We give our thoughts on what to expect from companies announcing results week commencing 20 January 2020.
Companies reporting w/c 20 January
easyJet (Q1 2020 Sales and Revenue Release)
This Q1 update comes at an interesting moment for the sector as the government steps in to save rival Flybe from going under. It also comes not long after some upbeat comments from Ryanair on recent trading which had a positive impact across the sector and raised expectations for easyJet’s statement. Its shares have recovered strongly over the past six months, thanks to a sense among investors that it was navigating the many challenges in the sector better than its rivals, although dividends dropped by a quarter. The market will also be interested in how the company is getting on with moving its flights to become carbon neutral and an update on expectations for the new UK holidays business.
We currently list easyJet as a HOLD
Burberry Group Plc (Q3 2020 Sales and Revenue Release)
Recent trading updates from the group have been reasonably encouraging leaving the shares to once again trade near all-time highs. This comes despite some worries over global economic growth and more specifically the political protests in Hong Kong leading to economic and consumer spending disturbances in one of Burberry's key markets. Given customers have responded well to the new designs, there is the expectation that sales across other regions will more than make up for the slowing Hong Kong sales.
We currently list Burberry Group as a HOLD
Sage (Trading update)
The group has been making steady progress in selling its software and services through the cloud and at last count this accounted for 55% of group revenues with the expectation for this to climb further. The announcement of a capital returns programme and the raising of dividends help lift the shares too. Recurring revenue growth has been strong and investors will hope this can grow at least to the 8-9% guidance that management last gave while operating margins can be kept at 23%.
We currently list Sage as a BUY
Companies reporting this day include: Antofagasta (Q4 2019 Sales and Revenue Release) – HOLD
Marston's Plc (Q1 2020 Sales and Revenue Release)
The Christmas and New Year trading period is a very important one for the pub sector so the market will be awaiting this first quarter update with interest. That is especially true of Marston’s as in November the company said the new financial year had begun well with pub sales higher in the first seven weeks. It is focused on reducing its debt at present and the market will be interested in any news on further asset disposals. Investors were a little disappointed last year with a write down on the value of the company’s premium and destination pubs.
We currently list Marston's as a BUY
Other companies reporting this week
Companies reporting this day include: BHP (trading update) – BUY
Companies reporting this day include:
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