Bulletin
Investor Alert

London Markets Close in:

Europe Markets Archives | Email alerts

Oct. 20, 2021, 9:04 a.m. EDT

European earnings roll call sees Nestlé shares rise, while ASML, Akzo Nobel fall

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

European stocks struggled for traction on Wednesday as investors reacted to results from some of the region’s biggest companies, with shares of Nestlé a top gainer, while ASML Holding, Akzo Nobel and Antofagasta all fell.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -1.08% inched up 0.1% to 469.33, after a 0.3% gain on Tuesday. The German DAX /zigman2/quotes/210597999/delayed DX:DAX -1.27% . French CAC /zigman2/quotes/210597958/delayed FR:PX1 -1.03% and FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.38% were all flat.

Global concerns about rising inflation were in focus, with Germany reporting a 14.2% surge in annual producer prices for September, the highest annual gain since October 1974, said statistics office Destatis. In related news, Jens Weidmann, the president of the Bundesbank and one of the more hawkish European Central Bank voters,  announced his resignation on Wednesday , which he said was for personal reasons.

The U.K. saw a slight ease in consumer prices , but many are still convinced of a Bank of England rate hike.

Shares of Husqvarna /zigman2/quotes/207716251/delayed SE:HUSQ.B +0.45% jumped 8% after the Swedish manufacturer of outdoor power products posted well-received results, including a 6% gain in third-quarter organic sales growth. The company said it’s boosting inventories to cope with supply chain issues.

Heavweight Nestlé /zigman2/quotes/210131093/delayed NSRGY +1.04% /zigman2/quotes/208115528/delayed CH:NESN -0.27% saw its shares rise over 3% as the Swiss food and drink conglomerate reported higher sales for the first nine months of the year that also beat forecasts. And Nestlé lifted its full-year guidance for organic sales growth. Its Nescafe, Nespresso and Starbucks brands. Purina PetCare and vegetarian and plant-based food all drove growth.

“Nestlé appears well-positioned to weather the current environment of rising input costs,” said a team of Morgan Stanley analysts led by Pinar Ergun, in a note to clients. The company’s valuation of 22 times 2022 earnings, excluding its L’Oréal holding, “looks undemanding to us,” said the analyst.

Another gainer was Deliveroo /zigman2/quotes/225812915/delayed UK:ROO -9.41% , with shares of the delivery service also rising above 3% after reporting a rise in third quarter orders and gross transaction value and lifting guidance on the latter for the year.

On the downside, shares of ASML Holding /zigman2/quotes/210293876/composite ASML -2.19% /zigman2/quotes/206208657/delayed NL:ASML -5.65% slipped over 1% even after the Dutch chip equipment maker reported a 64% gain in third-quarter net profit that beat forecasts. Amid a continuing industry chip shortage, ASML said it would need to boost capacity to meet demand for memory and logic modes.

Akzo Nobel /zigman2/quotes/209835399/delayed NL:AKZA -0.57% shares fell over 1% after the Dutch paints and coating company reported a third-quarter fall in net profi, missing consensus and said its performance was hit by high raw-material costs and supply-chain disruptions.

“Despite the well flagged near-term raw [material] headwinds, the underlying demand across the division remains strong and AKZO continues to benefit from the strong coatings demand as many of the end-markets move toward normalization,” said a team of Citi analysts led by Mubasher Chaudhry, in a note to clients.

“Sustainability of volume and measures to combat impacts of raw material headwinds into 2022 should be a key debate point going forwards; however, shareholder returns and significant balance sheet firepower support our positive stance on the name,” said Chaudhry, who has a buy rating on the Akzo Nobel.

The mining sector was among the weakest in Europe, with shares of Antofagasta /zigman2/quotes/200173667/delayed UK:ANTO -2.44% dropping over 3% after the mining group reported weak copper production for the third quarter and forecast lower output for next year, due to drought conditions in Chile. 

Shares of Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +0.68% /zigman2/quotes/202627887/composite RIO +3.04% fell over 3% after the miner was downgraded to hold from buy at Jefferies, along with BHP /zigman2/quotes/208108397/composite BHP +3.84% /zigman2/quotes/203323256/delayed UK:BHP +1.54% , Vale /zigman2/quotes/200919386/delayed FR:FR +0.49% /zigman2/quotes/204339679/composite VALE +4.73% and CSN Mineracao “due to near-term downside risk to iron ore and to consensus forecasts, declining capital returns, accelerating cost pressures, and increased operating risk,” said a team led by Christopher LaFemina.

Stock in Kering /zigman2/quotes/204653408/delayed FR:KER -1.50% fell over 3% after the French luxury goods group reported late Tuesday third-quarter revenue above expectations, but a miss at its flagship Gucci label.

