We give our thoughts on what to expect from companies announcing results week commencing 19 October 2020.
Companies reporting w/c 19 October
Reckitt Benckiser - Q3 2020 Sales and Revenue Release
The household goods company has particularly well during this crisis environment with more people at home and spending is up for cleaning and hygiene products, investors are expecting this trend to continue into the latest quarter. No surprise then that it is amongst the few to continue with a dividend payout, investors will also expect management to maintain their full year like for like revenues growth of around 12%.
We currently list Reckitt as HOLD.
Segro - Q3 2020 Sales and Revenue Release
With many commercial property developers struggling in the current climate Segro has actually benefitted thanks to the rise in online consumer retail activity. The Group's increased demand for their warehouses was evident in interims back in August where the Group reported a 6.5% rise in pre-tax profits. Of course, this online trend has been sustained throughout the pandemic period therefore investors will be hopeful for some more smooth results next week.
We currently list Segro as HOLD.
Relx - Q3 2020 Sales and Revenue Release
The majority of its restructuring programme is now over. These changes have moved the group away from its core trade journals base. Relx operates in four market segments: Scientific, Technical & Medical, Legal, Exhibitions (London Book Fair) and Risk and Business Analytics. The group’s priority is the organic development of increasingly sophisticated information based analytics and decision tools for its customers. The group has some defensive attractions but pressure is set to remain on Exhibitions as a result of events being cancelled due to the virus.
We currently list Relx as BUY.
Unilever - Q3 2020 Sales and Revenue Release
The well known producer of many household consumer brands like its peers has done well so far this year and beaten expectations as the global pandemic drives demand for food and household products. The dividend yield of ULVR has traditionally been fairly low but in this environment where other blue chips have been cutting payouts, investors expect the defensive nature of Unilever to show steady progress on dividend payouts.
We currently list Unilever as BUY.
Intercontinental Hotels Group - Q3 2020 Sales and Revenue Release
IHG have unsurprisingly been hit hard from the pandemic as cities worldwide have implemented lockdowns which has dented consumer desire to travel and thus stay in hotels. Interims in August highlighted this struggle showing revenue per available room (key performance measure) had fallen by over half in the first half. Despite these troubles, a rise in staycations has helped provide some support for the Group where travellers are opting towards the more budget friendly hotels such as Holiday Inn. Nevertheless, the environment is likely to remain tough and investors will be interested to see the managements outlook heading into the next calendar year.
We currently list Intercontinental Hotels as HOLD.
Barclays - Q3 2020 Earnings Release
The still important investment banking division has seen income rise as extreme volatility in markets led to a surge in activity, but it will not come as a surprise that these remain challenging times for the sector, especially with regard to rising bad debts. Long suffering investors have seen the share price struggle to make any headway. Any news relating to future dividend payments and thoughts on the outlook will be worth noting.
We currently list Barclays as HOLD.
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