0735 GMT - Diageo's results look solid enough, Citi says in a research note after the beverage company provided a third-quarter update. The reiteration of guidance for fiscal 2025, along with slightly lower finance costs means that consensus estimates are likely to be unchanged, though estimates for fiscal 2026 might soften given management's comments on the impact of trading uncertainty on its recovery, analysts write. Fiscal 2026 consensus downgrades should be tempered by the announcement of a new cost-savings program, they add. "Given the absence of new negatives and increasing confidence that Diageo is in control of what it can control, we expect the shares to be up," they write. Shares trade 1.5% up at 2,184 pence shortly after market open. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
May 19, 2025 03:36 ET (07:36 GMT)
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