Locally, we look forward to the following scheduled releases
· South32 (2Q25 Update) – In 1Q25, copper production increased due to higher planned grades, while alumina, zinc, and manganese declined. At the time of the 1Q25 update, the group remained on track to meet full-year guidance. During 2Q25, civil unrest in Mozambique impacted S32’s Mozal Aluminium operations – the effect of which will be quantified in this update.
· BHP Group (2Q25 Update) – In 1Q25, copper equivalent production increased 4% y/y to 476.3 kt, iron ore production rose 2% y/y to 64.6 Mt, steelmaking coal production was down 19% y/y to 9 Mt, energy coal production advanced 2% y/y to 3.7 Mt, and nickel production was down 3% y/y to 19 kt. For FY25, management previously guided for copper production to be between 1 845 and 2 045 kt, iron ore to be between 255 and 265.5 Mt, metallurgical coal to range between 16.5 and 19 Mt, while energy coal was expected to be between 13 and 15 Mt.
· Sasol (2Q25 Update) – The company had a measured start to FY25 which included the positive contribution of the Production Sharing Agreement (PSA) licence on South African gas flow, a successful ramp up at ORYX, and general improvement in chemical sales revenue due to higher prices despite the market still being oversupplied. After 1Q25, full-year guidance was mostly maintained. Mining saleable production was expected to be between 30 and 32 million tonnes (Mt). Gas production volumes from Mozambique were expected to be 0% to 5% higher. In fuels, Secunda Operations (SO) volumes were expected to be 7 tonnes to 7.2 tonnes, driven by improved coal supply, overall equipment availability and operational performance. At Natref, production was expected to increase by 0 to 10%. ORYX GTL production was expected to be 40% to 60% higher. Liquid fuel sales were projected to increase by 0% to 4%. Sales volumes in Chemicals Africa were projected to increase between 0% and 4%, while sales in Chemicals America and Eurasia segments were expected to be in line with FY24.
· Quilter (4Q24 Trading Update) – At the 3Q24 mark, the wealth manager reported a strong performance during what is a typically slower summer quarter, with growth in AUM bolstered by higher net inflows, improved productivity, and persistency levels as well as positive markets. Management remained confident about the prospects of the group.
We also anticipate several retailer festive season updates from companies including Clicks, Mr Price, Truworths, Lewis and The Foshini Group.
On the corporate action front, on Wednesday 22 January 2025, Clicks, Cafca, RFG Holdings, Primeserv, Lewis, Reunert, Netcare and Argent Industrial will trade ex-dividend. A few companies including MC Mining, Labat Africa, Sasfin and Sygnia will be hosting AGMs.
The 4Q24 earnings season in the US gains further traction next week. So far, 35 S&P 500 companies have released results. Overall, 57% of companies have released better-than-expected sales numbers and 83% have reported better-than-expected earnings. The sales surprise factor is currently +1.52% and the earnings surprise factor is 10.12%. Aggregate sales growth has been 7.14%, while aggregate earnings have so far grown by 22.84%.
For 4Q24, streaming giant Netflix expects revenue growth of 15% y/y. It expects paid net additions to be higher in 4Q24 than in 3Q24 due to normal seasonality and a strong content slate. An operating margin of 22% is anticipated, a five-percentage point y/y improvement.
Halliburton has had a weak year so far, with subdued demand in its international markets, and continued weakness in North America. However, in the previous quarter, full-year guidance for free cash flow and cash return to shareholders was left unchanged, with the group having expected both to accelerate in 4Q24. Nevertheless, the market expects earnings to decline 19% off a 1.8% decline in revenue, with Bloomberg intelligence citing the persistent slowdown in North American oilfield activity that may not abate until early 2025, when upstream customers refresh their capital budgets.
In 3Q24, Johnson & Johnson’s saw adjusted earnings per share (EPS) came in at $2.42 and sales increase 5.2% y/y to $22.5 billion, driven by strong growth in the US. Innovative Medicine and MedTech adjusted operational sales grew 6.3% and 6.4%, respectively. Going into the last quarter, management expected adjusted operational sales for FY24 to increase between 5.7% to 6.2%. and adjusted operational EPS to range between $9.86 and $9.96 (+0.6% to +0.4%). Adjusted operational EPS pressure is expected after accounting for acquisition costs related to V-Wave, another innovative treatment in heart failure. Overall, the pipeline appears attractive, however, ongoing talc-based product lawsuits slightly cloud our outlook medium term.
Other companies to look out for in the US include Charles Schwab, General Electric, Procter & Gamble, United Airlines, and American Express.
Releases in Europe and the Asia Pacific region remain limited.
Info supplied by FNB
