Next week on the stock market

What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week:

• easyJet hopes to ride the coattails of a record fourth quarter
• Halfords is hoping its autocentres can keep driving top-line growth
• Pennon's preparing itself for a hosepipe of investments

Among those currently scheduled to release results next week:

*Events on which we will be updating investors.

easyJet – Sophie Lund-Yates, Lead Equity Analyst

easyJet has had a wild ride so far this year. The last twelve months have seen the market value revised upwards to the tune of almost 11%. The group’s benefitted from resilient travel demand and as such had a record fourth quarter. It expects to report full-year pre-tax profit of £440mn - £460mn. We think that’s an achievable target.

A bigger focus will be on how bookings are shaping up for next year. As discretionary spending, which includes things like holidays, comes under pressure, there could be some challenges ahead. Investors will be pleased to know that the dividend has been reinstated, which helps reward them for their patience. But booking commentary will have the potential to cause some ups and downs on the day.

An independent Non-Executive director of Hargreaves Lansdown plc is also an Independent Non-Executive Director of easyJet plc.

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Halfords – Aarin Chiekrie, Equity Analyst

Halford’s shift towards more reliable service-based revenue is one that we applaud, and so far this year it has looked to be paying off. Like-for-like revenue was up 7.8% over the first 20 weeks of the year, driven mainly by growth in its Autocentres division. This uplift is being steered higher by needs-based categories. Car servicing or a new battery isn’t negotiable, so were pleased to see nearly half of total revenue coming from this robust area at the last count.

Halford’s full-year underlying pre-tax profit guidance was set at £48-58mn, and investors will be looking for a clearer target in next week’s half-year results. A further slowdown in the more discretionary pockets of Halford’s business, like cycling and car cleaning could put the brakes on reaching profit targets. As could the current lack of skilled labour in its Autocentres business, which makes it more difficult to service demand. That’s a problem that can’t be solved overnight and we’ll be keen to hear how management’s grappling with the issue next week.

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Pennon – Aarin Chiekrie, Equity Analyst

Pennon’s recently issued its plan for the new regulatory period covering 2025-2030. These plans include £2.8bn of investment aimed at addressing the challenges around pollution, water quality, water resilience and delivering on Net Zero targets. The group’s also set its sights on delivering £400mn of investment this year and in next week’s results, we’ll be keeping a close eye on how this investment is affecting the group’s debt levels.

Markets are expecting first-half revenue growth of around 5.2% to £448mn, as higher levels of inflation contribute positively to the revenue Pennon’s allowed to collect. But profits are expected to be weighted towards the second half of the year, as lower power costs and improved efficiencies from the merger of Bristol Water kick in. That’s helping to underpin a respectable 6.3% prospective dividend yield, which helps sweeten the deal for potential investors. But yields are not a reliable indicator of future income and there are no guarantees.

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Unless otherwise stated estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

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