Our regular look at the FTSE 350 and a selection of other companies reporting from 29 April – 3 May.
- Will HSBC’s exposure to China keep catching headlines?
- Focus will be on how Whitbread’s German operations are progressing
- Haleon up against a strong comparative quarter a year ago
- Apple has work to do as China sales drop by a fifth
HSBC, Q1 Results, Tuesday 30 April
Matt Britzman, equity analyst, Hargreaves Lansdown “Recent HSBC LON:HSBA results have been filled with one-off charges that need to be stripped out to get an idea of underlying performance. HSBC’s focus in Asia sets it apart from many of its UK peers, but its Chinese operations have caught headlines after the group wrote down the value of its stake in Chinese bank, BoCom, by $3bn. Investors will be hoping there are no more surprise write-downs on the cards.
Having a good chunk of its income linked to US and Asian rates has helped HSBC emerge as one of the stronger performers recently. The potential for rates in the US to stay higher for longer could act as a boost to current expectations. There should also be a big cash inflow from the sale of its Canadian business which was completed in the quarter. Aside from the proposed special dividend of $0.21 per share, the capital freed up is set to help grow the core business – any details here would be welcome.”
Whitbread, Full Year Results, Tuesday 30 April
Susannah Streeter, head of money and markets, Hargreaves Lansdown “Whitbread’s Premier Inn enjoys an enviable position in the mid-range hotel sector. With revenues per available room having surged by nearly 40% above pre-pandemic levels, the value tag no longer seems quite so appropriate to attach to the chain. However, amid cost-of-living headwinds, there are only so many price increases that tourists will stomach, so investors will be keen to see that demand is still continuing despite the price hikes.
Shareholders will also want to see progress in keeping a lid on costs, and signs that output service price inflation is easing, should give them some encouragement. There will also be a close watch on how its German operations are progressing. If Whitbread LON:WTB can reproduce Premier Inn’s success in Germany, this is potentially a big growth opportunity.”
Haleon, Q1 Trading Statement, Wednesday 1 May
Steve Clayton, head of equity funds, Hargreaves Lansdown “It is up against a strong comparative quarter a year ago, so the reported growth rate is likely to be modest, perhaps underlying growth of 3% or so. But as the year progresses those prior-year comparatives will ease allowing Haleon to show a stronger pace of growth.
Last month, Pfizer sold 790m of its shares in Haleon LON:HLN (Pfizer and GSK created Haleon via merging their consumer health divisions, with both retaining stakes after the demerger), taking its interest in the group down below 20%. Will this reduced overhang allow the group’s robust underlying performance to be better reflected in its market performance? The Enterprise Value of Haleon remains far below the £50bn that Unilever LON:ULVR was reported to have offered parents GSK and Pfizer ahead of the demerger before a revolt by Unilever investors led to the offer being pulled.”
Apple, Q2 Results, Thursday 2 May
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown “Apple’s iPhone sales have fallen by 19% in China, with the worst quarter since 2020 set to be unveiled in next week’s results. There are some broader economic reasons people may hold off from buying a new device, but there are some Apple specific causes too. This includes the technological gap between Apple NASDAQ:AAPL and alternative brands getting smaller, meaning it’s losing market share to rivals like Huawei. One area to watch next week which will move the dial, is the outlook statement. Because while China has been weak for some time, other regions have been pretty robust. Signs of that continuing would go down well. This isn’t a guarantee though – markets have heard rumblings lately of stalling demand for consumer electronics.
The more profitable Services division will also be focus. This is the real growth engine of the future and helps underpin the group’s wider ambitions.”
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
29-Apr | |
Beazley PLC | Q1 Trading Statement |
30-Apr | |
Advanced Micro Devices | Q1 Results |
Amazon | Q1 Results |
Cameco Corp | Q1 Results |
Coca-Cola | Q1 Results |
Elementis | Trading Statement |
Eli Lilly and Co | Q1 Results |
Glencore | Q1 Production Report |
Hargreaves Lansdown | Q3 Results |
Howden Joinery | Q1 Trading Statement |
HSBC | Q1 Results |
McDonald’s | Q1 Results |
PayPal | Q1 Results |
Prudential | Q1 Results |
Rotork | Q1 Trading Statement |
St James’s Place | Q1 Funds Under Management |
Whitbread | Full Year Results |
01-May | |
Aston Martin | Q1 Results |
Barrick | Q1 Results |
Computacenter | Q1 Trading Statement |
GSK | Q1 Results |
HALEON | Q1 Trading Statement |
Mastercard | Q1 Results |
Next | Q1 Trading Statement |
Pfizer | Q1 Results |
Smith & Nephew | Q1 Trading Statement |
02-May | |
Apple | Q2 Results |
Apax Global Alpha | Q1 Results |
Endeavour Mining | Q1 Results |
Hiscox | Q1 Trading Statement |
Lancashire Holdings | Q1 Trading Statement |
Novo Nordisk | Q1 Results |
RHI Magnesita | Q1 Trading Statement |
Shell | Q1 Results |
Smurfit Kappa | Q1 Trading Statement |
Spectris | Q1 Trading Statement |
Standard Chartered | Q1 Results |
TI Fluid Systems | Q1 Trading Statement |
03-May | |
InterContinental Hotels Group | Q1 Trading Statement |
Mondi | Q1 Trading Statement |
Trainline | Full Year Results |