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 6 February 2017.

Companies announcing their results next week

Monday

Companies reporting today include: Randgold Resources (Q4 results)

Tuesday

St. Modwen Properties (Q4 results): The group, which specialises in the regeneration of brownfield sites stated in December that its performance had been resilient in the face of market uncertainties and that it expected the second half to be broadly in line with that reported for the first half. So investors will be concentrating more on the group’s outlook for property and the effects so far of Brexit. The last reported net asset value was 421 pence.

BP (Q4 results): Whilst the shares have recovered alongside the oil price, BP’s most recent quarterly trading updates were a little disappointing. Investors will be hoping that the fourth quarter replacement cost profit will improve on the previous quarters. However, overall the group should reverse the previous year’s losses as big write-downs which should not feature again. Investors expect dividends to be maintained while going forward the view from management could become a bit more positive with the possibility of big oil companies once again thinking about expanding capital expenditure.

Companies also reporting today include: DCC (Q3 interim management statement)

Wednesday

Smurfit Kappa (Q4 results): In the first nine months of the company’s financial year higher revenues from the Americas were offset by lower revenues in Europe, which was mostly due to currency movements. The rise of online shopping in recent years has increased demand for corrugated cardboard and other packing products. Given the continued move by consumers to online shopping on Black Friday and in the run up to Christmas it will be interesting to hear if the company has seen an uptick in demand for its products.

GlaxoSmithKline (Q4 results): The trend in recent years has been one of falling revenues due to generic competition but this year we are likely to see a jump in sales as a direct result of sterling’s weakness. The group has been heavily investing in R&D and this has created an attractive pipeline of new drugs which have sold very well helping to mitigate declines from out of patent drugs. Investors will be looking out for progress on its cost cutting programmes, progress on R&D projects along with any worries management have over the new US administration’s rhetoric on controlling drug prices

Companies also reporting today include: Hargreaves Lansdown (Q2 results), Rio Tinto (Q4 results), Tullow Oil (Q4 results)

Thursday

Tate & Lyle (Q3 trading update): The share price took a hit in November on the back of its Mexican business and the implications regarding the election of Trump. Since then, the shares have trended sideways. Investors will be interested to hear management’s thoughts on the situation, along with their strategic goals in transforming the group into a speciality ingredients company. Other areas to focus on will be the US market, which is vital for volume growth and the outlook for ethanol prices.

Smith & Nephew (Q4 results): The group’s recent momentum followed through to the third quarter as underlying revenue grew by 2% helped by a 6% rate of growth in the emerging markets. Its China business, which had experienced tough market conditions returned to growth while Sports medicine and Knee implants businesses continued to see good growth and customers reacted positively to new products.

Announcements w/c 6 February

9 February, Residential Market Survey – Royal Institution of Chartered Surveyors (RICS)

The monthly survey from RICS provides a good bellwether of the UK housing market, and indeed of the UK economy. Last month, the headline index fell back to 24, from 29 the month before. An index tracking new buyer enquiries, a good indicator of demand, fell from the month before, but still pointed to growth, albeit slow growth. An index tracking new sales instructions, a good indicator of supply, improved on the month before, but with a reading of zero, pointed to no growth. The index also indicated that stock levels were near an historic low. The survey helped support the narrative of low demand but even lower supply, in the UK housing market.

10 February, UK index of production, December 2016 – Office for National Statistics

Last month, industrial production saw a healthy 2.1% month on month rise, but this was largely due to a jump in activity from the oil and gas sector, after the Buzzard oil field’s period of shutdown came to an end.  But manufacturing also rose, by 1.3%, month on month. Recent PMIs suggest that UK manufacturing saw a further pick-up in December, was this reflected in today’s data?

Further announcements include:

10 February
• Construction output in Great Britain: December 2016 and new orders October to December 2016 – Office for National Statistics
• UK trade, December – Office for National Statistics

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