We give our thoughts on what to expect from companies announcing results week commencing 23 March 2020.
Companies reporting w/c 23 March
Kingfisher plc (Q4 2020 Earnings Release)
The DIY stores was already facing difficulties before the current crisis and is set to exit the FTSE100 next week. We will expect to see troubles in Castorama and falling sales at B&Q outweigh the good news that was Screwfix for its 2019 full year. Focus will now be on Management's comments on current footfall and their outlook for the next few months. Another profit warning may be on the cards for the new Management.
We currently list Kingfisher as a HOLD
SDL Plc (Q4 2019 Earnings Release)
The group provide language translation and content services, with operations in 39 countries and the share price has been hit hard in the recent market sell-off. It may be too early for Management to access the effects of the crisis, but any update on global demand for its translation services will be important to investors in the company.
We currently list SDL as a BUY
United Utilities Group Plc (Q4 2020 Sales and Revenue Release)
In these troubled times the sectors defensive qualities can come to the fore. So far the group has performed well against its regulatory targets. Any comments regarding cost reduction targets and their thoughts on the year ahead will be worth noting.
We currently list United Utilities Group as a BUY
EnQuest Plc (Q4 2019 Earnings Release)
It’s no surprise to see the shares of Enquest sell-off so heavily as oil prices have more than halved since the start of the Covid-19 outbreak. Without the Saudi's and Russia coming to the table again it looks like being a disastrous scenario for smaller players such as Enquest, whose cost of production per unit is not far from the current market price. With significant amounts of debt it will struggle and therefore the outlook will be focussed on its potential for survival.
We currently list EnQuest as a BUY
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