Companies reporting w/c 22 July

We give our thoughts on what to expect from companies announcing results week commencing 22 July 2019.


Croda International (Interims)

The group is a world leader in the manufacture of specialty chemicals for the healthcare business, cosmetic industry and crop care. Products are also used by the oil and gas, automobile, textiles and packaging industries. Investors will be hoping for an improvement in sales for its Personal Care division, which slowed over the fourth quarter. The share price, which was close to an all-time high in June has fallen back to start of year levels following a couple of broker downgrades and challenging market conditions.

We currently list Croda as a HOLD

ITV (Q2 2019 Earnings Release)

The share price has had a torrid last 12 months and is currently hovering around a 6-year low. Advertising revenues are likely to have remained under pressure. Investors will be looking for an update on BritBox, its streaming service due to be launched later in the year. Studio revenue has grown in importance and now makes up around 56% of revenue, there was a 1% rise in revenue over the first quarter and the market will hope that this area can help offset the uncertainty over advertising.

We currently list ITV as a HOLD

Marston’s (Q3 2019 Sales and Revenue Release - Trading Update)

The pub sector has been under some pressure in recent times over concerns that Brexit uncertainty might lead to fewer customers and lower spending. However, Marston’s has continued to see a relatively good level of sales and the shares have enjoyed a strong recovery since upbeat interim figures in May. The relatively good weather since then will raise hopes that trading has remained steady for both the premium and drinks-led pubs. Rumours that the company is looking to sell its Pitcher & Piano chain have appeared in the media recently.

We currently list Marston’s as a BUY

GlaxoSmithKline (Q2 2019 Earnings Release)

The recent theme of new drugs such as Shingrix driving the group revenue should continue into the second quarter and help offset some of the generic competition faced on older blockbuster drugs. Sales of Advair will be closely watched as a generic rival received approval earlier this year, as a result management indicated that full year adjusted EPS will fall by 5-9%. Investors would hope that there is no deterioration in this regard. However the shares have done well lately off the back of good R&D results and investors will be keen to follow the progress of the integration of recent acquisitions such as Tesoro Inc.

We currently list GlaxoSmithKline as a BUY

Other companies reporting this day include: Tullow Oil (Q2 2019 Earnings Release) – BUY


AstraZeneca (Q2 2019 Earnings Release)

AstraZeneca's newly released drugs have been its saviour lately helping to offset the decline in sales of previous blockbuster drugs that faced generic competition with 2019 being the first year for some time expected to show a pickup in overall sales following good quarterly updates recently. However, there was some mixed news recently following the US FDA's rejection of the group's Farxiga drug for diabetes while being granted orphan drug status for Imfinzi, a lung cancer treatment. Investors will expect to hear of the steps management take next.

We currently list AstraZeneca as a BUY

Diageo (Q4 2019 Earnings Release)

Diageo’s shares have enjoyed a good run so far this year, outperforming the FTSE 100. The company has been benefitting from the strong demand for spirits, especially in key emerging markets such as India. There is some recent evidence that consumers are switching out of beer and lager and favouring spirits such as gin and whisky in which Diageo has a strong offering. In May the company said it was expecting full-year sales growth in the high single digits and an improvement in profit margins. The market will be interested to hear about expectations for the coming year and whether there are likely to be further share buybacks.

We currently list Diageo as a BUY

RELX (Q2 2019 Earnings Release)

Relx operates in four market segments: Scientific, Technical & Medical, Legal, Exhibitions (London Book Fair) and Risk and Business Analytics. This includes providing digital professional information services to doctors, lawyers and academics. There has been solid like for like growth across all of its divisions and an improvement in margins. Of its divisions, Exhibitions and Risk Solutions, which provides information to help prevent and spot fraud, has demonstrated the best growth. The share price has outperformed year to date and remains close to an all-time high.

We currently list RELX as a BUY

Unilever (Q2 2019 Earnings Release)

The defensive appeal of everyday consumer brands giant Unilever in times of global economic uncertainty has clearly been hard for investors to resist this year, judging by the strong performance by the shares. They are trading near an all-time high thanks to positive comments in April regarding better sales in emerging markets and a good rise in the dividend. The new CEO Alan Jope spoke recently of investing more in the beauty and personal care side of the business so any further details on that will be of interest to the market.

We currently list Unilever as a BUY

Other companies reporting this day include: Sage (Trading Update) – BUY, Breedon Group (Q2 2019 Earnings Release) – BUY, Compass Group (Q3 2019 Sales and Revenue Release – Trading Update) – BUY, Vesuvius (Interims) - BUY


Vodafone (Q1 2020 Sales and Revenue Release – Trading Update)

The headlines at the last update were dominated by the much anticipated cut in the dividend on the back of weakness in the European and Indian businesses, the need to still make large investments into the next generation of mobile networks and fund the acquisition of fixed line assets in Eastern Europe for which there are suggestions that regulators are set to approve. The new CEO is installing his management team with a number of recent appointments in the hope they can traverse issues in various parts of the world. Investors still expect to see good data demand growth and cost synergies in India.

We currently list Vodafone as a BUY

Other companies reporting this day include: Pearson (Q2 2019 Earnings Release) – 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 To understand how our Investment research team arrive at their views please read our Investment Research Policy.