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Companies Reporting: Microsoft, Dr Martens, Diageo

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Here’s our regular look at the FTSE 350 and a selection of other companies reporting from 24 to 28 January.

  • We’ll see if inflationary tailwinds have helped Microsoft as planned
  • CVS Group will let us know if the UK pet boom still has room to run
  • Will Dr Martens continue to stomp ahead
  • Diageo looks to push on with its recovery

Microsoft, Q2 Results, Tuesday 25th January

Sophie Lund-Yates, Equity Analyst “Back in the first quarter, Microsoft [NASDAQ:MSFT] said it hoped to benefit from rising inflation. The logic being, as businesses sought to become more efficient as costs rise, they’d flock to Microsoft’s software products like its cloud-based computer power. Inflation’s certainly been running rampant, so next week we’ll find out if those expectations have become a reality. The market’s hopes will be high, as it’s become accustomed to Microsoft’s stellar results. Last quarter, revenue rose 20% to $45.3bn, ignoring the effect of exchange rates, which was faster than market expectations. There was double digit growth in every division and group operating profit rose 24% to $20.2bn. We should also get some insight into how it plans to further expand its metaverse, following news of the impending almost $70bn acquisition of Call of Duty maker, Activision Blizzard.”

CVS Group, Trading Statement, Thursday 27th January

Sophie Lund-Yates, Equity Analyst CVS Group’s [LON:CVSG] price/earnings ratio may have come down from the ten-year highs of last year, but at 24.5 the pressure’s still on to live up to expectations. Sales rose almost 14% in the first few months of the financial year, partly thanks to the boom in UK pet ownership over lockdowns.  We’ll be particularly interested to see how the fast growing virtual vet pharmacy has been doing. Puppies and kittens tend to need the most attention when they’re very young, so if the pet-boom has slowed, we wonder if like-for-likes have started to temper at all. The final thing is vacancies. The biggest risk for CVS and vets in general, is a shortage of qualified vets. The group’s done a lot to help keep retention and vacancies at acceptable levels, but it’s something worth keeping an eye on.”

Dr Martens, Q3 Trading Statement, Thursday 27th January

Susannah Streeter, Senior Investment and Markets Analyst ‘’Dr Martens [LON:DOCS] stomped ahead with a surge in pre-tax profits at its half year results, but supply chain issues have still slipped up the bootmaker with lockdowns closing production sites in Vietnam and backlogs at ports leading to stock shortages. Signs that these problems have eased will be encouraging for investors, because underlying demand for styles remain strong. The iconic nature of the brand should also insulate it from the effects of price rises, with consumers prepared to pay more for coveted fashion. Direct to consumer sales will be closely watched as e-commerce is central to Dr Martens’ strategy. The recent share price slide was sparked by an early investor offloading a small part of a significant holding, rather than any underlying concerns about the direction of the company.’’

Diageo, Half Year Results, Thursday 27th January

Matt Britzman, Equity Analyst Diageo [LON:DGE] Management warned of near-term volatility in their previous full-year results and with inflationary pressures pushing costs up, we’ll be looking out for any impact on operating margins. Following periods of hefty restrictions, the return of customers to bars and restaurants should be positive for the on-trade sales numbers. Although, in light of Omicron developments, it’ll be interesting to see how much of an impact this has had on recovery. The balance sheet looked in good shape last year. Debt had been creeping higher than we’d like but it was pleasing to see net debt coming down in more recent results. We’re hopeful that can come down further if profits continue to move in the right direction. Net sales are forecast to rise in the region of 13.2%, to £7.8bn but a price to earnings ratio of 26.0 means markets will be expecting good things and any major deviation from guidance risks disappointing the markets.”

FTSE 100, FTSE 250 and selected other companies scheduled to report

24-Jan
Computacenter Q4 Trading Statement
25-Jan
Capricorn Energy Trading Statement
Microsoft Q2 Results
TI Fluid Systems Post-Close Trading Statement
Verizon Q4 Results
26-Jan
Brewin Dolphin Holdings Q1 Trading Statement
CMC Markets Q3 Trading Statement
Fresnillo Q4 Production Statement
Pets at Home Q3 Trading Statement
Quilter Q4 Trading update
Sage Q1 Trading Statement
Tesla Q4 Results
Wizz Air Q3 Results
27-Jan
3i Group Q3 Trading Statement
Anglo American Q4 Production Statement
Apple Q1 Results
Britvic Q1 Results
CVS Group Trading Statement
Diageo Half Year Results
Dr Martens Q3 Trading Statement
Euromoney Institutional Investor Q1 Trading Statement
Greencore Q1 Trading Statement
IG Half Year Results
Intermediate Capital Group Trading Statement
Keywords Studios Full Year Trading Statement
LVMH Full Year Results
McDonalds Q4 Results
Mitie Group Q3 Results
Polymetal International Q4 Earnings
Rank Group Half Year Results
Saga Trading update
St. James’s Place Q4 New Business Update
Visa Q1 Results
28-Jan
Paragon Banking Group Q1 Trading Statement

This article is brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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