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Here’s our regular look at the FTSE 350 & other companies reporting from 1 to 5 November

  • BP is it on track to deliver on promise of shareholder returns
  • Standard Chartered could be held back by market trends in Asia
  • Next is expecting to deliver some crowd pleasing results
  • Sainsbury faces challenging comparisons from last year, as margins remain in focus

BP, Q3 Trading Statement, Tuesday 2 November

Laura Hoy, Equity Analyst

The sustained rise in oil prices should pad BP’s [LON:BP.]results, and offset some of the production declines as the group continues to pivot away from its legacy business to pursue green energy options. Step one in the plan is strengthening the balance sheet and paying down debt, an area the group’s made progress in so far this year. We’d like to see that trend continue into the third quarter. At last check, net debt was $42.7bn, down from $43.3bn in the previous quarter. The dividend is another area of focus. Management’s pledged to offer a fixed 5.25 cents per share as a quarterly dividend. The group also used excess cash generated by disposals in the first half to fund a $1.4bn buyback programme. As long as oil prices remain above $60 per barrel, BP intends to offer investors a 4% annual dividend hike and $1bn in buybacks each quarter. Based on the current environment, we expect the group to be on track to deliver but remember all dividends are variable and not guaranteed.”

Standard Chartered, Q3 Trading Statement, Tuesday 2 November

Sophie Lund-Yates, Equity Analyst

“We expect Standard Chartered’s [LON:STAN] results to follow a similar pattern to its peers. Both Barclays and HSBC have seen pre-tax profits improve greatly, as they’ve been able to release provisions put aside during the pandemic, when uncertainty raised question marks about people’s ability to pay their debts. We also expect Standard’s diverse business model to have continued to offer some shelter in the low interest rate environment. Low rates mean banks’ loans aren’t as profitable, which shines the light on the group’s wealth management and investment banking businesses instead. However, Standard Chartered is more exposed to Asian markets than its Western rivals. Around 83% of quarterly profits come from Asia in fact. HSBC’s recent results showed that Asian markets aren’t faring as well as western areas, which could be a negative sign for Standard’s Q3 income.”

Next, Q3 Trading Statement, Wednesday 3 November

Steve Clayton, Manager of the HL Select Funds

“Next [LON:NXT] release a Q3 trading update on 3 Nov and expectations are high; will the group be able to deliver enough to please the crowd? The group have repeatedly reported better than predicted sales in recent quarters. Next benefited from being one of the stronger players online and picked up market share when the High Street shut down. Now, the playing field is more level, but so far, Next’s digital strengths have kept it ahead of the pack.”

Sainsbury, Half Year Results, Thursday 4 November 2021

Matt Britzman, Equity Analyst

“Sainsbury’s [LON:SBRY] finds itself in a tricky spot with pricing. Inflation is pushing prices up, but the group is trying to keep them down in line with the pledge to improve its value position. That all puts added pressure on margins that are already a little stretched.

Online sales continued to improve in the last quarter. It’s important this trend continues. If it doesn’t, the extra costs associated with adding online capacity add up to another drag on margins.

Owning Argos, the group is more exposed to shifts in discretionary spending than its rivals. Last year was a bumper one for general merchandise sales, giving some tough comparable numbers. Sales were ahead of expectations in the first quarter, albeit down year-on-year, but supply challenges are likely to remain a challenge.”

FTSE 100, FTSE 250 and selected other companies scheduled to report

01-Nov
RyanairHalf Year Results
02-Nov
Activision BlizzardQ3 Trading Statement
BPQ3 Trading Statement
Flutter EntertainmentQ3 Trading Statement
HiscoxQ3 Trading Statement
IWGQ3 Trading Statement
Standard CharteredQ3 Trading Statement
03-Nov
Coca Cola HBCQ3 Trading Statement
CLS HoldingsQ1 Trading Statement
Morgan SindallTrading Update
Next*Q3 Trading Statement
Novo NordiskQ3 Trading Statement
Smurfit Kappa GroupQ3 Trading Statement
TrainlineHalf Year Results
04-Nov
Apax GlobalQ3 Trading Statement
Aston MartinQ3 Trading Statement
Barrick GoldQ3 Trading Statement
BT GroupHalf Year Results
Derwent LondonQ3 Trading Statement
Deutsche PostQ3 Trading Statement
ElectrocomponentsHalf Year Results
Hikma PharmaceuticalsTrading Update
Howden Joinery GroupQ3 Trading Statement
IMI PLCTrading Update
SainsburyHalf Year Results
Lancashire HoldingsQ3 Trading Statement
Smith & NephewQ3 Trading Statement
Tate & LyleHalf Year Results
TI Fluid SystemsQ3 Trading Statement
Wizz AirHalf Year Results
05-Nov
BeazleyQ3 Trading Statement
International Consolidated Airlines GroupQ3 Trading Statement

This article is brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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