We expect a volatile Q2 reporting season With still relatively robust demand, companies should be able to compensate for inflation with price increases in order to protect absolute EBITDA levels (not margins). FX will also play a major role and could be one of the key reasons behind higher estimates for FY22. With the market starting to feel recessionary impacts we expect companies to look more closely at short-term risks. Higher interest rates could be another concern; however, Spanish names have strongly deleveraged in recent years. FY22 guidance risk - more on the downside than on the upside Year to date we have not seen any guidance changes among Spanish names. However, the new scenario of higher energy costs, a longer inflationary period than initially expected, and in some cases supply chain disruptions, may imply a cut in numbers. We see Fluidra, Tecnicas Reunidas and CAF among the companies with the greatest risk of lowering FY22 guidance, while Gestamp and Applus could surprise to the upside. Look to Applus, Gestamp and Prosegur Cash for positive surprise Beyond the possibility of an upgrade to FY guidance, we think Q2 consensus looks conservative for Applus on better volumes and FX and for Gestamp on a stronger than expected recovery of production volumes. We also think that CASH could surprise positively on a stronger quarter in Latin America. Some caution on Fluidra, CAF and ROVI into Q2 Fluidra will suffer a tough comparison base, which could lead to a volume decline for the first time in many quarters, while also having some difficulties passing through prices in the US. CAF should continue to face supply chain issues at its bus business. At Rovi, we expect figures to continue to be good, but a temporary deceleration in the vaccine contribution may disappoint.