Wetherspoon Plunges, Santander Dips, Iberdrola Down | Stock Movers

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[00:00:08]>> The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

[00:00:16]>> Let's take a look at some stocks on the move today in Europe. I'm James Woolcock with Caroline Hepker, and we are joined by Bloomberg's breaking news editor Louise Moon. Louise, uh, starting in the pub, unusually for this point in the week, Wetherspoons has issued its fourth profit warning this year. What's going on?

[00:00:32]>> Yeah, so it said that its full year profit will likely be below what is expected by the market. It's saying that the fourth quarter sales rose about 4%, so that was less than expected, but essentially the main issue is that a higher costs are weighing on the business. So, it noted in particular labor, food, energy, business rates, all those costs rising and weighing um on things. So, shares fell 12%. As you say, it's their latest profit warning.

[00:00:56]They've already issued three, um down to, as I say, those higher costs, as well as weak consumer confidence, and obviously all the headwinds that the industry is seeing.

[00:01:05]Um Interesting that in the statement they didn't mention the World Cup, given that a a lot of their peers have mentioned the World Cup as really boosting sales.

[00:01:14]We did uh Bloomberg did then have an interview with the chair, Tim Martin. He said they they did get a boost from the World Cup, but actually the timings of the matches favored home consumption, and he again really highlighted those rising costs. So, analysts are saying that given the heatwave and the World Cup, all expected to kind of boost sales for pubs, the profit warning, another profit warning, shows really highlights the pressures on the sector.

[00:01:35]>> Okay, so that from Wetherspoons.

[00:01:37]Santander beating expectations, but shares down. Why was that?

[00:01:42]>> Indeed, yes. So, the third quarter results, profits beat estimates, reaffirmed their their targets both short and medium-term. Um essentially, on the positive side, they're being boosted by their recent takeover of TSB.

[00:01:53]That completed at the end of April, it's added 4 million customers, and it's all part of Santander's kind of wider acceleration of adding customers, expanding outwards also in the US as well as the UK. But as you say, shares sliding. Actually the worst performer on the stock 600 bank index. They had climbed over 65% this year, but sliding this morning.

[00:02:12]Wasn't enough to excite analysts.

[00:02:14]They're saying it's unexciting results, and they're expecting limited changes to expectations. So despite those positive those positive elements from their second quarter, not exciting enough for analysts and shares sliding on the back of that.

[00:02:26]>> When you say not exciting enough, I want to hear all about what I'm being told are robust networks businesses over at Iberdrola.

[00:02:32]>> Well, let me tell you.

[00:02:34]So yeah, Iberdrola is Spanish utility had their first quarter first half, sorry, results and beat estimates. So essentially they're being boosted by their their global reach.

[00:02:45]They've got their home market, they're also big in the UK. They've been ramping up investment and growth in Brazil and then the US. But despite that beat, they didn't raise guidance. That's one thing that analysts are noting as not being positive.

[00:02:58]On the other hand, sorry, adding to that, they also in other news bought a stake in Finland's main electricity network. That's for 2 billion euros. So entering new geography fits with their strategy, positive, but analysts saying that it's a full what they're calling a full price. So some mixed news there that you've got the beat, you've got that that buying of the stake in the Finland's electricity network, but didn't raise guidance and quite a hefty price tag. So shares falling in Madrid fell about [music] 3% for the Spanish utility.

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