What to expect from companies announcing results week commencing 25 March 2019.
Companies reporting w/c 25 March
The Share Centre gives its thoughts on what to expect from companies announcing results week commencing 25 March 2019.
United Utilities Group (Q4 2019 Sales and Revenue Release)
The regulatory environment has been overhanging on the share price for a while now and last summer’s exceptionally hot weather added costs to the group to safeguard supplies and resources which will be fully detailed. While this is an attractive share for a lot of income investors, concerns over the sustainability of the dividends have been raised beyond 2019 as the group announced plans to reduce bills by 10.5% along with reduced capital expenditures.
We currently list United Utilities as a BUY
Ferguson (Q2 2019 Earnings Release)
The first quarter update in December from Ferguson, the world’s largest plumbing and heating products group, reported a solid rise in revenue, supported by good growth in its main US market. At that stage the company said profit for the year was expected to be in line with analysts' expectations so the market will be looking for a further update on that. Ferguson’s focus is very much on maintaining market share and margins, cutting costs and cash generation so investors will be looking at those figures with particular interest. With some signs of a slowdown in US economic growth any comments on prospects in that market will be watched closely.
We currently list Ferguson as a BUY
Imperial Brands (Q2 Trading update)
These are interesting times for the tobacco sector with efforts by the industry to move towards next generation products such as e-cigarettes facing extra regulation and restrictions in the US from the FDA. In this second quarter trading update from Imperial Brands investors will be looking for more details on the expected impact of the proposed changes, although many do not come into force for two years. The market will be interested in any update on expected revenues from Imperial’s next generation products, previously given as £250m-£1.5bn by 2020, and a further 10% rise in the all-important dividend is also pencilled in for this year.
We currently list Imperial Brands as a BUY
Chesnara (Q4 2018 Earnings Release)
The shares have staged a modest recovery after last year’s markets induced selloff across the sector but investors in general will be happy with the attractive dividend. At the half year stage the company said that performance was going well and that acquisitions were being integrated as scheduled, updates here will be expected. An interesting aspect in recent updates from companies in the sector has been the releasing of capital reserves relating to annuities as average life expectancies are not growing as fast as expected. Will Chesnara follow suit.
We currently list Chesnara as a BUY
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