We give our thoughts on what to expect from companies announcing results week commencing 22 June 2020.
Companies reporting w/c 22 June
Iomart Group Plc (Q4 2020 Earnings Release)
The company's full year results will show little impact from the global pandemic and investors have been made to expect growth momentum to continue, with full-year 2020 revenues expected to grow by around 8% and a new record for profits. However, investors are really concerned with how business is progressing in the current crisis environment and in this regard investors should be happy as cloud computing and online businesses in general should have a boost due to the circumstances. We are likely to hear of increased demand and enquires for their services as businesses and government departments transition to digital services.
We currently list Iomart as a BUY
Auto Trader Group Plc (Q4 2020 Earnings Release)
Investors in the company will be hoping the trend for people to trade their cars for another second-hand model on a fairly regular basis will continue. The share price has recovered strongly since March in expectations for a reassuring outlook in the June results. The company remains a clear market leader and appears to have a resilient business model. In late May the group stated that it would give its customers a 25% discount over June.
We currently list Auto Trader as a HOLD
Other companies reporting this day includes: Royal Mail Plc (Q4 2020 Earnings Release)
Tesco Plc (Q1 2021 Sales and Revenue Release – Trading Statement)
The revised strategy has helped to slowly restore confidence in the group. Tesco has also started to benefit again from its sheer size and buying power and the Booker deal was well received. Investors will have noted the improvement in recent results and there is a defensive element in these troubled times to the shares. However the group operates in a crowded market place with Aldi and Lidl continuing to gain market share. Following on from the news that the CFO is to retire the market will be noting latest consumer trends as a result of the ongoing crisis.
We currently list Tesco as a HOLD
Other companies reporting this day includes: Marston’s Plc (Q2 2020 Earnings Release)
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.