We give our thoughts on what to expect from companies announcing results week commencing 2 September 2019.
Companies reporting w/c 2 September
Restaurant Group (Interim results)
Year to date the share price has trended sideways as doubts remain over whether management and the new CEO will be able to counter the current problems in the casual dining sector and benefit from the acquisition of Wagamama. Expect a further update on the plans for Frankie & Benny's, which has struggled in recent years, along with the more successful concessions, pubs and Wagamama businesses which are expected to be the main areas for future growth.
We currently list Restaurant Group as a BUY
DS Smith (Interim results)
The packaging group has seen a modest recovery in its shares so far this year but remain below the level seen at the same time last year. The full year figures in June showed a good contribution to profits from the recently acquired Europac and Interstate Resources, so investors will be looking to see if that has carried on into the first quarter of the new financial year. The company, which derives a significant part of its income from a number of European markets, said it had seen some weakness in its markets but was expecting a recovery in the new financial year.
We currently list DS Smith as a BUY
Companies reporting today include: Barratt Developments Plc (Q4 2019 Earnings Release) - HOLD
Genus Plc (Q4 2019 Earnings Release)
This is a company that provides help to farmers to improve efficiency and the quality of its stock. Any further update on the collaboration with Beijing Capital Agribusiness will be worth noting. Investors will also expect more news on the spread of African Swine Fever in China and its impact. There has been recent improvement in its cattle business along with the pigs side in Europe and Latin America.
We currently list Genus as a BUY
Melrose Industries Plc (Q2 2019 Earnings Release)
The focus will remain on GKN and management’s plans to improve the business and margin objectives. Investors will be hoping economic headwinds have not hit group confidence especially relating to car and aerospace components. Analysts believe GKN will be a longer-term turnaround story and continue to point to the good track record the management has.
We currently list Melrose Industries as a BUY
PPHE (Interim results)
It has been a busy year for the boutique hotel operator so far. In February it announced a good set of full-year figures and in March a couple of major shareholders sold shares which enabled the company to be included in the FTSE 250 index in June. Investors will be looking to see if the good start to the new financial year it reported in April continued into the second quarter. The shares have performed very well over the past year thanks to hopes for further growth in London and Croatia in particular.
We currently list PPHE as a BUY
Other companies reporting today include: EnQuest Plc (Q2 2019 Earnings Release) - BUY
Companies reporting today include Berkeley Group (Trading update) – 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.