The summer earnings season gets into gear tonight and tomorrow on both sides of the pond, with Tesla this evening, then FTSE 100 names Reckitt Benckiser and Croda on Tuesday, followed by US$2trn titans Apple and Microsoft after the closing bell, along with Google owner Alphabet, McDonald’s, Starbucks, Texas Instruments, 3M and Lockheed Martin (NYSE:LMT).
However, tighter supply chains, a changing product mix and increasing competition in the electric car market will also “spark extra interest in any comments on the outlook for future deliveries – particularly in China where local competitors have been ramping up sales”, says analyst Nick Hyett at Hargreaves Lansdown.
Games Workshop to (war)hammer home profit jump
The FTSE 250 group will release its final results on Tuesday in what is expected to be a positive affair following the company’s upbeat trading update in May.
The company said previously that its profits for the year to end May 2021 will be more than GBP150mln, a rise of almost 70% on the previous year, while revenues are expected to be not less than GBP350mln, up from GBP270mln in 2019.
Investors are also heading for a heft payday, with the company’s total dividend for the year due to hit 235p per share compared to 145p the year before.
With the figures for the year expected to be bumper ones, the key point of interest is likely to be the firm’s outlook statement and whether its strong growth run could be side-tracked by the reopening of the economy and easing of lockdown restrictions, meaning people are less likely to be staying at home playing and painting Warhammer figurines.
Moonpig to keep flying?
It is one of many companies where investors are watching closely to see how the pandemic reopening trends are changing, with the shares having risen from their 350p debut to above 480p before trotting sharply lower in recent weeks.
“The company had been living high on the hog during the pandemic as demand for cards and personalised gifts ordered online soared,” says analyst Susannah Streeter at Hargreaves.
“But the easing of shopping restrictions mean consumers are now free to browse real rather than virtual piles of cards once more, and there are concerns its flying sales may have come down to earth with a bump.”
But as a digital sales platform, using data to predict consumer preferences, Moonpig seems to have succeeded in positioning itself as an e-commerce player, rather than an online card retailer, says Streeter, “but whether it can capitalise on those data sets to boost sales of other ranges is far from clear”.
Significant announcements due on Tuesday July 27:
Finals: Games Workshop Group PLC (LSE:GAW), Moonpig Group PLC (LSE:MOON), Cohort PLC (AIM:CHRT), FirstGroup (LSE:FGP) (LSE:FGP), Foresight Group Holdings Limited, In The Style Group PLC (AIM:ITS, FRA:8DH)
Interims: Ascential PLC (LSE:ASCL), Reckitt Benckiser Group PLC (LSE:RB.), Capital & Counties (LSE:CAPC) Properties PLC, Croda International PLC (LSE:CRDA), International Personal Finance (LSE:IPF) PLC, Kitwave Group PLC (AIM:KITW), Reach PLC (LSE:RCH), Restore Plc (AIM:RST), Sabre Insurance Group PLC (LSE:SBRE), Unite Group PLC (LSE:UTG), Vivo Energy PLC (LSE:VVO)
Economic data: US durable goods orders, US house prices