1Q25 Revenue: $19.5B, +17.7% YoY, miss estimates by $290M
1Q25 Non-GAAP EPS: –$0.49, beat estimates by $0.81
FY25 Guidance: Reaffirmed production of its 737 MAX will hit 38 per month in 2025, while output of the 787 Dreamliner will climb to seven per month from five per month.
Comment: Boeing reported a smaller-than-expected Q1 loss and stronger jet output. Despite the impact of the U.S. China trade war, leading to the return of two aircraft meant for Chinese carriers, its CEO said Boeing has managed to avoid wider damage and can redirect aircraft to other interested airlines. While China accounts for 10% of Boeing’s commercial backlog, deliveries there remain uncertain. Nonetheless, Boeing is increasing production of its 737 MAX jets, targeting 38 per month by year-end. Free cash flow usage improved to -US$2.3bn, better than analyst forecasts, and the company expects positive cash flow in 2H25. Boeing’s defense division returned to profitability, and the sale of its Digital Aviation Solutions business for US$10.55bn marks progress in its debt reduction efforts. As Boeing navigates geopolitical headwinds and internal recovery efforts, the company remains focused on stabilizing and ramping up production of its 737 MAX aircraft and improving cash flow. 2Q25recommended trading range: $160 to $180. Neutral Outlook.
1Q25 Revenue: $9.3B, +5.7% YoY, beat estimates by $160M
1Q25 Non-GAAP EPS: $1.69, beat estimates by $0.08
FY25 Guidance: Raised adjusted annual profit to the range of $7.36 to $7.49 per share, compared with its prior forecast between $7.04 and $7.17, and expects 12-14% growth in smoke-free products.
Comment: Philip Morris International delivered strong first quarter results reporting adjusted earnings per share of US$1.69, beating estimates of US$1.77, and 5.7% revenue growth to US$9.3bn. The company raised its full-year profit forecast following its strong first quarter, driven by robust performance of smoke-free products like nicotine pouch ZYN and the IQOS heated tobacco device. ZYN shipments in the U.S. surged 53% YoY, recovering swiftly from past supply issues, while IQOS saw solid demand in Europe and Japan, with a recent U.S. launch in Texas. Its CEO noted minimal impact from U.S. tariffs and confirmed flexibility in supply chain management. Looking ahead, Philip Morris is well-positioned to continue its transformation toward a smoke-free future, targeting 50% of net revenues from smoke-free products by year-end 2025. Continued investment in next-gen nicotine alternatives, particularly ZYN and IQOS, alongside resilient pricing in traditional products, supports a favorable growth trajectory. With strong momentum and minimal exposure to tariff risks, the company remains well positioned to deliver sustained earnings growth and further product innovation globally. 2Q25recommended trading range: $160 to $180. Positive Outlook.
1Q25 Revenue: $14.54B, +0.6% YoY, beat estimates by $150M
1Q25 Non-GAAP EPS: $1.60, beat estimates by $0.17
2Q25 Guidance: Expect $16.4B to $16.75B in second-quarter revenue, the middle of the range, $16.58 billion, is ahead of the consensus of $16.33B
FY25 Guidance: Reaffirmed its expectation for $13.5B in free cash flow and at least 5% revenue growth at constant currency. At current exchange rates, currency will provide 150 basis points of benefit for 2025 growth, down from the company’s forecast of 200 basis points in January.
Comment: IBM reported stronger-than-expected Q1 earnings, with revenue rising 0.6% to US$14.5bn and adjusted EPS of US$1.60, above the consensus. High margin software growth and a growing AI business, now at over US$6bn in total bookings and sales, supported performance. However, investor sentiment soured after IBM disclosed that 15 government contracts, worth about US$100mn, were cancelled due to federal cost-cutting efforts under the Trump administration. Although this represented less than 1% of consulting backlog, it raised concerns amid broader economic uncertainty. IBM provided second quarter guidance, projecting revenue of US$16.40bn to US$16.75bn, topping expectations. IBM remains committed to achieving at least 5% revenue growth in 2025 on a constant currency basis, driven by continued momentum in AI, cloud, and software segments. While macroeconomic challenges and government budget tightening pose near-term headwinds, the company’s growing AI book of business and limited exposure to tariff impacts position it well to navigate uncertainty and capitalize on long-term digital transformation trends. 2Q25recommended trading range: $225 to $250. Neutral Outlook.
