Companies reporting w/c 7 January

What to expect from companies announcing results week commencing 7 January 2019.

Article updated: 4 January 2019 10:00am Author: Graham Spooner

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.

Tuesday

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

Wednesday

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

Thursday

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

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.

Graham Spooner portrait photo
Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FSA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.