Next week on the stock market

Ibstock’s 2024 didn’t get off to the best of starts. First-quarter sales volumes came in below group expectations as residential construction markets remained subdued. Despite the weaker volumes, strong cost-cutting measures helped keep underlying cash profits (EBITDA) on track. That’s good news in the short term, but we’re wary that cost cuts can only go so far.

Back in April, CEO Joe Hudson said that leading indicators were beginning to suggest an increase in housing market activity. When the group reports half-year results next week, we’re keen to see if the positive outlook remains the same. If concrete signs have failed to materialise by this point, we could see full-year guidance reined back in a similar fashion to its competitor, Forterra.

Disney’s last set of results were broadly in line with market expectations. Revenue inched 1% higher to $22.1bn, while operating profit shot up 17% to $3.8bn as cost-cutting initiatives from the prior year began to bear fruit. The uplift was also helped by a turnaround in fortunes from Disney’s streaming services, Disney+ and Hulu, which posted their first-ever profits.

Looking to next week, markets are expecting the top line to keep moving in the right direction, with 3.1% revenue growth being the target. We expect the group’s theme parks and cruises will continue to draw customers in and more than offset weakness from its more traditional cable networks. Market sentiment around the company has been weak over the past few months, and the valuation’s taken a big hit as a result. Meeting and even exceeding expectations on the streaming front will be key to changing the mood music, given that it’s a big part of Disney’s future growth strategy.

After a shaky 2023, Persimmon’s first-quarter trading showed some encouraging signs of improvement. Sales rates edged slightly higher in the period alongside a growing order book, indicating that buyers’ confidence was improving. We’re keen to see if that positive momentum continued into the second quarter.

Markets are looking for £1.25bn of revenue from next week’s half-year results, and any beat on this front is likely to be met with a positive response from investors. A change in government and promises to refresh planning regulations have brought some early signs of optimism to the sector, and we’re keen to see how, or if, management tweaks the medium-term outlook as a result.