Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Buoyant demand sees revenue growth sustained at AstraZeneca
Q3 and nine month results are out from AstraZeneca LON:AZN this morning. Focussing on the 9M performance, revenues are up 19%, reflecting the increased demand for the company’s medicines across the board, with the pace of growth resulting in a upgrade to full year guidance. Total revenue and core EPS are now expected to land in the upper teens on a percentage basis.
#2. Solid revenue growth at Marks Electrical, but volume uptick erodes margins
Retailer Marks Electrical LON:MRK has half year numbers out today with revenue growth of 9.3% and volume growth in consumer electronics being notable. The bias into that product line has however seen margins eroded, falling by 30 basis points, with a knock on effect into average order values, too. Expectations for FY25 revenues are now at £120m, that’s up a shade on the FY24 print but EBITDA is now forecast to be down YoY. The company remains debt free with a positive cash position.
#3. BAE Systems on track following previous upgrades
BAE Systems LON:BA. has a trading update out today, noting that the recent performance underpins the group full year guidance which was previously upgraded at the half year point. The company has secured £25bn worth of orders in the year to date and the note adds that there’s increased exposure to major defence growth markets.
