We give our thoughts on what to expect from companies announcing results week commencing 19 August 2019.
Companies reporting w/c 19 August
Persimmon Plc (Q2 2019 Earnings Release)
The housebuilder has not had an easy time of late, as seen by the drop in the share price, with a range of issues including Brexit, a government review into its participation in the Help to Buy scheme and a recent TV programme questioning its build quality. The forward order book will be a key figure for the market and average selling prices will also be of interest given the weakness of the housing market more generally at present. Any comments on future dividends will also be important given how generous the company has been historically in that area.
We currently list Persimmon as a HOLD
John Wood Group Plc (Q2 2019 Earnings Release)
The volatility in the oil price has clearly had an impact on Wood Group, along with many others in the oil sector. In these results the market will be interested in how the restructuring scheme is progressing, as well as whether the company still expects operating profits to increase by 25%, as it guided in June. Tensions in the Gulf relating to Iran still have the potential to lift the oil price but at the moment concerns about the slowdown in economic growth are having more of an influence. A steady improvement in cash flow this year has raised hopes of better dividends and investors will be watching for any comments in these results.
We currently list John Wood Group as a BUY
BHP Group (Q4 2019 Earnings Release)
Growing concerns over global growth has hit the share price recently, combined with fears relating to the China/US trade spat and slowdown in construction in China. Future production levels of the groups various commodities especially with regard to iron ore and costs are always key areas for investors to focus on. The last production update in July was described by one analyst as ‘a bit of a mixed bag’ leading to downward revisions on earnings.
We currently list BHP Group as a BUY
NMC Health (Interim statement)
The share price has suffered badly of late, leading to the group stating it knows no reason for the decline and reiterating guidance for the year. The company operates mostly in the Middle East and investors will need reassurance and clear signs that nothing is untoward. The group can be susceptible to changes in government policy and volatility in the oil price. Debt levels have also been rising as a result of expansion and acquisitions.
We currently list NMC Health as a BUY
Other companies reporting this day include: Antofagasta Plc (Q2 2019 Earnings Release) – HOLD
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.