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European markets: weekly performance summary 2. May

May 2, 20262 days ago

Over the past ten days, the STOXX Europe 600 index fell slightly by 0.38%. The ongoing earnings season shows that strong demand is supporting the technology and financial sectors, while raw material and construction companies are grappling with rising costs. The market is reacting selectively to the results, assessing the actual profitability of companies.

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STMicroelectronics (STMPA)

Q1 operating profit made a powerful leap, growing by 2,233.3% year-over-year to 70 million dollars. Revenue increased by 23%. The growth was driven by recovered demand for personal electronics and cloud service chips, as well as a more profitable product mix. The stock rose by 6.11% over the week, reaching a new high. The market also warmly welcomed the new series of ultra-low power image sensors, which strengthens the company's position in a growing market.

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Subsea 7 (SUBC)

Q1 operating profit grew explosively by 172.7% to 210 million dollars. Revenue increased by 17%. The result was driven by a higher fleet utilization rate (79%) and the successful execution of previously won higher-margin projects, especially in Brazil. The stock ended the week up 5.4%, reaching a new 52-week high. The strong results reassured investors that the previous quarter's profit growth was not just a one-off success story.

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Erste Group Bank (EBS)

Q1 operating profit grew by 48.6% to 2.16 billion euros. Revenue increased by 40.6%. The main driver was the growth in net interest income, supported by increased loan volumes in Central Europe and lower interest expenses on deposits in Austria. Despite the strong numbers, the stock fell by 5.80% over the week. The market had already priced in the good results, and investors took the opportunity to take profits.

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flatexDEGIRO (FTK)

Q1 operating profit grew by 61.1% to 111 million euros and revenue by 19.2%. The engine was increased commission and interest income, supported by more active client trading and higher cash balances on accounts. The stock dropped by 9.55% over the week. Although the business results were record-breaking and the company confirmed its annual targets, the price drop indicates that high expectations were already priced into the stock.

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mBank (MBK)

Q1 operating profit grew by 54.4% to 1.52 billion zlotys. Revenue increased by 2.1%. The growth was driven by stronger-than-expected service and commission fees and trading income, which helped offset the decline in net interest income caused by falling interest rates. The stock fell by 3.06% over the week. Although the bank announced new fraud prevention measures, the market focused more on the 285 million zloty resolution fund cost, which will drag down near-term profits.

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adidas (ADS)

Q1 operating profit grew by 15.6% to 705 million euros and revenue increased by 7.1%. The main driver of success was direct-to-consumer sales and a focus on full-price product sales, which improved margins despite unfavorable exchange rates. The stock rose by 8.18% over the week. The market reacted positively to stronger belief in the brand, supported by the recent success of the Adizero top shoe in a marathon, giving a boost to the entire running category.

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GSK (GSK)

Q1 operating profit grew by 53.9% to 2.29 billion pounds, although revenue growth slowed to 3.6%. Strong profit was driven by sales of specialty medicines and vaccines, but growth was hindered by increased investments in research and development. The stock fell by 4.53% over the week. Although the company received positive news about the fast-track designation for its Hepatitis B drug, investors were disappointed by the slowdown in revenue growth.

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Storebrand (STB)

Q1 operating profit grew by 28.3% to 1.02 billion kroner. Revenue increased by 5.0%. The result was supported by retail insurance price increases, new customers, and a 7% growth in assets under management in the savings segment. Operating expenses fell significantly. The stock rose by 5.43% over the week. Strong operating profit and falling costs helped the stock recover, although net profit was pressured by unfavorable exchange rates and the weakening of the Swedish krona.

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Tomra Systems (TOM)

Q1 operating profit remained stable at 26 million euros, halting the previous decline. Revenue turned to a 9.2% growth. Stability was supported by record revenue in the reverse vending machine business in new markets like Poland, which balanced the loss in the recycling segment. The stock fell by 22.46% over the week. Despite a significant strategic win in Singapore's new deposit system, the market remains cautious due to the continued weakness of the recycling division.

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Arcadis (ARCAD)

Q1 operating profit fell by 3.2% to 102.6 million euros, but the pace of decline slowed significantly. Revenue decreased by 4.0%. The stabilization of the business was supported by successful cost-cutting and organizational simplification, which helped mitigate the weakness of the real estate segment in Canada and China. The stock surged by 16.59% over the week. The market reacted positively to signs that the worst is over – orders remain strong and cost reductions are improving the company's profitability.

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Sweco (SWEC-B)

Q1 operating profit turned to a 6.1% decline, reaching 837 million kroner. Revenue grew by 3.3%. The decline was driven by cooled demand and restructuring costs in Finland and Central Europe. Personnel costs also grew faster than revenue. The stock fell by 10.37% over the week, reaching a new 52-week low. Weaker profitability and rising costs disappointed investors, overshadowing the strength of infrastructure and energy projects.

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Svenska Cellulosa (SCA-B)

Q1 operating profit plunged by 51.5% to 543 million kroner. Revenue fell by 8.2%. The company is being squeezed simultaneously by higher purchasing prices for wood raw materials and lower sales prices in the pulp and packaging market. The stock fell at the beginning of the week but recovered slightly, closing at 105.00 kroner. The weak report confirmed that the pressure on profits has not eased, but rather intensified.

Conclusion

The ongoing earnings season highlights a clear pattern: companies that manage to keep costs under control and improve margins receive a positive response from the market. At the same time, those whose growth momentum fades or whose costs spiral out of control are severely punished. In the coming weeks, it is worth watching whether this trend spreads to other sectors. Stay up to date with market developments and use the RYTM platform to get fresh analyses in real time.

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