What to expect from companies announcing results week commencing 18 June 2018
Companies reporting w/c 18 June
Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 18 June 2018.
Ashtead Group (Q4 earnings release)
Shares in the international equipment hire group have continued to rise since the last trading update in April. At that point the company said it was continuing to perform well with full year figures expected to be in line with management’s forecasts. With few surprises due on historic performance, investors will be more focused on any comments on prospects for the company’s end markets for the rest of this year and next. Ashtead said previously that it was still investing quite heavily in equipment so any further update on that will be if interest.
We currently list Ashtead Group as a BUY
Telecom Plus (Q4 earnings release)
The group provides an alternative to the big utility suppliers and investors will be keen to see if they have been able to pick up new clients on the back of government concerns over charging. One of the keys for the company is the take up of its ‘gold’ membership, which involves taking all five of its services. Comments regarding the outlook for the sector for the year ahead will be worth noting.
We currently list Telecom Plus as a BUY
Berkeley Group (Q4 earnings release)
Berkeley’s share price has continued to perform well despite the building worries over the UK housing market, especially in the South East where house prices have stalled. While the forward order book at the last update was stable, management have taken the stance that they should not seek to increase production at a great pace as they view the current macro-economic climate to not be supportive. The consensus view is for revenues to be up very modestly while reported profit growth should be in the low double digits. Investors should still expect good dividend payouts over the short to medium term.
We currently list Berkeley Group as a HOLD
Economic Diary: week commencing 18 June 2018
21 June 2018: Bank of England interest rate decision
The latest manufacturing and industrial production data suggested that the weakness in the economy we saw in the first quarter was not just down to the severe winter conditions but more fundamental. We have also had the latest jobs data, which was good but there was a lack of evidence that wage rises could spiral upwards. This has all but diminished any expectations of a rate hike at the June meeting. Policy makers will need more time and data to assess the economy leaving the August meeting as the more likely date of an interest rate hike.
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