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Will Mitie Group clean-up following Thursday’s full year results?

The company’s latest update came on March 28th. There Mitie stated that, while its committed order book was broadly flat in the second half, for the full year it would be down 10%, blaming a ‘challenging backdrop in the industry’ – shown in the collapse of both Carillion and Interserve – and ongoing ‘political uncertainty’.

Operating profit before other items, meanwhile, is forecast to come in between £84 million and £87 million. At a mid-point of £85.5 million, that’s a 2.8% improvement on the previous year’s £83.2 million, but below analysts’ previous guidance.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392855

Will Auto Trader continue to speed ahead following Thursday’s full year results?

The last statement the firm released was actually all the way back at the end of November, when it posted its half year results. Revenue was up 7% to £176.8 million, while average revenue per retailer forecast per month added £152 to £1826. Operating profit jumped 10% to £120.6 million, with pre-tax profit climbing 9% to £114.5 million and basic earnings rising 12% to 9.78p per share.

Heading into Thursday’s full year results, analysts are expecting revenue to rise 6.4% to £351.3 million, with operating profit up 8.3% to £239 million and basic EPS rising nearly 11% to 19.7p. Investors will also want to hear word on Auto Trader’s joint venture with Cox Automotive UK, Dealer Auction, announced at the end of 2018.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392854

Will AO World have the (white) goods to impress investors on Tuesday?

April’s trading statement wasn’t great. The re-appointment of John Roberts as CEO at the start of 2019 brought about a rather costly management re-shuffle; combine that with a loss making contract in Germany the company has been unable to terminate, and it is set to incur exceptional charges of around £2.5 million. This comes on top of the costs related to the £32.5 million acquisition of Mobile Phones Direct at the end of 2018.

Group adjusted EBITDA, meanwhile, is expected to be at the lower end of market expectations, which is worrying given that estimates have it anywhere between a £400,000 loss and a £2 million profit.

The response to AO World’s full year results, then, may well be predicated on whether or not it does indeed slump to an adjusted loss, as well as the size of said loss.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392812

Will Wizz Air be forced into an emergency landing following Friday’s full year results?

The company’s post-close trading update in early April was very positive. It said its net profit for the financial year would be at the upper half of the €270 million to €300 million guidance range. At a mid-point of €285 million, that’d be a 3.6% improvement on 2018’s record €275 million – a significant slowdown on that year’s 22.1% increase, a fair whack below the €310 million to €340 million announced at the end of 2018’s annual results.

In terms of Friday’s results, obviously the first hurdle for the company to clear is making sure its net profit is at the top end of estimates. Beyond that, the outlook for the ‘all-important’ summer trading period, alongside the forecasts for FY20 as a whole, could dictate the market reaction.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392571

Will FirstGroup hit at speed bump following Thursday’s full year results?

The main reason for its recent rise is speculation that the firm could be broken up. Coast Capital Management are trying to force change at the company with a list of demands, top of which being the separation of its US assets – which includes Greyhound, First Transit and First Student buses, alongside the A-Train – to generate £3 billion in re-investable capital.

It also thinks FirstGroup should remove itself from the British railway arena, a move that would effectively hand the West Coast Mainline to a consortium led by the Chinese state-owned Guangshen Railway Company. Coast Capital also wants a serious shake-up at the top.

Investors will want word of when the rescheduled general meeting requested by Coast Capital will happen, alongside an improvement at the struggling Greyhound bus division.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392536

Will AVEVA avoid a virus following Wednesday’s full year results?

April’s fourth quarter statement saw the company reiterate its aim of hitting low double-digit full year revenue growth. Operating margins ‘improved’, though AVEVA was careful to highlight that additional costs were incurred due to a strong sales performance, and that it was investing to ensure it’s ‘optimally positioned to capture future growth opportunities’. The update ended with the claim that the integration of the heritage AVEVA and Schneider Electric industrial software business has continued to progress well.

Given that investors have been very receptive to these rather bland statements, more of the same on Wednesday might be enough to keep its gains going. For reference, last year it posted adjusted pre-tax profit on a pro forma basis of £162.8 million; a the half way point of this year adjusted pre-tax profit rose 54.3% to £60.5 million.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392494

Will Tate & Lyle remain just as sweet following its full year results on Thursday?

The main takeaway from the details-light Q3 statement was that Tate & Lyle is expecting earnings per share in constant currency growth to be in a mid-single digit range, though ‘towards the lower end’ due to energy and transportation cost inflation and a year of strong commodities performance.

Analysts, meanwhile, are expecting the company to post a slight improvement in adjusted pre-tax profit on Thursday, from £301 million to £303 million year-on-year, with adjusted diluted earnings per share at 51.1p, roughly a 2% increase on 2018. Investors will also want to hear of any acquisitions given that CEO Nick Hampton was talking up the prospect of such at the end of April.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392185

Will Marks & Spencer have a high street headache following Wednesday’s full year results?

