skip to Main Content

Three Quick Facts: Shell, Reach and Next


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

#1. Shell Q1 earnings up 3x

Oil giant Shell [LON:SHEL] has published Q1 numbers today, showing a significant uptick in profitability for the company. Adjusted earnings were close on treble the number posted a year ago and up 43% on the Q4 reading, Net debt continues to decline and now sits below $50billion, whilst investors are being rewarded with a 4% increase in dividends. The previously announced share buyback program is ongoing, with a further $4.5billion set to be completed before the publication of Q2 results.

#2. Publisher Reach faces cost headwinds

There’s a trading update out from news publisher Reach [LON:RCH] this morning covering the four months to 24th April ahead of its AGM today. Group revenues are down 0.9% following higher than expected circulation revenues against a weaker digital contribution, but the company expects the full year picture to remain broadly flat. It believes it has a winning strategy for the longer term, although short/medium term cost impacts on lines like newsprint are also exceeding previous expectations.

#3. Next full price sales up, helped by store reopenings

Fashion and homewares retailer Next [LON:NXT] issued a trading statement for the 13 weeks to 30th April, noting that full price sales were up 21.3% versus last year whilst full year profit forecasts remain at £850m, which would be up 3.3% from the prior period. Beyond the raw numbers here, plus an update on buybacks, there’s no discussion of the impact of price hikes as we saw with peers yesterday – will the forecast 5% EPS growth be sufficient to allay concerns here?

Like this article? Sign up to our free newsletter.

This article does not constitute investment advice. Do your own research or consult a professional advisor.

The Armchair Trader's 'How to' Guides

Read our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

Listen to our latest podcast episodes

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

FP Markets
CME Group
Back To Top