Companies reporting w/c 8 June

We give our thoughts on what to expect from companies announcing results week commencing 8 June 2020.

Tuesday

AVEVA Group Plc (Q4 2020 Earnings Release – Preliminary)

In a recent update Management indicated full year revenues to March would grow by 9% with recurring revenues accounting for 60%. The full year results will only have captured the very beginning of the Covid crisis but events since then suggest that big industrial customers such as oil and mining groups’ retrenchment on capital expenditure programmes will impact upon business during the first quarter. Due to the uncertainty, Management may be unwilling to give guidance for the new year. However, this crisis may help the business in some ways, as customers adopt the latest software and technologies offered by the Group to run their operations at lower costs.

We currently list AVEVA Group as a HOLD

Thursday

Johnson Matthey Plc (Q4 2020 Earnings Release)

Johnson Matthey report full year results next Thursday after delaying the release due to coronavirus impacts. In light of this, investors will be waiting in anticipation to see the impact on the business. It was earlier guided that the Group's profits would take a hit somewhere in the region of £50mn from the virus due to a combination of reduced demand for its Clean Air segment and delayed shipments. It’s still uncertain whether Management will be in the position to provide guidance for the coming year. Despite this, the Group operates a solid balance sheet and has good access to funding if required which should help ease some investor concerns.

We currently list Johnson Matthey 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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