Companies reporting w/c 13 April

We give our thoughts on what to expect from companies announcing results week commencing 13 April 2020.

Thursday

Rio Tinto Plc (Q1 2020 Sales and Revenue Release)

Concerns about miners already mounted well before the virus reached Europe and the shares began their selloff in tandem with the shutdowns in China. Iron ore and copper prices have fallen off as investors and traders expect demand for these raw materials to fall off upon the looming global recession. For this first quarter update the Group is expected to report some weakness in Chinese demand, though probably more important will be any clues about what demand is likely to be in the next few months and whether operations will need to be shut down or curtailed further to save on costs.

We currently list Rio Tinto as a BUY

Rentokil (Q1 2020 Sales and Revenue Release)

Like others, the Group will be updating the market on the effects of the coronavirus. In its late March comment it suspended the final dividend and announced cost cutting measures. Pressure on its services is likely to have continued with one possible bright spot being in hygiene and demand for disinfecting services. Some analysts believe longer-term the Group could be a beneficiary from the crisis as the world's focus on health and hygiene increases.

We currently list Rentokil as a HOLD

Friday

Flutter Entertainment (Q1 2020 Sales and Revenue Release)

A very mixed year so far for investors in the betting group. Some good full-year results in February were quickly followed by a profit warning due to the rapid escalation in the number of sports events being cancelled due to the coronavirus outbreak. That situation has continued with many major sporting events either cancelled or postponed to next year. The good news is that the merger with Canadian gaming group Stars is still going ahead, although Flutter has still decided to make its final 2019 in shares and suspended its 2020 dividend due to the expected impact of Covid-19 on its finances. Any update on that will be of interest to the market although it may be too early given the uncertainty on how long the lockdown will continue.

We currently list Flutter Entertainment 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.

 
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