Societe Generale visible, L’Oreal hurts, Atos loosens screws

trend

CAC 40 is at about 7,150 points at 9:30 am, up 0.30%. The Paris index has been pulled by the results (generally favorable) of companies that have announced their annual financial results since the end of yesterday.

However, the approach of disclosing the latest US inflation rates still involves investor enthusiasm. Banking is one of the preferred securities, which actually exceeds the expectations of Crédit Agricole and Societe Generale. Pernod Ricard was relieved every six months. On the other hand, it is more difficult for L’Oreal and TotalEnergies, who have received new publications. Atos loosens the screws following the announcement of the new accounting rules.

On Wall Street yesterday, investors went looking for bargains, especially for major tech stocks that had fallen in valuation in recent weeks. Crude oil prices have risen again after the announcement of a plunge in US crude oil inventories.

Wall street

The New York Stock Exchange signed a second rebound session backed by tech stocks on Wednesday, taking advantage of the welcome break in government bond rates after recent tensions. Investors welcomed good corporate performance and continued to look for bargains, especially in the massive “techno” that has been downgraded in recent weeks. Crude oil prices rose again after it was announced that US crude oil inventories had plummeted.

At the closing price, the Dow Jones rose 0.86% to 35,768 points, the broad S & P 500 index rose 1.45% to 4,587 points, and the technology and biotechnology stock-rich Nasdaq Composite index rose 2.08% to 14,490 points. became.

Eco and currency

America :
–Consumer price index. (2:30 pm)
-Weekly unemployment registration. (2:30 pm)
-US budget balance. (20:00.)

Euro / dollar parity reached $ 1.1419 this morning. Brent’s barrel is trading at $ 90.61. One ounce of gold is trading at $ 1,825.

Value to rise

Crédit Agricole (+ 1% to € 14.11) announced this Thursday a net profit of € 5.4 billion, which is the basis for the 2021 fiscal year. This is above the target of 5 billion euros … 2022. Years such as other targets set for this, such as a cost / return ratio of less than 60% and a return on tangible shareholders of more than 11%, have already been achieved at 57.8% and 13%, respectively. .1%. Crédit Agricole SA helped exceed profit targets one year ahead of schedule by reducing bad debt costs and increasing revenues in all areas of business, helping to reach consensus in the fourth quarter.

Societe Generale (+ 3.90% to € 37.02) had a net profit of € 1.79 billion in the fourth quarter, down 87.5% in risk cost from € 470 million in the previous year to 86ME. Banks’ net revenues increased 13.4% to € 6.62 billion, with retail banking revenues in France increasing by 11% and stock market activity revenues increasing by nearly 23%. According to management, the profitability of La Defense Bank will continue to improve. The underlying cost / revenue ratio will be between 66% and 68% this year, compared to 67% in 2021 and 74.6% in 2020. Since 2022, this factor has been decreasing year by year, and banks have further designated it. SG management explained that its financial and advisory activities achieved record-breaking annual performance last year, with record revenues of € 2.92 billion (+ 14.8%), including 814 ME in the fourth semester. doing.

EDF (+ 1% to 8.64 euros): A decisive day for the French nuclear sector. Therefore, Emmanuel Macron is expected in Belfort this Thursday for a trip devoted to France’s energy strategy at the manufacturing site of turbines installed in French nuclear power plants.

Valeo (+ 0.50% to € 103.54) has signed an agreement with Siemens to purchase a 50% stake in Valeo Siemens eAutomotive. Beginning July 1, 2022, Valeo will integrate 100% of Valeo Siemens eAutomotive into its powertrain systems business. The completion of this project will result in a net cash outflow of € 277 million for Valeo to acquire a stake in Siemens on a debt-free basis. This payment will be funded by the group’s available cash.

Pernod Ricard (+ 2.30% -19.30 euros): Sales in the first half of 2021/22 were 5,959 ME, organic growth was + 17% (+ 20% at face value), mainly RMB against the US dollar and the euro. .. In the first half of the year 2021/22 COI was € 1,998 million, an organic increase of + 22% and a current operating margin improvement of + 147 bps. Net recurring profit and group share were 1,438 ME, an increase of + 32% in face value compared to the first half of 2020/21. The group’s share of net income was 1,390 ME, an increase of + 44% at face value.

Legrand (+ 2% to € 94): Adjusted operating margin reached 20.8% in 2021, an increase of +1.8 points compared to 2020. Includes almost + 17% in the fourth quarter alone, reflecting production, control, highly selective and targeted control of commercial costs, and the Group’s pricing initiatives. As of December 31, 2021, the net income group’s share increased by + 32.8% to reach € 904 million.

