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 commencing 10 April 2017.

Companies announcing results next week
Tuesday

Vedanta Resources (Q4 production and revenue release)

Increased production rates across the firm’s portfolio and improving commodity prices should follow through to greater revenues, for which the market consensus is for a 5% rise to $11.3bn. Investors will also be expecting good news on the cost front and no more significant asset impairments which should result in the company returning to a small net profit (to be reported at a later date) compared to the huge losses in 2015 and 2016.

Wednesday

Carr’s Group (Q2 results)

The profit warning on 30 March hit the share price and impacted market confidence in the group. Contract delays in the Engineering division and falling demand in the US for its cattle feed products, were the causes.  Following so soon there is unlikely to be anything new in the results or regarding the outlook. Management are expected to go into greater detail on the headwinds facing the group for the year ahead and possibly on actions that can be taken to mitigate the market conditions.

 

Tesco (Q4 results)

Investors will be hoping for more signs that the group is rediscovering its competitiveness; protecting and strengthening its balance sheet, regaining trust and improving the transparency in its business and brand. Fierce price competition and promotions are likely to remain a squeeze on margins for some time and the revised strategy is going to take time to implement. Investors backing the new management and the signs of improvement in recent results will have to be patient.

Economic Diary

Announcements w/c 10 April 2017

11 April, UK consumer price inflation,  March 2017 – Office for National Statistics (ONS)

Last month, UK inflation rose to 2.3%.  Although many economists expect UK inflation to rise throughout this year, bear in mind that month on month inflation in March 2016 was relatively high. Month on month inflation in March 2017 will have needed to have been even greater for the annual rate to rise. This may happen, but bigger rises in inflation are more likely in April.

12 April, UK labour market statistics, April 2017 – Office for National Statistics (ONS)

Today’s report on the UK labour market may point to a fall in real wages. In the three months to January, compared to the year before, wages rose by 2.2%. We already know that UK inflation was 2.3% in the year to February. Unless February saw a pick-up in wage growth, wage growth in the month will be less than inflation, and for the first time since the autumn of 2014.   This will, in time, have a knock-on effect on the domestic economy.

13 April, Residential Market Survey, March – Royal Institution of Chartered Surveyors (RICS) 

Last month, the RICS headline index stood at plus 24, the same level as the month before. But the Nationwide has since reported on a month on month fall in house prices, the Halifax index threw up a similar finding the month before.  Will this closely watched index from RICS support this narrative of a slowing housing market?

Other announcements

11 April

  • UK House Price Index: February 2017 – ONS
  • UK producer price inflation: March 2017 – ONS

13 April

  • Profitability of UK companies: October to December 2016 – ONS

14 April

  • US Consumer Price Index, March 2017 – Bureau of Labor Statistics
  • Real Earnings, March 2017 – Bureau of Labor Statistics

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