What to expect from companies announcing results week commencing 21 January 2019.
Companies reporting w/c 21 January
The Share Centre gives its thoughts on what to expect from companies announcing results week commencing 21 January 2019.
easyJet (Q1 2019 Sales and Revenue Release)
Full-year results in November were in line with market expectations and at that stage the company said it was expecting fuel costs to rise, despite a fall in the oil price. Oil has remained below $60 a barrel since then so it will be interesting to see if the company is sticking with its forecast. The market will also be looking out for any impact from the disruption caused by drones at Gatwick and Heathrow and any comments on plans to increase capacity will also be of interest.
We currently list easyJet as a BUY
Other companies reporting this day include: BHP Group (Q2 2019 Sales and Revenue Release) – BUY, Dixons Carphone (Q3 2019 Sales and Revenue Release)
Marston’s (Q1 2019 Sales and Revenue Release)
Despite general gloom across most of the high street the retail sector hopes, and some share prices in the pubs sector, have been raised by positive recent updates from Greene King and Mitchells & Butlers. Investors should not get carried away just yet as some of the sales growth figures may be flattered by the poor weather which hit the sector last year and the Brexit uncertainty may yet have an impact. Marston’s itself reported some solid full-year figures in November, but it was notable that its pubs focused more on drinks outperformed those concentrating on food sales. Investors will be looking to see if there has been an improvement at the higher margin, food-oriented Destination & Premium pubs.
We currently list Marston’s as a BUY
Burberry Group (Q3 2019 Sales and Revenue Release - Trading Update)
We have so far had a relatively mixed set of numbers from the retailers, but clothing and general merchandise could have been better. Burberry’s update covering the Christmas period will add another element to the retail scene, namely that of the higher end more affluent consumers and the markets will look to see if they have been as cautious on spending as the rest of us. Burberry's numbers should also give us some indication of the health of key consumers in other regions such as China upon which the rest of the world is increasingly reliant on. Investors will also be seeking updates on integrating some of the recent acquisitions and progress on generating efficiencies.
We currently list Burberry as a HOLD
The Restaurant Group (Q4 2018 Earnings Release)
The market will be keen to see how its core businesses (Frankie & Benny’s, Chiquito) performed over the fourth quarter. News from the company has recently been dominated by its much debated acquisition of Wagamama. Any further news for proposed future plans regarding its new acquisition will be worth noting. A number of analysts have raised concerns over the price the group paid. Weather issues should not have been a problem of late, but the competition for our casual dining experience definitely is.
We currently list Restaurant Group as a BUY
St. James’s Place (Q4 2018 Earnings Release)
Shares in wealth manager St James’ Place have underperformed the market over the past six months due to concerns about prospects for global growth and some disappointment with the level of gross inflows reported in the third quarter update in October. That figure will therefore be much scrutinised in this fourth quarter update and investors will be interested to hear if the CEO still believes the industry is facing a more challenging environment. As this is simply a brief trading update, investors will probably have to wait until the full final results in February to get more detail on other areas such as the performance of the Asian business.
We currently list St. James’s Place as a BUY
Other companies reporting this day include: Anglo American (Q4 2018 Sales and Revenue Release) – HOLD
Vodafone (Q3 2019 Sales and Revenue Release)
The share price has performed terribly since the end of 2017 and investors will want some of the fears to be allayed by management. They will want to hear that competition in Italy and Spain has not become anymore fierce and that organic growth numbers still look reasonably good as its broadband service expands. As the new CEO beds into his role, investors will expect to hear how progress is being made in making the organisation improve its commercial execution and how it is gearing up for a digital future. Last time around some assurances were given over it generous dividend helping lift the share price, unfortunately most of those gains have already been given up in the new year
We currently list Vodafone as a BUY
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