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 their results next week, the week commencing 18 September 2017.

Companies announcing their results next week

Wednesday

Babcock International (Q2 trading update)

The market has had concerns over the sector this year, which has led to the group’s shares underperforming. Investors will be keen to hear any news relating to new warships and for it to reiterate confidence for full year revenue growth targets. Other areas to concentrate on will be international operations and updates on nuclear projects. 

Kingfisher (interim results)

It’s only a few weeks since the owner of B&Q and Screwfix gave a trading update so there should be few surprises for the market on that front in these results. Investors may get to hear more on the progress of the group-wide unification plan and particularly the expected cost of the changes of £800m over five years. Also, investors will hope to learn more about the predicted improvement in profit at the end of the plan of around £500m. Looking forward, the market will be keen to hear how the company expects B&Q in the UK to perform in the second half given some recent signs of weakness. 

Friday

Saga (Q2 results)

Investors will be hoping for a positive update on the group’s strategic objectives and membership scheme, which is aimed at its core group of customers. Management are keen to move the company away from its main insurance and holiday services to other areas, such as taking commission from third parties who will use the brand name, new services such as SagaMoney and a retirement village, as well as cross-selling its products. 

Smiths Group (Q4 results)

The diversified industrial group has generally reported good numbers in recent years as poor market conditions for its John Crane business are offset by better trading conditions for other divisions. We should see that new products help the Medical devices division while continued strong housing and construction business in America will no doubt be reflected in the Flex-Tek division. Its Detection business should benefit from increased counter-terrorism measures and improved government budgets. Overall, we should see a big boost from currency movements while there should be a steady rise in the dividend and an improvement in the dividend cover. 

Economic Diary

Announcements for the w/c 18 September 2017:

20 September Federal Open Market Committee meeting Two-day meeting, September 19 – 20

Will it or won’t it? Will the FED announce another hike in US interest rates today, up from the current range of 1% to 1.25%? There are reasons for and against. The US consumer confidence index is surging, GDP grew at a brisk pace in Q2 – 3.0% annualised –  new farm payrolls are still increasing at a strong rate – these are reasons to suggest that US rates need to rise again. But US inflation remains subdued – 1.7% in August. The odds are that rates will stay on hold.

20 September, Retail Sales in Great Britain, August 2017 – Office for National Statistics

Last month, UK retail sales increased by 0.3% month on month, the same as the month before, by 0.6% quarter on quarter, but by just 1.3% year on year.   Considering how real wages are falling, it was perhaps a better month than one might have expected. The latest report on retail sales from the BRC showed encouraging signs, but the Confederation of British Industry report for August was not so good. The British Retail Consortium reports are often quite reliable guides; there is a good chance that August also saw mild growth in retail sales.

Further announcements include:

18 September

EU inflation, August – Eurostat

21 September

UK public sector finances, August 2017 – Office for National Statistics

22 September

Monthly Industrial Trends – Confederation of British Industry

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest and tax policies may change. 

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