We give our thoughts on what to expect from companies announcing results week commencing 15 July 2019.
Companies reporting w/c 15 July
Experian (Q1 2020 Sales and Revenue Release - Trading Update)
The share price has once again been making steady progress year to date and is within touching distance of an all-time high. The world’s largest credit data group has expanded the range of industries that it services and its geographic reach. Previous guidance for the year is for organic revenue growth of between 6% and 8%. The important North American operations have been a stand out performer and will focus investor attention in this trading update.
We currently list Experian as a BUY
Rio Tinto (Q2 2019 Sales and Revenue Release - Operational Review)
In these times of economic uncertainty and lower growth expectations, investors in the big two UK listed mining groups should be pretty pleased to see where the shares prices are. However, some of this may be down to the higher iron ore price recently which has been supported by the closure of mines in Brazil after the disaster and some investors are expecting prices to peak out soon. For this half year period though there is some expectation that iron ore production could be lower given weather related issues in Australia and other operational difficulties.
We currently list Rio Tinto as a BUY
Burberry (Q1 2020 Sales and Revenue Release - Trading Update)
Fashion group Burberry has been through some tough times in recent years mainly due to a slowdown in sales growth in its key Asian markets. The management's forecast for the current year did not impress the market when it was made in March so investors will be hoping for some rather more positive comments alongside the Q1 numbers. The market will especially focus on how the collections from the new Chief Creative Officer Riccardo Tisci are performing.
We currently list Burberry as a HOLD
BHP Group (Q4 2019 Sales and Revenue Release)
In these times of economic uncertainty and lower growth expectations, investors in the big two UK listed mining groups should be pretty pleased to see where the shares prices are. However, some of this may be down to the higher iron ore price recently which has been supported by the closure of mines in Brazil after the disaster and some investors are expecting prices to peak out soon. Like some of its peers, BHP though has had a few operational issues limiting its iron ore production during the first quarter, investors will hope to see issues resolved during the second quarter. With the offloading of shale assets investors will expect to see the net debt lowered along with the share buyback programme continuing.
We currently list BHP Group as a BUY
Severn Trent (Q1 2020 Sales and Revenue Release - Trading Update)
Despite regulatory challenges analysts have been a little more confident on the potential for the sector to deliver attractive shareholder returns. The group has performed well in terms of cost savings and efficiencies, an area the regulator has a close eye on. Trading statements from water companies do not usually provide much in the way of excitement and with the Labour party keen to gain greater control investors will be hoping for the trading in line with expectations comment.
We currently list Severn Trent as a HOLD
SSE Plc (Q1 2020 Sales and Revenue Release - Trading Statement)
The group has been in an increasingly difficult environment as a result of political and regulatory pressure, falling customer numbers, unusual weather and the failure to merge its retail division with Innogy. The latter will now be offloaded by the end of 2020. The group has already warned that operating profit will be "negatively impacted" for the year as a result of price hedging and profit at its electricity networks. Updates on its proposed cost savings program and future outlook will be worth noting.
We currently list SSE as a HOLD
Other companies reporting this day include: Anglo American (Q2 2019 Sales and Revenue Release – Production Report) – 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.