/zigman2/quotes/210599654/delayed
XX : STOXX
465.79
-5.07 -1.08%
Volume: 0.00
Dec. 2, 2021 4:57p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,276.88
-195.79 -1.27%
Volume: 65,307
Dec. 2, 2021 4:57p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,810.72
-71.15 -1.03%
Volume: 61,327
Dec. 2, 2021 4:57p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,141.28
-27.40 -0.38%
Volume: 437,133
Dec. 2, 2021 3:57p
loading...
/zigman2/quotes/207716251/delayed
SE : Sweden: Stockholm
kr 134.80
+0.60 +0.45%
Volume: 991,042
Dec. 2, 2021 4:57p
P/E Ratio
21.69
Dividend Yield
1.78%
Market Cap
kr76.73 billion
Rev. per Employee
kr3.09M
loading...
/zigman2/quotes/210131093/delayed
US : U.S.: OTC
$ 128.22
+1.32 +1.04%
Volume: 47,301
Dec. 2, 2021 10:55a
P/E Ratio
26.75
Dividend Yield
2.01%
Market Cap
$353.31 billion
Rev. per Employee
$329,154
loading...
/zigman2/quotes/208115528/delayed
CH : Switzerland: SWX
CHF 117.84
-0.32 -0.27%
Volume: 2.23M
Dec. 2, 2021 4:57p
P/E Ratio
27.01
Dividend Yield
2.33%
Market Cap
CHF324.99 billion
Rev. per Employee
CHF308,949
loading...
/zigman2/quotes/225812915/delayed
UK : U.K.: London
£ 262.80
-27.30 -9.41%
Volume: 2.60M
Dec. 2, 2021 3:57p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£5.38 billion
Rev. per Employee
£578,058
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 786.40
-17.60 -2.19%
Volume: 441,278
Dec. 2, 2021 11:12a
P/E Ratio
49.64
Dividend Yield
0.43%
Market Cap
$340.86 billion
Rev. per Employee
$567,632
loading...
/zigman2/quotes/206208657/delayed
NL : Netherlands: Euronext Amsterdam
691.50
-41.40 -5.65%
Volume: 978,707
Dec. 2, 2021 4:57p
P/E Ratio
52.35
Dividend Yield
0.48%
Market Cap
€300.74 billion
Rev. per Employee
€497,934
loading...
/zigman2/quotes/209835399/delayed
NL : Netherlands: Euronext Amsterdam
93.76
-0.54 -0.57%
Volume: 320,739
Dec. 2, 2021 4:57p
P/E Ratio
21.77
Dividend Yield
N/A
Market Cap
€17.20 billion
Rev. per Employee
€264,907
loading...
/zigman2/quotes/200173667/delayed
UK : U.K.: London
1,380.00 p
-34.50 -2.44%
Volume: 550,180
Dec. 2, 2021 3:57p
P/E Ratio
17.95
Dividend Yield
3.92%
Market Cap
£13.94 billion
Rev. per Employee
£172,054
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,723.50 p
+32.00 +0.68%
Volume: 1.65M
Dec. 2, 2021 3:57p
P/E Ratio
5.57
Dividend Yield
13.25%
Market Cap
£77.57 billion
Rev. per Employee
£732,787
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 64.05
+1.89 +3.04%
Volume: 1.70M
Dec. 2, 2021 11:12a
P/E Ratio
5.58
Dividend Yield
10.72%
Market Cap
$103.31 billion
Rev. per Employee
$939,693
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 57.39
+2.12 +3.84%
Volume: 2.14M
Dec. 2, 2021 11:12a
P/E Ratio
13.11
Dividend Yield
10.52%
Market Cap
$142.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203323256/delayed
UK : U.K.: London
2,106.50 p
+32.00 +1.54%
Volume: 3.48M
Dec. 2, 2021 3:57p
P/E Ratio
12.84
Dividend Yield
10.32%
Market Cap
£106.96 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200919386/delayed
FR : France: Euronext Paris
26.81
+0.13 +0.49%
Volume: 629,000
Dec. 2, 2021 4:57p
P/E Ratio
29.99
Dividend Yield
1.12%
Market Cap
€6.45 billion
Rev. per Employee
€149,012
loading...
/zigman2/quotes/204339679/composite
US : U.S.: NYSE
$ 12.83
+0.58 +4.73%
Volume: 12.44M
Dec. 2, 2021 11:12a
P/E Ratio
3.63
Dividend Yield
8.91%
Market Cap
$61.12 billion
Rev. per Employee
$543,987
loading...
/zigman2/quotes/204653408/delayed
FR : France: Euronext Paris
694.50
-10.60 -1.50%
Volume: 122,691
Dec. 2, 2021 4:57p
P/E Ratio
25.84
Dividend Yield
1.15%
Market Cap
€87.94 billion
Rev. per Employee
€339,797
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.