Among those currently scheduled to release results next week:
25-Aug |
|---|
No FTSE 350 reporters |
26-Aug | |
|---|---|
Bunzl | Half Year Results |
Prudential* | Half Year Results |
27-Aug | |
|---|---|
Hochschild Mining | Half Year Results |
JD Sports Fashion* | Q2 Trading Statement |
NVIDIA* | Q2 Results |
28-Aug | |
|---|---|
Chesnara | Half Year Results |
Hunting | Half Year Results |
PPHE Hotel Group | Half Year Results |
Asian insurer Prudential looks to build on early momentum
Prudential reports half-year results next week, and markets expect headline sales of $3.3bn and new business profit of $1.2bn. First-quarter results back in April showed encouraging trends, with price rises landing without too much disruption, volumes improving and the combination being positive for margins – investors will want to see more of the same.
Legal battles in Malaysia weighed on results earlier in the year, but a settlement reached in July has now lifted that cloud. Tariff drama shouldn’t have any direct impact, but we’ll be watching for commentary on any second-order effects across Prudential’s Asian markets.
JD Sports tariff pressure and the US performance in focus
JD Sports is set to report its second-quarter earnings next week, with investors focused on the impact of tariffs and US performance. The recent acquisition of Hibbett has made the US JD’s biggest revenue contributor, now accounting for 37% of total sales. This increased exposure leaves the company vulnerable to higher import duties, particularly as most of its products are sourced from Asia. As a result, JD faces rising cost pressures that will need to be carefully managed.
Management expects profitability to be weighted toward the second half of the year, with current consensus pointing to full-year underlying pre-tax profit of around £890mn. We will also keep a close eye on margin trends, particularly in the US, where JD has held firm on pricing despite aggressive discounting by competitors.
Chinese sales in focus for NVIDIA
The big news for NVIDIA is that it’s set to resume sales of its restricted H20 chip to China following negotiations with the US government. In exchange for export licenses, it's set to pay 15% of all Chinese revenue to the US government.
This type of revenue share agreement is unheard of, but it’s a reasonably small price to pay to reopen the Chinese market. While these chips are significantly limited compared to NVIDIA’s latest technology, demand within China remains strong due to the lack of high-quality alternatives.
Outside of China, overall demand remains critical. We’ve already heard from major customers that data centre expansion is a priority, which should benefit NVIDIA. Margins will also be worth watching. In theory, we should start to see some improvement as deliveries of its latest chip technology continue to scale.
The author holds shares in NVIDIA.
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