Equities Update: GM, Tesla, Compass Group, Mitie, Mony, Ryanair…

GM beats expectations despite tariff hit

Lale Akoner, global market analyst at eToro says: “GM’s second-quarter results show a company under pressure but not breaking. Profits dropped 35% as tariffs added a massive $1.1B in extra costs, yet GM still beat earnings expectations. That’s impressive, although not a free pass. The company kept its full-year forecast unchanged, which only holds if it can actually deliver the cost cuts and pricing power it talks about.

“So far, those offsets haven’t shown up. EV sales are booming, but GM took a $600M hit from excess inventory, clear evidence that ramping up production is still messy. China posted another quarter of profit, but it’s early to call that a turnaround.

“For investors, the one number that matters now is free cash flow. If GM hits its $7.5bil.- $10 bil. target this year, it proves the business is resilient even with policy headwinds. If not, the valuation starts to make sense for the wrong reasons.”

Comment: Tesla earnings – key points to look out for

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Tesla’s earnings will be concentrated on three key themes: deteriorating financials, affordable model updates, and the robotaxi strategy.

“Tesla faces a difficult backdrop as revenues and profits are likely to stay under pressure in Q2, given the 13.5% drop in deliveries. Tesla will need its promised cheaper model, but details are elusive. Such a vehicle could revitalise demand and fend off mounting competition from Chinese startups and legacy European automakers that bring more affordable EVs to market. At the same time, the long-awaited robotaxi made a cautious and rocky start, raising concerns over safety and its readiness for broader deployment.

“However, there are reasons for optimism. Tesla can emerge as a relative beneficiary of the EV credit eliminations and tariffs, thanks to its localised production, strong margins, and dominant US market share. Additionally, the high stakes pivot to autonomous driving could unlock value if executed right, as Tesla’s AI and camera-based approach is easier to scale at a lower cost.

“Shares of Tesla have dropped this year due to persistent automotive struggles, but markets could react positively to any convincing news on the robotaxi and cheaper models strategies.”

Compass heading in the right direction

“Compass shares have reacted enthusiastically to this morning’s update, and the share price looks primed for more gains as it returns to its steady ascent following the volatility of March and April. The upgraded profit forecast shows that it is gaining pricing power and market share, pointing towards the potential for more profit upgrades in the months to come.”

Mitie Groups transformation is starting to make headlines

Mark Crouch, market analyst for eToro, says: “Mitie isn’t the kind of stock that makes headlines, but maybe it should be. While flashier names stumble over themselves chasing hype, Mitie has quietly executed one of the more intelligent post-pandemic pivots on the FTSE. It’s now trading above pre-Covid levels, and not by accident. Smart acquisitions, solid execution, and a pivot into higher-margin, tech-led services have reshaped the business.

“The £1bn DWP contract win was massive, while the pending Marlowe deal, a strategic coup. Mitie isn’t a turnaround story anymore; it’s a growth story. And while it may not be on everyone’s radar, the numbers don’t lie, double digit revenue growth, strong free cash flow, a growing order book, and a leadership team that’s delivering. For investors looking for substance over sizzle, Mitie might just be one of the most underrated success stories on the market right now.”

Comparison: the thief of joy for Mony Group investors as shares sink at the open

Adam Vettese, market analyst at eToro, says: “At first glance, Mony Group’s interim results paint a picture of a business that’s weathering the current market reasonably well, but there are clear areas for improvement.

“On the plus side, the company’s strong member growth and steady profit gains highlight the effectiveness of its membership and provider services strategy, and the sharp reduction in net debt signals improved financial resilience. The ongoing commitment to shareholder returns, through both dividends and buybacks, will also please investors.

“However, slower revenue growth and a notable dip in operating cash flow suggest Mony faces competitive pressures and needs to deliver on its plans for diversification and top-line acceleration. The market has not been convinced by this and Mony shares have sunk over 6%. While the business is solid and its brand remains a market leader, the real investment case hinges on Mony’s ability to reignite growth and further convert its new digital offerings into consistent, cash-generative performance.”

Ryanair profits double in quarter as airline shows again its built differently

Mark Crouch, market analyst at eToro, says: ”Ryanair’s latest numbers leave little doubt, this airline is built differently. Profits more than doubled in the three months to June, and all this while tariff uncertainty lingers and Boeing delays continue to hold back fleet growth. Most carriers would kill for these kinds of “problems.”

“It’s not just that Ryanair is outperforming a sector still facing turbulence, it’s that it’s doing so with a kind of swagger. Where others are weighed down by cost inflation, wavering passenger demand, and operational chaos, Ryanair is flying straight through it. Fewer planes? No problem. Higher fares? Passengers still pile in.

“As Ryanair shares climbed to a new high this morning, frankly, it’s no mystery why. The market is rewarding what’s become painfully clear, Ryanair has the cost base, scale, and discipline to turn sector-wide disruption into opportunity. It may be facing headwinds like everyone else, but it’s treating them like a tailwind.”