Our regular look at the FTSE 350 and other companies reporting from 27 – 31 January.
- LVMH is looking to retain top spot as Europe’s most valuable company
- Meta drives ad revenue with AI
- Cloud growth and AI spending are under scrutiny at Microsoft
- Tesla balances demand challenges with self-driving tech optimism
- Amazon targets AWS growth and e-commerce revival with AI potential
- Apple’s iPhone sales face growth challenges
- CVS Group hopes for a brightening picture after a soft start to the financial year
- Dividends and buybacks in focus at Shell as gas volumes fall
LVMH, Full Year Results, Tuesday 28 January
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: It’s been a tough period for luxury powerhouse, LVMH, with sales coming under pressure and missing market forecasts by a wide margin last quarter. Price hikes in the Fashion and Leather goods division weren’t enough to offset falling volumes, and Wines & Spirits continued to struggle against a backdrop of weak Chinese demand.
- Can Hermès shares shrug off the slowdown in China’s fashion buying?
- Companies Reporting: Bellway, LVMH, ASML, Whitbread, Netflix
Despite the slowdown, there are some early signs of sentiment beginning to improve. Fellow luxury conglomerate, Richemont, recently kicked off earnings season with a bang, posting double-digit jewellery revenue growth driven by uplifts across both Europe and the US.
The excitement appears to have buoyed other names in the sector too, helping LVMH regain its spot as Europe’s most valuable company. But whether LVMH can retain this crown will depend somewhat on its ability to meet market expectations, which are looking for full-year revenue to fall by no more than 2.2% to €84.3bn from next week’s results, before returning to growth the following year.
Meta, Q4 Results, Wednesday 29 January
Matt Britzman, senior equity analyst, Hargreaves Lansdown: Meta has set itself apart among tech giants by turning AI investments into quick wins. Unlike cloud providers that sell AI capabilities, Meta focuses its efforts on enhancing its own products, driving higher ad revenue. It’s also made a smart play to open source its models, allowing it to leverage the global developer community to fine-tune its technology.
- Companies Reporting: Airbus, Persimmon, Microsoft & Apple
- Meta Platforms stock hits ATH after Orion VR glasses preview
That’s not to say the AI push comes cheap. Zuckerberg sees AI as a once-in-a-generation opportunity, and the spending reflects that ambition. Investment will be watched closely, with some $15bn needed to be spent over the quarter to achieve full-year spending plans. Investors, understandably cautious after Meta’s past overspending on projects like the metaverse, will be laser-focused on investment plans for 2025.
Microsoft, Q2 Results, Wednesday 29 January
Matt Britzman: AI investment and cloud performance will take centre stage when Microsoft reports its second-quarter results next week. After spending $20bn in the first quarter, management confirmed plans to sustain this investment throughout the year, bringing the fiscal 2025 total to $80bn, with over half allocated to the US. Rolling out data centres and expanding AI applications is no small feat, and investors will be watching to see if cloud growth justifies the spending.
- Can US short-term bonds serve as safe haven assets?
- Companies Reporting: Airbus, Persimmon, Microsoft & Apple
The key metric to watch is Azure growth, expected at 31-32%. Microsoft has said more recently that its capacity constraints are resolved, so markets hope to get a better picture of current demand levels in the coming quarters. Beyond Azure, the rollout of Copilot will also be under scrutiny, with investors eager to see how product development and adoption are progressing after some criticism from peers.
Tesla, Q4 Results, Wednesday 29 January
Matt Britzman: Donald Trump’s election win has created a fresh buzz around Tesla, with hopes that deregulation could accelerate the path to full self-driving technology. Optimism has been tempered more recently as the outlook for fewer interest rate cuts creates a potential headwind. Higher rates challenge affordability in key markets like the US, where the auto and EV sectors already face demand pressure.
- Is it still worth staying short on Tesla stock?
- Companies Reporting: Tesla, Reckitt Benckiser, Unilever
Tesla reports first-quarter numbers next week, and while delivery numbers fell slightly short of expectations, strong performance in the energy segment should offset the shortfall. Still, margin concerns loom as Tesla relied on aggressive incentives to boost sales late in the quarter. Looking ahead, 2025 is pivotal, either solidifying Tesla’s promise or exposing shortfalls in the growth story. The refreshed Model Y was a crucial first step; next, investors want updates on the affordable model, and tangible progress in full self-driving technology.
Amazon, Q4 Results, Thursday 30 January (estimated)
Matt Britzman: Amazon ended the third quarter on a high note last November, setting an upbeat tone heading into its fourth-quarter results. As usual, AWS will be the cloud hanging over market sentiment – any growth materially above 19% should get a warm reception. Investors will also be tuned in for updates on AWS’s AI initiatives and the eye-popping investment Amazon plans to spend in the space.
