FTSE 100 shares round-up: recovery boost for these two stocks
As the UK earnings season picks up pace, City writer Graeme Evans looks at two blue-chips whose latest results are aiding a recovery from the tariff crash.
24th April 2025 13:29
by Graeme Evans from interactive investor
Early results reporters Weir Group (LSE:WEIR) and Hikma Pharmaceuticals (LSE:HIK) calmed the nerves of investors ahead of next week’s flurry of blue-chip figures by showing resilience in the face of tariff uncertainty.
Both FTSE 100 companies consolidated share price gains of recent sessions by reiterating full-year guidance on the back of robust progress in the first three months of the year.
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The quarterly results season picks up pace next week, with announcements by HSBC Holdings (LSE:HSBA), Barclays (LSE:BARC), BP (LSE:BP.), Shell (LSE:SHEL), AstraZeneca (LSE:AZN), GSK (LSE:GSK) and Associated British Foods (LSE:ABF) among others.
Their tariffs exposure and the actions being taken to reduce costs and disruption are likely to overshadow the actual figures for a period before the start of trade turmoil.
The focus will also be on forward guidance for 2025, although meaningful estimates will be challenging given the current elevated levels of macroeconomic uncertainty.
Unilever (LSE:ULVR) has vowed to be “agile in adjusting our plans as necessary” but said today that the direct impact of tariffs on profitability is “expected to be limited and manageable”.
There was a similar message from aerospace components specialist Senior (LSE:SNR) in the FTSE 250 after it described the direct impact of announced tariffs as limited and manageable.
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Weir, which supplies the equipment and spares needed by mining customers to extract metals in a more sustainable and efficient way, told investors that it has adapted its business to the latest trade tariff announcements.
This has included redirecting US originated orders to manufacturing sites in the country, while it has also been proactively addressing pricing with customers.
Weir said: “We believe these actions combined will mitigate known potential impacts of increasing global tariffs, albeit the broader economic impact of current US trade policy remains uncertain.”
The group reported a strong start to the year, noting that mining markets are positive and that it continues to enjoy robust demand for its equipment and aftermarket spares.
It is trading in line with full-year expectations for growth in constant currency revenue, operating profit and operating margin.
Weir’s ultimate goal is to deliver margins sustainably beyond 20%, which together with strong cash generation and balance sheet give it optionality to compound total shareholder returns.
The shares today stood at 2,244.5p, having recovered from an initial fall below 2,000p to stand near where they were on the day of President Trump’s tariffs announcement on 2 April.
Hikma Pharmaceuticals also rose today after the accessible medicines firm said its “significant and expanding” US manufacturing footprint left it well placed in the current environment.
The company does import some finished products into the US as well as capital equipment, while it has a diversified global supply chain for its raw and packaging materials.
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Hikma continues to expect group revenue to grow in the range of 4% to 6% and for core operating profit to be in the range of $730 million to $770 million in 2025. This represents an improvement of about 4% at the midpoint.
It said: “We are monitoring the evolving tariff backdrop and will look to remain agile in responding to both opportunities and impacts where possible, but have not reflected an impact from tariffs in our full-year outlook.”
The company’s operations included its Ohio-based Generics arm, which supplies oral and other non-injectable specialty products to the US retail market. Its Injectables business supplies hospitals worldwide, while the third strand of Hikma covers the supply of patented products across the Middle East and North Africa region.
The shares today stood at 1,912p after continuing their recovery from their post-tariffs low of 1,774p. Broker Peel Hunt believes they deserve to be at 2,170p after reviewing its target price in the wake of today’s “encouraging” update.
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