Companies Reporting: Entain, Persimmon, Novo Nordisk

Our regular look at the FTSE 350 and a selection of other companies reporting from 7 – 11 August.

• Markets are looking for double-digit top-line growth from Entain
• At Novo Nordisk we will be focusing on their ability to meet strong demand
• Persimmon looking to maintain first-quarter sales momentum

Entain, Half Year Results, Thursday 10 August

Matt Britzman, equity analyst, Hargreaves Lansdown: “Entain LON:ENT had a great start to the year with double-digit revenue growth and record levels of active customers over the first quarter. Markets were a little jumpy when the group announced a quick-fire equity raise to cover acquisition costs back in June, but the valuation has bounced back since. Not least because BetMGM, Entain’s joint US venture, delivered a good set of results at the end of July and told markets it’s on track to achieve the upper end of its full-year guidance.

In next week’s half-year results, the market’s looking for revenue growth of 10.7%, with operating profit growth not far behind. Expect to see retail growth cool, as comparable periods get tougher. But it’s growth in the higher-margin online business investors will be watching out for, as well as any signs that the consumer’s starting to feel the mounting pressures on disposable income.’’

• Broker Tips: Babcock, ConvaTec, Entain
• Broker Tips: RWS, Essensys, Entain
• Companies Reporting: Airbus, Persimmon, Microsoft & Apple

Novo Nordisk, Q2 Results, Thursday 10 August

Derren Nathan, head of equity analysis, Hargreaves Lansdown: “At the first-quarter checkpoint, Novo Nordisk was on course to meet its full-year underlying growth targets of 24-30% for sales and 28-34% for operating profit. Demand appears healthy for its diabetes and weight loss treatments but that brings its own challenges. We’ll be looking to see what action’s been taken to clear manufacturing bottlenecks.

This quarter’s seen positive data read outs for the late-stage clinical trial of Novo’s once-weekly insulin treatment icodec, so keep an eye out for any updates on the timeline for potential marketing approvals.

Novo’s weight-loss products are not without controversy. But with its first major EU market launch now under the belt for anti-obesity injection, Wegovy, focus will be on the outlook for a wider roll-out.“

Persimmon, Half Year Results, Thursday 10 August

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Given the difficult trading backdrop, Persimmon’s LON:PSN had a slow start to the year, with first-quarter sales rates dropping 37% to 0.62 year-on-year. Despite this, sales rates have picked up since the tail end of 2022 and, if this momentum continues throughout 2023, the group expects full-year completions to land toward the top end of its 8,000 to 9,000 guidance.

Due to the lower sales rates in the first quarter, Persimmon’s pulled back on investing in new land – with holdings down 6% as the group looks to preserve cash. Analysts expect to see this trend continue when Persimmon releases its half-year results next week.

Build cost inflation remains at 8-9% too, with little sign of easing in the short-term. This is squeezing margins and consequently, the market’s expecting operating profit to fall by more than 60% to around £366m this year.”

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