We give our thoughts on what to expect from companies announcing results week commencing 12 October 2020.
Companies reporting w/c 12 October
Barratt Developments Plc - Q1 2021 Sales and Revenue Release
It is only a few weeks since the Company reported full year results so there should not be any big surprises for the market in this update. At the full year, Barratt said they were cautiously optimistic about the outlook and reported good trading since lockdown had resulted in a pick-up in demand for their properties. Shortly after that came the news of the Competition and Markets Authority’s enforcement action against Barratt in relation to the sale of leasehold properties, so any comments from the Company on that will be of interest. Given the pick-up in trading, any update on the suspension of dividends will also be important to the market.
We currently list Barratt as HOLD.
Just Eat Takeaway - Q3 2020 Sales and Revenue Release
It’s been an exciting year for Just Eat Takeaway, with April marking the merge of UK-based Just Eat with Dutch peer Takeaway.com, and followed by the acquisition of the US peer GrubHub in June. The Company benefitted from the Covid-19 lockdown as demonstrated by a 44% rise in first half revenues, and investors will be interested to see if that has continued as restrictions have eased in many of its markets. Analysts are forecasting that the Company will finally make a pre-tax profit in the current year so any update on that will also be of interest.
We currently list Just Eat Takeaway as HOLD.
Mondi Plc - Q3 2020 Sales and Revenue Release
Demand for the global leader in packaging has been increasing as a result of more online shopping and changing social trends over lockdown. Following relatively positive results in August, the share price has continued to recover, and is now just shy of what it was pre-crisis. The Group is therefore able to resume dividend payments in line with their policy. Being relatively well positioned in the market and benefitting from a solid portfolio of products, investors will be hoping for more resilience next week as the Company looks to recover the ground lost over the course of the pandemic.
We currently list Mondi as BUY.
Rio Tinto Plc - Q3 2020 Sales and Revenue Release
Shares in the big mining group have held up very well so far during the crisis, as China has managed through the pandemic better than most other major economies (it is also predicted to be one of the few economies to actually see economic growth for 2020). However, as the rest of the world continues to feel the effects of the crisis, it will be interesting to see if there are any indications of weakness in commodities demand coming along. So far, the Group's mines have largely remained operational and investors will hope to see this continued during the third quarter. However, the focus of investors and the media lately has been on the Company’s destruction of a sacred Aboriginal site, a controversy which has pushed out the CEO. There will be a keen interest in any comments around this matter.
We currently list Rio Tinto as 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.