Our regular look at the FTSE 350 and a selection of other companies reporting from 17 – 21 April 2023
- A boost to streaming spending may have helped Netflix meet revenue targets
- Expectations for easyJet are flying high
- Will Heineken’s sales growth begin to flatten?
- Rentokil looks to retain its momentum
Netflix, Quarter 1 Results, Tuesday 18 April
Sophie Lund-Yates, Lead Equity Analyst, Hargreaves Lansdown: “There are some tailwinds blowing in Netflix’s [NASDAQ:NFLX] favour as we look ahead to next week’s earnings. It seems people are spending more on streaming as they look to economise during the cost-of-living crisis. This clearly has potentially positive ramifications for the media giant, as does the continued roll out of its lower-priced ad-supported tier. This could help entice, and retain, consumers who are counting their pennies.
Netflix is expecting to add fewer subscribers than the target-busting 7.7m added last quarter, but revenue growth’s expected to be 8% ignoring exchange rates. We’re cautiously optimistic this target will be achieved given the helpful shift in social behaviour.
That said, as ever, competition remains tough in the sector, meaning nothing’s guaranteed. With Netflix’s valuation enjoying a 16% uplift since the start of the year, the pressure’s on.
easyJet, Quarter 2 Trading Statement, Tuesday 18 April
Susannah Streeter, Head of Money and Markets, Hargreaves Lansdown: “Investors will be eager for more evidence that easyJet [LON:EZJ] is still gliding out of loss-making territory and into much better health. Its performance in the first quarter was much better than expected, helped by a strong 36% increase in revenue per passenger seat. easyJet has a lucrative knack of selling extras to customers and its short-haul network of routes is also a strength during the cost-of-living crisis when travelers may be more likely to opt for a quick trip to Europe than a more expensive transatlantic holiday.
The group said it expected loss before tax to be significantly better than last year at the half year mark, so expectations are flying high – any uncertainty clouding the trading statement would sorely disappoint.’’
Heineken, Quarter 1 Trading Statement, Wednesday 19 April
Aarin Chiekrie, Equity Analyst, Hargreaves Lansdown: “Heineken has shown the benefits of having strong brands during tough times. Despite a challenging economic backdrop, high-end favourites such as Heineken, Birra Moretti, and Amstel have helped drive the top line higher. When it comes to raising prices, brand power is key – allowing the group to raise prices by around 14% to combat inflation. This was a major factor in full year revenues rising 21.2% to €28.7bn, excluding the impact of exchange rates.
Next week’s trading statement will give us an early indication as to how sales levels are holding up in the new year. The main concern is if any real deterioration of beer demand comes to pass. Heineken’s sales and profits are already expected to moderate next year, flattening down to more sustainable levels of growth in the single digits. We’ll be keeping an eye out for any surprises either way on this.”
- Three Quick Facts: Rentokil, Dunelm, Deliveroo
- Companies Reporting: LVMH, ASOS, Entain, Netflix, Rentokil
- Three Quick Facts: Trainline, easyJet, IG
Rentokil Initial, Quarter 1 Trading Statement, Thursday 20 April
Steve Clayton, Head of Equity Funds, Hargreaves Lansdown: “The Rentokil Initial [LON:RTO] Q1 trading update will be eagerly awaited by investors. The stock reacted very positively to their last update, which showed strong progress across the board and undermined a bearish view on margins that one or two brokerages had been promoting. Expectations were raised as a result and the group’s challenge is now to show continued momentum, especially in the core US Pest Control division and the integration of the major Terminix acquisition.”
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
| 17-Apr | |
| Ashmore Group | Q3 AUM Statement |
| Page Group | Q1 Trading Statement |
| Sirius Real Estate | Q4 Trading Statement |
| 18-Apr | |
| Easyjet | Q2 Trading Statement |
| QinetiQ | Q4 Trading Statement |
| Netflix | Q1 Results |
| Ninety One | Q1 AUM Statement |
| 19-Apr | |
| Antofagasta | Q1 Production Report |
| ASML | Q1 Results |
| discoverIE Group | Full Year Trading Statement |
| Heineken | Q1 Trading Statement |
| Hunting | Q1 Trading Statement |
| IntegraFin | Q2 Trading Statement |
| Network International Holdings | Q1 Trading Statement |
| 20-Apr | |
| BHP Group | Q3 Operational Review |
| Centamin | Q1 Production Report |
| Dunelm | Q3 Trading Statement |
| Rentokil | Q1 Trading Statement |
| Rio Tinto | Q1 Operational Review |
| SEGRO | Q1 Trading Statement |
| Volvo AB | Q1 Results |
| WH Smith | Half Year Results |
| 21-Apr | |
| No FTSE 350 Reporters | |
