Reflecting On Engineered Components and Systems Stocks’ Q3 Earnings: RBC Bearings (NYSE:RBC)

Investing.com -- RBC Capital Markets downgraded Spain’s fourth-largest bank Banco de Sabadell SA (BME:SABE) to “sector perform” from “outperform” on Friday, raising its price target to €3.30 from €3.05. 

Shares of the bank were down 4% at 07:24 ET (12:24 GMT)

With shares trading at €3.25, the new target implies 2% upside, according to the brokerage.

"Besides well-telegraphed upcoming distributions, we fail to identify meaningful catalysts for the shares, which now trade at fair value, in our view," analysts Pablo de la Torre Cuevas and Benjamin Toms said in the report. 

The analysts warned that "lack of revenue diversification post TSB sale (Spain >95% Group PBT) renders SAB more vulnerable to potential competition-driven NIM compression in its domestic market."

Sabadell’s shares have outperformed the European banks index by more than 20 percentage points since BBVA’s takeover bid began in April 2024, now trading in line with the SX7P at approximately 1.5 times two-year forward price-to-tangible book value. 

A P/TBV versus ROTE regression shows that Sabadell’s valuation screens fair value compared to FY27 consensus expectations for Iberian, Italian and domestic-focused EU and UK lenders.

"We turn increasingly prudent in a context of intensifying price competition amongst incumbents and digital-only players, where we believe SAB has a relatively lower ability to compensate NIM erosion via cross-selling," the analysts said.

TSB’s sale in July 2025 was very well-timed in the context of BBVA’s takeover process and considering recent sentiment ahead of the UK Budget, according to the brokerage. 

The healthy multiple achieved puts Sabadell’s distribution profile at the top of European banks in the short-term, with planned shareholder remuneration of €6.45 billion during FY25-27E representing approximately 40% of market cap.

RBC’s FY27E ex-TSB profit before tax estimate of €2.47 billion increased 1% from prior forecasts, driven by higher net interest income. 

The brokerage projects an NII of €3.91 billion versus management guidance of approximately €3.9 billion, supported by 5.2% loans growth and 3.9% deposits growth CAGR from 2024-2027. 

Net profit ex-AT1 is forecast at €1.66 billion by FY27E versus guidance exceeding €1.6 billion, resulting in 15.6% return on tangible equity versus the bank’s 16% target.

The bank’s value-creation target of approximately 15% TBVps plus DPS CAGR 24-27E substantially exceeds its historical average of approximately 2% CAGR since 2011.

Investing.com -- Atalaya Mining on Thursday reported third-quarter financial results that exceeded consensus expectations, driven by lower costs and improved operational efficiency.

The copper producer posted Q3 EBITDA of €30.7 million, which was 7% higher than consensus estimates of €29 million, despite being 9% below RBC’s forecast of €34 million.

The difference from RBC’s projection was attributed to lower freight revenue and a €4.4 million provision related to a land tax examination in Spain. Excluding this provision, EBITDA would have been 4% above RBC estimates and 22% above consensus.

The company’s Q3 C1 cash cost came in at $2.55 per pound, 9% lower than RBC’s estimate of $2.79 per pound and 11% below consensus expectations of $2.87 per pound. This improvement was driven by lower operating costs, higher silver credits, and reduced freight and treatment charges.

All-in sustaining costs (AISC) of $2.98 per pound were 11% below RBC’s forecast of $3.35 per pound and 13% lower than consensus estimates of $3.42 per pound, primarily due to lower sustaining capital expenditure and capitalised stripping costs.

Earnings per share for the quarter reached €7.8 cents, falling short of both RBC’s estimate of €12.9 cents and consensus expectations of €12 cents. This miss was largely due to a €2.7 million impairment for a loan to Lain Tech related to the E-LIX pilot plant.

Free cash flow for the quarter totaled €26 million, which was lower than RBC’s forecast due to higher-than-expected capital expenditure, but ahead of the consensus estimate of €16 million.

Atalaya Mining reiterated its full-year 2025 production guidance of 49,000-52,000 tonnes of copper. The company indicated that due to a revised allocation of stripping costs at San Dionisio, cost guidance is now expected to be at the lower end of the $2.60-2.80 per pound range for C1 cash costs and at the lower end of the $3.10-3.30 per pound range for AISC.

Non-sustaining capital expenditure is projected to be at the higher end of the €29-37 million range, while exploration expenditure guidance of €8-12 million remains unchanged.

Regarding projects, permitting at Touro continues to advance with most sectoral reports from the Xunta finalized, though two reports remain outstanding. A positive permitting decision is expected in the first half of 2026.

The E-LIX phase 1 plant is operating at a variable and reduced capacity while an independent third-party firm reviews plant performance. Drilling at Masa Valverde is ongoing, with two geotechnical holes recently completed.

Atalaya Mining’s net cash position of €89.7 million was pre-reported for the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Premier Foods PLC (LON:PFD) on Thursday reported first-half results showing slightly below-forecast top-line growth, primarily due to weakness in its non-branded segment, while trading profit met expectations.

The company expressed confidence in meeting full-year targets, with branded revenue growth expected to accelerate in the second half as new product launches reach market and marketing investments increase.

The Sweet Treats division performed well with 7% year-over-year growth on a constant currency basis, supported by new product launches for Mr Kipling and Cadbury brands.

In contrast, Grocery revenue declined by 1.3% in the first half, partly due to warmer weather in the UK that continued into the early part of the second quarter before normalizing toward the end of the period.

Premier Foods remains on track to deliver on trading profit expectations, which stand at £194.4 million according to Visible Alpha consensus and £195.1 million per RBC estimates. The company now anticipates slightly higher adjusted profit before tax this year, reflecting lower interest costs.

Capital expenditure guidance has been increased to £55 million from the previous £50 million target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.