Earnings season is all but over but trading updates from key companies across the globe are providing insights into how certain markets are performing.
Investors next week will see updates from Ashtead, as the company mulls leaving London for an US listing, in what could be yet another blow to the FTSE 100 (^FTSE). Underdog Telecom Plus will show markets how it is performing against the sector’s blue chips and DS Smith could provide analysts with an update on the triangle it is currently entangled in.
Another update that all traders will be eager to hear is the Bank of England’s announcement on interest rates on Thursday.
Here’s what to look out for:
Ashtead (AHT.L) — Reports full-year results on Tuesday 18 June
The company has been under the spotlight after reports that it was mulling switching its stock market listing from London to New York. Investors should hear more about it when the company delivers its annual results on Tuesday.
The firm, which rents heavy machinery to the construction industry, is understood to have instructed City advisers to examine the possible benefits of moving its listing to the US.
“Ashtead gets around 85% of its sales and more than 90% of its profits from its American Sunbelt operation, with the bulk of the rest coming from Canada and the A-Plant business in the UK,” Russ Mould, investment director, Danni Hewson, head of financial analysis, and Dan Coatsworth, investment analyst, all of AJ Bell, wrote.
“This could make the company a good litmus test of the US economy, even as it continues to take market share and supplement organic growth with acquisitions, although a lot attention may also go to rumours that the FTSE 100 member is considering a switch in its stock market listing to New York from London, as well as the launch of the firm’s Sunbelt 4.0 strategic plan,” they added.
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Ashtead is the 25th-biggest stock on London’s blue-chip index with a market capitalisation of £24.3bn ($30.9bn).
Matt Britzman, equity analyst, Hargreaves Lansdown, said: “Ashtead reports full-year results hot on the heels of rumours it may be looking to move its listing to the US. It’s partly because the bulk of its sales are made in the US, but hefty Wall Street valuations are also likely to be a draw.
“Softer performance of late has fuelled concerns that the recent boom in rental demand and strong pricing for Ashtead’s construction equipment is starting to ease. Mega projects in the US, while being a strong demand driver, are causing some operational headaches. But Ashtead’s scale gives it an edge over competitors and guidance out of the recent capital markets day was encouraging.”
Analysts currently expect total sales growth for the full year of 12% to $10.8bn, up from $9.7bn in fiscal 2023. If chief executive Brendan Horgan gives any guidance for the year to April 2025, the current consensus is for 6% growth to $11.4bn.
Investors will also be looking at the dividend. “The firm increased its first-half payment by 5% and the same growth rate is expected for the whole year, to 83.3p per share ($1.05) compared to 79.35p ($1.00) a share in fiscal 2023. Note that the firm is also running a $500m share buyback and has a current capital expenditure budget for fiscal 2024 of around $4.2bn, compared to $3.8bn last year. Generally speaking, the more optimistic Ashtead’s managers feel, the more kit they will buy so that they can hire it out, making Horgan’s initial guidance for 2025 of $3 to $3.3bn intriguing,” AJ Bell said.
Investors are keen to confirm previous guidance that full-year adjusted pre-tax profit at the telecoms company hit the upper end of market expectations after a record year.
In an update for the year to the end of March, the British supplier of broadband and mobile services said adjusted pre-tax profit will be at the top end of the range of £110.1m to £116.3m. The consensus estimate is £113.6m.
The London-based FTSE 250 (^FTMC) company grew its customer base by 14%, surpassing 1 million customers in the fourth quarter. It is now scaling the business towards 2 million customers.
Since launch, Telecom Plus shares are up 700%, while the FTSE 250 index has gained 190%.
DS Smith (SMDS.L) — Reports full-year results on Thursday 20 June
Earnings should be about the figures but the DS Smith’s bid triangle is set to overshadow numbers when the paper and packing company presents its full-year results on Thursday.
“Any comment on the International Paper-Suzano-DS Smith love triangle may dominate how the market sees DS Smith’s full-year results, although chief executive Miles Roberts and team will no…
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