(Boursier.com) — THE TREND
The CAC40 finally fell sharply by 0.99% at the close, back below the 8,000 point mark at 7,985 points, after a new series of company results and economic indicators. Risk taking remained limited on the eve of May 1 and the Fed meeting to which the European markets which will be closed on Wednesday will not be able to react, while Wall Street will be wide open while the monetary policy decision of the Federal Reserve is expected in the evening… The American Central Bank is expected to maintain its rates at their current levels, but investors will be especially attentive to the statements of its president, Jerome Powell, who could give more indications on the future trajectory of rate…
“The recent higher-than-expected inflation figures and subsequent upward revisions have likely eroded the Fed’s confidence in the ability of inflation to return to its target more sustainably,” notes economist Xiao Cui. senior at Pictet Wealth Management. “The Fed likely needs to see a slowdown in inflation over several months before cutting rates, and with a strong labor market, there is no rush to do so.”
On the Old Continent, GDP grew more than expected in the first quarter (+0.3% versus +0.1% expected) and annual inflation stabilized at 2.4% in April, as expected. ‘Core’ annual inflation in the euro zone, however, came out higher than expected, at 2.7%, after +2.9% in March, and against a consensus of +2.6%.
On the business front, the day’s new publications were received differently with some disappointments from Stellantis, Rexel and Air France KLM. SES also fell after the announcement of the acquisition of Intelsat and Atos continued to be the talk of the town.
The euro/dollar parity falls below $1.07. The barrel of Brent also slides below $88 in London, with discussions on a possible ceasefire in the Middle East reducing the risk premium on crude. Bitcoin returns more than 2% to $60,680.
RISING VALUES
ViewGroup New acceleration of the title which soars by 15%. The electronic label specialist has signed a new amendment to the framework contract with Walmart US to accelerate the deployment of EdgeSense and VusionCloud solutions within the American brand.
In parallel with the acceleration of deployment, the contract provides for a functional extension of the software solution which will improve merchandising, inventory management and e-commerce order preparation processes. The amount of orders of around 1 billion Euros corresponding to this signature will be included in the figures for the coming quarters.
Broadpeak climbed 14%, while the group’s turnover stood at 7.2 million euros in Q1, up 1.5% year-on-year. Excluding the slightly positive currency effect, growth at constant exchange rate came to +1.2%. Broadpeak, which has just announced a major agreement with TF1confirmed its financial objectives for 2024.
Akwel : +5% with Lagardère (+4%) followed by Bonduelle, Medincell
Remy Cointreau : +3.5% followed by BigBen
Chargers (+3.1%). The Group’s turnover amounted to 177.8 million euros in the first quarter, an organic increase of +10% year-on-year. All divisions are growing organically. In particular, the Group’s Luxury division achieved very significant growth of +20.2%, driven by the new categories of products and services of excellence in which it is positioned, reflecting a stronger dynamic than conventional luxury trends.
LNA : +2.7% with Nacon, LFE
Cegedim : +2% with Elior
Getlink : +1.5% with Esso and Lhyfe
Thales (stable) reported better-than-consensus-expected quarterly orders and sales, helped by its defense business. The equipment manufacturer presented order intake in Q1 up 46% to €5.037 billion, including a third tranche of Rafale fighter jets for Indonesia and an aerial surveillance system for a Middle Eastern country. Thales’ turnover increased organically by 7.9% to €4.421 billion. Furthermore, Thales seems open to a targeted takeover of strategic assets from Atos, while Bruno Le Maire announced on Sunday that the State had sent Atos a letter of intent in order to take over the group’s activities deemed “sovereign” .
FALLING VALUES
Atos relapse of 11%. Faced with a wall of debt, the digital services company is trying to restructure and obtain new money. Some of its activities attract envy and the fight between the interested parties could last until the last moment. While the group indicated yesterday that it had received a non-binding letter of intent from the French State for the potential acquisition of its most sensitive activities for an indicative enterprise value of between 700 million and 1 billion euros, there “are now no more obstacles to an offer from Daniel Kretinksy”, a source close to the matter told ‘BFM Business’. “He is going to file one,” assure several sources close to the group.
