Next week on the stock market

What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week:

• A strong start to the year means expectations are high for Greggs
• Will slowing US consumer spending put a hole in PayPal’s wallet?
• Scale of revenue declines and demand commentary will be front of mind at Apple

FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:

*Events on which we will be updating investors.

Greggs – Matt Britzman, Equity Analyst

Greggs started the year strong with double-digit growth in like-for-like sales as sausage rolls continue to hit the spot for consumers whose disposable incomes are under increasing pressure. Next week’s half-year results should show a similar story, albeit growth is expected to slow as we move through the year and comparable periods become tougher. Still, markets are looking for 15% revenue growth over the year, so we’ll get an idea next week as to whether that looks achievable or not.

Cost inflation is, as ever, something to watch. 9-10% inflation over the year is what management’s expecting, by no means an easy level to overcome and something worth keeping an eye out for any movement on. It’s being managed well so far, as the group focuses on locking in a range of costs, from electricity to packaging.

Adding to the company’s value proposition, new deals on hot food have been a driving factor of growth – as have extended opening hours and a growing estate. Things are progressing well, and that’s reflected in the valuation which doesn’t leave much room for error.

See the Greggs share price, charts and our latest view

Sign up to Greggs research

PayPal – Derren Nathan, Head of Equity Research

PayPal’s latest guidance points to second-quarter revenue growth of between 7.5% to 8%, ignoring the effects of currency movements. PayPal expects underlying earnings per share (EPS) to land between $1.15 and $1.17, reflecting growth of 24% to 26%.

But with US consumer spending in something of a slump, all eyes will be on the full-year outlook when results are released next week. Underlying EPS in 2023 is expected to grow around 20% to $4.95, but so far, no outlook for revenues or payment volume has been provided.

PayPal has also given little detail on its plans to improve transaction margins in its unbranded business, so with volumes potentially under pressure, we’re hoping to hear that things are moving in the right direction. We’re also keen to see how the share repurchases program is progressing, with $4bn worth of repurchases expected for the full year.

See the PayPal share price, charts and our latest view

Sign up to PayPal research

Apple – Sophie Lund-Yates, Lead Equity Analyst

Analysts are expecting Apple’s revenue to drop 1.7% to $81.6bn in the third quarter, compared to the previous period. Last quarter Apple beat expectations, but still marked a decline overall, as things like iPads, Macs and Wearables (think Apple Watch), fell. This is perhaps unsurprising given the substantial economic uncertainty swirling. It will be important to monitor the outlook statement for how well demand’s expected to hold up, especially for the most important product, iPhones, which have had a more resilient showing lately.

We could also get an update on how the production shifts away from China are faring. We’re not expecting the status quo to have been upended, but further details on how alternative production changes are being handled would be well received.

Finally, we’ll have an eye on costs. Operating profits shank 5.5% in the second quarter, partly because of a mushrooming research and development budget. Staying ahead of the curve in tech does take hefty spending, but we’d like reassurance the scales aren’t tipping too far.

See the Apple share price, charts and our latest view

Sign up to Apple research

Unless otherwise stated estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information