We gives our thoughts on what to expect from companies announcing results week commencing 17 August 2020.
Companies reporting w/c 17 August
Persimmon (Q2 2020 Earnings Release)
The last update from housebuilder Persimmon in July sounded an optimistic note as the company reported an uptick in reservations and its forward sales following the resumption of more normal activity levels on its construction sites. In these interim results investors will want to hear if those positive trends are expected to continue for the rest of the year and will also be interested in any comments about the timing of a resumption of dividends. With rumours that the government might be looking to extend the Help to Buy scheme any comments on that will also be of interest.
We currently list Persimmon as a HOLD
John Wood Group Plc (Q2 2020 Earnings Release)
The oil support services company has certainly been impacted by the fall in the oil prices and big oil companies cutting back on spending. But the Group's June update suggested things were not all that bad as renewables activity and contract wins helped mitigate less activity in the traditional upstream and downstream businesses. Investors though will be thinking of the dividend in this environment and how much cost savings management can achieve.
We currently list John Wood Group as a BUY
BHP Group Plc (Q4 2020 Earnings Release)
At the start of the crisis many had feared for the global mining sector but these fears have quickly abated as the key commodities importer, China has dealt with the crisis well and its economy is showing good progress on recovery. Meanwhile commodity prices such as iron ore have held up reasonably well and investors are expecting good things from one of the world's largest and most diversified miners. The dividend is likely to continue and possibly even rise as the group has done well to manage costs in recent years.
We currently list BHP Group as a BUY
Antofagasta Plc (Q2 2020 Earnings Release)
Shares in mining groups have done exceptionally well as the Chinese economy's rebound continues at a pace. The Group has already indicated that its operations have had limited impact from the virus with production during the first half close to prior guidance levels but likely to be 4% lower than last year due to lower grades of ore being mined. But with the costs of production indicated to come down further investors will be interested to find out the implication on reported profits and the group's dividend prospects.
We currently list Antofagasta as a HOLD
CRH Plc (Q2 2020 Earnings Release)
With building materials companies being strongly linked to the health of the global economy the company has undoubtedly been affected by the current crisis. Despite this, investors will be quietly confident as economies begin to recover and will be looking for any Management outlook regarding future prospects considering management were unable to provide any in the last update in April. The Group currently has a healthy balance sheet which should also give them flexibility to navigate the current economic issues.
We currently list CRH as a BUY
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.