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Three Quick Facts: Next, Pets at Home and Trainline

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Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.

#1. Next sales are up but cautions on headwinds

Next LON:NXT has published a Q3 trading update this morning which is upbeat, albeit wrapped with a cautionary note. Full price sales are up 17% on the corresponding 2019 figure, but the company notes that the effects of pent-up demand will likely continue to diminish. Whilst supply chain problems are causing challenges with stock, these too are waning and inflation has the potential to knock sentiment, too. Q4 full price sales guidance is maintained at +10% and full year profit before tax is still expected to come in at £800m.

#2. Pets at Home full year profits expected at the upper end of estimates

Pets at Home LON:PETS has this morning notified the market that its CEO will be stepping down next summer after 11 years in the business and the completion of a successful turn-around strategy. The note also contains updated guidance ahead of interim results which are due at the end of the month, specifically that the full year profit figure is now expected to come in at the upper end of an already tightly defined range of analyst estimates. It’s going to be the market reaction to the CEO’s departure that will however count the most here, given the strength of the share price over the last three years.

#3. Trainline in a strong position to benefit from growth in Europe

Trainline LON:TRN has published interim results for the six months to 31st August. Sales advanced 179% helping shrink the operating loss significantly. The UK consumer market has recovered to 95% of its position from two years ago although there’s still significant room for growth elsewhere. Guidance for the full year remains unchanged from the mid-September trading update but the company believes it is in a strong position to benefit from growth especially in Europe where competing train companies make the case for an aggregator to bring all the options together even more valuable.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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