Companies announcing results next week

Graham Spooner, investment research analyst at The Share Centre, gives his thoughts on what to expect from companies announcing their results next week, the week beginning 14 November 2016.

Companies announcing results next week

Monday

William Hill (Q3 trading update)

William Hill has had an interesting time of late with a number of merger offers emerging from peers including 888, Rank and most recently Canadian group Amaya. Expectations for this update have been raised by the group’s comments in August that it had made a good start to the second half and expected full year operating profit to be at the top end of the previously given range of £260m-£280m. Good recent figures from Paddy Power Betfair may also indicate better signs for the sector.

Companies also reporting today include: Taylor Wimpey (Q3 trading update) and Carrs (Final results)

Tuesday

EasyJet (Full year results)

EasyJet’s shares have been suffering from turbulence for most of this year so the market will be hoping for some good news in these results. There was precious little of that the last time we heard from the company in October when it reported a 8.7% drop in revenue per seat in the final quarter and lowered its full year profit guidance to £490m-£495m. The market will be especially interested to hear if there is any change in the expectations for a further drop in revenue per seat in the first quarter of the new financial year. Rival Ryanair produced some good figures recently but Easyjet’s latest monthly passenger stats were slightly disappointing.

Vodafone (Q2 results)

Investors will hope to see a sustained turnaround in the group’s European operations which showed growth in sales in the region during the first quarter after a poor few years. There will be expectations of continued good growth rates in the emerging markets and demand for data services as 4G coverage in Europe increases. Investors will be keen to hear of further partnerships or acquisitions.

Companies also reporting today include: Land Securities (Q2 results)

Wednesday

Barratt Developments (Q1 trading update)

The housebuilders have been surprisingly resilient after the EU Referendum as consumers remain buoyant, supported by mortgage availability and low interest rates. Just like the peers, we would expect Barratt Developments to report rising completions and average prices to help drive revenue higher. Investors however, will be looking for any signs of weakness such as customer footfall, forward order books and the management’s land acquisition strategies. It has been notable that other housebuilders have expressed more caution on land acquisition.

Companies also reporting today include: British Land (Q2 results)

Thursday

Johnson Matthey (Q2 results)

Analysts point to signs of a pick-up in Europe and the benefits of new emission rules in China and Europe. The group does however, remain geared to the demand for cars and trucks and truck data in August reported an improvement in trends. Investors will be hoping for a potential boost from currency movements as well as another solid performance from the Emission Control Technology division, which has performed well of late and is where over half of group profit comes from.

Royal Mail (Q2 results)

Royal Mail will be continuing its restructuring, as a result of the decline in the letters part of the business and the boom in parcels, on the back of internet shopping. In recent years management have been improving the performance and cutting costs. These results will come ahead of the most important run up to Christmas period so investors focus will be focused more on the outlook than the past six months.

Companies also reporting today include: NewRiver Retail (Interim results)

Friday

Chesnara (Interim management statement)

This life insurance group continues to generate good cash flows and dividend pay-outs. Investors will be keen to see if there was any Brexit impact in the last quarter, although management were confident that it would be relatively immune. Investors will also lookout for news of any acquisitions along with the solvency ratio and further statements will be welcome on the FCA investigation into the CountryWide Assured business.

Announcements for the w/c 14 November:

15 November, UK consumer price inflation: October 2016 – Office for National Statistics 

Last month, UK inflation rose sharply to 1%. The falls in the pound seen over the last few months are likely to exert pressure on inflation for some time. On the other hand, in October 2015, month on month inflation was plus 0.1%; this data will fall out of the equation that makes up the annual inflation rate, to be replaced by the month on month rate for October 2016. This will need to be more than 0.1% for the annual inflation rate to rise.

16 November, UK productivity flash estimate: July to September 2016 – Office for National Statistics

Productivity is often thought of as the most important of all economic indicators, and for a long time it has been the UK’s Achilles heel.  However, in Q2, productivity rose by 0.6%, and US productivity grew at a robust pace in Q3. Did the UK’s third quarter see a continuation of this trend?

16 November UK labour market statistics: November 2016 – Office for National Statistics

With inflation rising, attention will shift to change in wages. The previous set of data revealed that UK average wages with bonuses rose by 2.3% in the three months to August. Inflation is expected to rise above this level next year. Are there any indicators that wages will rise in tandem with inflation?

Other announcements:

15 November

  • UK producer price inflation, October 2016 – Office for National Statistics
  • UK House Price Index: September 2016 – Office for National Statistics
  • Flash Estimate EU and euro area GDP, Q3 – Eurostat

17 November

  • EU Inflation, October – Eurostat
  • US Consumer Price Index, October – Bureau of Labor Statistics
  • US Real Earnings, October – Bureau of Labor Statistics

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