6th Nov 2025 07:51
(Alliance News) - AstraZeneca reports higher earnings, J Sainsbury raises its profit guidance and interim dividend while ITV warns of a tough advertising market.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called marginally higher at 9,780.08
GBP: higher at USD1.3066 (USD1.3037 at previous London equities close)
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BROKER RATINGS
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Goldman Sachs raises Marks & Spencer price target to 470 (445) pence - 'buy'
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Citigroup raises Weir Group price target to 3,300 (3,100) pence - 'buy'
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Jefferies raises Unilever price target to 4,000 (3,800) pence - 'underperform'
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COMPANIES - FTSE 100
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AstraZeneca reports higher revenue and profit for the third quarter of the year. Total revenue jumps 12% to USD15.19 billion in the three months to the end of September from USD13.57 billion a year prior. Pretax profit surges 77% to USD3.24 billion from USD1.83 billion, while reported earnings per share rises 77% to USD1.64. The Cambridge, England-based pharmaceutical company says total revenue grew in all major geographic regions. Core EPS rises 14% to USD2.38 in the third quarter. AstraZeneca reiterates its total revenue and core EPS guidance for 2025 at constant exchange rates. It expects total revenue to rise by a high single-digit percentage, with core EPS up by a low double-digit percentage. If foreign exchange rates for the fourth quarter were to remain at the average rates seen in September, the company expects that total revenue and core EPS growth would be "broadly similar" to the growth at constant exchange rates. "The strong underlying momentum across our business through the first nine months of the year sets us up well to sustain growth through 2026 and has us on track to deliver our 2030 ambition," says Chief Executive Officer Pascal Soriot. "Across our pipeline we have announced an unprecedented 16 positive phase three trials this year, with four since our previous results including high-impact readouts for baxdrostat in hypertension and Enhertu and Datroway in breast cancer. We are also delivering on our strategy to strengthen our operations in the US to power our growth."
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J Sainsbury raises its dividend and reports higher earnings for the first half of the year. The London-based food retailer says revenue excluding VAT and including fuel for the 28 weeks to September 13 rises 2.8% to GBP17.58 billion from GBP17.11 billion a year prior. Pretax profit rises 5.0% to GBP271 million from GBP258 million, while underlying pretax profit jumps 10% to GBP340 million from GBP309 million. Basic earnings per share more than double to 7.2 pence from 3.2p. J Sainsbury raises its interim dividend per share to 4.1p from 3.9p a year prior. The firm says Sainsbury's sales, excluding fuel, were up 5.2% in the period, with Grocery sales growth of 5.3% and Sainsbury's General Merchandise & Clothing sales up 3.3%. Argos sales were 2.3% higher while fuel sales fell 11%. It says bank disposal proceeds will now exceed GBP400 million, higher than originally expected. As previously announced, it will return GBP250 million of the proceeds to shareholders via a special dividend of 11.00p per share. It will additionally return GBP150 million of disposal proceeds through share buybacks, with GBP50 million to be added to the core GBP200 million buyback in financial 2026 and GBP100 million to be added to the core buyback for financial 2027. "We started this year with one clear priority - to sustain the strong competitive position we have built over the last five years. We have delivered on this in the first half, with focused and effective investment to ease cost-of-living pressures, keeping price inflation behind the wider market and delivering our winning combination of great value, trusted quality and leading service. This has driven continued grocery volume growth ahead of the market for a fifth consecutive year and a profit performance ahead of our expectations," says CEO Simon Roberts. "Our offer has never been stronger. So while we expect the market to remain highly competitive, our momentum gives us real confidence as we head into Christmas and we have strengthened our profit guidance today." The firm now expects Retail underlying operating profit of more than GBP1 billion in financial 2026. Retail underlying operating profit rose 0.2% to GBP504 million from GBP503 million in the first half of the year.
