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 13 November 2017.

Companies announcing results next week
Monday

Taylor Wimpey (Q3 trading update)

Despite Brexit concerns, the sector has remained resilient as there is still a shortage of housing in the UK and the company said demand hasn’t fallen off. Furthermore, interest rates have been attractive with good mortgage availability. The market will be concentrating on the group’s outlook for 2018, along with views on costs, possible labour shortages and its cash position. 

Tuesday

ITV (Q3 trading update)

The company has been in the news of late over a looming spat with Virgin Media and subscription charges. Investors are more likely to concentrate on advertising revenue trends, which have been under pressure this year. Hopefully the production business, which has continued to see good growth, will help offset the lower advertising revenue.

Vodafone (Q2 results)

With little in the way of share price growth over the last 2 years, investors have focused more on the attractive 6% yield. Areas to concentrate on will be the performance in key European operations, which have been mixed, along with India and other emerging markets.

Other companies reporting today: Land Securities (Q2 results)

Wednesday

Barratt Developments (Q1 trading update)

Full year figures in June confirmed that Barratt performed well with revenues up 10% and profits up 12%. However, interest rates are now on the rise again and the company has recently become more cautious in its approach, which is reflected in its land bank acquisition strategy. There have been some notable signs of a slowdown in the housing market and some analysts have expressed caution on valuations in the sector at the current point of the cycle while Brexit uncertainties persist.

Sage (Q4 results)

The share price hit a 10-year high last week, despite one analyst’s concern over competition. The group tends to concentrate on providing software services to small to medium sized businesses. It is, however, an international business and followers will be hoping that the improved North American growth has continued and that organic growth and operating margin targets have been achieved. 

Thursday

British Land  (Q2 results)

In common with most of the property development sector the shares have struggled since the EU referendum, but they are trading at a substantial discount to net asset value. In July the company said it planned a £300m share buyback this year due to a lack of attractive investment opportunities at present with prices pushed up by strong demand. Any comments around demand for retail and office space in London will be of interest given the uncertainty created by Brexit and reports of some banking jobs moving out of the city.

Other companies reporting today include: 3i  (Q2 results),  Keller (Q3 results)

Economic Diary

Announcements for the w/c 13 November 2017

14 November, UK consumer price inflation, October – Office for National Statistics

Last month, UK inflation rose to 3.0%, the highest level since 2012, and core inflation – excluding food, energy and tobacco – rose to 2.7%.  But has inflation peaked? Many economists expect it to have fallen back before the year’s end, but did it fall in October?

15 November, UK labour market statistics, three months to September – Office for National Statistics

In the three months to August, employment growth was slow – 94,000, but unemployment remained at 4.3%, the lowest level since the mid-1970s. Average wages with bonuses rose by 2.2%, meaning that real wages fell.  With inflation at 3% in September, it seems highly likely that real wages fell again.

16 November, Retail Sales in Great Britain, October – Office for National Statistics

Retail sales fell 0.8% month on month in September, and grew at a very modest 1.2%, year on year. Alas, the latest report from BRC had retail sales falling in October, whilst the latest CBI survey pointed to a weak month. It seems likely that today’s official data will show another month of falling sales, but given that real wages are falling, this is hardly surprising.

Further announcements include:

14 November

  • UK house price index, September – Office for National Statistics
  • UK producer prices inflation, October – Office for National Statistics
  • Flash Estimate EU and euro area GDP, Q3 2017 – Eurostat

15 November

  • UK productivity, flash estimate, July-September – Office for National Statistics
  • US Consumer Price Index, and real earnings, October – Bureau of Labor Statistics

16 November

  • EU inflation, October – Eurostat

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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