Three developing stories at the UK stock market open.
1. Despite headwinds at Jet2 profits exceed expectations
Airline and tour operator Jet2 LON:JET2 published a trading update this morning and whilst there are upbeat elements here, there are also concerns noted about shifting booking profiles with customers committing closer to departure, falling load factors and rising input costs. Full year profits are now expected to come in between £560m and £570m, which is an 8%-10% increase on the prior year, which meets the commitment from November in exceeding consensus expectations.
2. Sales, order backlog grow at BAE
BAE Systems LON:BA. has full year numbers out today with sales up 14% and EPS 10% ahead, reflecting a strong performance across the business as a whole. The order backlog grew by 11% to a record £78bn and full year dividends are being increased by 10%. Momentum is expected to be maintained, with sales for the year ahead expected to rise by 7%-9% and EPS to advance by between 8% and 10%.
3. Full year profits fall short but $2bn share buyback sweetens the deal
Bank HSBC LON:HSBA posted full year numbers this morning, with pre-tax profits of $32.3 billion falling slightly short of analyst expectations, but management have also announced another round of share buy-backs with $2bn having been allocated here for purchases to be made in Q1. Cost reduction initiatives are also ongoing, with the filing adding that the bank expected to see an annualised reduction in expenses of $1.5bn by the end of 2026.
