What to expect from companies announcing results week commencing 3 December 2018.
Companies reporting w/c 3 December
Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 3 December 2018.
Iomart (Q2 2019 earnings)
The share price of the cloud computing group has come off its summer highs, in-line with other technology groups but investors nonetheless still have big hopes for the group into the future. With the restructuring of its sales and marketing team, management said that this would bring rewards from the second half onwards; investors will hope that the sales growth has carried over last years’ momentum so that this year it could breach the £100m level for the first time. Investors have welcomed the news of the partnership with Regus in providing the Dynamic Workplace Recovery service but news of other ventures or contract wins will also be well appreciated.
We currently list Iomart as a BUY
Ferguson (Q1 2019 sales and revenue release)
Shares in the company have been hit hard in the recent market sell-off, falling to a 12-month low. The company is the world's leading supplier of plumbing and heating products and a main supplier of building materials. The groups focus remains on improving customer service, maintaining market share and margins, cutting costs and cash generation. Ferguson is highly geared to the US, where the majority of revenue and trading profit are generated. Investors will be hoping that the commercial and residential market in the US has remained steady. Any comment regarding the outlook for 2019 will be worth noting.
We currently list Ferguson as a BUY
Berkeley Group (Q2 2019 earnings results)
Of the larger housebuilders, Berkeley is most exposed to slowdown in the London housing market and this was reflected in its last set of full year results where revenues fell for the first time after a stellar few years of growth. With activity in the housing market slowing more since the summer and the heightened level of uncertainty from Brexit, new homes at the premium end may be even more difficult to sell in recent months. Investors though will still expect reasonable dividend and capital returns for the time being.
We currently list Berkeley as a SELL
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