HCA Market close 02.11.22 - Featuring North Media, Xplora, Odico
HCA Market Close 02.31.22 – @North Media publishes Q3 earnings, @Xplora announces a significant partnership in Germany, and @Odico announces a new order.
Market Movements:
Denmark: OMX:C25 (+0.66%) ; Sweden: OMX:S30 (+0.28%) ; Norway: OBX:OSL (-0.36%) ; S&P 500 (-0.36%) ; Nasdaq (-1.15%); Stoxx 600 (-0.29%)
Market Drivers:
Markets fell today in anticipation of the Fed's rate hike decision which is scheduled later today at 19:00 CET.
Markets fell after data showed private payrolls rose than expected in October. The data supports yesterday's job openings data and signals that the US labour market remains tighter than expected. A tight labour market means only one thing for the Fed – tighter monetary policy.
The Fed is expected to raise its base rate by 75 basis points later today, but more important is Jerome Powell's press conference, where markets will be closely hanging to his every word in search of the Fed's future rate hike trajectory. Traders are still split between 50 and 75 for the December FOMC meeting. This week's data moves the needle towards 75.
Today's trading session was risk-off, with the Nasdaq underperforming, given the negative implication for tech stocks of higher interest rates. The rest of the US trading session will likely be driven by Jerome Powell.
Snacks from the HCA Platform:
Xplora announced that it is live as a Mobile Service Provider in the German market, allowing the bundling of Xplora's leading smartwatches for kids with Xplora Connect SIM. The offering will be further extended to premium subscriptions. Until now, Xplora has sold devices in partnership with Deutsche Telekom, where Deutsche Telekom own the Sim service part of the contract. However, today's news and partnership with Telekom Deutschland GmbH will give Xplora custody of the recurring Sim contract on its organic sales in the region. Germany is Xplora's largest market by volume, with around 500,000 smartwatches shipped to date. Xplora’s shares gained 19.3% today.
North Media reported its earnings earlier in today’s trading including a guidance downgrade to revenues for DKK 995-1,010m from DKK 1,015-1,040m previously and for EBIT of DKK 190-200m from DKK 195-220m previously. The results showed inflation has affected North Media’s business resulting in a margin squeeze. EBIT margin for Q3 YTD 2022 is 17.5%, down from 25.1% Q3 YTD 2021. North Media will present its Q3 earnings report tomorrow (in Danish). Sign up here: https://www.inderes.dk/videos/north-media-praesentation-af-q3-kvartalsregnskabet-2022
Today, Odico announced a new order from a strategic Danish customer in the energy sector within Odico's business area, Digital Fabrikation. With Odico's increasing focus on the energy sector, this is an important order. Financially, the order constitutes up to DKK 2 million and is expected to be delivered from Q4 2022. Full-year guidance is maintained. The share gained 6.94% in today's trading.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:40