Companies reporting w/c 10 August

We gives our thoughts on what to expect from companies announcing results week commencing 10 August 2020.

Tuesday

SDL International (Q2 2020 Earnings Release)

Back in April the company said it had seen no impact from Covid-19 in Q1 but did outline there could be an impact on their translation services and technology heading further into the year, so investors will be keeping a watchful eye on developments in this space. The shares remain good value in our view, considering the company took prudent steps to preserve cash in its latest update. Investors will also be looking for any further forecasts on demand from management following what we hope to be the worst of the crisis now behind us.

We currently list SDL as a BUY

InterContinental Hotels Group Plc (Q2 2020 Earnings Release)

It’s been a dismal year for the worldwide hotel trade thanks to the Covid crisis. Investors will be looking for some signs of improvement in IHG’s interim results, especially in the key US market. Most of its hotels reopened a couple of months ago so the market will be looking to see if travellers are returning to normal activity or still remain wary. The upmarket brands have been the slowest to recover so any comments on those will be of interest, as will any news on dividends.

We currently list InterContinental Hotels Group as a HOLD

Prudential Plc (Q2 2020 Earnings Release)

Now that it has a greater Asian focus, the life and insurance company has had a lot to contend with this year from the start of the pandemic in the Far East, to Hong Kong/China/US tensions, along with the hit to fees from falling markets. Other companies in the sector have made more life pay outs due to the virus so we may see something similar. The Group is in transition and preparing for a demerger of the US business so a progress report here will be expected, while investors will have an eye on the Group’s dividend plans.

We currently list Prudential as a BUY

Wednesday

Just Eat Takeaway.com (Q2 2020 Earnings Release)

It’s been an exciting year for Just Eat Takeaway, thanks to a combination of strong growth during the Covid lockdown period, long-awaited approval by the CMA of its merger with Takeaway.com and then the $7.3bn takeover of US peer GrubHub. The company is well on its way to being the largest food delivery platform outside of China; although rivals like Uber Eats still provide stiff competition. Investors will be interested to hear if order levels have remained high as restrictions have eased and diners are heading back into restaurants.

We currently list Just Eat Takeaway as a HOLD

Admiral Group Plc (Q2 2020 Earnings Release)

Admiral’s shares have performed well during the Covid crisis so far and investors will be interested to see in these interim results if the reduction in traffic levels during lockdown has benefited car insurers thanks to a drop in claims. In April the company said it would pay £110mn in rebates to drivers unable to use their vehicles due to the lockdown. The solvency level will be another focus for the market in these numbers and any update on dividends, especially the special dividend proposed previously for this year, will also be very much of interest.

We currently list Admiral Group as a HOLD

Other companies reporting today include:

Spirax-Sarco Engineering Plc (Q2 2020 Earnings Release) - 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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