Before the game-changing Ocado announcement, M&S posted its third quarter update in January, a set of results that displayed the need for a substantial shake-up. For the 13 weeks to 29th December total UK sales were down 2.7%, with like-for-likes slipping 2.2%. This as comparable sales in the Clothing & Home division fell 2.4%, closely followed by a 2.2% decline in Food – especially disappointing given the reporting period covered the Christmas season.

As for Wednesday’s annual results, analysts are expecting pre-tax profit to tumble 10.7% to £519 million, against the £580.9 million managed the year previous. Of course, any comment on Ocado will be heavily scrutinised.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392084

Will Royal Mail have any good news to deliver with Wednesday’s full year results?

Adjusted operating profit before transformation costs is now expected to come in between £500 million and £530 million, £20 million lower than its previously stated guidance, and a huge way-off last year’s £694 million. With the company continuing to feel the impact of GDPR, letter volumes are set to be down 7-8% for 2019, and ominously outside the ‘medium-term range’ next year in 2020.

The company might be able to provide a short-term stock price rescue if its adjusted operating profit at least arrives at the top end of estimates. But even then, something slightly more substantial is going to be required to prevent these record lows becoming its normal trading band.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=392085

Will easyJet remain grounded following Friday’s half year results?

Crucially during its Q1 results, easyJet stated the despite ‘consumer and economic uncertainty created by Brexit’, demand remains ‘solid’ and forward bookings past the then-exit date of March 29th were ‘robust’. It also claimed it was ‘well-prepared’ for the UK leaving the EU.

In terms of Friday’s half year report, easyJet is expecting revenue per seat at constant currency to decrease by ‘mid to high single digits’, due to the shifting of Easter into H2, a ‘more competitive market in Berlin’, and the greater than anticipated ‘phasing impact from H1 to H2’ of new IFRS 15 accounting standards.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=391682

What will Burberry have in its full year handbag on Thursday?

Arguably the fourth quarter is going to be the real test for Burberry, with that period just about covering the launch of Riccardo Tisci’s debut collection as creative director. Analysts are expecting like-for-like sales to rise 2% during Q4.

As for the full year, group revenue is expected to be effectively flat at constant exchange rates, with an overall comparable sales increase of 2%, and a 5.4% slide in adjusted operating profit to £442 million. It has also repeatedly stated it is on track to deliver cumulative cost savings of £100 million. The forecasts for 2019, the first full year under the creative guidance of Tisci, could be crucial.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=391573

Will Kingfisher announce a new CEO alongside its Q1 results next Wednesday?

Though it saw a 13% plunge in underlying pre-tax profit to £693 million, March’s full year report was really notable for the changes to the firm’s long-running ONE Kingfisher transformation plan. Forced to abandon the target of a sustainable £500 million annual profit uplift by FY 2020/21, stating that it ‘no longer reflects’ how the business is managed, CEO Veronique Laury was given the boot, though her leaving date wasn’t announced.

Any word on her successor may be the most sought-after piece of news on Wednesday. Beyond that, investors will specifically be looking for signs of improvement in Castorama given Kingfisher said it was ‘implementing a clear plan’ to turnaround the ailing brand. The progress of the extended rollout of Screwfix outlets in the UK and abroad will also be under the spotlight.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=391504

Can Morrisons find its way out of the discount aisle following Thursday’s Q1 statement?

Mid-March’s full year results failed to bring investors back on side, despite there being a lot to recommend. Group like-for-like sales, excluding fuel, jumped 4.8%, close to double the 2.8% increase posted the year previous.

However, there was maybe some concern over the slowdown in like-for-like retail sales in Q4. While its wholesale division saw a 3.2% increase, the standard supermarket arm saw just a 0.6% rise, less than half what was posted in Q3, and just shy of a third of the growth seen in the first half of the year.

As for Thursday’s Q1 update, while its wholesale business waits to start suppling 300 more McColl’s stores towards the end of the year, its retail division will be under scrutiny, with investors hoping for an improvement on that disappointing Q4 figure.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=391107

Will ITV get investors’ golden buzzer when it reveals Wednesday’s Q1 results?

There was a lot to process in February’s full year results. Total external revenue jumped 3% to £3.2 billion, with a 1% increase in advertising revenue and a 6% rise at ITV Studios. But while statutory pre-tax profit was up 13% to £567 million, adjusted earnings were down 4% to 15.4p per share, in part thanks to World Cup coverage-related £30 million increase in schedule costs.

The big announcement was the confirmation of BritBox, a rare moment of co-operation between ITV and BBC in order to (try and) combat Netflix. Investing in an on demand streaming service – which is set to launch in the second half of 2019 with a ‘competitive’ price tag – isn’t cheap, with ITV looking at a £25 million outlay in 2019, rising to £40 million in 2020 and declining thereafter.

As for its 2019 forecasts, due to ‘economic and political uncertainty’ total advertising revenues are set to fall 3% to 4% over the first 4 months of the year. That breaks down as a 7% decline in the first quarter – in large part thanks to a forecast 17% plunge in what was meant to be Brexit March – rescued by an expected 6-10% increase in April. The first half as a whole, meanwhile, faces the tough comparatives of last June’s World Cup-boosted performance, alongside H1 investments and ‘ITV Studios deliveries being weighted to the second half’.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=391062

Will Domino’s tumble following its first quarter statement on Tuesday?

