Companies reporting w/c 30 March

We give our thoughts on what to expect from companies announcing results week commencing 30 March 2020.

Tuesday

Chesnara Plc (Q4 2019 Earnings Release)

Life companies have not been immune to this market rout given that fee income is often dependent on the value of assets under management which no doubt has taken a hit in recent weeks. Outlook from Management, if they indeed do publish the results given the current situation, will be keenly followed by investors but these results for 2019 will not have been affected. Investors will expect a progress report on the integration of recent acquisitions and it solvency ratio which last stood at 155%. Investors follow this stock for its high dividend yields but may have already priced in a potential for a cut in the pay-out.

We currently list Chesnara as a BUY

Smiths Group Plc (Q4 2020 Earnings Release)

Being a conglomerate hasn't helped make its shares any more defensive as they have been heavily punished in recent weeks. The Group has interests in oil support services and airport security systems, both sectors of the market that will be seriously impacted. This has been compounded by the potential bidders for its medical unit have pulled out. However, for the latest six months results the impact of the virus will barely show up but the detections business was already under pressure as large orders were deferred, hopefully they will have been picked up. The John Crane, Flex-Tek and InterConnect divisions should have continued with a sales pickup.

We currently list Smith Group as a BUY

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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