What to expect from companies announcing results week commencing 20 August.
Companies reporting w/c 20 August
Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 20 August 2018.
NMC Health (Q2 earnings release)
Shares in Gulf-based healthcare group NMC have outperformed the market comfortably this year. That followed good results in March which showed patient numbers up 33.5%. The company, which is targeting higher value treatments and procedures, forecast further growth at that point so the market will be expecting to see evidence of that in this report.
We currently list NMC Health as a HOLD
BHP Billiton (Q4 earnings release)
Miners have been increasingly volatile of late as concerns grow over trade wars. Areas for investors to concentrate on will be costs, which have been rising for the industry as a whole, any further comment on the streamlining of the business and the groups future outlook, especially with regard to China and global demand, would be of interest.
We currently list BHP Billiton as a BUY
Persimmon (Q2 earnings release)
The last update in early July was seen as reassuring given the backdrop of economic uncertainty and rising interest rates. Both revenues and the forward order book rose 5% but the market's focus in this update will be on profit margins as the company said previously that it expected some improvement in the underlying housing margin in the first half.
We currently list Persimmon as a HOLD
CRH (Q2 earnings release)
CRH’s profitability is strongly linked to the health of the global economy, in particular the US and European housing and construction activity and recent results have highlighted continuing demand from the US. The group recently announced initiatives aimed at improving margins and cash generation along with a review of its European operations. The groups view on future infrastructure spend will be worth noting.
We currently list CRH as a BUY
Announcements for the w/c 20 August 2018:
23 August: CBI Distributed Trades Survey – August
This data will provide the latest snapshot of the health of the retail sector in the UK. Although it is a relatively small sample it is usually spread across a wide range of companies from high street retailers to wholesalers and car dealers. Other data has suggested that the heatwave only really benefited the supermarkets so it will be interesting to see if this points to any other trends.
23 August: Eurozone PMI surveys for manufacturing and services – August
Interesting times for the Eurozone will put a focus on these figures, both of which are expected to rise slightly. The second quarter GDP figure revealed two weeks ago for the bloc was weaker than expected although more recent data for Germany was reassuring. With trade tensions escalating for nearby Turkey and the ECB about to wind down its QE support, investors will be focusing in on these numbers as they measure activity in two of the most important sectors in the Eurozone economy.
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