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COMPANIES - FTSE 250
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ITV says its performance for the nine months to the end of September was better than market expectations. Revenue for the nine month period rises 2% to GBP2.80 billion from GBP2.74 billion a year ago. ITV Studios revenue jumps 11% to GBP1.35 billion from GBP1.22 billion, while Media & Entertainment revenue falls 5% to GBP1.45 billion from GBP1.52 billion. Total advertising revenue was flat in the third quarter, ahead of guidance, and down 5% in the year-to-date against a strong performance in 2024, driven by the men's European Football Championships. For the full year, ITV says it is on track to deliver "good revenue growth" at ITV Studios at a margin of between 13% and 15%. The London-based media company says the economic outlook in the UK "remains uncertain" noting "widespread caution" in business sectors ahead of the Budget in November. It says this is impacting demand for advertising across the industry in the fourth quarter, and it expects total advertising revenue to be down around 9% in the quarter. The company says it has identified GBP35 million of "additional temporary savings" in the Media & Entertainment division for the fourth quarter in response to the reduction in advertising demand. "ITV has delivered a good performance in a tough advertising market. Both our businesses are performing well, reflecting the significant transformation we have delivered. Our strategic initiatives continue to progress well, and we remain confident in delivering good growth in ITV Studios revenue and digital revenue for the full year," says CEO Carolyn McCall. "UK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand. We do not anticipate these temporary savings to impact our ability to deliver our strategic plan. We continue to expect to outperform the broadcast advertising market in Q4, and have a strong programme slate for Q4 and into 2026, including the men's 2026 Football World Cup."
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OTHER COMPANIES
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CRH launches a new USD300 million share buyback programme to end by February 17, 2026 after completing the latest phase of its share buyback programme, returning USD300 million. The Dublin-based building materials company declares a quarterly dividend of 37 US cents per share, up 6% from a year ago. The company reaffirms financial 2025 net income guidance and raises its adjusted earnings before interest, tax, depreciation and amortisation guidance midpoint. Total revenue in the three months to the end of September rises to USD11.07 billion from USD10.52 billion a year prior. Net income grows to USD1.52 billion from USD1.39 billion, while basic earnings per share attributable to CRH grows to USD2.23 from USD1.99. The company now sees adjusted Ebitda between USD7.6 billion and USD7.7 billion in 2025, up from previous guidance of between USD7.5 billion and USD7.7 billion. In the third quarter, adjusted Ebitda jumps 10% to USD2.7 billion. "CRH delivered a strong third quarter performance driven by favourable underlying demand, positive pricing momentum and further contributions from acquisitions. We are pleased to reaffirm Net income and raise our Adjusted EBITDA* guidance for 2025, representing another record year for CRH. Our superior strategy, connected portfolio and leading performance continues to deliver higher sales, profits and margins," says CEO Jim Mintern. "We have completed 27 acquisitions year-to-date, including the acquisition of Eco Material Technologies, and continue to see an active pipeline of value-accretive opportunities supported by infrastructure megatrends across our key growth platforms. Looking ahead to 2026, we expect favourable market dynamics and the continued execution of our strategy to underpin another year of growth and shareholder value creation."
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Allergy Therapeutics is considering a dual primary listing on the Main Board of the Stock Exchange of Hong Kong. The Sussex, England-based biotechnology company said a potential listing in Hong Kong, alongside its listing on London's AIM market, reflects its desire to expand its presence in Asia and "become a global leader in allergy treatments". Further, it would also enhance trading liquidity in its ordinary shares, it adds. Preparatory work to explore a possible dual listing is underway, and if Allergy Therapeutics decides to proceed, it targets an HKEX listing to become effective during the first half of 2026. Chief Executive Officer Manuel Llobet says: "We believe that a dual listing in Hong Kong could be an important step forwards for the company. This initiative aligns well with our Asia expansion strategy and our aim to become a truly global player in the allergy immunotherapy field. By establishing a presence on HKEX, we would be able to engage more directly with Asian investors and support our growth in Asian markets, which we see as a key driver for Allergy Therapeutics' future success."
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By Michael Hennessey, Alliance News reporter
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Related Shares:
Marks & SpencerWeir GroupUnileverAstrazenecaSainsbury'sITVCRHAllergy Thera.