What to expect from companies announcing results week commencing 7 January 2019.
Companies reporting w/c 7 January
Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 7 January 2019.
Wm Morrison Supermarkets Plc (Q4 2018 Sales and Revenue Release)
The performance of the company over the important festive season will come under scrutiny with this trading update. The group operates in a crowded market place and consumers have become increasingly price conscious, along with the increasing use of the internet. The share price, like many, came under pressure over the closing months of 2018 and investors will be hoping that they have managed to maintain their market share.
We currently list Wm Morrison Supermarkets as a HOLD
Taylor Wimpey (Trading update)
Shares in the housebuilder dropped away following the last trading update in November. While there was positive news on the order book, the market also noticed a comment that customers in the South East appeared to be a little more cautious than previously. The company pointed to the high level of political uncertainty at present and predicted a pause in growth before its new strategy begins to take effect from 2020. Given the uncertainty affecting the whole sector the market will be looking for reassurance on dividend payments, with the company having previously stated that it intends to return £600m to shareholders in 2019, a rise of 20% on 2018.
We currently list Taylor Wimpey as a HOLD
Marks & Spencer Group Plc (Q4 2018 Sales and Revenue Release)
The market will be hoping for much better news from the famous high street retailer, especially given the disappointing news at the last update in November when the company revealed a drop in sales in the usually resilient food business. The omens are not particularly good as there were signs in December that consumers had brought forward purchases to the Black Friday period, which is not normally a strong point for M&S. The focus will be very much on the clothing side of the business and whether there are any signs of the restructuring efforts bearing fruit.
We currently list Marks & Spencer as a HOLD
Tesco Plc (Q4 2018 Sales and Revenue Release)
Another Christmas trading update from a famous high street name. With the share price down by around 20% since the start of October it would appear that the market is not expecting any out-performance in sales and customer numbers. These are difficult times for retailers and the pressure of rising costs, internet shopping and falling consumer confidence continues to hit the sector hard.
We currently list Tesco as a HOLD
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