Companies reporting w/c 5 October

We give our thoughts on what to expect from companies announcing results week commencing 5 October 2020.

Wednesday

Tesco Plc – Q2 2021 Earnings Release

The largest supermarket company in the UK has undergone a considerable amount of restructuring under Dave Lewis, who ended his tenure as CEO yesterday, replaced by Ken Murphy. Recently, it has been retaining its market share at around 26.8%. There has been a significant rise in online sales as a result of the pandemic, along with added costs which are forecast to be in the region of £840m. Despite having some defensive characteristics, the share price remains close to a year low, operating as it does in a crowded marketplace.

We currently list Tesco as HOLD

Thursday

Imperial Brands – Q4 Update

It has been a difficult year for Imperial so far and investors will be hoping for better news in this fourth quarter update. In May, the company cut its dividend for the first time in many years as it reported a 20% drop in first half operating profits. Sales of next generation products were down 43% and investors will be focusing very much on how they are performing now. The one glimmer of good news for the company recently has been the €1.2bn sale of its premium cigar business, with the proceeds used to reduce debt. Imperial said previously that it expected to see a bigger impact from the Covid pandemic in the second half so any update on that will be of interest.

We currently list Imperial Brands as 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.