THE TREND
(Boursier.com) – The CAC40 rose 0.62% to 7,407 points at midday, ending two sessions of decline. The trend is supported by some good corporate results and the hope that the Fed will pause in its rate hike despite Chinese inflation data puzzling on the recovery of post-Covid activity in the country. . In an hour, traders will learn of the Bank of England’s monetary policy decision, which should raise its rates for the 12th consecutive time (by 25 bp to take them to their highest since 2008).
The publication of data on producer prices in the United States will also be closely monitored. Yesterday’s Consumer Price (CPI) data showed year on year inflation slowing to 4.9%, as expected, and somewhat bolstered expectations of a Fed status quo next month. According to CME Groupe’s Fedwatch Barometer, the market now expects such an outcome with a 90% probability after rising 25 basis points last week. After a year of rate hikes and the recent tensions in the credit market, prices nevertheless continue to rise at a sustained pace and the labor market remains robust. “It’s certainly optimistic to think of a rate cut, but not so optimistic to think of a rate break,” Sunaina Sinha Haldea, global head of private equity at Raymond James, told Bloomberg TV. “The impression gives the Fed what it needs to consider a pause.”
In Europe, calls for continued monetary tightening by the ECB are increasing among members of the Governing Council. François Villeroy de Galhau, the head of the Banque de France, was nevertheless more nuanced on Thursday. “We have already made most of the progress in this area (…) What remains to be done is more marginal”, he declared in an interview granted to the regional press group ‘Ebra’. “We have decided on rapid rate hikes since July, because we were even starting from negative rates! We are now at 3.25%, and it is the future effect of these past hike decisions that must essentially achieve our goal within two years,” he added.
A new wave of corporate publications is also driving the rankings in Paris with good surprises from Beneteau and Solutions 30. It’s more complicated for Elis and Eutelsat.
The euro/dollar parity reached $1.0928 this afternoon. A barrel of Brent is trading at $77.3. An ounce of gold is traded at $2,026.
RISING VALUES
* Hipay soared 12.5% to 5.8 euros after reporting a 22% growth in the volume of payments to 2.1 billion euros in the 1st quarter of 2023. Turnover also increased by 22% , at 16.4 million euros. During the quarter, HiPay recorded dynamic commercial activity, the impact of which on turnover should cover the entire financial year. HiPay therefore anticipates aiming for a new year of double-digit growth in 2023.
* Beneteau soared 11.2% to 16.9 euros after raising its annual targets. After an excellent fourth quarter of 2022, the Group continued to grow at a strong pace in the first quarter and recorded revenue of 478 million euros, up 51% (+49% at constant exchange rates) . At constant scope, the Group’s 2023 consolidated revenue is now expected to exceed €1.750 billion, up 16% compared to 2022 in published data, while current operating profit should amount to €190 million (vs. €170 million). previously), an increase of more than 22% compared to 2022.
* Solutions 30 gained 7.2% to 3.1 euros. The firm achieved consolidated revenue of 255.3 ME in the 1st quarter of 2023, up 14.6% compared to the same period of 2022 and 14.5% in organic growth. This good performance is based on the particularly robust growth recorded in Benelux, Italy and Poland. This good start to the year allows Solutions30 to confirm its objectives of returning to double-digit growth in 2023, which will allow it to cross the €1 billion mark in turnover, with a gradual improvement in its margins. throughout the exercise.
* Bastide Le Comfort Medical rose 5% to 29.5 euros. The group specializing in home health services reported quarterly revenue of 130.6 million euros, up +12.8% and +9.1% organically. Given the good business momentum, the Group confidently reiterated its annual revenue targets of around €510 million and current operating margin of more than 8.3% for the year. As announced when the half-year results were published, the improvement in operating free cash flow, already visible in the first half, remains a major priority with the aim of initiating, from the second half, the Group’s debt reduction and freeing up new financial resources for selective external growth operations targeting international markets as well as recurring and high value-added activities.
* Eiffage (+1.3% to 106.6 euros) achieved, in the 1st quarter of 2023, a consolidated turnover of more than 4.9 billion euros, up +13.1% compared to the 1st quarter of 2022 (+ 11.5% phr). The group expects a further increase in its current operating profit in Works and Concessions. Net income, Group share will also benefit from the equity method of the stake in Getlink, starting in the second quarter.
