Earnings season is winding down, though investors are poised for updates from significant players in both the UK and US markets this week. In the financial sector, Barclays and NatWest will be reporting, with market participants hoping for continued strong performance from UK banks. Anticipation is particularly high for BP’s upcoming report, especially in light of disappointing fourth-quarter results from rival Shell.
On Tuesday, February 10, BP will issue its results amid prior warnings of a significant write-down between $4 billion and $5 billion, primarily linked to its transition business. The company also described expectations for a “weak” oil trading outcome for the fourth quarter. Despite a general decline in oil prices over recent years due to concerns about demand and oversupply, BP’s shares have remarkably risen by nearly 11% over the past year. In contrast, Shell recently reported adjusted earnings of $3.26 billion, down from $5.43 billion in the preceding quarter, which was below both previous year figures and analyst expectations, leading to a drop in its stock.
In the banking sector, UK banks have shown notable resilience, with Barclays posting a 58% rise in share price over the last year. In its last update, Barclays’ third-quarter income exceeded estimates at £7.17 billion, resulting in a pre-tax profit of £2.08 billion, though this represented a 7% decline compared to the same period last year. Analysts are forecasting a pre-tax profit of approximately £1.33 billion for the fourth quarter.
AstraZeneca is also set to provide updates regarding the fourth quarter and full year for 2025, with high expectations due to its shares hitting record highs. Analysts anticipate sales growth of 9% for 2025 and key guidance on future growth trajectories. Investors will likely pay attention to AstraZeneca’s drug pipeline and upcoming patent expiries, as well as the company’s ambitions to reach $80 billion in sales by 2030.
Over in the US, Airbnb is expected to announce earnings of $0.66 per share and $2.708 billion in revenue for the fourth quarter. After an upgrade from Citizens Bank, which predicts significant upside for the stock due to upcoming initiatives, including a hotel launch on its platform, market sentiment toward Airbnb appears positive. However, its shares have faced some pressure from the broader weakness in the cryptocurrency market affecting investor sentiment, especially as Bitcoin struggles to regain ground after significant losses.
Coinbase is preparing to release its earnings during a challenging time for the crypto market, where Bitcoin’s recent drop has raised concerns about trading volumes. Investors will be keen to see how Coinbase navigates this downturn and manages its growth strategy against a backdrop of potential operational changes within the cryptocurrency sector.
As market participants await these significant earnings releases, attention will also shift to key developments across various sectors, including potential share buybacks and dividend adjustments from major companies, signaling broader market sentiments and investor confidence moving forward.
