Companies reporting w/c 12 August

We give our thoughts on what to expect from companies announcing results week commencing 12 August 2019.

Tuesday

TUI (Q3 2019 Earnings Release)

It is fair to say it’s been a difficult year for tourism group TUI due to a range of factors including the grounding of the Boeing 737 Max planes. In this Q3 report the market will be looking for an update on the expected impact of that issue on TUI’s full-year earnings. Investors will also be hoping for an improvement in the struggling tour operating business and watching the performance at the hotels and cruises operation which has been better of late. The market is expecting a 20% cut in dividends this year, and the 8.1% prospective yield also points to that, so any comments on that will be significant.

We currently list TUI as a HOLD

Wednesday

Admiral Group (Q2 2019 Earnings Release)

The market is expecting fairly good news from the insurance group thanks to recent data which confirmed car premiums have risen by 5% on average over the past year. The fall in new car sales has not made life easy for Admiral and full-year figures in March were seen as slightly disappointing due to a deteriorating loss ratio. That will again be a focus for many investors in these interim numbers. The comparison website confused.com has been performing fairly well but competition is strong in that area so the market will be watching that.

We currently list Admiral as a HOLD

Prudential (Q2 2019 Earnings Release)

Over the years Prudential has done extremely well from its focus on expanding into the Asian economies where governments are keen to promote competitive insurance markets. Operating income from the region now accounts for the largest portion of the group's operating income. Investors will be keen to hear an update on the proposed splitting of the business and the group’s outlook on the Asia region, especially in light of recent concerns regarding Hong Kong, China and the economic outlook.

We currently list Prudential as a BUY

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.