Companies reporting w/c 6 July

We give our thoughts on what to expect from companies announcing results week commencing 6 July 2020.

Tuesday

JD Sports Fashion Plc (Q4 2020 Earnings Release)

Its undoubtedly an interesting time for high street retailers and with many non-essential stores now tentatively beginning to reopen, investors will be interested to hear more details about JD Sports’ plans and what level of customer demand it expects in the coming months. A signal on that was given by the company recently as it decided to put its Go Outdoors brand into administration but the latest set of retail sales figures from the ONS showed a strong rebound in May. The company previously said it would not be paying a final dividend so any update on that will also be of interest.

We currently list JD Sports as a HOLD

Wednesday

Barratt Developments Plc (Q4 2020 Sales and Revenue Release - Trading Update)

The last update from the housebuilder in May was a positive one as it confirmed the company was reopening its construction sites gradually having shut them down in March. However, the subsequent profit warning from its peer Redrow and news of a drop in house prices from Nationwide has raised the volatility level of shares across the sector and means investors will be focused on Barratt’s cash levels and forward order book in this update. Any comments on its expectations for sales and profits this year will also be of interest.

We currently list Barratt Developments as a HOLD

Thursday

Persimmon Plc (Q2 2020 Sales and Revenue Release - Trading Update)

The previous updates from housebuilders such as Persimmon were reasonably good showing buyers still interested in new homes as order books were still high. However, construction all but stopped during the first couple of months of the lockdown. Construction restarted recently and investors will want to find out whether construction is being hampered by supply constraints of materials and whether buyers are still interested. Management may refrain from giving forward guidance due to the great uncertainty but a profit warning from a peer in the sector may be a cause for concern.

We currently list Persimmon 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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