Our regular look at the FTSE 350 and other companies reporting from 4 November – 8 November.
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- BT eyes the end game for fibre broadband roll-out, but road ahead looks tricky
- Can Marks & Spencer stem the losses on its Ocado joint venture?
- J Sainsbury hoping volume-led sales growth continues
Marks & Spencer, Half Year Results, Wednesday 6 November
Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Marks & Spencer LON:MKS has done a great job at breathing new life into the business over the past couple of years. Its food and clothing propositions have been sharpened, helping the group steal market share away from its competitors. Operations have also been streamlined, improving both profitability and the balance sheet enough to restore dividend payments last year.
Analysts expect to see this upward trajectory continue when results are announced next week. With no full-year guidance given, it’ll be important to see at least some progress on all fronts. Markets have forecast first-half revenue to grow around 5% to £6.4bn, which looks achievable. An update on M&S’s joint venture with Ocado will be of interest after relations were said to be souring and losses widening, so some better news on this front would be viewed favourably.”
BT Group, Half Year Results, Thursday 7 November
Matt Britzman, senior Equity analyst, Hargreaves Lansdown “BT LON:BT.A finds itself in a period where investors can see an end to the massive investment in fibre buildout, which should bring a material improvement in areas like cash flow, but the current market remains a challenge. Openreach is a key differentiator to peers, and broadband line losses will be a key area to watch in next week’s half-year results after the 196,000 decline in the first quarter. Consensus is looking for around 167,000 losses over the second quarter. Analysts will also have one eye on commentary to see if there are any early signs of an improving broadband market that could help to stem those declines moving forward.
From the consumer angle, inflation-linked price hikes have been a tailwind for the past couple of years. That’s now come to an end. Management has already warned that the first half could see weakness as newer customers, or those renewing, are placed on lower-priced contracts given inflation has eased. Weakness is expected, and guidance into the second half of the year will be key.”
J Sainsbury, Half Year Results, Thursday 7 November
Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Sainsbury’s LON:SBRY put in a good showing in its first-quarter results, and investors were relieved to see a volume-driven uplift in the grocery business. But consumers haven’t been as hungry for clothing and general merchandise, which both posted declines in the period. And thanks to its ownership of Argos, its extra exposure on the general merchandise front has weighed on overall performance.
Looking to next week’s results, Sainsbury’s is likely to continue to claw small gains in market share. That’s thanks to its huge push to improve its products and value perception, which is helping to draw in more customers and drive volumes higher. Things like Nectar prices and Aldi price matches have so far worked at plugging the exit of customers too. But just how much of an impact this investment in low prices is having on profitability is something to be viewed with interest.”
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
04-Nov | |
No FTSE 350 Reporters | |
05-Nov | |
ASOS LON:ASC | Full Year Results |
Associated British Foods LON:ABF | Full Year Results |
IWG LON:IWG | Q3 Trading Statement |
Schroders LON:SDR | Q3 Assets Under Management Statement |
TI Fluid Systems LON:TIFS | Q3 Trading Statement |
TP ICAP LON:TCAP | Q3 Trading Statement |
Weir Group LON:WEIR | Q3 Interim Management Statement |
06-Nov | |
Beazley LON:BEZ | Q3 Trading Statement |
Dominos LON:DOM | Q3 Trading Statement |
Lancashire Holdings LON:LRE | Q3 Trading Statement |
Marks & Spencer LON:MKS | Half Year Results |
Novo Nordisk [CPH:NOVO] | Q3 Results |
OSB Group LON:OSB | Q3 Trading Statement |
Persimmon LON:PSN | Q3 Trading Statement |
TBC Bank LON:TBCG | Q3 Results |
07-Nov | |
Auto Trader LON:AUTO | Half Year Results |
Barrick Gold TSX:ABX | Q3 Results |
BT LON:BT.A | Half Year Results |
Cameco TSX:CCO | Q3 Results |
Derwent London LON:DLN | Q3 Corporate Sales Release |
Endeavour Mining [LON:EDV] | Q3 Results |
Helios Towers LON:HTWS | Q3 Results |
Hikma Pharmaceuticals LON:HSX | Trading Statement |
Hiscox LON:ASC | Q3 Trading Statement |
IMI LON:ASC | Q3 Interim Management Statement |
ITV LON:ITV | Q3 Trading Statement |
John Wood LON:WG. | Q3 Trading Statement |
J Sainsbury LON:SBRY | Half Year Results |
National Grid LON:NG. | Half Year Results |
RS Group LON:RS1 | Half Year Results |
Tate & Lyle LON:ASC | Half Year Results |
Taylor Wimpey LON:TW. | Trading Statement |
Trainline LON:TRN | Half Year Results |
Urban Logistics REIT LON:SHED | Half Year Results |
Wizz Air LON:WIZZ | Half Year Results |
08-Nov | |
International Consolidated Airlines LON:IAG | Q3 Results |
Rightmove LON:RMV | Q3 Trading Statement |
Vistry LON:VTY | Q3 Trading Statement |