Legrand ramps up while Davide Campari suffers a hangover
Earnings season continues as Davide Campari, Valiant Holding, and Solvay tumble following their releases, while Legrand and Henkel trend higher. Verisure benefits from Nordea's backing, and luxury stocks gain ground amid easing tensions in the Middle East.
Legrand (+4%): reported a 14.2% increase in net profit to 334.9 million euros. This performance was driven by an 11.4% rise in revenue. These strong results were fueled by robust demand from 'data centers' and an effective acquisition strategy, ensuring an 'excellent level of profitability' according to management.
Henkel (+3%): the German group beat expectations with 1.8% organic growth in the first quarter. This momentum is primarily based on the beauty and consumer goods segment, driven notably by the Schwarzkopf brand.
Intercontinental Hotels Group (+3%): the hospitality giant benefited from revenue per available room exceeding forecasts. The recovery of the US market and the loyalty of affluent customers supported activity. Bookings from this traveler category helped offset the impact of inflation on more modest budgets.
Verisure (+3%): is benefiting from support from Nordea. The bank raised its price target to 18 EUR, up from 17.5 EUR previously, while maintaining its buy recommendation, confirming its confidence in the company's growth prospects.
LVMH (+2%): positive momentum is sweeping across the entire luxury sector, including Richemont (+3%), Hermès (+3%), and Kering (+3%). Investors are becoming optimistic following increasing signs of de-escalation surrounding Iran.
Stocks on the decline:
Davide Campari (-11%): the Italian spirits group stated that its revenue grew by 2.9%, a figure below forecasts. Management however stated that prices will remain attractive for consumers despite inflation.
Valiant Holding (-11%): the Swiss retail bank saw its expenses increase by 1.4%, while revenue failed to keep pace at 0.9%. Income from trading operations plunged by 10.7%. For 2026, management expects a slight increase in net profit, which failed to convince investors.
Solvay (-11%): the Belgian chemical supplier reported a 23.5% decline in underlying net profit for the first quarter of 2026. Underlying EBITDA fell by 12.4%, representing a margin of 21.9% compared to 22.3% a year earlier.
Tenaris (-6%): the Italian steel tube manufacturer warned that it anticipates a decline in sales in the second quarter due to a decrease in shipments to the Middle East. The group's margins are expected to be penalized by rising logistics costs.
Centrica (-5%): in addition to easing gas price tensions, the group specialized in gas distribution anticipates 2026 EBITDA for its retail business toward the lower end of its guidance range. Management specified that it continues to monitor the impact of the conflict.
Legrand is the global specialist in electrical and digital building infrastructure. Its comprehensive range, suitable for the commercial, industrial, and residential segments of the low voltage market, makes Legrand a benchmark for customers worldwide. Close to its markets and focused on its customers, Legrand has commercial and industrial operations in nearly 90 countries. The group benefits from solid, long-term growth levers.
Geographically, 40.4% of net sales are generated Europe region, 42.3% in North and Central America and 17.3% in the rest of the world.
In terms of product offering, 53% of its sales come from products with enhanced value in use (data centres, energy transition and digital lifestyles), and 47% from essential infrastructures products.
In addition, the group benefits from very solid social and technological megatrends which will support its long-term development.
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