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Can Bunzl distribute some good vibes following Wednesday’s first quarter update?

While it may have overcame the setback already, late-February’s full year results were not well-received by investors, who focused on the 50 bps decline in the UK & Ireland’s operating margin due to ‘challenging market conditions’.

Any word on further acquisitions will be sort after on Wednesday, while investors will be keeping an eye on Bunzl’s UK margins given that trading conditions have been no less ‘challenging’ over the first quarter.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389658

Will JD Sports have its racing shoes on following Tuesday’s full year results?

The pinnacle of January’s update was news that the firm’s full year group pre-tax profit would be at the upper end of the £325 million to £352 million guidance range. At a mid-point of £338.5 million, that’d be a 14.7% improvement on the previous year’s £295 million.

Tuesday’s full year report is also the first proper statement since JD Sports announced it was buying trainer-rival Footasylum for £90.1 million, an acquisition that still requires shareholder approval. An update on this purchase will be very much welcome, specifically what intentions the company has for the brand.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389656

Can Thursday’s interim results give WH Smith a bookish boost?

There is now always a relative sense of predictability about WH Smith’s statements: Travel does well, High Street doesn’t. The nuance tends to lie in how good and how bad. For the 20 week period to January 19th, total sales at the Travel business were up a very healthy 16% following the acquisition of the US travel retailer InMotion, with like-for-likes rising 3%; High Street, meanwhile, saw total sales tumble a manageable 1%, alongside a 2% dip in comparable sales. This left WH Smith with a 6% increase in overall sales and a flat LFL performance.

A similar set of figures on Thursday may be enough to satisfy investors, while they’ll want to hear further details of the InMotion integration and plans for the US as a whole. And for reference, at the midway point last year, WH Smith posted a 1% decline in group pre-tax profit to £82 million, so an improvement on that could be the key if the stock wants to keep climbing towards £23-plus all-time peak.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389538

Will Wednesday’s full year results be Tesco’s finest?

A big reason for the firm’s strong 2019 showing was January’s trading update, where Tesco posted its best Christmas performance for 10 years. UK like-for-like sales rose 2.2% over the 6 week holiday period to January 5th, with overall group LFLs up 1.5%.

If Tesco is to avoid disappointing investors on Wednesday, then it needs its fourth quarter like-for-likes to be closer to its Christmas performance, rather than the sharp slowdown incurred across Q3. As for its full year forecasts, analysts are expecting a 12% rise in group revenue (excluding VAT, including fuel) to £64.5 billion, alongside a 21.7% surge in statutory pre-tax profit to £1.58 billion.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389476

Will AIM emperor ASOS be dressed in new clothes following Wednesday’s half year results?

It actually wasn’t very long ago that the company updated investors. On March 19th it posted its figures for the 3 months to the end of February, a release that added a new issue to sit alongside the aggressive discounting headache ASOS had encountered before Christmas.

Reported retail sales growth in the US shrank from 13% to 4% between Q3 and Q4, a sharp shift due, in part, to the firm apparently being too damn popular. Once its new Atlanta warehouse went ‘fully online’, demand ‘far exceeded’ the company’s expectations, resulting in a ‘significant short-term dispatch back log’ that affected its stateside performance.

As for 10th April’s interim results, investors are going to want to hear of a big improvement in the US now that its warehouse problems have been sorted. Additionally some positive tweaking to its full year forecasts – especially since it is expecting ‘stronger growth’ in the second half – could be the thing that helps the stock pick up the pace.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389412

Will Electrocomponents short-circuit following Thursday’s trading update?

Though February’s update was solid it did mark a slowdown from the company’s first half performance. In both Q1 and Q2 Electrocomponents posted like-for-like growth of 10%; in comparison, for the 4 months to January 31st covered in its most recent statement, its comparable sales came in at 6%.

As for Thursday’s trading update, investors will want to hear that is set to deliver the 10% rise in full year revenue to £1.88 billion, and 16% surge in adjusted pre-tax profit to £210.2 million forecasts by analysts. If they are to do so, then a further like-for-like slowdown in the rest of H2 needs to have been avoided.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389180

Will there be any cracks in Topps Tiles following Wednesday’s half year results?