Meanwhile, let’s not forget Amazon’s trusty old e-commerce arm, often overshadowed by its cloud cousin. For the first time in a while, it’s showing signs of life, with fresh initiatives like the discount storefront ‘Amazon Haul’ helping expand its reach. If Amazon can fine-tune automation, there’s potential for some tasty margin expansion too.
Apple, Q1 Results, Thursday 30 January
Matt Britzman: All eyes will be on Apple’s iPhone sales in next week’s first-quarter results. This period not only captures the crucial holiday season but also marks the first full quarter of iPhone 16 sales, bolstered by the rollout of Apple’s new AI features.
- Can US short-term bonds serve as safe haven assets?
- Companies Reporting: Airbus, Persimmon, Microsoft & Apple
Company guidance suggests low-to-mid single-digit revenue growth, but reaching the higher end of that range could prove challenging, with analysts forecasting growth of around 4%. Reports of a tough period for phone sales in late 2024 add to concerns, raising the potential for underwhelming iPhone performance. While Apple’s new AI-driven features hold promise, the slow rollout, mixed early reception, and strong Chinese competition present some risk to the narrative that a major upgrade cycle is underway.
CVS Group, Trading Statement, Thursday 30 January
Derren Nathan, head of equity analysis, Hargreaves Lansdown: Next week’s trading update by CVS Group should give a steer as to whether growth has picked up towards the end of the first half, after soft demand in the UK led to flat like-for-like sales over the first four months of the period.
Any comments on the ongoing enquiry by the Competition & Markets Authority will also be seized upon, although we’re not expecting the initial findings until later in the year.
Analysts will also be looking for an update on business in the increasingly important Australian division and whether there’s been any change in the pace of acquisitions down-under, and whether debt-levels remain manageable as the group expands.
Shell, Full Year Results, Thursday 30 January
Derren Nathan: Shell’s recent trading statement revealed that while most business units have been trading broadly in line with previous guidance, the production and liquification ranges for integrated gas has been lowered. These are set to come in below third quarter levels, reflecting planned maintenance at its processing facility in Qatar, as well as the timing of shipments from offshore gas fields. The weakness should be partially offset by an improved outlook for corporate costs.
- UK Stock Market News: NatWest, Standard Chartered, Shell
- BP vs Shell: Which energy major should investors back in 2025?
As ever investors are likely to have a watchful eye on the outlook for shareholders distributions, with buyback programs of at least $3bn announced in each of the last 12 quarters. Of course, no further payouts can be guaranteed. And with a new financial year underway expect an update on the company’s capital allocation priorities.
This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.
FTSE 100, FTSE 250 and selected other companies scheduled to report
| Monday 27-Jan | |
| Dr Martens LON:DOCS | Q3 Trading Statement |
| Tuesday 28-Jan | |
| A G Barr LON:BAG | Q4 Trading Statement |
| Harworth LON:HWG | Full Tear Trading Statement |
| LVMH [EURONEXT:MC] | Full Year Results |
| Pets at Home LON:PETS | Q3 Trading Statement |
| SSP LON:SSPG | Q1 Trading Statement |
| SThree LON:STEM | Full Year Results |
| Wednesday 29-Jan | |
| AJ Bell LON:AJB | Q1 Trading Statement |
| ASML [NASDAQ:ASML] | Q4 Results |
| Meta NASDAQ:META | Q4 Results |
| Microsoft NASDAQGS:MSFT | Q2 Results |
| Tesla NASDAQ:TSLA | Q4 Results |
| Volvo [STO:VOLV] | Q4 Results |
| WH Smith LON:SMWH | Trading Statement |
| Thursday 30-Jan | |
| 3i LON:III | Q3 Operation Performance |
| Aberforth Smaller Companies [LON:ASL] | Full Year Results |
| Patria Private Equity [LON:PPET] | Full Year Results |
| Airtel Africa LON:AAF | Q3 Results |
| Alfa Financial Software LON:ALFA | Q4 Trading Statement |
| AmazonNASDAQ:AMZN | Q4 Results |
| Apple NASDAQGS:AAPL | Q1 Results |
| Baker Hughes NASDAQGS:BKR | Q4 Results |
| BT LON:BT.A | Q3 Trading Statement |
| Caterpillar NYSE:CAT | Q4 Results |
| CVS LON:CVSG | Trading Statement |
| Glencore LON:GLEN | Production Report |
| Mastercard NYSE:MA | Q4 Results |
| Sage LON:SGE | Q1 Trading Statement |
| Shell LON:SHEL | Full Year Results |
| St James’s Place LON:STJ | Q4 New Business Announcement |
| Visa NYSE:V | Q1 Results |
| Wizz Air LON:WIZZ | Q3 Results |
| Friday 31-Jan | |
| Chevron NYSE:CVX | Q4 Results |
