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 British American Tobacco continue to drive growth from new products
• Will Inditex remain in fashion with consumers?
• Wizz Air recovery still has a long road ahead

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:

05-Jun
Sirius Real Estate	Full Year Results

06-Jun
British American Tobacco*	Trading Statement
Chemring Group	Half Year Results
Paragon Banking Group	Half Year Results
Warehouse REIT	Full Year Results

07-Jun
discoverIE Group	Q4 Results
Industria de Diseno Textil (Inditex)*	Q1 Results
LXI REIT	Q1 Results

08-Jun
Crest Nicholson Holdings	Half Year Results
FirstGroup	Full Year Results
Mitie Group	Full Year Results
Wizz Air Holdings	Full Year Results

09-Jun
No FTSE 350 Reporters

*Events on which we will be updating investors.

British American Tobacco – Matt Britzman, Equity Analyst

With a fresh CEO at the helm, the shift away from traditional combustibles looks set to continue at British American Tobacco (BATS). The new man in the hot seat, Tadeu Marroco, has over 30 years of experience in the business, so we don’t expect any radical changes to the strategy.

Full-year results back in February pointed to continued growth in the new categories division, which houses heated tobacco and vape products. As it becomes harder to squeeze growth from the traditional tobacco portfolio, focus on the performance of the new categories division will continue to heat up. Profitability in this area is the next major milestone, now expected in 2024, earlier than initially expected.

The lack of buyback along with full-year results wasn’t met too kindly by markets, as debt reduction becomes a bigger priority. There was chatter that buybacks will be reassessed as the year progresses, so it’s something to watch for in next week’s trading update. For a business like BATS, returning cash is a big part of the near-term investment case, so decisions around its use have scope to move the dial.

See the British American Tobacco share price, charts and our latest view

Sign up to British American Tobacco research

Inditex – Aarin Chiekrie, Equity Analyst

Zara’s parent company, Inditex, seemed to do everything right last year. Sales and profits grew at double-digit rates, highlighting the success of the group’s strategy which prioritises closing smaller stores and focusing on bigger ones in prime locations. The tactic meant that store sales grew 23% despite stores falling by 10%, contributing to the group’s improved operating margins.

Next week’s results will give us some steer as to how the latest Spring/Summer collections have been received by customers. The group’s relatively high price point compared to other high-street fashion chains raises some concerns, given the rising demands on consumers’ cash right now. If key brands like Zara, Pull & Bear or Bershka end up falling out of fashion, we could see margins come under pressure.

See the Inditex share price, charts and our latest view

Sign up to Inditex research

Wizz Air – Aarin Chiekrie, Equity Analyst

Wizz Air delivered some promising results last time out. Ticket pricing and demand remained strong across Wizz Air’s routes, and crucially, the group had the capacity to greet it. We saw passenger numbers jump nearly 60% to 12.4m in the third quarter which led to revenue more than doubling to around €912m.

Last we heard, Wizz Air are still on the hook for around £5m-worth of unpaid refunds as a result of delays and cancelations. It’ll be interesting to see if low costs continue to trump poor service, especially as consumer’s disposable incomes remain stretched by the cost-of-living crisis.

Operational adjustments have led to fewer flight disruption costs recently. A strengthening Euro has also offered some relief to inflating fuel costs, but these still rose by north of 60% last quarter, leading the group to expect an overall net loss in next week’s results.

See the Wizz Air share price, charts and our latest view

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. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

Share insight: our weekly email

Sign up to receive weekly shares content from HL