Companies Reporting: Barratt, Disney, Pepsi, Unilever

Our regular look at the FTSE 350 and a selection of other companies reporting from 6-10 February 2023.

• Barratt Development’s half year results should shine a light on cost inflation.
• The pressure’s on at Disney to prove returning CEO has the right ideas.
• Will Pepsi cap off the year in style?
• Will Unilever’s CEO announce strategy changes with his last set of results?

Barratt Developments, half year results, Wednesday 8 February

Sophie Lund-Yates, equity analyst, Hargreaves Lansdown:
Barratt Developments LON:BDEV is starting to show the first cracks in the housing market. We already know that net private reservations per week fell to 155 from 259 in the first half of the year. As the mortgage-rate environment remains challenging for home buyers, we don’t expect to hear things are picking up in this area.

The more detailed half year results should give an indication on cost inflation and profits. The entire construction industry has been facing high material and labour costs since last year, which chips away at profitability. We’d like to know if things are moving in the right direction where the cost base is concerned.

Most important will be the outlook statement. The group should give an indication of how forward sales are looking and what the rest of 2023 could look like. With the economic landscape still fraught with uncertainty, there could be a market reaction if news is worse than expected. We would be surprised to see any very dramatic downwards moves though because a lot of nervousness is already priced in.

Walt Disney Co, Q1 results, Wednesday 8 February

Sophie Lund-Yates, equity analyst, Hargreaves Lansdown:
Disney NYSE:DIS has recently recalled its previous CEO back to the top job. That means the pressure’s on for Bob Iger to prove he has the right ideas to stimulate growth. This is especially true in the streaming business, where excessive spending and long-term demand concerns are front of mind. For now, consumer spending is holding up better than feared in some areas, so we have faith Disney+ will come good on subscriber additions, especially after Netflix’s better-than-expected quarter, despite tough economic conditions.

In theme parks, we expect to hear about positive momentum as China reopens and travel continues to normalise. This will have a strong read-across for profits.

At the moment, the market expects group revenue to rise 7.1% to $234bn in the first quarter. We’re cautiously optimistic this target is achievable.

PepsiCo, Q4 results, Thursday 9 February

Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
Pepsi NASDAQGS:PEP will be looking to finish its financial year with a pop when it reports full year results next week. Last quarter, the group upgraded its underlying revenue growth guidance from 10% to 12%. A big jump which came as the group saw double-digit revenue growth in all segments bar, Asia Pacific, Australia, New Zealand, and China regions.

Inflation hasn’t been able to flatten the soft drink maker’s profits either. Higher sales and improved cost management have helped Pepsi offset inflationary pressures over the last year. And thanks to Pepsi’s laser-like focus on brand quality, the group saw year-on-year profit growth of 21% last quarter.

As PepsiCo is currently trading above its historic average, there are heavy expectations on its shoulders to keep hitting targets. We’re curious to see whether Pepsi has continued to deliver amidst tough inflationary pressures, or whether results have fizzled out.

Unilever, full year results, Thursday 9 February

Steve Clayton, head of equity funds, Hargreaves Lansdown:
How Unilever LON:ULVR is coping with price pressures will be key to how full year results go down. The group has been grappling with significant cost increases and margins have been under pressure this year. It will be CEO Alan Jope’s last chance to release results, as he makes way for a new leader, starting on 1 July. Will he hint at any changes to strategy or leave it to his successor Hein Schumacher to set out the stall?

This article has been 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.

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