The company last updated investors in January 9th when it posted a grubby set of first quarter figures. For the 13 week period ending December 29th, like-for-like sales tumbled 1.4%, a real sharp turnaround from the 3.4% increase seen the same time the year previous, and a drop-off from Q4 2018’s 1.2% rise.

As a reference point, like-for-like sales rose 0.6% at 2018’s halfway point, meaning Topps Tiles needs to have had a rather special second quarter to avoid another comparative decline. Further Brexit uncertainty in the housing sector, however, may make that tough to achieve.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389122

Can AA avoid another breakdown with April 3rd’s full year results?

The firm’s underlying full year earnings are set to be smack bang in the middle of previous forecasts, with AA claiming that trading EBITDA is ‘expected to be not less’ than £340 million against the guidance range of £335 million to £345 million. At the mid-point, that’s a sizeable 13% decline year-on-year.

To dodge veering off road once again, the company could really do with beating those earnings estimates, alongside providing a slightly more upbeat set of forecasts for its current financial year, including an improving paid membership picture.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389120

Can Mitie Group manage a mighty pre-close statement on Thursday?

The company’s last statement was all the way back in November, when it posted its half year results. Though revenue rose 4% to £1.04 billion, its first half adjusted operating profit slipped 4.2% to £38.4 million. This was due to a combination of a previously highlighted ‘adverse contract mix change’ in its Cleaning & Environmental Services division, and a £3.3 million hit due to ‘mobilisation-related costs’ in its immigration centre-managing Care & Custody arm.

As for the firm’s outlook, Mitie said that the outsourcing industry is ‘under much scrutiny’ with clients who expected ‘more, for less’ despite rising labour costs. However, it still expects to post ‘modest top-line growth’ this year, and is ‘confident’ in reaching its medium-term target of margin improvement to around 4.5% to 5.5%.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388881

Can Bellway’s half year statement on Wednesday help patch the holes in its roof?

In February the company revealed that, for the 6 months to 31st January, total revenue is expected to jump over 12% to £1.5 billion. However, as with all things in the UK, these figures sat in the shadow of the Brexit storm clouds lurking over the economy.

Bellway acknowledged the fact that its cancellation rate had risen ‘marginally’ from 11% to 13% year-on-year, while stating that the Board ‘remains cautious given the uncertainty regarding the UK’s forthcoming exit from the EU and the extent to which this will affect wider customer confidence.’

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388820

Will Fevertree Drinks post a refreshing set of full year results on Tuesday?

There was plenty of fizz in January’s update. For the full year Fevertree expects revenue to come in at around £236 million, a 39% increase on 2017 (a lot slower than the 66% rise managed the year previous).

However, a downgrade from Jefferies – which highlighted the risk of a near-term ‘hiatus’ in growth at the company as the UK ‘moderates’ before the US can fully accelerate – tempered the reaction a day later.

Following on from all that tasty growth, Fevertree said the ‘outcome for the full year’ should be ‘comfortably ahead’ of expectations. For reference, 2017’s pre-tax profit rose 64% to £56.4 million.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388781

Will investors be saying thank you, Next following Thursday’s full year results?

As is tradition, Next was out of the gates early with its post-Christmas trading update, one that ended up setting 2019’s rebound in motion. For the holiday period – classed by Next as October 28th to December 29th – total full price sales (including interest income) rose 1.5%, with a 9.2% decline in Retail softened by a 15.2% surge Online.

All this means that Next is expecting a 0.4% drop in pre-tax profit to a slightly lower than previously forecast £723 million, alongside a 4.4% increase in earnings per share. For the financial year to January 2020, meanwhile, the retailer forecast a further 1.1% decline in pre-tax profit to £715 million, with a 1.7% jump in total full price sales.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388576

Will Kingfisher be screwed following Wednesday’s full year results?

The company hasn’t updated since November’s third quarter results. There it revealed that, while it had eked out a 0.2% increase in group revenue on a reported basis, Q3 like-for-likes were actually down1.3% due to a 0.7% drop in the UK and Ireland, and a 3.4% slide in its persistently troubled French division.

As for the full year, Kingfisher said that it expects to ‘grow gross margin after clearance in the UK, Poland and Brico Depot France’, but that the outlook for Castorama was ‘more uncertain given difficult trading’ and the impact of the ‘gilets jaunes’ demonstrations.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388558

Can ASOS stitch together a decent trading update on Tuesday, or will it fall apart at the seams?

