Companies Reporting: Tesla, Coca-Cola, Heineken, NatWest

Our regular look at the FTSE 350 and other companies reporting from 03 – 07 July.

• Auto margins in focus for Tesla
• Can Coca-Cola’s positive momentum spill into Q3?
• Will Heineken’s price hikes keep powering growth?
• NatWest comes into earnings with wind in its sails

Tesla, Q3 Results, Wednesday 23 October

Matt Britzman, senior equity analyst, Hargreaves Lansdown: Tesla NASDAQ:TSLA comes into next week’s third-quarter results hot off the back of its Robotaxi event, where investors got a glimpse of what the future of Tesla will look like. Markets already know delivery numbers for the quarter were good, with what looks like decent Chinese demand and a push on financing deals helping to deliver a return to growth. It’s unknown how big of an impact those incentives will have on auto margins, but some ongoing softness is expected here.

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Given the lack of detail at the Robotaxi event, investors will be eager to hear any commentary on both the more affordable model and a refreshed model Y. The irony is that the closer Tesla gets to launching these products, the less likely there will be any chatter about them to avoid buyers delaying purchases. Nevertheless, these are two critical pieces of the puzzle to help drive demand over the next couple of years while work goes on in the background to optimise full self-driving.

Coca-Cola, Q3 Results, Wednesday 23 October

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: Back in July, Coca-Cola’s LON:CCH second-quarter results blew the lid off market expectations, leading management to upgrade full-year guidance for the second time this year. Higher prices, increased volumes, and helpful shipment timings saw revenue and operating profits both move higher at double-digit rates.

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When the group reports results next week, investors expect to hear that some of this momentum has spilled into the third quarter. But Coca-Cola’s rolling into some tough comparable periods for growth over the second half of the year, so don’t expect the same level of positive surprise as in the first half. Cash generation remains very healthy, providing scope for increased share buybacks and potentially even new acquisitions in the near to medium term.

Heineken, Q3 Results, Wednesday 23 October

Aarin Chiekrie: Heineken’s [AMS:HEIA] market capitalisation has fallen around 15% year-to-date despite revenue and profits both moving higher over the first half of the year. Top-line growth is being driven largely by price hikes across the group’s vast stable of powerhouse brands like Heineken, Birra Moretti and Old Mout Cider. But there are worries that these levels of price hikes aren’t sustainable given that global inflation is much lower than it was a year ago, so growth could slow in the near term.

Heineken also has a strong foothold in Asia Pacific, which is seen as a key route to growth. But the area has been wrestling with the effects of an economic slowdown of late. An improving outlook here will be key to driving profits higher, so markets will be looking for any signs of a rebound when third-quarter numbers are released next week.

NatWest, Q3 Interim Management Statement, Friday 25 October

Matt Britzman: NatWest LON:NWG has plenty of wind in its sails after second-quarter results in July were a knockout, beating expectations across pretty much every metric that mattered. Attention now turns to next week’s third-quarter performance, where pre-impairment profit is expected to be broadly flat quarter-over-quarter. Impairments themselves will be key, UK unemployment at 4.0% was a nice surprise and analysts wouldn’t be shocked to hear more commentary pointing to robust default rates.

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Margins and loan growth will also be in focus. With the Bank of England delivering its first rate cut in July, investors will be keen to see how much of that has been passed on and whether it’s triggered any shifting behaviours from savers. On the loan side, an improving housing market should set the scene for mortgage growth, and markets are also interested to hear whether corporate clients are picking up activity, given NatWest’s outsized exposure relative to peers.

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