AstraZeneca Climbs, Philips Soars, Stellantis Falls

On this episode of Stock Movers:
- AstraZeneca shares rise as much as 2% after the drugmaker reported revenue for the second quarter that were ahead of market expectations. JPMorgan analysts called it a “high quality” sales beat.
- Philips increased its profitability outlook as the impact of the trade war was not as severe as it feared. The company now expects full-year adjusted operating earnings margin of as much as 11.8%, a 50 basis points increase from the previous outlook, according to a statement.
- Stellantis shares fall as much as 3.4% after the carmaker updated its estimate of 2025 net tariff impact to about €1.5 billion, of which €300 million was incurred in 1H25.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:16):
Well, let's take a look at some stocks on the
move today in Europe. I'm Valerie Title with Caroline Hepger,
when we're joined by Bloomberg's equities reporter Chloe Melay. Chloe.
Let's start here in the UK with AstraZeneca posting some
strong earnings.

Speaker 3 (00:29):
Yeah, absolutely good, quite a strong second quarter set of
results this morning. So we've got better than expected sales
and rising profit in the second quarter. That's you to
kind of two main things. So first of all, a
real focus on cancer medicines, so that's the bet that
the CEO, Pascal Saria, has made and it's really paying off.
And then also a really strong focus on the US.
So you'll remember that very recently AstraZeneca announced a plan

(00:52):
to invest as much as fifty billion dollars in the
US by twenty thirty for manufacturing and for recent and development.
So this focus on the US and this focus on
oncology is really working well for astra Zeneca. If we
look at kind of catalysts going forward. A lot actually
hinges on a potential blockbuster breast cancer drug called Dataway,

(01:14):
but Ashra said that it was pushing back the results
of that study on that drug to next year rather
than this year, so it was supposed to come out
this year. So investors will be really keeping a close
eye on this and that will be key for the
share performance because Ashrazeneka, despite those strong results, has been
underperforming some of its spears like nevaratists in Switzerland for example,

(01:35):
So we'll be keeping an eye on that going forward
as well. Yeah.

Speaker 4 (01:37):
Absolutely, I mean asked a fifty billion dollar manufacturing investment
in the US is significant. UK lost that on some
investment too. That was a few months ago, but you
know that's very significant. Phillips this morning sawing why.

Speaker 3 (01:52):
Yeah, so Phillips said, it's really interesting reversal from Phillips.
So it actually raised its profitability outlook and there's just
a couple of months after actually cutting it. So it
said in it kind of an outlook in May as
was due to the tariff impact, to the impact of
the trade war, but then today it said that the
impact of that trade war was actually not as bad

(02:13):
as it originally feared. So it raised it again. So
it's kind of a quick turnaround if you think about
the fact that it's over the course of just two
months that it kind of digested that impact and raised
that outlook again. At the time in May had estimated
a hit of as much as three hundred million euros.
Now it sees an impact of just two hundred million,

(02:33):
so it's quite quite a bit a significant drop there.
This really provided kind of a relief to the Shes
They have been struggled. They have been struggling over the
last year or so. That was due to the trade war,
which obviously the worries there are lifting a little bit,
especially with the new trade deal, but then also weakness
in China and that is still continuing however.

Speaker 1 (02:52):
Yeah so shares a Phillips jumping more than ten percent,
one of the best performing stocks in Europe this morning,
very quickly on a Stilantis. A bit of a different
picture there when it comes to their terraforming.

Speaker 3 (03:02):
Yeah, absolutely so. They are estimating a one point two
billion euro hit from tariff's in the second half of
the year. They also lowered the guidance for operating margint
they see low single digit They had seen mid single
digit as obviously of the back of the pre release
that they had last week where they announced that two
point three billion euro loss and this falsett of earnings

(03:23):
really did not reassure investors, and we are expecting more
and more of that tariffon certainty weighing on stillantis and
on the wider maybe car making sector as well, despite
that trend deal.

Speaker 2 (03:35):
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