We gives our thoughts on what to expect from companies announcing results week commencing 7 September 2020.
Companies reporting w/c 7 September
Associated British Foods Plc (Q4 2020 Earnings Release)
Investors will be keen to hear how trading at Primark is progressing given the relatively low footfall seen in many high streets around the country. ABF said in July sales had been relatively good since the resumption of trading in May and forecast profits of £300-350m for the full year, compared to £913m last year. Fortunately for the company its other businesses have been making up for Primark with good performances in the Agriculture, Sugar, Grocery and Ingredients businesses so the market will be interested to see if that has continued as expected.
We currently list ABF as a HOLD
Ashtead Group Plc (Q1 2021 Earnings)
Shares in the tool hire group have bounced back strongly from the drop in April thanks to a resilient performance through the pandemic. Full year results in June showed an 8% rise in revenue in the year to April, with a fall of just 1% in the last three months of that period. Investors will be keen to hear if the stabilisation in revenues seen in the US in April has continued into the first quarter of the new financial year. Given the high level of economic uncertainty at present any forward guidance will also be very much of interest to the market.
We currently list Ashtead as a BUY
Genus Plc (Q4 2020 Earnings Release)
The share price has remained close to an all-time high on hopes farmers in China have continued to restock their herds following African swine fever. The group believe it has a competitive edge from having ownership and control of their breeding animals, along with the biotechnology used for further improvements, allied to its growing global supply and distribution network and increased spend on research and development.
We currently list Genus as a BUY
JD Sports Fashion Plc (Q2 2021 Earnings Release)
As a high street retailer the return of customers to physical stores will be crucial. Although, lockdowns have eased there are signs that in city centres traffic is still some way off from pre-Covid levels. A question for investors is how well has it done to transition some sales to its online platform where competition is fierce and brands are selling direct to consumers. The shares though have performed well, recovering most of their losses even though the dividends remains suspended, more comment on this will be expected along with how or if the expansion plans change from here.
We currently list JD Sports as a HOLD
Wm Morrison Supermarkets Plc (Q2 2020 Earnings Release)
Investors will not be expecting much from the results due to the difficult period they will cover. The group has around a 10.2% market share and the sector has been viewed as being fairly defensive in these troubled times. Home deliveries have risen due to the virus, but associated costs may have followed suit. Other areas of focus will be the tie up with Amazon, the dividend and management outlook for the second half.
We currently list Morrison Supermarkets as a HOLD
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