Summary
The first full trading week of the year is set to see a flurry of trading updates from various companies as investors gear up for another earnings season. Among the key releases this week are Shell's fourth-quarter trading update on Wednesday, 8 January, and Walgreens Boots Alliance's first quarter earnings on Friday, 10 January. Other notable releases include Marks & Spencer's Christmas trading update on Thursday, 9 January, and Greggs' fourth-quarter trading update also on Thursday, 9 January.
Trading Updates from Shell
Shell is set to give investors an update on how it has performed in the fourth quarter, with the full results due out at the end of January. In its third-quarter report, Shell reported a slight fall in profits to $6bn (£4.83bn), though this still came in ahead of expectations. Income attributable to shareholders came in at $4.3bn, which was up from $3.5bn in the second quarter, though much lower than the $7bn reported for the same period in the previous year.
The global oil market is set to be in surplus in 2025, according to a recent forecast from the International Energy Agency. This surplus could see prices trending lower this year. Warren Patterson, head of commodities strategy at ING, said that ING expected ICE Brent, a benchmark for crude oil, to average $71 per barrel over 2025.
Investors will be looking to see if Shell launches another round of share buybacks, having announced a further $3.5bn repurchase programme in its third-quarter results. The company's full results for the fourth quarter are due out on 30 January.
Walgreens Boots Alliance Earnings
US pharmacy group Walgreens Boots Alliance finished 2024 as the worst performer in the S&P 500, with shares diving 64% during the year. The stock has fallen to its lowest point in nearly 30 years, with the company having faced challenges in the sector, such as pressure from the growth of online prescription delivery platforms.
In its fourth-quarter results, Walgreens posted a loss of $3.48 per share, versus $0.21 for the same period in 2023. For the year, Walgreens' loss per share widened 180% to $10.01. Sales for its 2024 fiscal year rose 6% to $147.7bn.
The company also announced in the results that it planned to close approximately 1,200 stores over three years, 500 of which it would look to close in its 2025 fiscal year. Walgreens shares briefly surged in December on reports that the company was in talks to be bought out by a private equity firm, which would take the company off the public market.
Marks & Spencer Christmas Trading Update
Following its run of strong performance over the past year, investors will be looking closely at the Christmas trading update from M&S. Shares are currently at their highest point since 2016, with M&S having posted a 35% increase in profit after tax to £278.6m in its first-half results in November.
The retailer reported nearly a 6% rise in sales to £6.5bn in the first half. AJ Bell's investment experts Russ Mould, Danni Hewson, and Dan Coatsworth said: "This Christmas update will be the next test for M&S, which traditionally makes more money in the second half of its financial year to March than the first, thanks to the festive season."
Greggs Fourth-Quarter Trading Update
Shares in Greggs have been under pressure since the food-on-the-go retailer released its third-quarter trading update at the beginning of October. While Greggs said like-for-like sales in company-managed shops were up 5% in the third quarter, this was still slower than the 7.4% growth it recorded in the first half.
The company said that, while it acknowledged "ongoing economic uncertainty", it still expected the full-year outcome to be in line with previous expectations. Markets are expecting headline revenue growth of just over 12% for the year, pushing annual revenue past the £2bn ($2.48bn) mark.
Other Companies Reporting This Week
Tuesday 7 January: Sodexo (SW.PA), Volvo Car (VOLCAR-B.ST), Norwegian Air Shuttle (NAS.OL)
Wednesday 8 January: Jefferies Financial (JEF), Albertsons (ACI)
Thursday 9 January: Unite (UTG.L), B&M European Value Retail (BME.L), Hilton Food (HFG.L), Fast Retailing (9983.T), Seven & i Holdings (3382.T), Constellation Brands (STZ)
Friday 10 January: Delta Air Lines (DAL)