Companies announcing their results next week

Graham Spooner, investment research analyst at The Share Centre, gives his thoughts on what to expect from companies announcing their results week, the week beginning 10 October 2016.

Companies announcing their results next week

 

Monday

Vedanta Resources (Q2 production report)

The Indian focused diversified energy and minerals company has seen a steady recovery in its share price, tripling in value since the lows in January but a long way off from its highs several years back. The company has been simplifying the group structure, helping to lower costs, improve access to capital markets and enhance the visibility of earnings and cash flow. The oil business should show good operating figures with a focus on lowering the cost of production meanwhile the iron ore production should pickup steam as mining bans have been lifted.

Wednesday

Fresnillo (Q3 production report)

Like other precious metals miners, the shares has had a decent rise after the prices of gold and silver rose this summer. In this production report there will be focus on the quality of ore produced at some of its key mines such as the old Fresnillo mine which has been experiencing falling grades while better grades have been seen in newer mines such as Saucito and Silverstream. They gave a production guidance for the full year of  850-870 koz for gold and 49-51 moz for silver.

Marston’s (Q4 trading update)

In July Marston’s said trading in the third quarter had remained in line with expectations despite concerns about the impact of Brexit on consumer spending. Since then all the signs have been that consumer spending has largely continued as before so the market will be watching to see if that is also reflected in Marston’s update. Any comments on guidance for the next financial year will be of interest, as will progress with expansion of the pub estate and the performance of the new accommodation lodges so far.

Thursday

Sky (Q1 results)

There has been some speculation recently that the group could be a bid target. Investors, who will be only too aware of the fall in the share price over the summer will be hoping for an improvement in the churn rate and an update on new products and its European operations. Other areas to concentrate on will be cost savings and number of customers who are upgrading to a single package.

Mondi (Q3 trading update)

Prices for its products have held up relatively well, while manufacturing costs remain relatively low. They have a wide geographic spread and product diversification, which is viewed as a positive, as is their ongoing efficiency programme. Demand for consumer packaging continues to increase around the world, on the back of online shopping and supermarkets, which should be viewed as a positive.

Unilever (Q3 results)

Shares in the global consumer goods giant have enjoyed a stellar run this year, especially since the EU referendum as investors flocked to defensive stocks that would likely benefit from a weaker pound. In July the company reported a rise in first half profits although revenues dropped due to adverse currency movements. The homecare and refreshment divisions have been growing nicely so the market will be looking to see if that has continued, as well as keeping an eye on the critical growth markets in Asia where volumes have been improving recently.

Companies also reporting today include: Hargreaves Lansdown (interim management statement) and Booker Group (Q2 results)

Friday
Companies reporting today include: Provident Financial (interim management statement)

Announcements for the w/c 10 October: 

13 October, Residential Market Survey, September – Royal Institution of Chartered Surveyors

Although this closely watched index tracking UK house prices stood at its second lowest reading in 18 months in August, the survey did contain good news. The index bounced back from the previous month’s reading of just five, the lowest standing in over three years, rising to plus 12. Although the index tracking London is still deeply into negative territory, suggesting falling prices, the fact that the national index recovered somewhat, before falling below zero, may well be a good sign. Equally, it may simply be a function of the Bank of England’s recent decision to cut interest rates.

12 October, Federal Open Market Committee Minutes, Meeting of September 20-21 – FED

Although the Fed voted to keep rates on hold when it last met, Chair Janet Yellen dropped a strong hint that rates will rise before the end of this year. Will the minutes confirm this view, or will they point to disagreement within the FED’s rate setting committee, the FOMC?

Further announcements include:

13 October

  • Profitability of UK companies: Apr to June 2016 – Office for National Statistics

14 October

  • Construction output in Great Britain: Aug 2016 – Office for National Statistics

 

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