Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IBERDROLA SA. We currently have 5 research reports from 1 professional analysts.
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Positive growth trend is confirmed and should continue
22 Feb 17
The group has published its FY16 results with weak revenue decreasing by 7% yoy to €29.22bn. However, cost optimisation and a reduction in operating expenses and a combined +€114m FX effect have boosted the EBITDA of the group to €7.8bn, a 7% yoy increase. The network business’s performance with the consolidation of UIL more than compensated for the decrease in the generation & retail, and renewable businesses. Operating profit increased by 19% yoy due to lower amortisation and provision charges. Net profit was €2.7bn which represents a 12% yoy increase, below EBIT growth from higher taxes incurred in 2016, lower revenues from associates (-61% yoy) and higher minority interests. On an adjusted basis, net income reached €2.53bn, which represents an 11.7% yoy increase and was broadly in line with expectations. The dividend payment is slightly above expectations at €0.31/share, which represents an 11% yoy increase. The positive trend should continue in 2017 as the company expects mid single-digit growth at both the EBITDA (6% CAGR) and net profit level (7.5% CAGR).
Heavy investment strategy towards growth pays off
26 Oct 16
Positive Q3 16 results for Iberdrola. Despite the 12.2% yoy decrease in revenues in the third quarter to €6,639m, the group has achieved a 10.8% yoy increase on EBITDA to €1,837m; moreover, operating profit increased by 16.7% yoy to €1,003m, both ahead of forecasts by 1.3% and 1.9% respectively. In addition to this, the group’s net income increased by 41.4% yoy to €584.9m, which is 4.1% ahead of consensus. In the first 9 months, the group had a 9.1% decrease in revenues, reaching €21.54bn. EBITDA, on the other hand, increased by 4.2% to €5.73bn and, on an adjusted basis, (excluding FX effects) it rose by 6.7%. Operating profit increased 7.6% and reported net income 6.4% to €2.04bn, however, on an adjusted basis, it grew by 17% to €1.96bn. The positive performance comes from the network business (+8.8% ytd), which partially compensated for slightly lower profits from the renewable business (-3.3% ytd) and a flat performance in the generation division (-0.1% ytd). In terms of cash flows, the group confirms its positive trend as operating cash flows have improved by 9.5% ytd to €4,717m, and are able to cover the 45% ytd increase in investment the group has under its ambitious capex plan. The only weak point on the release is that the net debt of the group increased by 2.1% in this quarter to reach €28.42bn. The company confirmed its 2016 outlook in terms of EBITDA (+5%) and net profit (double-digit growth) for 2016.
The positive trend continues: higher net income expectations
20 Jul 16
Iberdrola continues its positive trend with earnings growth in the 2016 half-year results, despite revenue falling 7.6% yoy to €14,898m, as EBITDA increased 1.4% yoy to €3.89bn (beating consensus by 1.2%) and operating profit reached €2.25bn (+3.9% yoy). However, the biggest improvement was seen in the net financial result as it improved by more than 30% yoy due to lower financial costs and exchange rate hedges, pushing upward the adjusted net income towards a 13.9% yoy increase to €1.43bn (although 1.5% below expectations). On the cash flow side, operating cash flows increased 6.54% yoy to €3,227m due to the improvement in earnings, as adjusted EBITDA grew 5.8% in the first quarter. Moreover, following the strategic plan, Iberdrola increased investment by 42.7% yoy to €1,859m, in which 67.5% had been attributed to growth projects. Following this strong results publication, the company has stated that it now expects net profit to grow at a higher rate than EBITDA (which is expected at 5%) despite FX and one-off effects.
Results impacted by lower prices and one-offs
27 Apr 16
Iberdrola reported earnings slightly below expectation as EBITDA decreased by 6% yoy to €2,008m and fell 2% short of expectations. Revenues decreased 7% yoy to €8,185m with operating profit decreasing by 7% yoy to 1,249m (4% below forecasts). Reported net income improved by 3.3% yoy to €868.7m but, on an adjusted basis, it reached €836.8m, which is a 5.1% yoy increase, although 1% short of expectations. Net debt increased by €1,969m yoy to €28,274m mainly due to the consolidation of Avantgrid. On the other hand, operating cash flows improved by 2.3% yoy to €1.7bn. Despite the negative results, the group maintains the FY guidance with growth expectations. Management maintained the 2016 guidance as the company expects the negative effects seen in the first quarter to be offset during the year. Both the liberalized and regulated businesses were down (-€133m and -€104m respectively).
Results boosted by renewables and networks; growth expectations raised
24 Feb 16
Positive results for the group as revenues increased by 4.6% to €31.46bn, beating expectations by the same amount, while EBITDA reached €7.3bn with a 5% yoy increase and in line with forecasts. Operating profit, on the other hand, declined by 3% yoy due to higher depreciation expenses (+9%), an increase in provisions (+69%) and a €230m impairment. Reported net income increased 4.1% yoy and reached €2.42bn, in line with forecasts, boosted by one-offs such as the reversal of tax provisions and a lower UK tax rate; however, on an adjusted basis, net income increased by 5.6% yoy to €2.26bn, but this is slightly below expectations. The Avangrid transaction in the USA actually had a negative impact in Q4 15, as adjusted for this net profit would have reached €2.46bn. The dividend has been increased 4% to €0.28, which is slightly above expectations. Net debt increased by 14% yoy due mainly to the integration of UIL (Avangrid). Without UIL, net debt would have reached €25.66bn which is better than expected. Operating cash flow remains strong and improved by 8.2% yoy to €5.9bn. The group expects a strong performance for 2016 with both EBITDA and net profit growth driven by Avangrid's full-year contribution, new power plants in Mexico, higher hydro reserves and renewable capacity, and an increase in the network asset base.
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.