Among those currently scheduled to release results next week:
30-Sep | |
|---|---|
Bluefield Solar Income Fund | Full Year Results |
Carnival* | Q3 Results |
01-Oct | |
|---|---|
Greggs* | Q3 Trading Statement |
02-Oct | |
|---|---|
JD Sports Fashion* | Half Year Results |
03-Oct | |
|---|---|
Tesco* | Half Year Results |
04-Oct | |
|---|---|
J D Wetherspoon* | Full Year Results |
Greggs has set itself a high bar, can it deliver?
Greggs has set a high bar over the past year or so, but it continues to impress. July’s half-year results once again beat expectations despite the backdrop of poor weather and consumer uncertainty. Attention now turns to next week’s third-quarter trading update, where we expect to see continued strength.
Credit where it’s due, management has been on point with execution. Menu tweaks, a focus on the evening market, new delivery options, and a push for penetration on the app have all worked together to deliver outperformance. There’ll likely be a slowdown in like-for-like sales growth over the second half as Greggs laps tougher comparable periods from last year. But with the store estate expanding and plenty of growth drivers, we remain positive on the outlook.
Will Tesco’s value offering keep a lid on growth?
Tesco’s sales rose 7.2% to £61.5bn last year, ignoring currency impacts. This came up short of market expectations largely due to lower prices at the pump. In Retail, Tesco finished the year on a high as growing market share meant that customers took more items off the shelves, offsetting the lower goods price growth.
The Finest range is helping Tesco poach customers off more premium supermarkets. At the other end of the spectrum, the group’s investing in keeping prices low in its value range to help fend off competition from the likes of Aldi and Lidl. That’s expected to keep a lid on revenue growth in next week’s half-year results, with markets only expecting the top line to move 1.7% higher to around £34.7bn.
The Non-Executive Chair of Hargreaves Lansdown plc is also a Non-Executive Director of Tesco plc.
Sharp rise in profits expected for J D Wetherspoon
J D Wetherspoon has seen expectations for its full-year earnings rise over the last nine months. In next week’s results, we’re not expecting too much difference from consensus which is now looking for revenue of £2bn. Pre-tax profits are expected to rise to £72mn too, which would mark an uplift of 69% on the prior year. The market’s not predicting a return to dividend payments till 2027, but we’ll be looking for any clues as to whether that may be on the cards any sooner.
We’ll also be hearing how trading at the group’s sites has started in the current year. Warmer weather in August should have provided something of a tailwind, but we’re mindful that the rioting and looting that briefly plagued UK high streets in early August could have deterred some pubgoers from venturing out.
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