Results round-up: Companies to watch this week
Tuesday 13 May
Airbus – first quarter results
Analysts expect a soft start to the year as the manufacturer delivers fewer aircraft and development costs creep up. Focus will be on the A350 programme and the potential for further provisions.
EasyJet – half year results
The low cost airline expects a first half pre-tax loss of between £55m and £65m compared with guidance in January of £70m to £90m and losses of £61m a year ago. Analysts expect losses to be at the lower end of this range. Factors for investors to look out for are the outlook for ticket pricing and yields, both of which will drive second-half profit. The current share price suggests that analysts expect further positive news and profit upgrades.
TUI Travel – half year results
Management previously stated it is confident of achieving full year performance in line with its target of increasing underlying profit by 7-10 per cent. Analysts expect, however, that the operating loss for the first half will be slightly higher than last year which reflects the timing of Easter.
Investors may focus on forward booking trends for the peak summer season. Share price levels suggest no bad news for the market regarding annual family holiday bookings.
Wednesday 14 May
Compass Group – half year results
Management has already stated that organic revenue growth for the first half is expected to be just over 4 per cent.
This revenue growth has been driven by continued high levels of new business, stable retention rates and also includes a benefit from the timing of Easter.
Analysts will be assessing the margin and growth in Compass Group’s Fast Growing and Emerging region to see if the slowdown in the Australian mining sector has developed as expected. They will also be looking for strong growth in North American and signs of stabilisation in Europe & Japan.
ITV – first quarter trading update
Investors will be expecting more good news from ITV’s production and studio business and an update on recent acquisitions will be worth noting. The group’s outlook for advertising rates will be closely followed, with the potentially lucrative World Cup fast approaching. Other areas of interest to investors will be the expansion of pay TV.
The share price level suggests that investors expect conditions in the UK TV advertising market to remain relatively benign over the medium term.
Thursday 15 May
Aviva – first quarter interim management statement
Investors will be focusing on the strength of new business in the first three months of the year following sweeping pension reforms in the Budget, removing the need to buy an annuity.
The group last updated the market in March with full-year earnings that were up by 6 per cent, exceeding market expectations, primarily due to better than expected results from the group’s life insurance and fund management businesses.
The share price suggests investors are gaining confidence in management’s ability to successfully restructure the group.
Sources: The Share Centre, Brewin Dolphin and Charles Stanley