the US fell (VIX 14.91). Asian stock markets are rising (China’s CSI 300 +1.21%, Japan’s Nikkei +2.32%).
Today in Spain and the euro zone we will learn October’s services PMI. In US business results, Constellation, Vertex and NXP Semiconductors, among others, will release their earnings.

COMPANY NEWS

3Q’23 Results highlights and rest of previews
Of the stocks releasing their earnings over the coming days, on the positive side we highlight TLGO (14/11), where we expect solid results that will show rising activity levels vs. past quarters (+29% in accumulated sales vs. 2022; +24% consensus). and at least stable margins (12.1% EBITDA margin; in line with the previous quarter and the 2023 guidance), which if confirmed would mean our EBITDA estimates for the year would be at least -15% low (-9% for the consensus).