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 results next week, the week commencing 30 January 2017.

Companies announcing their results next week

Monday

Porvair (Q4 results)

Investors will be expecting a positive set of results from the company, based on the update in December, which stated that revenues were higher and that trading in the final quarter was strong. This specialist filtrations group aims to focus on markets that show long-term growth potential and where the product use is mandatory. As ever the outlook for the year ahead will be important.

Tuesday

SSE (trading update)

The majority of investors in the company focus on the yield, which is currently around 5.9%, though growth prospects may not be as attractive. Despite this, the group are aiming for dividend increases to be at least equivalent to inflation. Investors will be expecting the normal trading update to be in line with expectations. SSE may comment in regards to the government’s recent reference on green subsidies.

Thursday

Compass Group (Q1 trading update)

In November global catering group Compass said it was positive about its prospects in 2017. Its full year figures showed that North America remains a strong source of growth as well as signs of growth in Europe. Emerging markets, especially those exposed to commodity prices, have shown some weakness so investors will be keen to hear how the company is performing at present. Prospects in the US especially will be of interest, as well as the general pipeline of contracts.

Johnson Matthey (Q3 trading update)

Over half of the group’s profit comes from the Emission Control Technology division, which has performed well of late. As the CEO stated, short term prospects for the global economy remains difficult to predict. Management however, were more confident about the group’s medium to long term outlook. Analysts point to signs of a pick-up in Europe and the benefits of new emission rules in China and Europe. The group remain geared to the demand for cars and trucks, with its catalytic converters supplying around one third of those used in cars and half of those used in larger vehicles.

Royal Dutch Shell (Q4 results)

The oil price has continued rising into the early part of 2017, thanks mainly to the production limits agreed by OPEC and some major non-OPEC members last year.

That has helped to ease the pressure on the upstream parts of major oil groups such as Royal Dutch Shell, but the market will now be interested to hear if the plan to limit its investment programs remains in place. The last update from the group was encouraging and investors will now be focusing on any comments on prospects for future dividend payments.

Vodafone (Q3 trading update)

The latest Q2 trading update followed on from the positive Q1 numbers as the company’s European operations reported encouraging service revenue numbers. Organic revenues in the first half grew 2.3% while operating profits rose by 4.3% supported by strong cost controls. However, there was also a write-down of the value of the Indian business as a result of increased competition. Competition in India has increased substantially in recent months thanks to the entry of Reliance Industries’ Jio service and subsequent response from other mobile networks in the country. Investors will be interested in any comments on this, as well as news on the level of data volumes and 4G take-up in its key markets.

Companies also reporting today include: Glencore (Q4 results), AstraZeneca (Q4 results), Vedanta (trading update)

Announcements w/c 30 January

1 February, Federal Open Market Committee Meeting, Two-day meeting, January 31 – February 1 – US Federal Reserve

Will the Fed be moved to change monetary policy now that the US has a new president?  President Trump has been highly critical of the Fed chair Janet Yellen and has talked about wanting a cheaper dollar. But the Treasury Secretary to be, Steven Mnuchin, is reported to be sympathetic towards Ms Yellen’s position.

2 February, Inflation Report February 2017 and Monetary Policy Summary and minutes of the Monetary Policy Committee meeting ending on 1 February 2017 – Bank of England 

Inflation rose more than expected last month, but then the latest purchasing managers index pointed to much higher growth that was previously forecast. It is not likely that the MPC will announce a significant change in monetary policy today, but the minutes may reveal diverging opinion on when rates may rise, and the Inflation Report may well include upward projections for both GDP and inflation.

3 February, US Employment Situation, January 2017 – Bureau of Labor Statistics 

Today will see the last jobs report relating to a period when Barack Obama was President. Although US employment rose sharply last year, while the unemployment rate fell to its lowest level in nine years, much attention is now focused on the number of Americans who have withdrawn from the labour market altogether and no longer show-up in the data.

1, 2 and 3 February, Purchasing Managers Indexes covering manufacturing, construction and services, February – Markit/Chartered Institute of Procurement & Supply

Last month, the three PMIs painted an encouraging picture of the UK economy, with the manufacturing PMI rising to 56.1 a 30 month high, the construction PMI rising to 54.2, an 11 month high, and the Business Activity Index for services rising to 56.2, a 17 month high. But the indexes also pointed to sharply rising prices.

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