What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week:
- LVMH faces challenges as Chinese consumption called into question
- PepsiCo is set to feed consumers with higher prices
- Has summer disruption clipped easyJet's wings?
Among those currently scheduled to release results next week:
| 09-Oct | |
|---|---|
| No FTSE 350 Reporters | |
| 10-Oct | |
|---|---|
| LVMH* | Q3 Trading Statement |
| PepsiCo* | Q3 Earnings |
| 11-Oct | |
|---|---|
| Pagegroup | Q3 Trading Statement |
| Qinetiq | Q2 Trading Statement |
| 12-Oct | |
|---|---|
| Dechra Pharmaceuticals | Q4 Results |
| easyJet* | Full Year Trading Statement |
| Hays | Q1 Trading Statement |
| 13-Oct | |
|---|---|
| Ashmore Group | Q1 Assets Under Management Statement |
*Events on which we will be updating investors
LVMH – Sophie Lund-Yates, Lead Equity Analyst
French luxury conglomerate LVMH owns some of the most potent brands on the planet. To that end, we expect to see continued positive momentum in next week's update. With that said, there are some challenges.
We'd like to know how trading in the US is faring, as there have been rumblings of a slowdown. We're also expecting to see a continued normalisation of spending in Europe, which could dent progress. Crucially, we'll be getting an update on how China is shaping up. This is a very important region for LVMH, both within China's borders, and spending abroad. Economic indicators are creaking in the region and although luxury spending tends to be more robust than average consumption, we're keen to hear if the uncertain environment has shaken LVMH's expectations for the highly important festive trading season.
LVMH's valuation has had a sharp upwards march in the last year. That means there's pressure to perform, and the market's likely to react harshly if growth faces a blip.
See the LVMH share price, charts and our latest view
PepsiCo – Aarin Chiekrie, Equity Analyst
Next week's third-quarter results will show us how well PepsiCo's handling the pressure of rising input costs. Last quarter we saw organic revenue growth of 13.0% to $22.3bn, with sales rising across all regions driven by higher prices. And despite inflationary headwinds pushing up costs, improved sales and other cost management measures have helped keep underlying operating profit growing at a faster pace.
Full-year organic revenue growth guidance has been upgraded for the second time this year, now expected to rise at 10% compared to the previous 8% target. This signals that management's confident it can keep feeding through price hikes to customers, while seeing little drop-off in volumes – credit to Pepsi's laser-like focus on brand quality in recent years. But we're curious to see just how quickly these price hikes will get phased onto customers. Raising prices too sharply risks alienating loyal customers, pushing them down the value chain towards cheaper alternatives.
See the PepsiCo share price, charts and our latest view
easyJet – Sophie Lund-Yates, Lead Equity Analyst
easyJet expects its final quarter to show another record pre-tax profit performance, including a 10% increase in revenue per seat. This follows a strong third quarter where continued pent up travel demand helped profits soar.
While trends are encouraging, we can't rule out disruption from air traffic control constraints from strike action. The extent of the damage to the bottom line here will be important to understand, but shouldn't be seen as a long-term indicator of the group's health.
More important will be how booking momentum's looking as we head into the new financial year. With cost-of-living pressures still very much alive and kicking, we wonder how much longer the travel sector's resilience has left to run.
An independent Non-Executive director of Hargreaves Lansdown plc is also an Independent Non-Executive Director of easyJet plc.
See the easyJet share price, charts and our latest view
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.
Please correct the following errors before you continue:
Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. We will not sell or trade your personal data.