MARTIN DEBOO | INVESTEC
Given the momentum around the stock in recent months, where we sense that enthusiasm for a gradual American recovery, buoyant M&A speculation and anticipation around a compelling first-half profit story have galvanised the share price. This is a a poor result with further hangovers to come. The market had assumed there would be an upgrade to the full-year earnings guidance.
PHIL CARROLL | SHORE CAPITAL
We expect that there may be some disappointment on the bottom-line performance with worries on how [Diageo’s operations in] Europe may fare during the rest of the year but some comfort may be taken from the reiteration of management’s profit guidance. Overall, we expect that there maybe some disappointment with worries on how Europe may fare over the year.
RICHARD HUNTER | HARGREAVES LANSDOWN
The initial share price weakness belies a progressively strong underlying story. Whilst demand in Europe remains relatively weak, Diageo has continued to benefit from its geographical diversification. In all, Diageo may have narrowly missed estimates but prospects remain positive in what is a globally difficult environment.