In a self-labelled ‘mixed year’, Domino’s saw Group system sales rise 9% to £1.26 billion, while UK like-for-like system sales were up 4.6%, only a mild slide from the previous year’s 4.8% growth.

The real focus was the 22.2% plunge in pre-tax profit to £61.9 million as the company incurred charges of £31.5 million, relating to ‘International impairments, UK supply chain transformation and integration costs’. Talking of its International performance, Domino’s said that it had experienced ‘some growing pains’ but now has ‘strengthened’ its management teams.

Given the huge impact its International arm had on its performance last year, the focus of Tuesday’s Q1 update is likely going to be on whether or not there has been any tangible improvement in the division. That is, as long as the UK and Ireland hasn’t seen any issues.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=390809

Will Lloyds continue to brush off Brexit in Thursday’s first quarter update?

What certainly helped the stock’s strong start to 2019 was the tone struck in February’s full year results. While its peers were warning on the potential impact of Brexit, Lloyds said it is facing the future ‘with confidence’, and that is ‘planning for a deal’ and a ‘smooth’ transition that should lead the economy to grow at the same 1-1.5% pace as seen currently.

Given the weak Q1 reports from Barclays and RBS – the former lamented a ‘challenging income environment’ while the latter warned that Brexit uncertainty ‘is likely to make income growth more challenging in the near term’ – it is going to be interesting to see whether Lloyds carries over its bullishness from February. As for the figures themselves, analysts are expecting a very slight 0.1% drop in earnings to 2p per share, with a 1.5% dip in revenue to £4.5 billion.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=390685

Can the now merger-less Sainsbury’s produce a confidence-rescuing set of full year results on Wednesday?

Considering the state of January’s Q3 results, Sainsbury’s really could have done with that deal going through. Across the quarter like-for-like sales tumbled 1.1%, way worse than the 0.3% decline forecast. This as a 0.4% increase in grocery sales was wiped out by a 2.3% slide in its difficult, Argos-led non-food household goods division.

Given the collapse of its Asda merger, Sainsbury’s will need to do a lot to get investors back on board on Wednesday. A better set of like-for-like sales in Q4 is required; ditto the delivery of the estimated 6.3% increase in underlying pre-tax profit to £626 million. An idea of how much the failed deal has cost – back in November the bill was already at £17 million – could help dictate the post-results reaction, as will an update on the status of Mike Coupe as CEO.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=390601

Will Wednesday’s first quarter results interrupt Next’s remarkable start to 2019?

Though the company actually posted a, admittedly in line, 0.4% drop in full year pre-tax profit to £722.9 million back in March, the overall tone of the update was surprisingly positive. Total Brand sales rose 2.6% to £4.12 billion, with a 7.9% decline in Retail and a 14.7% increase Online, bringing the two divisions even closer in terms of the proportion of revenue they bring in. It is highly likely that by this time next year, the latter will have overtaken the former.

Currently Next is expecting total full price sales to rise 1.7% for the year to January 2020, with a 1.1% drop in pre-tax profit to £715 million but a 3.6% jump in earnings per share. Investors will be after a (positive) revision to this guidance on Wednesday, alongside whatever Brexit words Wolfson has for the markets this time out.

Read what Spreadex analysts have to say here: https://spreadex.com/?tid=390587

Can Apple avoid a crack in its screen following Tuesday’s second quarter results?

Though Q1 revenue fell 5% year-on-year to $84.3 billion, that was ahead of the $83.97 billion forecasts by analysts. Earnings per share came in at a record $4.18, a smidge above the $4.17 expected; iPhone revenue, on the other hand, did miss estimates, if only just, at $51.98 billion.

As for the second quarter, Apple is expecting revenue to arrive between $55 billion and $59 billion, which at a mid-point of $57 billion would be a 6.7% reversal against the same time last year. Analysts, meanwhile, are expecting diluted earnings of around $2.40 per share.

Attention will be paid to the minutiae of the statement, of course, alongside its forecasts for Q3. iPhone revenue, which is 60% of the firm’s total, is potentially set to fall 10% year-on-year; the Services division, which is now the 2nd biggest business, is set to see revenue rise 16%, aided by the news that Apple Music recently overtook Spotify in terms of paid subscriptions in the US. Word on how much its TV streaming service will cost, or when it will launch – details omitted from March’s announcement – will also be welcome.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=390535

Can Rentokil Initial exterminate any sellers with Thursday’s Q1 trading update?

A heat-wave led rise in rats, wasps and flies gave the firm’s full year figures a boost in February, with organic revenue growth at its Pest Control division up 4.8%, ahead of the group’s 3.7% increase. Total revenue, meanwhile, rose 4.1% at constant exchange rates to £2.47 billion, with adjusted pre-tax profit climbing 8.8% to £308 million.

The company ended February’s report by stating that following a ‘good start to the year’ it anticipates ‘a slight increase in market expectations for 2019’, something investors will want further word on in Thursday’s first quarter statement.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389660