Next week on the stock market

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

• Can Admiral offset claims-inflation with higher prices?
• Can Balfour Beatty build on last year's foundations?
• Legal & General looks to capitalise on the higher rate environment

Among those currently scheduled to release results next week:

*Events on which we will be updating investors.

Admiral – Matt Britzman, Equity Analyst

It's safe to say markets were unimpressed by Admiral's full-year results back in March. Profits missed analyst expectations as higher claims and an increase in the cost of servicing them weighed on performance. But broadly speaking Admiral’s performance in this tricky environment has been strong to date compared to peers.

We’re expecting to see price hikes support the top line in next week’s half-year results, with markets expecting double-digit growth in gross written premiums. It's a balancing act, though, as price is typically the key differentiator from a customer's standpoint, and price actions fed through to a decline in motor customers last year. New accounting rules will be in play, so we expect results to look a little different than previously.

See the Admiral share price, charts and our latest view

Sign up for Admiral research

Balfour Beatty – Aarin Chiekrie, Equity Analyst

We last got an update from Balfour Beatty back in May, with no major surprises packed into its trading update. In the first quarter, the group won several contracts, but the order book still declined from £17.4bn to £17.0bn. Average net cash balances were also down from £815m to £740m, with the group already halfway through its £150m share buyback programme by 12 May. With progress like this, we wonder whether an extension to the buyback programme could be on the cards in the second half but there are no guarantees.

Full-year profits from its Construction and Support services divisions are expected to be broadly in line with 2022 levels, where Balfour made an underlying operating profit of £174m. But that implies that very little of the government-led infrastructure boom, especially in the US, is making its way down to the bottom line. We’ll be hoping the group can provide a positive surprise on this front when it reports half-year results next week.

See the Balfour Beatty share price, charts and our latest view

Sign up to Balfour Beatty research

Legal & General – Matt Britzman, Equity Analyst

Legal & General is going to be one of the insurers most affected by the new accounting rules that’ll be in play next week. Management have been clear that the cash generated by the business will remain unchanged, as will the strategy and business priorities. The key difference is that profits from the insurance business are stored in the balance sheet and released over time, causing a hit to reported profits in the short term compared to the old regime.

Management’s intending to grow the dividend at 5% per annum until 2024, although of course no shareholder returns are guaranteed. This target was brought in to try and give investors some sense of stability while markets get to grips with the new accounting standards. We’re supportive of the move, uncertainty is rarely well received.

Back to day-to-day operations, the jump in interest rates is having a positive impact on the retail annuity business and the pipeline for pensions risk transfers in 2023 is the best its seen. Hopefully that should make for some positive reading next week.

See the Legal & General share price, charts and our latest view

Sign up to Legal & General research

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.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.