Companies reporting w/c 23 September

We give our thoughts on what to expect from companies announcing results week commencing 23 September 2019.

Wednesday

Boohoo (Q2 2020 Earnings Release)

The online fashion retailer has had a good year so far and there shouldn’t be too many surprises in these interim results given it is only a couple of weeks since their last trading update. At that point the company said its first half performance had been even better than expected and raised the forecast for full-year sales growth from 25-30% to 33-38%. Profit margins rose last year and the market will be looking at those in these figures with interest. Any other guidance on prospects for the second half will be of interest, as will any comments on how the company plans to use the Karen Millen and Coast acquisitions made in August.

We currently list Boohoo as a BUY

Halma (Trading update)

With increasing focus on health and safety, the protection equipment manufacturer looks well positioned to benefit further from its focus on niches in a diverse range of markets. Products include instruments that detect hazardous gases, security sensors, smoke detectors and devices for assessing eye health. Investors should focus on the important US region and Asia Pacific where there has been a slight slowing in growth. The shares are highly rated and will need another solid update to maintain current levels.

We currently list Halma as a HOLD

United Utilities (Q2 2020 Sales and Revenue Release)

Utilities are not generally regarded as being that exciting when it comes to results and investors main focus is on the dividend. Expectations will be for the group to have performed well against its regulatory targets. However the political situation in the UK is making the sector more volatile and less defensive than in the past, with Labour Party comments creating an element of uncertainty.

We currently list United Utilities as a BUY

Thursday

SSE (Q2 2020 Sales and Revenue Release)

As a result of the recent sale of its energy services business, the group is now set to focus on its renewable and network business. Analysts were generally pleased with the sale and the share price has reflected on this with a rise back close to year highs. Areas to concentrate on will be cost savings and any further comment on the future dividend policy. Possible Labour Party proposals hang over the sector and with the political situation in the UK becoming less certain by the day, increased volatility looks likely.

We currently list SSE as a 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.