We give our thoughts on what to expect from companies announcing results week commencing 9 September 2019.
Companies reporting w/c 9 September
Associated British Foods Plc (Q4 2019 Sales and Revenue Release)
The conglomerate is now largely dominated by value clothing retailer Primark so investors will be focusing mainly on its performance in this fourth quarter trading update. The last update said trading in the UK had been impacted by poor weather so investors will be looking at like-for-like sales to see if there has been a recovery. Primark’s growth in the US has been steady so far and investors will be interested in any plans for expansion there. In July ABF said it expected earnings to be similar to those achieved last year despite the sharp drop in revenues at the sugar business. The market will be looking for an update on its prospects in the coming year.
We currently list Associated British Foods as a HOLD
JD Sports (Interim results)
Shares in the sports fashion retailer have done very well this year, taking the company into the FTSE 100 index. Full-year figures in April showed some strong growth with a 49% rise in revenue and a 16% increase in profits before exceptional items and so the market will be hoping for more of the same in these interim results. The company made a significant acquisition in the US earlier in the year with the £400mn purchase of sportswear retailer The Finish line. Investors will be interested in any comments on how profitability there could be increased.
We currently list JD Sports as a HOLD
Ashtead Group Plc (Q1 2020 Earnings Release)
The equipment hire group has seen some strong growth in its core US market in recent times, as full-year figures in June demonstrated, thanks to activity in the construction sector. Positive comments on the outlook from management helped boost shares at the time and that has continued since. All of that has raised expectations and the company should also benefit from the weakness in Sterling. In this first quarter update investors will be looking for an update on prospects for the full year, especially with some economic forecasters talking of a slowdown in growth on the horizon.
We currently list Ashtead Group as a BUY
Wm Morrison Supermarkets Plc (Q2 2020 Earnings Release)
The group’s market share continues to fall and is now around 10.1% and with the share price close to a three year low, investors will be steeling themselves ahead of this update. Retail sales will be closely watched with the market disappointed by the 0.2% growth over the first quarter, allied to the CEO's cautious outlook. With so much competition in the sector the management restructuring has helped, but the group continue to face an uphill battle especially as a result of Aldi and Lidl.
We currently list Wm Morrison Supermarkets as a HOLD
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