Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Imperial Brands on track to meet expectations
There’s a pre-close trading update out from Imperial Brands LON:IMB this morning, noting the company is on track to meet full year expectations and is maintaining market share despite the tough comparatives which it is competing against.
#2. Tesco dividend held amidst rising prices but healthy share buyback seen
Preliminary results from grocers Tesco LON:TSCO show sales up 5.3% but adjusted operating profits down by 6.9%. Diplomatically given the squeeze on consumers, dividends are being held stable, although the company has purchased some £750m of its own equity over the last 12 months. Management expects to deliver a broadly flat level of adjusted operating profit next year and free cash flow within the target range, too.
- Companies Reporting: Bellway, FirstGroup, Halma, Tesco
- Share tips update: Darktrace, RTX Corp and Chemring
- Thoma Bravo makes compelling offer for cybersecurity champion Darktrace
#3. Darktrace margin improvements offset sluggish sales
Cyber security specialists Darktrace LON:DARK has Q3 numbers out today, reporting strong growth in recurring revenues although macro headwinds are limiting full year expectations. As a result, annual recurring revenues are set to grow by 29%, at the bottom of the previously forecast range of 29%-31.5%. Margin guidance has however been increased as a result of efficiency gains.
