Diageo (DEO, $160.55) H1 earnings beat analysts’ expectations
Beverage company Diageo’s earnings for the first half of the year beat analysts’ expectations.
The company’s adjusted earnings plunged almost -13% year-over-year to 69 (73 cents) per share, but surpassed the 67.8 pence analysts had expected. Higher operating costs and a stronger pound affected earnings.
The result was bolstered by strong demand in North America, with 80% of its sales coming from retail stores.
There was a +1% increase in organic net sales growth for the six months to Dec. 30, compared to a drop of -4.6% that analysts had expected.
While the company did not issue any specific annual sales guidance, it mentioned that it expected organic operating profit growth in the second half would be ahead of organic net sales growth in all regions, except in North America.
The company’s adjusted earnings plunged almost -13% year-over-year to 69 (73 cents) per share, but surpassed the 67.8 pence analysts had expected. Higher operating costs and a stronger pound affected earnings.
The result was bolstered by strong demand in North America, with 80% of its sales coming from retail stores.
There was a +1% increase in organic net sales growth for the six months to Dec. 30, compared to a drop of -4.6% that analysts had expected.
While the company did not issue any specific annual sales guidance, it mentioned that it expected organic operating profit growth in the second half would be ahead of organic net sales growth in all regions, except in North America.
DEO's Stochastic Oscillator is sitting in oversold zone for 13 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DEO advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 197 cases where DEO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 18, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on DEO as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DEO turned negative on March 19, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DEO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DEO broke above its upper Bollinger Band on March 05, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.410) is normal, around the industry mean (3.903). P/E Ratio (19.766) is within average values for comparable stocks, (29.201). Projected Growth (PEG Ratio) (1.797) is also within normal values, averaging (2.099). Dividend Yield (0.027) settles around the average of (0.024) among similar stocks. P/S Ratio (3.888) is also within normal values, averaging (6.505).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. DEO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DEO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a producer of wine, beer and other beverages
Industry BeveragesAlcoholic