Goldman Sachs, TSMC & Antofagasta Lead Week’s Stock Watchlist
As the latest earnings season gets underway, a significant number of companies are set to report their financial results in the coming week, including several major Wall Street banks. Investors will be carefully scrutinizing the results of institutions like Goldman Sachs and JPMorgan Chase (JPM), marking the traditional starting gun for the earnings season. The focus is also shifting to Taiwan Semiconductor Manufacturing (TSMC), a pivotal player in the global chip market, and to UK-listed Antofagasta, a leading copper miner. These reports will provide crucial insights into market sentiment as investors anticipate potential shifts in interest rate policy by the US Federal Reserve, particularly given ongoing concerns about stubborn inflation. Furthermore, the upcoming return to the White House of former President Donald Trump is also anticipated to influence market dynamics.
The coming week promises a busy schedule for US bank earnings reports, with Goldman Sachs, JPMorgan Chase, Wells Fargo (WFC), and Citigroup (C) all scheduled to release their fourth-quarter results on Wednesday, January 15th. Investors will be keen to gauge the outlook for these major financial institutions, assessing their performance against a backdrop of rising interest rates and a potentially slower pace of interest rate cuts. Concerns about inflation’s persistent impact on economic growth are expected to heavily influence the market mood as investors assess the banks’ ability to navigate the current economic environment.
Goldman Sachs (GS) is expected to report a 45% surge in profits compared to the previous year, driven by a rebound in dealmaking activity and increased trading volumes. The bank’s net income reached nearly $3 billion (£2.45 billion) in the third quarter, a significant improvement from the approximately $2 billion reported in the same period of 2023. Investment fees rose by 20% year-on-year, reaching $1.8 billion, reflecting the increased investment activity among corporate clients. Goldman Sachs’ shares have experienced a notable 50% increase over the past year alone.
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, posted robust monthly revenue figures on Friday, demonstrating its continued importance in the global semiconductor supply chain. Revenue reached $278.16 billion New Taiwan dollars (£6.85 billion), translating to approximately $868.42 billion New Taiwan dollars for the fourth quarter, surpassing forecasts of $853.57 billion New Taiwan dollars based on an LSEG SmartEstimate. TSMC’s production supports the semiconductor needs of key companies such as Apple (AAPL) and Nvidia (NVDA), bolstering investor hopes for a strong performance from the sector in 2025, particularly in the context of the ongoing artificial intelligence trend. The company anticipates a gross profit margin between 57% and 59% and an operating profit margin between 46.5% and 48.5%, reflecting its operational efficiency. Derren Nathan, head of equity research at Hargreaves Lansdown (HL.L), highlighted the significance of TSMC’s 2025 outlook, noting that consensus forecasts currently project robust but slightly slower growth around 26%. He also emphasized the company’s significant investment in keeping pace with increasing demand, estimating an increased investment budget likely exceeding the $30 billion earmarked for 2024—a figure that shouldn’t pose undue strain on the company’s finances.
United Kingdom-listed mining company Antofagasta (ANTO.L) will release its fourth-quarter production update on Thursday, January 16th. The company is guiding for copper production of 670,000 to 710,000 tonnes in 2024, citing the ongoing “destocking of concentrate inventories at Los Pelambres” and the continued positive performance of Los Pelambres and Centinela during the third quarter. Iván Arriagada, CEO of Antofagasta, provided these production figures, describing them as underpinned by improving operational performance and strong gold prices. He also announced that cash cost guidance remains unchanged, driven by the company’s operational improvements. Derren Nathan forecasts copper production of 660,000 to 700,000 tonnes for this year, reflecting anticipated continued demand. Deutsche Bank (DBK.DE) analyst Liam Fitzpatrick had a “hold” rating on the stock, lowering the price target from 2,000p to 1,950p. Fitzpatrick noted the broader metal and mining market’s ongoing challenges, stemming from uncertainty surrounding US policy and global growth, and predicted range-bound trading at best until these issues become clearer. However, he also acknowledged Deutsche Bank’s expectation of a copper market recovery from late 2025, though developments at the Cobre Panama mine—currently suspended—will be a key supply focus.
Vistry (VTY.L) is due to release a third profit warning over three months, marking Christmas eve, and sent shares tumbling. The housebuilder now expects adjusted profit before tax to come in at around £250 million ($306 million) for the year, down from previous guidance of £2.7 billion, reflecting problems within one division of its business had been understated. Greg Fitzgerald, CEO of Vistry, stated that the financial outcome for 2024 is “disappointing.” Vistry’s top priority for 2025 is to continue building and delivering high-quality mixed-tenure new homes for its partners and private customers, and to do its part in addressing the country’s acute housing shortage. Vistry is due to release another trading update for the year ended 31 December on Wednesday, with the company’s full-year results due out on March 6th.
Other companies reporting next week include PageGroup (PAGE.L), Oxford Nanopore (ONT.L), Ramsdens (RFX.L), Games Workshop (GAW.L), Knights Group (KGH.L), JD Sports (JD.L), Persimmon (PSN.L), and Safestore (SAFE.L). Furthermore, several financial institutions, including Apple and Google, will be reporting their financial results alongside companies like BlackRock and Citigroup. This week’s earnings reports will provide investors with a critical snapshot of the global economy and the performance of key sectors, as well as setting the stage for the coming months.
