Companies Reporting: Barratt, Wetherspoon, PepsiCo

Our regular look at the FTSE 350 and a selection of other companies reporting from 08 – 12 July.

• Barratt Developments hopes to report improved homebuyer sentiment
• How have wet weather and football affected trading at JD Wetherspoon?
• It will be revealed if volumes continue to improve for PepsiCo

Barratt Developments, Trading Statement, Wednesday 10 July

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown: Barratt Developments LON:BDEV had a lacklustre set of results at the half year mark, so investors will be looking for some more positive news. The housebuilder did offer a glimmer of hope in the form of improving reservation rates, and we’d like to see momentum continue. While the outlook is uncertain, we’re cautiously optimistic that a more stable economic and interest rate environment will have paved the way for better homebuyer sentiment.

• Three Quick Facts: Persimmon, Marks & Spencer, JD Wetherspoon
• Three Quick Facts: Wetherspoon, Virgin Wines, Versarien
• Companies Reporting: PepsiCo, Imperial Brands, Hays

Don’t expect a total reversal in fortunes just yet though, after underlying pre-tax profits fell almost 70% in the first half of the year. That reflects a lower number of houses being sold, coupled with lingering cost inflation. Investors will be looking out for more detailed commentary on the order book in particular, to help gauge when margins will get back to normal.

There’s also the group’s agreed all-share offer for Redrow to chew through. The £2.5bn deal came as a surprise, and although it will help to boost Barratt’s exposure to larger, more expensive homes, investors will want a clearer roadmap of how things are progressing.

JD Wetherspoon, Trading Statement, Wednesday 10 July

Derren Nathan, head of equity analysis, Hargreaves Lansdown: JD Wetherspoon LON:JDW is scheduled to update on trading next week, ahead of full year results. At the last check, the group was expecting performance to be at the top end of expectations, which at the time meant pre-tax profits of around £75mn. The England men’s football team’s arguably fortunate progress in the Euros won’t be doing bar takings any harm, but that may be somewhat offset by the wettest spring since 1986. Investors will be looking out for any further changes to guidance.

The group typically uses this opportunity to update on its financial position. So far, it’s not made too much progress this year in bringing down debt levels. Positive movement on that front and clarity over future expansion plans will be key to determining whether a return to the dividend list might be on the table.

PepsiCo, Q2 Results, Thursday 11 July

Matt Britzman, equity analyst, Hargreaves Lansdown: PepsiCo [NasdaqGS:PEP] reports second-quarter results next week and investors will be hoping to see continued volume improvements. Price hikes have caused volumes to drop in recent quarters, but the trend has been improving. The only business unit not on the right glide path is Quaker Oats, where recalls impacted performance.

Management has been upbeat about the state of its global consumer base, with real wage growth in most regions. But there are some areas to watch. Higher savings rates are impacting China’s spending, and low-income consumers in the US are still feeling the effects of stretched budgets. Expect some ongoing softness from the second quarter with more upbeat commentary about how the second half is shaping up.

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