Next week on the stock market: Experian, Currys, Ocado

Experian put in a decent showing over the first half and next week’s third-quarter trading statement will shed light on whether that trend continued into the latter parts of the year. We’ll be watching closely for updates on lending criteria in the US. Tighter conditions have been a drag on demand but with a soft landing potentially on the cards for the US, things could start to improve over 2024.

Outside of the core US market, Latin America has been the standout. Experian’s looking to capitalise on a region that's undergoing major upgrades to its financial services sector. Growth’s been impressive, a trend that investors will be keen to see continue.

Supermarkets enjoyed their best Christmas since 2019, according to new data. But this boom hasn’t been felt equally amongst the grocers. Ocado’s sales rose 5.5% in the four weeks to Christmas Eve, which is a lot slower than the rate of growth seen at some physical stores.

It will be important to monitor how much of Ocado’s growth is coming from volume over price. It’s clear that supermarkets have been heavy handed in their use of promotions and this has implications for margins. Ocado isn’t a cheap-and-cheerful brand, so the pressure may well have been more acute. The joint ownership with M&S will have helped tills ring, as consumers are more likely to treat themselves over the festive season – but the extent of this helping hand is yet to be seen.

Ocado’s core business case has continued to be dominated by its Solutions business. A proven record of more deals being signed in this area is what really has the ability to move the share price.

Back in December, we heard that Currys’ first-half revenue slipped 4% lower to £4.2bn, with sales declining across all regions. Consumers have been struggling to justify as much discretionary spending on TVs, computers and gadgets amidst a cost-of-living crisis. Next week’s results covering the peak Christmas trading period will be key if investor confidence is to be restored.

To help offset the lower demand, Currys is shifting its focus towards more profitable sales at the expense of market share. Coupled with major cost-cutting efforts, the group’s largely been able to protect its margins so far, but cost-cutting isn’t a long-term solution.

Neither is the sale of its Greek electronics retailer for £156mn of net cash. However, this does strengthen the balance sheet and buy the group some breathing room. We’re expecting an update on management’s plans for the extra cash by the end of the financial year, with some form of dividend as a possible way to return cash to shareholders. Although, there are no guarantees.