Next week on the stock market

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

• Can Direct Line get back on track?
• Streaming in the spotlight at Walt Disney
• Recent rights issue puts more pressure on TUI performance

If you'd like to receive weekly shares content from us, sign up to our share insight email.

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

08-May
No FTSE 350 Reporters

09-May
Direct Line Group*	Q1 Trading Statement
Victrex	Half Year Results

10-May
ASOS*	Half Year Results
Compass Group*	Half Year Results
Harbour Energy	AGM Trading Statement
JD Wetherspoon*	Trading Statement
Melrose*	Trading Statement
Spirax-Sarco Engineering	Trading Statement
TUI*	Q2 Results
Walt Disney Co*	Q2 Results
3I Infrastructure	Full Year Results

11-May
Airtel Africa	Full Year Results
Balfour Beatty*	AGM Trading Statement
Deutsche Telekom	Q1 Results
Grainger	Half Year Results
ITV*	Trading Statement
John Wood Group	Trading Statement
Rolls Royce*	AGM Trading Statement
TBC Bank Group	Q1 Results
Videndum	Q1 Trading Statement
3i Group	Full Year Results

12-May
Beazley	Q1 Trading Statement

*Events on which we will be updating investors.

Direct Line Group – Matt Britzman, Equity Analyst

2022 was a difficult year for Direct Line, and investors will be hoping for some glimpse that there’s been a let up in either the number of claims or claims inflation over the first quarter of 2023. Tough conditions pushed the Group’s combined operating ratio over 100% last year, essentially signalling loss-making territory for insurance businesses.

Unfortunately, there’s no easy route back, and pricing actions are already in play to try and help restore margins. Direct Line's brand should help on that front, and we’ve already seen more aggressive price action than some of its peers. In the hyper competitive world of insurance, the issue with that approach is that brand power only goes so far, and there will likely be a drop in volumes as customers shop around.

See the Direct Line Group share price, charts and our latest view

Sign up to Direct Line Group research

Walt Disney – Sophie Lund-Yates, Lead Equity Analyst

All eyes will be on the streaming division next week. Disney+ is nursing heavy losses and investors are looking for a clear path into profit-making territory. A key component of this will be subscriber growth, which is the main metric that will move the dial in terms of Disney’s valuation next week. The group has seen a 13% uplift since the start of the year and that makes it more sensitive to knocks.

We can’t forget theme parks where Disney’s concerned. The reopening of borders should provide a welcome boost to the Asian business, and we’re cautiously optimistic that parks elsewhere will have put in a resilient showing despite a tough economic backdrop for consumers.

See the Disney share price, charts and our latest view

Sign up to Disney research

TUI – Sophie Lund-Yates, Lead Equity Analyst

Summer holiday booking season is getting underway. We’ll be watching commentary on forward bookings for the holiday giant very closely next week. Last we heard, TUI had successfully increased its prices which was helping to offset soaring costs, but we’d like to see to what extent this has continued. Trips abroad are important to consumers, but there’s a limit to how far wallets can stretch at the moment.

TUI’s balance sheet is very stretched, which is why it recently came cap-in-hand to investors to the tune of €1.8bn. A disappointing summer season could see knocks to the group’s valuation. The dilutive rights issue means investors will be wanting to see progress rather than stagnation, more so than usual.

See the TUI share price, charts and our latest view

Sign up to TUI research

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.

Share insight: our weekly email

Sign up to receive weekly shares content from HL