Europe Movers: Epiroc, Givaudan, Nokia, STMicroelectronics

Inga Muller
25 Jan, 2024
Frankfurt

European markets were on hold ahead of the ECB's interest rate decision  and monetary policy outlook, and bond yields edged higher.  

The DAX index decreased 0.3% to 16,831.69, the CAC-40 index fell 0.1% to 7,446.92, and the FTSE 100 index inched lower by 0.01% to 7,527.28.

The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.86%; the UK gilts edged higher to 4.05%; and Italian bonds inched higher to 3.94%.

Givaudan SA rose 4.6% to CHF 3,470.0 after the maker of flavors and fragrances reported results that met market expectations.

2023 sales increased 4.1% to CHF6.9 billion, net income rose 4.3% to CHF893 million, and free cash flow jumped 92% to CHF920 million.

The company proposed a cash dividend of CHF 68 per share, an increase of 1.5% from a year ago.

Epiroc AB decreased 1.8% to SEK184.20 after the company reported mixed quarterly results.

Revenue in the fourth quarter increased 12% to SEK 15.6 billion from SEK 13.9 billion, and orders received rose 5% to SEK 14.7 billion from SEK 13.7 billion a year ago.

Profit after tax decreased 5% to SEK 2.2 billion from SEK 2.4 billion, and diluted earnings per share fell to SEK 1.87 from SEK 1.98 a year ago.

STMicroelectronics declined 2.3% to €41.63 after the semiconductor company reported revenue and earnings slightly below expectations.

Revenue in the fourth quarter declined 3.2% to $4.3 billion from $4.4 billion, net income dropped 13.8% to $1.07 billion from $1.09 billion, and diluted earnings per share fell to $1.14 from $1.32 a year ago.

The company forecast first-quarter revenue of $3.6 billion, a decline of 15.2% from a year ago and 15.9% from the previous quarter.

Full-year 2024 revenue is expected to range between $15.9 billion and $16.9 billion, and gross margin percentage is estimated between the lows and mid-40s.

Capital expenditure in 2024 is expected to be around $2.5 billion.

Nokia jumped 7.6% to €3.39 after the Finnish telecom equipment maker announced a €600 million stock repurchase program over a period of two years. 

The company board also approved a 3 cents per share cash dividend to shareholders on record on January 30 to be paid on February 8.  

Net sales in the fourth quarter declined 23% to €5.7 billion from €7.5 billion, net income swung to a loss of €33 million from a profit of €3.2 billion, and diluted earnings per share were (0.01) compared to 56 cents a year ago.