Among those currently scheduled to release results next week:
22-Jun | |
|---|---|
Babcock* | Full Year Results |
23-Jun | |
|---|---|
Bunzl | Trading Statement |
Carnival* | Q2 Results |
Telecom Plus | Full Year Results |
Sunbelt Rentals* | Q4 Results |
24-Jun | |
|---|---|
Berkeley Group | Full Year Results |
25-Jun | |
|---|---|
Moonpig | Full Year Results |
Serco | Trading Statement |
26-Jun | |
|---|---|
No FTSE 350 Reporters |
Could the party be getting started again at Carnival?
After a strong start to the year Carnival is expecting to see further momentum in next week’s results, with guidance pointing to capacity growth of 1.9% and a 2.0% increase in net yields (a measure of price), before currency movements. However, average cruise costs are also rising (guidance 2.6%), and that’s before expected fuel price increases.
Net-net, Carnival sees a small fall in second-quarter underlying cash profit (EBITDA) to $1.5bn. Since the period end, progress towards a peace deal in the Persian Gulf has helped to drive down oil prices and boost investor sentiment towards Carnival. Management struck a cautious tone in March, cutting full-year underlying cash profit guidance from $7.6bn to $7.2bn. But Carnival earns most of its money in the second half, and with some of the key risks starting to fade, hopes of an upgrade could be building.
Are conditions improving on the ground for Sunbelt Rentals?
Sunbelt’s full-year results are expected to show steady progress. We expect rental revenue growth to come in line with management’s 2-3% guidance, with its core North America business growing slowly and its specialist divisions performing better. We’ll be looking for signs that construction demand is starting to improve, as well as whether higher oil prices are affecting customer spending. Consensus is looking for revenue of $11.1bn, and cash profit (EBITDA) of $4.7bn.
Focus will also be on guidance for the new financial year. We expect Sunbelt to point to slightly stronger rental revenue growth, helped by improving demand through the year. Consensus points to revenue of $11.6bn and cash profit (EBITDA) of $5.0bn. Growth is relatively slow, but we still think the long-term outlook is appealing. It’s a leading player in a fragmented market, with room to keep winning share as more customers rent equipment rather than buy it. Plus, growing exposure to large projects, specialist equipment and maintenance work should add an element of resilience if the construction markets soften.
The demand outlook remains for Babcock
Babcock heads into full-year results with good momentum. A short trading update last month revealed that full-year revenue is expected to rise around 10% to £5.3bn, ignoring exchange rates, driven by strong performances in its Nuclear and Aviation divisions. Underlying operating profits are expected to grow at a faster pace of around 19% to £433mn, as margins continue to improve. However, this excludes £140mn in one-off costs related to late-stage design changes on its Type-31 shipbuilding programme.
Looking ahead, Babcock expects to grow revenues at a mid-single-digit rate next year, with around 70% of its workload already under contract. Underlying operating margins also look set to continue improving towards its mid-term target of 9%, underpinned by a strong demand outlook for its higher-margin Nuclear business.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. 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. Yields are variable and not guaranteed.
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.
