TECHNOLOGY: Dassault Systemes Q125 Results
Apr-24 08:36
DSYFP NR/A
Soft top-line with licenses driving the miss which analysts are attributing to macro uncertainty. Tariff language sounds like a worse-than-anticipated outcome with FY op margin guidance lowered.
- Q1 revs +4% (vs. +5.5% cons) w/ software +5% (vs. +6.1% cons) on weak licenses perf.
- Q1 op margin 30.9% (-20bps YoY, 20bp miss)
- Q1 CFO €813mn (+21% YoY, 5% beat). Q1 net cash €1.8bn vs. €1.5bn at Q4.
- FY outlook tweaked; HL org growth unch, op margin 32.3-32.6% (vs. 32.6-32.9% prior).
- “Entering 2025, our approach was to provide a risk-adjusted financial outlook. Since then, the introduction of new tariffs has created a more volatile market environment, which could lead to longer decision-making cycles. That said, our pipeline remains solid, and our current visibility aligns with the midpoint of our full year guidance.”
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EURIBOR OPTIONS: Call spread buyer
Mar-25 08:23
ERM5 98.00/98.12cs, bought for 1.25 in 4k.
DUTCH AUCTION PREVIEW: 2.50% Jul-35 DSL On Tap Today
Mar-25 08:23
This morning, the Netherlands will hold a DSL auction to issue E1.5-2.0bln of the 2.50% Jul-35 DSL (ISIN: NL0015002F72).
- This DSL was launched via syndication on March 4, where it saw books in excess of E29bln for the E6bln issued. Rabobank note that “it is relatively unusual for the first DSL tap to take place post a DDA to consist of the bond that was launched at that DDA”.
- They write that “in this instance the choice of the DSL 2035 may have reflected the very low allocation at the ‘cut-off’ of the DDA”…“this in turn suggests that the tap will be meeting unsatisfied demand and so should be well received”.
- Rabo conclude that “we think that, in the wake of Germany’s spending announcement, there are logical reasons to use this auction to go long versus EUR swap, France or Belgium”.
- Last week, we noted that Germany’s recent fiscal plans will likely further isolate the Netherlands as a fiscal outlier in the Eurozone. See here for more.
- Timing: Results will be available shortly after the bidding window closes at 0900GMT/1000CET.
GILTS: Tracking Wider Weakness At Open, Supply Eyed Today
Mar-25 08:20
Gilts look to weakness in peers (details outlined in our pre-gilt open STIR post) early today.
- Futures break yesterday’s low, trading as soft as 91.08, before a recovery to ~91.25.
- Support at the Mar 13 low (91.07) remains intact, with the bearish technical trend still in place.
- Yields ~2bp higher across the curve.
- 2s10s and 5s30s continue to hold below 50bp and 100bp, respectively.
- 10s little changed vs. Bunds at 194bp after some mechanical widening due to benchmark rolls last week.
- An FT story provided the latest fiscal colour ahead of tomorrow’s Spring Statement, essentially confirming the erosion of the fiscal headroom outlined in the Autumn Budget, while pointing to more than GBP5bln of further spending cuts.
- The piece also suggested that the OBR forecast for UK economic growth in ’25 will be halved to ~1%.
- On the supply front, the DMO will come to market with GBP2bln of the 4.75% Oct-43 line this morning.
- Little else of note on the domestic calendar until tomorrow’s CPI & Spring Statement.
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