Among those currently scheduled to release results next week:
31-Aug |
|---|
No FTSE 350 reporters |
01-Sep | |
|---|---|
Bunzl | Half Year Results |
02-Sep | |
|---|---|
Broadcom* | Q3 Results |
03-Sep | |
|---|---|
Alfa Financial Software Holdings | Half Year Results |
Grafton Group | Half Year Results |
Hilton Food Group | Half Year Results |
M&G* | Half Year Results |
Safestore | Q3 Trading Statement |
04-Sep |
|---|
No FTSE 350 reporters |
Broadcom is under the spotlight on competition, but the AI growth story looks intact
Broadcom reports third-quarter results next week with one question hanging over it: Is the disruptor now being disrupted? Alphabet has begun spreading its custom-chip work across more suppliers, eroding confidence in Broadcom's grip on the market. We read that as a very large customer sensibly hedging its bets, not proof that Broadcom's business has got worse. It's still the big wolf in custom AI chips, and it hasn't had to hand over its own shares to win deals, so the comparisons doing the rounds aren't apples to apples.
Markets are looking for third-quarter revenue growth of about 84% to $29.4bn, and we sit a touch above that. But the numbers may end up as the sideshow. Investors will push hard on the competitive picture, how much of Alphabet's work Broadcom expects to keep, and whether newer customers are ramping on schedule. Convincing answers there should matter more to shares than a small beat or miss, and an update on next year's $100bn+ chip revenue ambition could help ease some concerns.
M&G needs to show good momentum to keep full year targets on track
M&G reports half-year results next week with investors looking for proof that its improving growth story remains on track. The first quarter was decent rather than spectacular, as market volatility knocked assets and slowed the stronger flow momentum seen late last year. Consensus is looking for £1.9bn of net inflows into Asset Management and £429mn of adjusted operating profit, but the quality of those flows will matter, too. We want to see continued strength from wholesale customers, a recovery in institutional demand and signs that PruFund has bounced back after slipping into a small outflow.
Capital generation is the other big piece of the puzzle. Markets expect £360mn of operating capital generation, and the solvency ratio should remain robust, leaving the balance sheet well positioned to support an expected 6.8p interim dividend. M&G has promised a meaningful acceleration in profit growth this year, so progress on costs and a clear path towards its medium-term targets will be important. Updates on the revamped Wealth platform and its cautious return to bulk annuities would also be welcome, but keeping flows positive and capital generation on the right track should matter most.
The author holds shares in Broadcom.
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