* Engie (+0.8% to 14.8 euros). On the strength of a very good start to the year, the firm now anticipates 2023 results at the top of the guidance range. In a context of lower volatility and lower energy prices, as well as an uncertain macroeconomic environment, the group expects net recurring income, Group share in the upper half of the range of 3.4 to 4.0 Billions of Euro’s. EBIT, excluding nuclear, is also expected at the top of the indicative range of 6.6 to 7.6 billion euros. Over the first three months of the year, the firm recorded an Ebitda of 5.4 billion euros, up 16.9% gross and 16.2% organically, for a turnover of 29 .2 billion euros, up 14% and 14.2% on an organic basis. EBITDA (excluding Nuclear) stood at €4.8 billion, up 22.8% (+21.9% organic) and EBIT (excluding Nuclear) reached €3.8 billion , up 29.8% (+28.8% on an organic basis).
FALLING VALUES
* claranova (-7% to 2.23 euros) achieved over the first 9 months of the 2022-2023 financial year, a turnover of 405 million euros, an improvement of 9% at real rates compared to the last year and 2% at constant scope and rates. Over the period, all of the Group’s activities grew at real exchange rates as well as organically.
* So local lost 5% to 0.189 euro while Moody’s has just lowered the CFR credit rating from ‘Caa1’ to ‘Caa3’ and the probability of default rating (PDR) from ‘Caa1-PD’ to ‘Caa3-PD’. The outlook changes from ‘under review’ to ‘negative’. This action concludes the review initiated by Moody’s on February 28 following the company’s decision to postpone the publication of results for fiscal year 2022. an increased risk of default and low liquidity…”, specifies the agency.
* Backgammon Metals (-2.8% to 17.9 euros). In the 1st quarter of 2023, the Group recorded sales of 692 million euros, 4.4% lower than those of the same period of 2022. The Group observed a decline in demand and prices at the beginning of 2023 which according to all likelihood should intensify in the 2nd quarter. The gross margin amounted to 25% of turnover (27.6% a year earlier) and current EBITDA stood at 77 ME, i.e. 11.1% of turnover (14% at 1st quarter 2022). Net profit attributable to the Group is 44 ME (63 ME a year earlier). On the strength of its financial solidity, the Group will pursue its investment and development policy in an environment of reduced visibility. The Board of Directors will propose to the General Meeting of June 30, 2023 the distribution of a dividend of 1 euro per share.
* Eutelsat drops 2.4% to 6.2 euros after a publication without much surprise and the maintenance of its annual objectives. The satellite operator reported total third-quarter revenue of 272 million euros, down 5.2% on a reported basis and 7.5% on a like-for-like basis. A level in line with analysts’ expectations. The group confirmed its financial targets for the 2022/23 financial year and beyond, including an annual adjusted discretionary free cash flow of 420 million euros. It expects its revenue to accelerate in the second half of 2023, particularly in mobility applications, with the entry into service of new in-orbit assets, which should support a return to growth in fiscal year 2023 /24.
* Aures Technologies (-1.4% to 5.6 euros) unveiled, for its 1st quarter of 2023, revenues of 19.77 million euros, down -20.96% (-21.83% at constant exchange rates) . “The economic context, which is very disturbed by inflation (which weighs on the purchasing power of households) combined with the increase in the cost of energy and the rise in interest rates have prompted many of the Group’s customers to postpone their non-priority investments. At the same time, several customers have postponed their deliveries”, explains Aures. Economic uncertainties persist and continue to impact a large proportion of the Group’s customers. In this difficult context, any forecast remains risky… Various encouraging signals from the Group’s entities nevertheless make it possible to envisage a gradual recovery in activity.
* Klépierre lost 1.1% to 21.6 euros after unveiling its activity for the first quarter of 2023. The solid rebound in merchant sales continued in the first three months of the year, up 13.2 %. Footfall also increased during the quarter and shows an increase of 14.1% compared to 2022. Given the performance of the first quarter, Klépierre confirms its forecasts for 2023 and expects to generate net current cash flow per share of 2.35 euros, up 5% compared to the adjusted figure for 2022 of 2.24 euros (i.e. 2.62 euros restated for 0.30 euros of reversals of provisions and 0.08 euros relating to the cash flow generated by the assets transferred).
* Elis (-0.7% to 17.5 euros) recorded a turnover of 1.013 billion euros in the first quarter, up by +21.7%. Organic growth remained very strong, at +18.3%, and all geographic areas posted double-digit growth. Elis indicates that he has increased confidence in the outlook for 2023, communicated on March 8. Organic growth in annual revenue for 2023 is expected between +11% and +13%.