Stellantis (-10%) revealed revenues that were down and below analysts’ expectations in the first quarter but confirmed its annual objectives. The automobile manufacturer achieved net sales of 41.7 billion euros, down 12% year-on-year, mainly due to lower sales volume and unfavorable mix and currency effects, partially offset by slightly positive net prices. Consolidated sales stood at 1.335 million units, down 10%, reflecting actions on production and inventory management to prepare for a wave of new products in the second half of 2024, compared to robust sales in the first quarter of 2023 to build up stocks following a prolonged period of supply constraints. The ‘Bloomberg’ consensus expected net sales of 43.92 billion euros with vehicle sales estimated at 1.47 million units.
HIS plunges 8%. Less than 24 hours after the release of new rumors surrounding a rapprochement between HIS and Intelsat, the two satellite operators formalize a merger agreement. The Luxembourg-based group is offering $3.1 billion (€2.8 billion) in cash and certain conditional value rights to take over its entire target. The combination will create a stronger multi-orbit operator with greater coverage, improved resilience, an expanded suite of solutions, enhanced resources to profitably invest in innovation and benefit from talent, expertise and history of the two companies, indicates SES.
Emeis : -6% followed by Renault (-5.5%)
Antin Infrastructure Partners (-5.5%) presents assets under management of €31.4 billion in Q1, up +1.3% over the last twelve months. Fundraising continued with Flagship Fund V reaching commitments of €9.1 billion at the end of the quarter. All funds continued to perform in line with or above forecasts with increases in gross multiples recorded on several funds driven by the implementation of growth and value creation plans. The 2024 outlook is confirmed.
Rexel (-4.8%) reported sales of €4.71 billion in the first quarter, down 4.6% on a constant day, in line with expectations, due to a high base effect linked to products electrification, particularly photovoltaic activity in Europe. Excluding electrification (22% of sales, down 12%) and cables, traditional electricity distribution activities remain resilient, down slightly by 0.8%.
Peugeot Invest : -4.5% with Teleperformance, Capgemini
Vetoquinol drops 4% the day after the announcement of a turnover of 133.7 million euros in the 1st quarter, including 83.4 ME for Essential products. As expected, the first quarter mirrors a 2023 base effect distorted by voluntary overstocking, explains TP ICAP Midcap. The comparison with the 2022 financial year allows us to erase the base effect and demonstrate the dynamics of the group’s priority areas, which are Essentials & the United States. The solid cash flow generation continues to strengthen the financial structure, providing the firm with possibilities in terms of organic & external developments targeted on strategic priorities, adds the broker, at ‘buy’ with an adjusted target of 120 to 114 euros .
Air France KLM lost 4% after the carrier announced a larger-than-expected operational loss in the first quarter. Analysts say one-off costs and higher expenses affected results, as well as low revenues in freight.
Mersen : -3.5% followed by S30, Sartorius, Worldline, Voltalia, TF1
Wavestone (-3%) after its annual publication. At the end of the 2023/24 financial year, consolidated turnover amounted to €701.1 million, up +32%, including +9% at constant scope and exchange rates (unfavorable day effect of – 1.6%). For the record, Wavestone was targeting organic growth in 2023/24 at least equal to that of the 2022/23 financial year (+7%).
SMCP : -2.5% followed by M&P, Waga, Valneva, Scor, Eramet, Imerys, Trigano, M6, Icade
FNAC Darty : -2% followed by BioMerieux, Hermès
Vicat (-1.5%). The Group’s turnover reached 911 million euros in the 1st quarter, up +1.2% on a reported basis. Organic revenue growth amounts to +7.9% at constant scope and exchange rates. In 2024, the Group expects continued growth in its turnover, supported by growth in the United States and the resilience of emerging markets, taking into account the weakness of the residential sector in Europe. In view of a significant increase in the first quarter, the Ebitda generated by the Group in 2024 should be higher than that of 2023. This objective takes into account the progression of operational gains at the Ragland plant and the decline in inflation of energy costs over the period with a favorable base effect in the first half.
Exclusive Networks (-1%) after its quarterly point. Gross turnover stood at E1.255 billion, up 7% at constant exchange rates and 6% in published data with confirmation of the 2024 outlook.