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Here’s what you can expect from a selection of FTSE 100, FTSE 250 and international companies reporting next week. Among those currently scheduled to release results:

  • We’ll be looking for insight into how DS Smith will balance rising commodity prices
  • Berkeley looks to shrug off a new set of headwinds
  • John Wood will tell us whether expected improvements materialised

DS Smith [LON:SMDS], Full Year Results, Tuesday 22 June

Laura Hoy, Equity Analyst

“The past year’s e-commerce boom has been a boon for packaging giant DS Smith, and that should be evident when it releases full year results. However, while demand for corrugated cardboard boxes is expected to rise 7% year-on-year, the materials required to manufacture them are becoming more expensive. Coupled with stunted demand from the hospitality sector, underlying cash profits are expected to come in roughly 15% lower. Considering the headwinds, a figure in line with that estimate would be good going. What’s more important now is understanding how DS Smith will deal with the rising costs. The group had planned to pass the price hikes onto its customers, and we’re keen to know whether that’s dented demand. The group has also been working to insulate itself from commodity price swings by outsourcing paper manufacturing. While it’s too late to count on that as a safety net now, progress on that front is imperative to setting the group up for less volatility in the future.”

Berkeley Group [LON:BKG], Full Year Results, Wednesday 23 June

Nicholas Hyett, Equity Analyst

“With the pandemic and remote working driving wealthy city dwellers out into the country, the main question facing Berkeley this year was how well demand for its London centric homes (including flats) was holding up. So far the group has performed remarkably well, and is on track to deliver a similar level of profit to last year with forward sales also looking healthy. We don’t expect that to have changed now the economy is gradually unlocking.

More recently a rapid increase in the cost of construction materials and shortage of skilled labour has created another hurdle to potentially trip the group.  That’s a headwind facing the whole industry, but Berkeley may actually be better insulated than many. Its relatively high price point and specialism in complex sites mean materials account for a smaller proportion of the overall cost base, and an increase will have a relatively more modest impact on margins. Still it’s one to watch out for.”

John Wood Group [LON:WG.], Q2 Trading Statement, Thursday 4 June

William Ryder, Equity Analyst

“In its AGM statement in May, the consulting and engineering firm told us trading was “slower than anticipated”. A robust performance in the Consulting division was unable to offset weakness in Projects as large engineering, procurement and construction (EPC) contracts roll off the books, and Covid-19 and a volatile oil price conspired against the Operations division.  Nonetheless, management is maintaining guidance thanks to “improving momentum”, and even expects stronger margins this year. Consulting activity is expected to increase and Operations to be buoyed by conventional energy demand and growth from “process & chemicals”. Operational resilience is being supported by strong order book momentum, which was up 9% to $7.1bn last we heard.  We’ll find out next week whether management’s confidence was well placed. Commentary on the order book and any changes to guidance will be top of the agenda.”

FTSE 100, FTSE 250 and selected other companies scheduled to report next week

21-Jun
No FTSE 350 Reporters
22-Jun
CentaminQ2 Production Results
DS SmithFull Year Results
23-Jun
Berkeley GroupFull Year Results
24-Jun
John Wood GroupQ2 Trading Statement
25-Jun
No FTSE 350 Reporters

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.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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