Our regular look at the FTSE 350 and a selection of other companies reporting from 22-26 May.
- Can the AI boom help NVIDIA buck the chip slowdown?
- How will cost pressures impact Cranswick?
- SSE set to hit recently raised guidance
- A slick recovery in clothing and homeware bodes well for Marks and Spencer results
- There’s a lot riding on Close Brothers’ statement
- Tate & Lyle looks to keep up the strong momentum
- The tail should keep wagging for Pets at Home
Cranswick, full year results, Tuesday 23 May
Steve Clayton, head of equity funds: “Analysts are predicting broadly unchanged earnings and a steady outlook statement from the group. Demand for the group’s pork and poultry products has held up well so far, despite the cost-of-living squeeze impacting many households. But Cranswick LON:CWK has had to contend with rising costs for feeds, power and packaging putting margins under pressure. The market will be looking for signs of any improvement in the cost pressures impacting the group and their success in passing these through to their retail and catering clients.”
NVIDIA, Q1 results, Wednesday 24 May
Derren Nathan, head of equity research “NVIDIA NASDAQ:NVDA is looking to the future as its chips claim the high ground in the rush to monetise the frenzy surrounding generative AI models such as Chat GPT. That’s seen it’s valuation practically double so far this year. But next week’s attention will focus on the drier topic of revenues and earnings. Both the company and analysts are expecting first quarter revenue of about $6.5bn, or 21.4% less than the same period last year, and market forecasts suggest that operating profit has fallen by 35.6%.
That leaves a lot of work to do if NVIDIA’s to meet current full-year estimates of double-digit revenue growth. It will be interesting to hear if this remains achievable, particularly against the backdrop of challenging conditions across the semiconductor market.”
SSE, full year results, Wednesday 24 May
Aarin Chiekrie, equity analyst: “The performance of SSE’s LON:SSE renewables division hasn’t quite been up to scratch so far, with outputs from these assets coming in lower than planned due to unseasonably calm and dry weather last year. But the group’s gas-fired plants have ramped up activity to plug the shortfall, leading to some good news on the bottom line. Full-year underlying earnings per share (EPS) guidance has been upgraded twice this calendar year, from at least 120p per share to at least 160p per share.
Investors will be keen to get an update on the group’s renewables plans in next week’s results. The dividend’s set to get cut back from more than 87.5p to 60p this year, in a bid to fund investment in renewables and networks. But the transition will be costly, and it’ll likely be a long road until renewables can generate cash more reliably.”
Marks and Spencer, full year results, Wednesday 24 May
Susannah Streeter, head of money and markets: ‘’Although its joint venture with Ocado is struggling, Marks and Spencer LON:MKS has staged a slick recovery in other parts of the business, which should bode well for its annual results. It’s picked itself up and brushed itself down from dwindling sales, with a remarkable turnaround for clothing and home ware. Marks and Spencer’s current diversification mix is proving more resilient as M&S core customers seem hardier amid the cost-of-living crisis. The store estate shake-up, with larger stores closing while smaller more efficient shops in retail parks open, appears to be paying off. The ease of access to the new generation of stores is helping to drive click and collect services, which have been a particular bright spot for the company. Re-building margins is a big focus given the cost-pressures and inflationary headwinds and investors are likely cheer evidence which might show the tie-up with logistics provider Gist is helping the company gain more control over its supply chain.’’
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Close Brothers, trading statement, Wednesday 24 May
Steve Clayton, head of equity funds: “There is a lot riding on this trading statement. The group have been testing investors patience in recent quarters with an increasingly large write down being incurred against their Novitas lending division, now in run-off. At the same time, Winterflood, their market-making business has been struggling to cope with a downturn in trading volumes. Close Brothers LON:CBG need to reassure that they have a better grip on both of these issues and that trading in the rest of the banking business and their asset management division is holding up robustly.”
Tate & Lyle, full year results, Thursday 25 May
Matt Britzman, equity analyst: “Recent performance has been strong from Tate & Lyle LON:TATE, taking higher input costs in its stride to deliver double-digit revenue growth. Analyst consensus is for revenue to come in at nearly £1.8bn for the full year with underlying pre-tax profit of £251m, a jump of over 70%. The more streamlined operation and a focus on the more profitable business areas look to be yielding positive results.
Costs are worth keeping an eye on. Higher prices have helped keep inflation at bay, but a heavy reliance on corn exposes the group to pricing development in that commodity. It’s expected that a further £15m in cost savings will be delivered over the final quarter, with the Group already well ahead of its original efficiency programme schedule.
At first glance, the new strategy looks to be progressing well. If management can navigate the increasingly challenging environment, Tate looks to be in a strong position.”
Pets At Home, Q4 results, Thursday 25 May
Susannah Streeter, head of money and markets: ‘’The tail has been wagging happily at Pets At Home LON:PETS as the retailer continues to benefit from the surge in animal ownership of recent years. Consumer revenue is now 30% higher than pre-pandemic levels thanks to growth across the group’s vet practices and its retail operations. Although the mix of sales has changed due to the cost-of-living crisis with spending on accessories hit, the group’s growing customer base has added resilience with overall petfood sales continuing to climb sharply. Investors will still be keeping an eye on costs for the group as keeping vast stores heated has been expensive but with wholesale energy declined in price, this headwind should continue to subside. The cream being lapped up by Pets is the growth in recurring revenue streams, with subscription sales climbing, bolstered by rising VIP and Puppy and Kitten Club memberships. Members have proved to be big spenders, anxious to keep fluffy and feathered members of the family, fed, entertained and in good health.’’
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
| 22-May | |
| Big Yellow Group | Full Year Results |
| Kainos Group | Full Year Results |
| 23-May | |
| Assura | Full Year Results |
| Bytes Technology Group | Q4 Results |
| Caledonia Investments | Full Year Results |
| Cranswick | Full Year Results |
| Dowlais | Trading Statement |
| Great Portland Estates | Full Year Results |
| RS Group | Full Year Results |
| SSP Group | Half Year Results |
| 24-May | |
| Aviva | Q1 Trading Statement |
| C&C Group | Full Year Results |
| Close Brothers | Trading Statement |
| HICL Infrastructure | Full Year Results |
| Intertek Group | AGM Trading Statement |
| Kingfisher | Q1 Trading Statement |
| Londonmetric Property | Full Year Results |
| Marks & Spencer | Full Year Results |
| NVIDIA | Q1 Results |
| Pershing Square Holdings | Q1 Results |
| Petershill Partners | Q1 Trading Statement |
| Severn Trent | Full Year Results |
| SSE | Full Year Results |
| Tullow Oil | Q1 Trading Statement |
| 25-May | |
| AJ Bell | Half Year Results |
| Hill & Smith | Q1 Trading Statement |
| Intermediate Capital Group | Full Year Results |
| Johnson Matthey | Full Year Results |
| Pets at Home | Q4 Results |
| QinetiQ | Q4 Results |
| Tate & Lyle | Full Year Results |
| United Utilities | Full Year Results |
| Vanquis Banking Group | Interim Management Statement |
| Workspace Group | Full Year Results |
| 26-May | |
| No FTSE 350 Reporters | |
