Watch a quick breakdown of the key earnings to keep an eye on
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Among those currently scheduled to release results next week:
26-May |
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No FTSE 350 Reporters |
27-May |
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No FTSE 350 Reporters |
28-May | |
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C&C Group | Full Year Results |
Kingfisher | Q1 Trading Statement |
NVIDIA* | Q1 Results |
Pets at Home Group* | Q4 Results |
Salesforce* | Q1 Results |
Softcat | Q3 Trading Statement |
29-May | |
|---|---|
Atalaya Mining Copper | Q1 Results |
Auto Trader Group | Full Year Results |
Capital Gearing Trust | Full Year Results |
Hollywood Bowl Group | Half Year Results |
30-May |
|---|
No FTSE 350 Reporters |
Growing expectations for Salesforce’s AI platform amid slowing growth
Salesforce is set to report its Q1 results next week, following a year of modest revenue growth. Having spent the past year or two rightsizing the business, costs are in a much better place, and both profits and cash flows are feeling the benefits. While this was a necessary step, the focus now shifts back to driving top-line growth.
Group guidance for first-quarter revenue growth of 6-7% was softer than markets were hoping for at the time. This reflects a tricky macroenvironment where businesses are still being selective of their software spending. Missing this target range next week would likely weigh heavily on investor sentiment.
We were excited to hear Salesforce’s AI platform, Agentforce, gained early momentum late last year with over 3,000 paid AI deals. But with around 150,000 customers, these deals aren’t dial movers just yet. We think it’s just a matter of time, and we’re keen to hear whether the positive momentum has continued into the new year.
Pets at Home’s margins are under pressure as demand wanes and costs rise
Pets at Home is set to deliver underlying profit before tax of around £133mn when it releases its full-year results next week, broadly in-line with the previous year’s performance. Its vet division has been caught up in an industry-wide probe by the UK’s Competition & Markets Authority (CMA). We don’t think the CMA’s initial proposals look too taxing, but we’ll be keen to hear any thoughts from the company.
But it’s the retail division where the pressure on demand has been most noticeable. Add in higher wages and employers’ national insurance contributions, and analysts are understandably pencilling in reduced profitability for the new financial year at group level. As a result, we’ll be paying particular attention to the outlook and the steps Pets at Home is taking to help offset these rising costs.
Chinese restrictions to hit NVIDIA’s first quarter, underlying demand still strong
NVIDIA expects to report first-quarter sales of about $43bn next week, reflecting year-on-year growth of 65%. Donald Trump’s ‘Liberation Day’ announcement as well as fresh US trade restrictions against its H20 chip, designed specifically for the Chinese market, came in towards the end of the quarter. As a result, the company has stated it will recognise a $5.5bn write-down on the value of its H20 inventory in these results.
In light of these developments, analysts have also been trimming their sales forecasts, with second-quarter expectations falling from nearly $48bn to $46.3bn since the news broke. But earnings season readouts from customers Amazon, Alphabet, Microsoft and Meta showed no sign of a dip in underlying demand for Artificial Intelligence infrastructure built on NVIDIA’s technology. So there could be room for some upside to these numbers. Of course there are no guarantees.
Parties related to the author own NVIDIA shares.
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