Companies announcing results next week

Ian Forrest, investment research analyst at The Share Centre, gives his thoughts on what to expect from companies announcing their results next week, the week commencing 17 July.

Companies announcing results next week

 

Tuesday

Rio Tinto (Q2 results)

The Q1 trading update was a bit of a disappointment as production of copper fell short of market expectations, partly down to uncontrollable weather factors. However, Rio Tinto’s key commodity, iron ore saw better operational performance numbers and there is some expectation that this will follow through into the latest quarter. Investors would expect more progress on cost reductions, but a pullback in commodity prices during the second quarter will hurt revenues.

Other companies reporting today: Royal Mail (Q1 trading update)

Wednesday

RPC (Q1 results)

Full year results from the plastic packaging group in June beat market expectations. Good performances from recent acquisitions BPI and GCS played their part in that and the market will be looking to see if that has continued and if any further acquisitions are on the horizon. The shares fell back after the results (as they had in March), following critical comments from broker Northern Trust, so investors will also be looking out for that again.

Other companies reporting today: Severn Trent (Q1 trading update)

Thursday

Breedon Group (Q2 results)

With a good trading Q1 trading update, expectations are that there should be a follow through into the second quarter. The macro economic environment remains supportive as housing construction activity remains high and infrastructure spending in the UK is set to see further boosts. Weather conditions over the last quarter have also been favourable. Comment will be expected on the progress of the integration of a recent acquisition, while investors will lookout for any new contract wins.

EasyJet (Q3 results)

These are interesting times for airlines at the moment, especially those that are more Europe-focused with Brexit looming. Michael O’Leary, chief executive of Easyjet’s rival Ryanair, has recently said there might be no flights between the UK and EU for several weeks in 2019. Meanwhile the market will be looking at revenue per seat, which fell 4.8% in the first half, and the level of summer bookings given recent terrorist attacks.

Unilever (Q2 results)

It’s certainly been an interesting year so far for Unilever with the Kraft Heinz takeover bid in February and the announcement of a significant new growth strategy shortly afterwards.

The first quarter trading update in April beat expectations, with sales helped by the weak pound. At that point the group said it expected sales growth for the year to be in the 3%-5% range so any update on that will certainly be of interest.

Other companies reporting today include: SSE (Q1 trading update), Anglo American (Q2 results)

Friday

Vodafone (Q1 trading update)

Investors will be looking for news on the performance of key markets such as India. There has also been some speculation in the media recently about job cuts in Vodafone’s German operations so any comments on that will also be of interest.


Economic Diary

18 July, UK inflation, June – Office for National Statistics (ONS)

UK inflation rose to 2.9% in June.  Although inflation in the euro area and US has been dropping back of late, the falls in the pound post-Brexit vote, and more recent falls seen after the UK election are likely to continue to exert upward pressure on inflation for some time.

20 July, UK retail sales in Great Britain, June 2007 – Office for National Statistics (ONS)

In four of the first five months of 2017, UK retail sales contracted, month on month.  However, a recent report on retail from BRC painted a more appealing picture for June.  Will the official data from the ONS support this?

20 July, Governing Council of the European Central Bank: monetary policy meeting in Frankfurt – European Central Bank (ECB)

Recently, the President of the ECB, Mario Draghi, appeared to suggest that the ECB may soon begin the process of tapering QE, only for a spokesman to then say that Mr Draghi had been misunderstood. But with euro inflation falling sharply in the last two months, and with more members of the Bank of England’s MPC voting for a hike in interest rates, will the ECB portray a slightly more hawk-like stance, today

Further announcements include:

17 July

  • EU inflation, June – Eurostat

18 July

  • UK house prices, May – Office for National Statistics
  • UK producer price inflation, June – Office for National Statistics

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