- European stock markets in uptrend, DAX returns to ATH
- BP and Kering results in focus
- UniCredit fails to impress with results and comments after Q4 report
Overall Market Situation: European markets are trending mostly positive, with most indexes on a slight upswing. Germany's DE40 gains 0.1% during Monday's session and breaks out to new historic highs.
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Create account Try a demo Download mobile app Download mobile appIn the broader European market, we see mixed sentiment among major economic sectors. The oil sector is doing well following BP's results. Source: xStation
The German DE40 index is gaining ground today and is back in the zones of historical highs. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart) and the support area of the consolidation zone near 21,230 points. Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation
Corporate news:
Kering (KER.FR) shares gained as much as 6.7% today after the Gucci owner's earnings showed a slight improvement in leather goods. Ultimately, however, these gains could not be sustained, as at the time of writing this report the company's shares had completely erased these movements.Â
Below you will find the most important findings from the published report:
FOURTH QUARTER RESULTS
- Comparable revenues -12%, estimates -13.3%Â
Revenues âŹ4.39 billion, -12% y/y, estimates âŹ4.24 billion
Gucci revenues âŹ1.92 billion, -24% y/y, estimates âŹ1.95 billion
Yves Saint Laurent revenue âŹ770 million, -7.8% y/y, estimate âŹ738.2 million
Bottega Veneta revenue 480 million euros, +11% y/y, estimate 452.1 million euros
Other Houses revenues âŹ818 million, -4.1% y/y, estimated âŹ786.3 million
Spectacles and Corporate revenues âŹ434 million, +19% y/y, âŹ405 million estimate
RESULTS FOR 2024
- Comparable revenues -12%, estimate -11.6%
- Revenue âŹ17.19 billion, -12% y/y, estimate âŹ17.01 billion
- Ebitda margin 27.1% vs. 33.6% y/y, estimates 25.1%
- Net profit âŹ1.13 billion, -62% y/y, estimates âŹ1.31 billion
- Dividend per share âŹ6, estimate âŹ6.53
OUR COMMENT:
Kering's results may reassure some investors that trends are improving moderately. However, this does not change the fact that the company still has a lot of work ahead of it to permanently return to the growth trajectory of several years ago. The acceleration of the brand's revenue growth is gratifying, but less pronounced than for other brands. For investors, the key issue in the short term may be who will take over the role of creative director of the Gucci brand after the recent departure of Sabato De Sarno.Â
Shares of oil giant BP (BP.UK) are also in high demand. The company's shares are currently losing 0.4%, but early in the session the shares opened with a gap up. Attention turned primarily to an expected review of the company's strategy for future years, which is expected to improve its business fundamentals. BP confirmed plans to repurchase $1.75 billion worth of shares during the current quarter.
FOURTH QUARTER RESULTS
- Adjusted Ebit $4.03 billion, estimates $3.88 billion
- Adjusted net income $1.17 billion, estimate $1.3 billion
- Capital expenditures $3.89 billion, estimate $3.37 billion
- Cash flow from operations $7.43 billion, estimate $6.13 billion
- Net debt $23.00 billion, estimate $23.99 billion
- Debt ratio 22.7%, estimated 23.9%
- Adjusted EPS 7.36c, forecast 8.43c
- Dividend per share 8,000c, estimate 8,000c
UniCredit SpA (UCG.IT) failed to impress investors with its promise to return more money in the coming years and its overall Q4 report. UniCredit warned that lower interest rates and the winding down of its Russian operations meant that adjusted profit would remain flat this year.
UniCredit's Q4 2024 results:
- Revenue âŹ6.00 billion (estimated âŹ5.87 billion)
- Net profit âŹ1.97 billion (estimate âŹ1.62 billion)
- Net interest income âŹ3.65 billion (estimate âŹ3.47 billion)
- Fee and commission income âŹ1.98 billion (estimate âŹ1.96 billion)
Other news from individual DAX index companies. Source: Bloomberg Financial LP
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