Positive European price lists in the midweek session. While awaiting a new round of macro and corporate data, the stock markets of the Old Continent are still looking to the European Central Bank (ECB) and the promise of the imminent first rate cut in June. A hypothesis that was strengthened yesterday after the words of the vice president of the ECB, Luis de Guindos, who reiterated that from Frankfurt they are ready to cut in June.
Meanwhile on the markets we await the proof of US big tech, engaged in the publication of the accounts for the first quarter of 2024. Yesterday evening, with the markets closed, those of Tesla arrived, those of Meta, Alphabet and Microsoft are expected in the next few days. Also in Piazza Affari the next sessions will see the earnings season in the foreground, with the quarterly numbers of two big names in the Ftse Mib such as STM and Tenaris.
Meanwhile today Piazza Affari is moving slightly higher, with the Ftse Mib index showing a slight increase of 0.10%. Among the stories of the day Eni which presented the quarterly but also other announcements in the XXX sector, STMicroelectronics which rises after the accounts of Texas Instruments and is preparing to reveal the numbers for the first quarter.
All eyes also on Telecom Italia following the shareholders’ meeting which renewed the board of the telecommunications company, with CEO Pietro Labriola confirmed for a new mandate. On the Telecom Italia front, analysts suggest, the issue now remains the closing of NetCo expected in the summer.
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Eni on the roller coaster on the day of accounts
After a positive start, Eni is back on its feet on the stock market and is now down around 1.2%. The announcements of the last 24 hours are under the lens of the markets, starting with publication of first quarter 2024 results. Also highlighted is the announcement relating to a agreement to aggregate almost all of its Exploration and Production assets located in the UKexcluding those located in the East Irish Sea and those linked to CCUS (‘Eni UK Business’) projects, to the assets of Ithaca Energy plc.
The quarterly numbers
For Eni the first quarter of 2024 was filed with an adjusted net profit of 1.58 billion euros, down 46% on an annual basis almost in line with the 1.57 billion of the Bloomberg consensus, while the adjusted Ebit showed a decline of 30% to 4.12 billion. Results in decline but which CEO Claudio Descalzi defined as excellent: “The financial results for the quarter were excellent, with a strong contribution from E&P thanks to the 5% increase in production compared to the previous year and the continued growth of Plenitude and Enilive”.
The Six-Legged Dog group has revised the annual forecasts upwards of adjusted pro forma Ebit and adjusted cash flow before the change in working capital to over 14 billion euros. As for the “shareholder remuneration” chapter, Eni specified that the share purchase plan is now expected to rise to 1.6 billion, with an increase of 45% compared to the 1.1 billion communicated in the March Capital Market Update. .
Overall, analysts also judge Eni’s first quarter 2024 results and the revision of guidance positively. Among these Banca Akros which confirmed its buy recommendation, with a target price of 18.5 euros. “The results were good and the targets in terms of cash flow and Ebit were revised,” they comment from Akros. Equita experts also kept their purchase recommendation on Eni unchanged and wrote: “first quarter better than expected, with an improved outlook thanks to a more favorable scenario and buyback increased to 1.6 billion euros”.
STM at the top of the Ftse Mib, tech in the spotlight
STMicroelectronics races on the stock exchange and ranks at the top of the Ftse Mib, in a week in which the tech sector is under special surveillance on the markets globally. The reason is explained by the fact that this week the quarterly reports of some big American companies in the sector, such as Meta, Alphabet and Microsoft, are expected, thus indicating the state of health of the tech world. STM itself will publish the results as of March 31, 2024 tomorrow. At this moment the STM stock advances by more than 5% and is approaching the 40 euro threshold.
While waiting for the flurry of quarterly reports to arrive, iThe market focuses on the numbers released yesterday after the markets were closed by the American Texas Instruments which reported for the first quarter of 2024 revenues of 3.66 billion dollars, net profit of 1.11 billion and an EPS of $1.20. Results declining but better than market expectations and giving the stock wings in the pre-market. In fact, the stock rose in the premarket by around 6% thanks to a better-than-expected quarterly result but also thanks to an encouraging outlook.
Meanwhile, as regards STM accounts, according to analysts’ forecasts, quarterly revenue should stand at $3.61 billion, down 15% on an annual basis. The gross margin is estimated to decrease to 42.3%, the Ebit to decrease by 48% to 624 million and the net profit to decrease by 48% to 542 million.
