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 25 September 2017.

Companies announcing results next week

Monday

Amerisur Resources (Q2 results)

Amerisur recently reported production numbers for its Platanillo Field and throughput data using the OBA pipeline which pleased the market. However, the share performance has been very disappointing compared to its oil sector peers even when oil prices have been performing better as a result of earlier operational issues and social issues in Columbia. Investors will hope that this latest update provides more reassurance regarding its operations going forward. With modestly rising prices and falling cost, investors will also be waiting to see if production will resume at wells that were shut due to past lower oil prices.

Tuesday

United Utilities (Q2 trading update)

The sector has been growing a little jittery ahead of the first draft for the next regulatory period (2020/25) which is due in December. Having hit an all-time high in May the share price drifted back over the summer months, possibly factoring in the review along with a lack of bid speculation. Investors expect little in the way of excitement from utility companies when it comes to results. Interest will focus on performance targets and any comments regarding the outlook for the sector.

Thursday

RPC (Q2 trading update)

Full year results in June showed that demand for RPC’s plastic packaging remained strong. An upbeat first quarter update in July confirmed a good start to the new financial year with revenues well up on last year and profit margins higher than expected. A £100m share buyback scheme added to the positive sentiment. RPC said it was planning to focus on integrating its many recent acquisitions so any update on that will be of interest to the market

TUI (Q4 trading update)

Shares in the large tourism group got a healthy boost from its previous trading update in August. That was most notable for news of the first nine-month profit in the group’s history on the back of continued good performance. The recent hurricanes in the Caribbean and US may have caused some disruption for the company so the market will be interested to hear if it remains on track to achieve its previous guidance of a rise in full year earnings of at least 10% with full-year sales increasing by more than 3%. The CEO is reported to have recently expressed a desire to acquire further hotels so any update on that will also be of interest.

Economic Diary

Announcements for the w/c 25 September 2017

26 September, US Consumer Confidence, September – Conference Board

This closely watched index rose to a 16-year high earlier this year (124.6), but fell back a little over the following few months. However, in August it went close to hitting a new 16-year high (122.9).  Did it rise further in September?  And if so, does this suggest a period of more rapid growth is in store for the US?

29 September, Balance of Payments for the UK: April to June 2017 and UK quarterly National Accounts: April to June 2017 – Office for National Statistics

In the final quarter of 2015, the UK’s current account deficit to GDP was 7.2 per cent, the highest ever recorded. This in turn led to speculation that sterling was overvalued and that it would not take much of a shock to precipitate sharp falls in the currency. This is what happened with the Brexit vote. However, the deficit has fallen since, and in Q1 of this year, it was down to 3.4 per cent of GDP. Recent falls in the pound should lift exports eventually, but there has been precious evidence of this so far in the more timely data on trade.  Meanwhile, the quarterly accounts for Q1 revealed that the UK’s saving ratio had fallen to an all-time low, with records going back to 1960. This is clearly not sustainable. Did it pick-up in Q2?

Further announcements include:

25 September

  • Financial Policy Committee Statement from its meeting of 20 September 2017 – Bank of England

27 September

  • Monthly Distributive Trades – Confederation of British Industry

28 September

  • US Gross Domestic Product (third estimate), Q2 2017 – Bureau of Economic Analysis

29 September 

  • Euro area flash estimate of inflation, September – Eurostat

 

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