Week Ahead: B&M, Broadcom results eyed; payrolls in the spotlight

(Sharecast News) - Next week sees the release of results from the likes of B&M European Value Retail in the UK, while US quarterly earnings from Broadcom and CrowdStrike will be in focus, along with the latest non-farm payrolls report.

On Monday, interim results from Cerillion and annual results from Sirius Real Estate will be out, while Tuesday will bring a first-half pre-close trading update from British American Tobacco, half-year results from Paragon Banking and full-year results from GB Group.

As far as BAT is concerned, Derren Nathan, head of equity analysis at Hargreaves Lansdown, said the company started the year off by guiding towards the lower end of medium-term growth targets, which are 3-5% for revenue and 4-6% for underlying operating profit.

"But that was before the Iran conflict, and with duty-free sales and tobacco volumes reportedly coming under pressure, investors are keen to hear whether these targets are still seen as achievable," he noted. "The key variables in all of this are likely to be pricing and New Category sales, where the company is a relatively strong player.

"Profitability was always expected to be second-half weighted, and markets should hear how much work there's left to do in the latter part of the year. With guidance reiterated last month, analysts are not expecting too many surprises in next week's first-half update. Share buybacks and a yield of over 5% are a key attraction of the stock. "However, these aren't guaranteed, and markets will be seeking assurances that net debt is heading back towards the target range of 2-2.5x underlying cash profit (EBITDA)."

In the US, quarterly results are due from Palo Alto Networks, Dollar General and Ulta Beauty.

On Wednesday, investors will eye full-year results from discount retailer B&M, Discoverie and Ninety One. Across the pond, quarterly numbers from Broadcom, CrowdStrike and Medtronic are due.

As far as Broadcom is concerned, Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the company is heading into next week's second-quarter results with expectations running high after a strong first quarter and an even stronger guide.

"Management expects revenues of around $22 billion, up 47% year-on-year, with underlying cash profit margins of around 68%, driven by accelerating demand for custom AI accelerators and networking - though expect investors to want a beat against those numbers. AI revenue is expected to grow by almost 140%, and investors will be watching closely to see whether that momentum continues to build," he said.

"Just as important as the numbers will be the order book and commentary on future demand. Broadcom's custom chip model, where it works directly with large tech firms to build bespoke AI chips, has been gaining traction alongside the broader GPU market. Recent developments point to longer-term customer commitments, and the latest AI guidance, both near and medium-term, looks conservative. But a lot now rides on future orders and customer spending plans, so investors will want reassurance that demand visibility remains strong and that margins can hold up as AI revenue becomes the key driver of performance."

On the macroeconomic calendar, the US ADP jobs report will be in the spotlight ahead of Friday's payrolls.

Thursday will see the release of full-year results from Mitie Group, CMC Markets and Capital Gearing Trust, while Lululemon Athletica will publish quarterly results in the US.

There are no FTSE 350 corporate releases due on Friday, so all eyes will be on the latest non-farm payrolls report, average earnings and unemployment rate for May.

AJ Bell analysts Russ Mould and Danni Hewson said that after April's blowout data, investors will be looking to see if the headline number is within the 60,000 to 80,000 which analysts are currently pencilling in and whether the unemployment rate remains steady at 4.3%.

"Another beat like April's could further cement the idea that rates are not going to be cut any time soon, particularly if there is evidence of significant wage growth," they said. "On the other hand, a weaker than expected number could create worries about recession while shifting the calculus on rates."