ALD (+ 2.30% -14.30 euros): Used car sales results rose to 437.7ME from 61.1ME in 2020. The cost / revenue ratio (excluding the results of used car sales) has improved in pairs. It will be 48.8% in 2020. The cost of risk at 11 bp, including the reversal of the 6.5ME IFRS 9 future outlook provisions (future components). Earnings per share for the period were € 2.16. The proposed dividend is € 1.08 per share, or a dividend rate of 50%. Return on equity is 19.5% compared to 12.5% ​​in 2020.

Dassault Airlines (+ 4.30% to 114.80 euros): Indonesia chooses Rafale! Asian countries get 42 latest generation Rafale. The acquisition of Rafales by Tentara Nasional Indonesia Angkatan Udara is a complete “turnkey” centered on a global package that includes crew training and supportive logistics to support the activities of several Indonesian Air Force bases. Includes solutions. A training center consisting of two mission simulators. No financial details have been leaked.

Drop value

Wednesday’s L’Oréal (-2.60% to € 361.40) was particularly strong in North America, with fourth-quarter sales higher than expected, up 11.2% from October to December to € 9.09 billion. .. Analysts expect average sales of € 8.75 billion. Gross profit margin for the full year was € 23,854mn, up 80 basis points from 73.1% in 2020 to 73.9%. Research and innovation costs 3.2% of sales, exceeding € 1 billion. In total, operating profit increased by 18.3% to € 6.16 billion, reaching 19.1% of sales and an increase of 50 basis points. Corporate tax excluding non-recurring items was € 1.535 billion and the tax rate was 23.7%. Group share, excluding net income and non-recurring items, was € 4,938 million. Net income per share was € 8.82, up 20.9%. Net income and group share increased 29% to € 4,597 million.

TotalEnergies (-0.46% to € 52.16): To further pamper shareholders. Fully benefiting from soaring oil and gas prices, energy giants generated $ 6.8 billion in adjusted net income in the fourth quarter of 2021, multiplied by 5.2 in a year ($ 2.5 per title). It generated $ 60.35 billion ($ 37.9) in revenue. 1 billion a year ago). The consensus was adjusted net income of $ 5.93 billion. Operating cash flow more than doubled to $ 11.62 billion and adjusted EBITDA reached $ 14.3 billion, a 2.7-fold increase over the past year. Hydrocarbon production was stable, with a daily barrel of oil equivalent of 28.52 million barrels (Mboe / d). It decreased by 2% for the whole year to 2.819 Mboe / d. TotalEnergies emphasizes that this year’s net investment will be between $ 14 and $ 15 billion, of which $ 3.5 billion will go to renewable energy and electricity (25%). Building on these achievements, the group, which is continuously developing clean energy, plans to increase its interim dividend in 2022 by 5% and buy back $ 2 billion in shares in the first half of the year.

Atos (-6.30% to € 31.43): Performed an extensive analysis of the recoverability of assets and the profitability of their past contracts. This analysis led to the impairment of assets primarily associated with traditional activities. Today, the Group can show that goodwill and other fixed assets are impaired to around € 1.9 billion. As a direct result, an impairment loss is recorded to reflect a decline in awareness of the Group’s deferred tax assets. In the second half of 2021, the Group will also record impairment of contractual assets, allowance for doubtful accounts and allowance for future losses for up to approximately € 500 million, primarily due to the above effects. Revaluation of contracts, including BPO contracts in UK financial services. The group has 2021 sales of about 10.8 billion euros, a decrease of about -2.6% at a constant exchange rate (announced on January 10-2.4%), and an operating margin of 2021 sales. We expect it to be around 3.5% (about 4% was announced on January 10th), mainly in line with the final assessment of BPO contracts in UK financial services.

They published their sales / results …

Buy-Rent, Claranova, BOA Concept, Group SFIT (Thomson Computing), Lectra, Vogo, Assystem, Neurones, Mahhia.

The latest “RECOS” from analysts ..

Goldman Sachs will resume Scor’s neutral monitoring with a price target of € 33.

Berenberg has remained in the Maison Dumond for a long time with an adjustment target of € 26-27.

Berenberg holds McPhy at an adjusted target price of € 24-21.

Market information

TotalEnergies cancels 1.6% of its capital.

Rubis: Employee capital increase is 20.07 euros.

in short

Eurofins acquires genetic testing service JSC.

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Manutan acquires startup ZACK.