We give our thoughts on what to expect from companies announcing results week commencing 17 June 2019.
Companies reporting w/c 17 June
Ashtead Group (Q4 2019 Earnings Release)
Shares in equipment hire group Ashtead fell back after third quarter figures in March despite good growth in rental revenue and pre-tax profit. The reason was some concern about a slowdown in the key North American market so investors will be focusing very much on those figures in these fourth quarter and full year results. US rival United Rentals reported some good first quarter figures in April which usually bodes well for the sector generally. Any comments on plans for expansion, both in terms of new locations and the purchase of new equipment for hire, will also be important signals of the company’s growth expectations.
We currently list Ashtead Group as a BUY
Telecom Plus (Q4 2019 Earnings Release)
The group provide an alternative to the usual well known utility suppliers for gas, electricity, telephone and broadband services through its Utility Warehouse brand. A mild winter, costs and the Ofgem price cap will hit profits with expectations to be around £56m. However the share price has remained close to a 5-year high on hopes for its future prospects in an energy market which is seeing high levels of switching.
We currently list Telecom Plus as a BUY
Berkeley Group Holdings (Q4 2019 Earnings Release)
2017 may have represented a peak for the group's sales and profitability, it was always going to be a tough ask for them to beat that in 2018 and it looks like being the same in 2019. Berkeley has more of a London focus than the other major housebuilders which will make it an even more difficult task. The combination of average selling prices and volumes completed will struggle to lift revenues while higher costs due to materials and labour will pinch the bottom line compared to the previous year.
We currently list Berkeley Group as a HOLD
Whitbread (Q1 2019 Sales and Revenue Release - Trading Update)
Whitbread’s shares have underperformed the market so far this year despite the benefit of the considerable proceeds of the Costa sale last year. Investors will scrutinise this first quarter update carefully for news on the performance of Premier Inn, which weakened in the last quarter of 2018. In April investors were slightly concerned by a rather downbeat outlook for 2019 so any update on that will be of interest. The £2bn tender offer, using about half of the receipts from the Costa sale, will begin the day after the first quarter announcement.
We currently list Whitbread as a HOLD
Other companies reporting this week includes Dixons Carphone (Finals) on Friday; we do not hold a view on this stock.
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.