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Companies Reporting: LVMH, ASOS, Entain, Netflix, Rentokil

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Our regular look at the FTSE 350 and a selection of other companies reporting from 15 – 19 April.

  • LVMH hopes to allay slowdown concerns  
  • ASOS sales declines expected as business transformation continues  
  • Entain goes on the hunt for better organic growth as sentiment comes under pressure 
  • Netflix hopes to repeat the success of its blockbuster fourth quarter  
  • Can Rentokil continue to reassure investors?

LVMH, Q1 Trading Statement, Tuesday 16 April

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown “The rate of growth at LVMH has slowed down, amid economic uncertainty and stalling growth in Asia. This led to the market being disappointed by the group’s nine-month performance back in October.  

That said, growth has still been impressive by most standards. Revenue has still been climbing in the mid-teens on a percentage basis, and core brands, including Louis Vuitton, are being well received. The market will be looking for more of the same in next week’s figures. More detailed information on the outlook would also go down well, as there has been fairly little detail to go off.  

The market is expecting a slowdown to get worse before it gets better this year, but any particularly difficult estimates would likely send waves through the valuation.” 

ASOS, Half Year Results, Wednesday 17 April 

Guy Lawson-Johns, equity analyst, Hargreaves Lansdown “ASOS LON:ASC has had a tough start to the year. Business transformation plans remain on track, but improving stock efficiency and reducing inventory levels comes at a cost. Full-year guidance remains unchanged, which includes 5-15% sales declines and positive cash generation. Investors will be looking for signs that better times are coming and that a return to growth in the final quarter of this year is still on the cards. 

Active customer numbers will also be in the spotlight. It’s no secret Marks and Spencer LON:MKS and Next LON:NXT have been growing sales in the third-party brands ASOS is known for, and newer entrants like Temu continue to be a threat. Ultimately, markets are looking for signs that the increased marketing spend and stock rationalisation are being well received by its target audience of fashion-loving 20-somethings.” 

Entain, Q1 Trading Statement, Wednesday 17 April 

Matt Britzman, equity analyst, Hargreaves Lansdown “It’s been a tough start to the year for Entain LON:ENT shareholders, and expectations for the Ladbrokes owner seem about as low as they can get. Shares have been under pressure, and markets are expecting little to no underlying growth until 2025. The valuation seemingly gives little credit to growth opportunities. 

After a buying spree from the now-former CEO, Jette Nygaard-Andersen, Entain is refocused on organic growth. Investors will be looking for commentary in next week’s first-quarter trading update on what that means for some of the overseas assets that aren’t quite pulling their weight, and there’s an expectation that some asset sales could be on the cards.  

There’s rightly some negative sentiment in the air with regulatory headwinds expected to hit profits in the coming year, no permanent CEO and increased US competition impacting the BetMGM joint venture. But, from a low base, it won’t take much to reignite the flame.” 

Netflix, Q1 Results, Thursday 18 April 

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown “Netflix NASDAQ:NFLX had a blockbuster fourth quarter, with subscriber numbers beating expectations and margin guidance upgraded. The media giant signalled hopes of double-digit growth in revenue for the year, with the market expecting growth of 13.6% in the first quarter.  

Helping that figure along should be expansion in Netflix’s cheaper ad-supported plan. This is starting from a much lower base, meaning there’s more room to run. Password sharing crackdowns have also been bearing fruit, and there should still be some juice left to squeeze, but the benefits are finite. 

As ever, it’s subscriber growth and churn rate that have the potential to move the dial next week. There’s cautious optimism that attraction and retention of viewers will hold Netflix in good stead but, as ever, there are no guarantees.” 

Rentokil, Q1 Trading Statement, Thursday 18 April 

Steve Clayton, head of equity funds, Hargreaves Lansdown  “Full year results back in early March were welcomed with a relief bounce, after Rentokil Initial LON:RTO reassured investors that the issues confronting their key US Pest Control division were no worse than previously disclosed. Customer retention rates slipped back, along with underlying topline growth in the US Pest business last year. Rentokil needs to keep providing investors with evidence that it can improve these trends as it moves further into the integration of Terminix Inc, which is the group’s largest ever deal and critical to the medium-term outlook for Rentokil Initial.” 

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

15-Apr
Ashmore Group Q3 Assets Under Management Statement
PageGroup Q1 Trading Statement
Sirius Real Estate Ltd Full Year Trading Statement
16-Apr 
B&M European Value Retail Full Year Trading Statement
Hays Q3 Trading Statement
IntegraFin Q2 Trading Statement
LVMH Q1 Trading Statement
Ninety One Q4 Assets Under Management Statement
Oxford Instruments Trading Statement
Rio Tinto Q1 Operations Review
QinetiQ Group Q4 Trading Statement
17-Apr 
ASML Q1 Results
ASOS Half Year Results
BHP Group Q3 Operations Update
Entain Q1 Trading Statement
Volvo Q1 Results
18-Apr 
AJ Bell Q2 Trading Statement
Centamin Q1 Results
discoverIE Group plc Full Year Trading Statement
Dunelm Q3 Trading Statement
Easyjet Half Year Trading Statement
Netflix Q1 Results
Rentokil Q1 Trading Statement
SEGRO Q1 Trading Statement
19-Apr
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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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