1Q25 Revenue: $4.07B, +11.2% YoY, beat estimates by $160M
1Q25 GAAP EPS: $1.28, beat estimates by $0.22
2Q25 Guidance: Expect revenue in the range of $4.17B to $4.53B, with the midpoint of $4.35B above the analyst consensus of $4.12B. Q2 EPS is projected between $1.21 and $1.47, also above the $1.20 consensus estimate.
Comment: Texas Instruments posted a strong first-quarter performance with revenue rising 11.2% to US$4.07bn and earnings of US$1.28 per share, beating analyst estimates. The company also issued its second-quarter profit forecast of US$1.21 to US$1.47 per share, exceeding the US$1.20 consensus, signaling confidence in its ongoing growth. As the global leader in analog chips, Texas Instruments is investing heavily in expanding its Texas factory network and adopting more advanced manufacturing processes to reduce long-term costs and maintain competitiveness. These strategic moves, though weighing on short-term margins, aim to counter the growing threat from Chinese rivals who are rapidly scaling their analog chip production due to export restrictions on high-end processors. Despite rising competition, Texas Instruments remains well-positioned with operational strength, innovation, and scale to defend its market leadership and drive sustainable growth. While short-term pressures from increased capital expenditures and global competition may persist, Texas Instruments remains focused on long-term growth by advancing its manufacturing capabilities, expanding its domestic production footprint, and strengthening its position in the analog semiconductor market. As global demand for embedded and analog solutions continues to rise across industrial and automotive sectors, we anticipate the company’s strategic investments to drive greater operational efficiency, enhance competitiveness, and support sustained profitability. 2Q25recommended trading range: $150 to $170. Neutral Outlook.
3Q25 Revenue: $4.72B, +24.5% YoY, beat estimates by $80M
3Q25 Non-GAAP EPS: $1.04, beat estimates by $0.04
4Q25 Guidance: Expect revenue of $5B, plus or minus $300M, compared with analysts’ estimate of $4.59B.
Comment: Lam Research exceeded Wall Street expectations in Q3, reporting revenue of US$4.72bn and an adjusted EPS of US$1.04, both surpassing analyst forecasts. Growth was driven by strong demand for advanced AI chips, with significant shipments to Taiwan and robust performance in China despite U.S. export restrictions. Systems revenue, including sales of advanced wafer fabrication tools, reached US$3.04bn. Its CEO affirmed confidence in the company’s outlook, even amid tariff-related challenges. The company projects Q4 revenue of US$5bn, ±US$300mn and maintains a long-term target of US$25bn – US$28bn in revenue by 2028. As the AI and data center boom drives advanced chip production, Lam’s cutting-edge wafer fabrication tools position it as a key enabler of next-gen semiconductor manufacturing. Despite geopolitical and trade uncertainties, Lam Research is poised for continued growth, fuelled by rising global demand for AI-driven semiconductor technologies and increased capital spending by leading chipmakers. 4Q25recommended trading range: $65 to $75. Neutral Outlook.
1Q25 Revenue: $2.86B, -3.4% YoY, miss estimates by $30M
1Q25 Non-GAAP EPS: $0.59, beat estimates by $0.02
FY25 Guidance: No guidance provided
Share buyback: Board of directors increased stock repurchase authorisation to $2B from remaining $1.1B under a previous plan.
Comment: Las Vegas Sands beat analyst expectations for Q1 profit, reporting an adjusted EPS of US$0.59 versus the expected US$0.57. While total revenue came in slightly below estimates at US$2.86bn, strong performance in Singapore helped offset a revenue decline in Macao, which fell to US$1.71bn from US$1.81bn a year ago. Singapore operations, driven by Marina Bay Sands, posted a modest YoY increase to US$1.16bn. Its CEO emphasized the company’s focus on premium offerings and service enhancements, positioning it well for future growth as Asia’s travel and tourism market expands. The company also announced that it is no longer contesting to develop a New York casino. Las Vegas Sands is strategically focused on leveraging its premium product and service enhancements, particularly in Singapore, to capture growth as tourism rebounds across Asia. While near-term challenges in Macao persist, the company remains optimistic about long-term demand and is committed to refining its integrated resort offerings to drive sustained revenue. 2Q25recommended trading range: $32 to $38. Neutral Outlook.
