Companies reporting w/c 11 February

What to expect from companies announcing results week commencing 11 February 2019.

The Share Centre gives its thoughts on what to expect from companies announcing results week commencing 11 February 2019.

TUI (Q1 2019 Earnings Release)

The barrage of TV adverts relating to holidays at present tells us that this is an important time for tour operators as many people are booking their summer holidays, and some are still taking up deals on skiing breaks. Full year figures from TUI in December were in line with expectations which, in the context of profit warnings from rival Thomas Cook, were seen as reassuring. The shares have recovered modestly since then but in these first quarter figures the market will be looking specifically to see if there's been an improvement in the weak northern region of the markets & airlines division. Investors will also be hoping that the company still expects earnings to increase by at least 10% this year.

We currently list TUI as a BUY

Tullow Oil (Q4 2018 Earnings Release)

The group already provided some guidance for 2018 results saying that group revenues have improved materially along with free cash flows of around $400m and debts reducing to just over $3bn. With the expectation of a material improvement in profits as well, there is eager anticipation of what the reinstated dividend will look like. Investors will expect an update on new exploration projects in Africa and South America and news on whether there have been anymore form-out deals.

We currently list Tullow Oil as a BUY

Companies reporting this day include Smurfitt Kappa (Finals) - BUY

AstraZeneca (Q4 2018 Earnings Release)

Following on from the decent set of results from peer GSK, investors may to a certain extent expect reasonably good numbers from AstraZeneca as well. Judging by the first three quarters, Astra should see a good set of results with new drugs coming out of R&D and sales to the emerging markets doing very well. Key blockbuster drugs are under pressure but recent good news surround drug approvals and new drugs result in investors to make an encouraging outlook for 2019.

We currently list AstraZeneca as a BUY

Following on from the decent set of results from peer GSK, investors may to a certain extent expect reasonably good

Micro Focus (Finals)

It’s been a busy 12 months for the FTSE 100 software group. The shares have recovered steadily since it shocked the market last March by lowering expectations for revenues at its newly-acquired HPE software business. That led the shares to halve in value but the news has gradually improved for investors since then but investors will still be focusing on how the HPE business is performing and the prospects for further share buybacks in the year ahead. Some analysts think the company may try to boost growth with acquisitions so any hint of that in these results would be interesting.  

We currently list Micro Focus as a HOLD

Coca-Cola HBC (Q4 2018 Earnings Release)

The soft drinks bottling group lifted investors’ spirits in November with some upbeat comments on its prospects. That was mainly due to growth in developing markets such as Poland and the development of new brands including Smartwater and Honest Tea. In these full year figures the market will be expecting to see growth in revenue and profit margins. The shares have risen strongly in recent months as investors have seen the company avoid a significant impact from the new UK sugar tax and enjoy success with low-sugar and energy drinks.

We currently list Coca-Cola HBC as a HOLD

Royal Bank of Scotland (Q4 2018 Earnings Release)

After a poor 2018 the share price has regained some upward momentum this year. Investors will be hoping for better news on revenues and impairments over the final quarter. Other areas of interest will be the groups outlook, especially relating to Brexit, future dividend policy and any further news on buying back shares from the government, who still have a 62.4% holding. 

We currently list Royal Bank of Scotland as a HOLD

We currently list Royal Bank of Scotland as a HOLD

 

Companies reporting this day include Segro (Finals) - HOLD

Economic Diary

11 Feb, UK Q4 GDP and December Manufacturing and Industrial Production data
These sets of data will almost certainly have Brexit flavour to them with expectations that all the uncertainty and withholding of investment spending left the 4th quarter growth rate at half of that during the third quarter and the year-on-year figure moderating to 1.4%. The year-on-year figures for industrial and manufacturing figures are also expected to reflect lower activity, but, as with have seen with some other economic indicators, manufacturing production for December is actually expected to rise as companies stock up inventories to insure against the most undesired outcome. 

13 Feb, UK January Inflation rate
Inflation for the first month of the year is expected to follow on from December and potentially hit the 2% year-on-year target of the Bank of England’s MPC, which was last hit back in early 2017. It’s likely that the fall off in oil prices since the summer will continue to have a downward impact on the transport sector. Price caps on energy bills should also have a limiting impact on prices rises, this and the political uncertainty will almost certainly keep policy makers on hold with rate rises.  

 

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.