Here’s our regular look at the FTSE 350 and a selection of other companies reporting from 9 to 13 May.
- Compass Group looks to get over the final hurdle for sales recovery
- Will Disney overcome the post-pandemic subscriber lull that’s plagued peers?
- Balfour Beatty looks to take advantage of increased government spending
Compass Group, Half Year Results, Wednesday 11 May
Matt Britzman, Equity Analyst “Contract caterer Compass finds itself taking the final few steps to a full revenue recovery following Covid disruption over the past couple of years. Market analysts are expecting next week’s half-year results to show revenue just north of £11bn, following a first quarter where revenue was 97% of pre-covid levels. Positive new business helped the revenue recovery which means there’s still room for underlying revenue to push higher if pre-covid demand returns in full. Though, whether that level of demand still exists given the new working from home world we live in remains to be seen.
Aside from recovering sales, the group’s targeting 6% underlying operating margin by the end of the year, with recovery weighted to the second half. Commentary hasn’t been quite as punchy in recent updates, so it will be interesting to see if that recovery is still on track and how the group’s managing in the current inflationary environment.
Disney, Q2 Results, Wednesday 11 May
Laura Hoy, Equity Analyst “While the bulk of Disney’s profits come from its massive parks and experiences division, all eyes will be on streaming when the group reports first quarter results. That’s because earnings in the sector have been far from a fairy tale with both Netflix and Amazon disappointing investors.
So far, Disney’s streaming service has been growing at pace with subscribers to its namesake service up 37% in the last quarter. The big question is whether that growth continued in the second quarter. Rival Netflix has seen subscriber growth start to dwindle in a post-pandemic lull. If Disney’s growth continued despite a return to normalcy, it could suggest the Mouse is winning the streaming battle. Costs are another factor to consider – that segment was in the red at last check as the group spent heavily to build out its streaming plays.
Parks, Experiences and Products can’t be forgotten though, given it accounts for the bulk of revenue. We’re expecting continued growth here as capacity restrictions continue to ease, though the lockdowns in China may have thrown a spanner in the works at Disneyland Shanghai.”
Balfour Beatty, AGM Trading Statement, Thursday 12 May
Matt Britzman, Equity Analyst “Having surpassed pre-pandemic operating profit levels at the end of the last financial year, focus at Balfour Beatty is firmly on the future. The broader environment should be supportive of growth, with governments in key areas of the UK, US and Hong Kong all committing billions to infrastructure spending.
Construction markets have seen disruption more recently from longer lead times and price inflation. Balfour can mitigate inflation to some extent, as the value of both its UK and US portfolios are correlated with inflation and work to improve the order book means most contracts now see inflation borne by the client. Even so, we’ll be interested to hear commentary on how the wider market’s reacting to pressures.”
FTSE 100, FTSE 250 and selected other companies scheduled to report
|Kosmos Energy Ltd (KOS)||Quarterly results|
|FD Technologies Plc (FDP)||Final results|
|Shanta Gold (SHG)||Final results|
|Skillcast Group Plc (SKL)||Final results|
|Trellus Health plc (TRLS)||Final results|
|Treatt plc (TET)||Interim results|
|Airtel Africa plc (AAF)||Final results|
|Anexo Group Plc (ANX)||Final results|
|Angling Direct (ANG)||Final results|
|Mirriad Advertising Ltd (MIRI)||Final results|
|Vertu Motors Plc (VTU)||Final results|
|Brewin Dolphin Holdings plc (BRW)||Interim results|
|Compass Group plc (CPG)||Interim results|
|Ten Lifestyle Group plc (TENG)||Interim results|
|Balfour Beatty plc (BBY)||Trading announcement|
|BT Group plc (BT.A)||Final results|
|Grainger Plc (GRI)||Interim results|
|Titon Holdings plc (TON)||Interim results|
|Versarien plc (VRS)||Interim results|
|Seraphim Space Investment Trust plc (SSIT)||Quarter 3 results|
|ContourGlobal plc (GLO)||Trading announcement|
|Sage Group plc (SGE)||Interim results|
This article is 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.