Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IBERDROLA SA. We currently have 4 research reports from 1 professional analysts.
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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.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.