French Stocks Up as Minerals Deal Boosts Market Sentiment

French stocks are up Wednesday morning due to positive market reactions to a minerals deal between the U.S. and Ukraine. Notably, Danone reported impressive earnings growth, while Stellantis faced substantial declines. Investors are cautiously optimistic amid these updates.

Date: 26-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Danone reported significant growth in earnings per share (EPS) for fiscal 2024, achieving 3.13 euros, up from 1.36 euros the previous year. This reflects a strong performance and could positively impact investor confidence in Danone's sustainability and future prospects.

Net Income
The net income for Danone also saw a major increase, reaching 2.02 billion euros compared to 881 million euros in the prior year. This substantial rise indicates robust operational performance, which can attract more investment towards the company.

Stellantis Performance
In contrast, Stellantis reported a troubling 70% drop in net income, falling to 5.52 billion euros from 18.63 billion euros a year ago. The decline in EPS to 1.84 euros from 5.94 euros the previous year indicates significant challenges for the company, which could lead to negative sentiment and reduced interest from investors.

Adjusted Earnings and Operating Income
Stellantis also reported a decrease in adjusted earnings per share (EPS) to 2.48 euros from 6.42 euros, with a steep 64% drop in adjusted operating income to 8.65 billion euros. This sharp decline in profitability metrics further signals ongoing struggles within the business.

Market Reaction
The overall market is responding positively, with the CAC 40 index increasing nearly 1% amidst earnings updates and the minerals deal. Positive trends in other sectors, including notable gains for companies like ArcelorMittal and Kering, may offer additional support to stock prices in the French market, despite the negative developments for Stellantis.

Stocks: DANOY STLA