After a rough, costly November, the fashion retailer expects full year sales growth of 15% against the previously forecast 20-25%. Its profit margin, meanwhile, is set to be half of what was expected at around 2%. It also said that the weighting of its H1:H2 profitability, normally at 30%/70%, will see an ‘even more substantial weighting towards the second half’ of the year.

The impending interim statement was actually delayed from February 15th, the company wanting to cover the first half of its financial year rather than ‘reporting on much shorter periods’. Whether or not that was an attempt to manage bad news will be revealed on Tuesday...

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388505

Will investors need to take a seat following DFS Furniture’s half year results on Thursday?

Despite some very healthy figure, in January DFS said that it remains ‘cautious’ around its full year outlook, the company ‘mindful of the broader political and economic uncertainty and the further risk this may pose to consumer confidence’, alongside the potential impact on leads times for the made-to-order products it sources from overseas.

Clearly DFS is very keen to manage investors’ expectations, so it’ll be interesting to see what kind of tone the company strikes on Thursday. As for pre-tax profit, any kind of improvement on the economic anxiety and heatwave hit full year figures will be welcome.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388273

Can Morrisons pick up a trolley full of new investors following Wednesday’s full year results?

January’s post-Christmas update did little for the stock. While for the 9 weeks to 6th January group like-for-like sales rose 3.6%, the Retail contribution was just 0.6%, the rest coming from Amazon-supplying Wholesale division.This as number of transactions actually fell 0.9% due to what Morrisons dubbed a ‘change in consumer behaviour’, i.e. the continued rise of Aldi and Lidl and some Brexit-inspired cautiousness from shoppers.

Investors are going to want to know whether that ‘change in consumer behaviour’ continued throughout the rest of the fourth quarter, and whether it has carried over into Morrisons’ financial 2019/20...

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388214

Will investors tuck into a slice of Domino’s Pizza following Tuesday’s full year results?

While the fourth quarter performance in the UK was strong, with a super-charged showing in the run-up to Christmas causing a 4.5% increase in like-for-like sales and a 6% rise in system sales, internationally Domino’s hit a speed bump, where systems sales on a reported basis fell 2%.

Specifically, the troubled integration of its business in Norway – blamed on ‘unseasonably warm and dry weather’ – is causing issues, meaning its underlying pre-tax profit is expected to come in at the lower end of the previously forecast £93.9 million to £98.2 million range. That means it’ll likely see a decline from 2017’s £96.2 million.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=388170

Will investors (sausage) roll out the red carpet for Greggs following Thursday’s full year results?

The retailer was basically just boasting with its last statement in February, revealing its vegan sausage roll had helped drive like-for-like sales 9.6% higher across the first 7 weeks of 2019, an announcement sent the stock towards its current all-time highs.

To justify its recent surge then Greggs needs to ideally surpass that £88 million pre-tax profit target floated back in January, while updating on its performance across the last couple of weeks (it did mention that the rate of growth had ‘eased slightly’ in February).

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here:
https://spreadex.com/?tid=387942

Will Just Eat feel the pinch of the takeaway wars when it reports its full year results on March 6th?

The company mitigated the shock of the departure of CEO Peter Plumb with some better than expected full year forecasts. Revenue is set to come in nearly 43% higher year-on-year to £780 million, while underlying core earnings of £172 million to £174 million would be a 5.5% increase at the mid-point, a dramatic slowdown from the 42% growth managed in 2017.

As for 2019, Just Eat is expecting revenue in the range of £1 billion to £1.1 billion, and underlying EBITDA between £185 million and £205 million. More so than its figures, investors will be interested in its CEO search, with Peter Duffy currently filling in as interim chief.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here:
https://spreadex.com/?tid=387874

Will Ashtead Group get a (fork)lift following Tuesday’s third quarter trading statement?

While it might have come during a tough December, there was a lot to recommend in the month’s half year results. Revenue rose 19% to £2.25 billion, with a 25% surge in pre-tax profit to £610 million, and a stonking 42% jump in underlying earnings to 98.8p per share.

If Ashtead is to continue its 2019 recovery, then Tuesday’s Q3 results need to maintain that double-digit growth posted in the first and second quarters. The performance of its US division, which makes up something like 85% of its total revenue, will be key, with the company susceptible to any stateside economic slowdown.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=387818