We give our thoughts on what to expect from companies announcing results week commencing 10 June 2019.
Companies reporting w/c 10 June
IG Design Group (Q4 2019 Earnings Release)
Shares in IG Design, the AIM-listed company which produces a wide range of stationery related to celebrations and creative play, have had a rather lacklustre year so far despite a very upbeat fourth quarter trading statement in April. At that point the company said it continued to trade strongly up to the end of its financial year and expected significant increases in sales and operating profits. Any update on how the recently-acquired US business Impact Innovations is performing will be of interest, along with any guidance on the expectations for the current financial year.
We currently list IG Design as a BUY
Iomart Group (Q4 2019 Earnings Release)
The group have already given an indication that full year sales will be in the region of £104mn, up 6.5% on the year before while the operating profits should grow by a similar amount to £42.2mn. The cloud computing group has been gathering contracts helped along by its restructured sales team and it will be interesting to hear of their forward looking statement regarding future earnings growth as they believe the group is operationally geared.
We currently list Iomart as a BUY
Companies also reporting this day include Halma (Q4 2019 Earnings Release) – HOLD
British American Tobacco (Q2 2019 Sales and Revenue Release – Trading Update)
While the tobacco groups have been great dividend payers their shares prices have languished as the number of traditional smokers diminishes. Despite that, BAT reported a good set of full year results and there is the hope and expectation that it will again be the new generation of tobacco products, e-cigarettes that will drive sales. Last year sales of these products rose by 95% so investors will be keen to see if the near doubling of sales continues. Investors will expect an update on their appeal to a compensation claim amounting up to £6bn in Canada.
We currently list British American Tobacco as a HOLD
Boohoo Group (Q1 2020 Earnings Release)
Retailer Boohoo has benefited strongly from the move by consumers, especially young women, to buying fashion clothing online rather than on the high street. It’s full-year figures in April beat expectations with a 50% rise in revenue and a 38% increase in profits. The company said it had made an encouraging start to the new financial year and forecast earnings growth of 25-30% so investors will be interested in any update on that, especially in the wake of some poor UK retail sales figures for May in recent days.
We currently list Boohoo as a BUY
Tesco (Q1 2020 Sales and Revenue Release – Trading Statement)
The theme of the statement is likely to focus on Dave Lewis' strategies to regain competitiveness by focussing improving the balance sheet, regaining trust and transparency. The big question though is whether the good recent trading updates have following through into the first quarter of 2019. Judging by Kantar's latest survey it suggests that the German discounters are still taking market share although sales managed to stay at least flat unlike some of its other established UK peers.
We currently list Tesco as a HOLD
DS Smith (Q4 2019 Earnings Release)
The last trading update from the packaging group in April, covering the year to the end of that month, was fairly positive with growth in corrugated box volumes and higher profit margins. The company has benefited from the growth of online shopping and growth has been boosted by acquisitions in recent years so any comments on those areas will be of interest. The shares have traded largely sideways this year so far but do offer investors a decent 5.3% prospective dividend yield with above-inflation increases forecast over the next two years.
We currently list DS Smith as a BUY
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.