Of those whose results are currently scheduled for next week:
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FTSE 100, FTSE 250 and other selected stocks due for release next week:
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*Events about which we will inform investors.
International Distribution Services – Matt Britzman, Equity Analyst
The name may have changed, but the Royal Mail owner remains in a particularly difficult position. Battles with unions over workers’ compensation have continued to cause pain for the group, its employees and its customers. Two strikes scheduled for early November have been called off, as IDS and the union try to resolve their pay issues through an intermediary. It’s certainly not the end of things though, rumors of further strikes being planned for late November and early December come slamming amidst the busiest time of the year.
Much of the focus next week will be on updates regarding negotiations and the impact of strikes on business performance. In October, the group said it expected to generate an underlying operating loss of £219m in the first half for UK business Royal Mail, although the reality may be different.
The group’s international business, GLS, remains on track to meet expectations. But how long these two entities will sit under the same roof remains to be seen, as Royal Mail continues to lose money.
Experian – Matt Britzman, Equity Analyst
Experian’s position as a digital intermediary between borrowers and lenders has been a sweet spot, as the demand for data from both sides continues in full force. Next week’s half-year results should show whether the group’s objective of 7 to 9% organic growth this year remains intact. Analysts remain a little more cautious, expecting growth towards the bottom of this range.
The consumer services division has stood out in recent times, where the credit market helps drive large volumes of customers to lending partners. This is an area we expect to see continue to do well as beleaguered consumers begin to see their savings erode and rely more on credit. It’s a trend we’ve seen before, with strong Q1 growth in cards and loans, especially in the large North American segment.
Nvidia – Derren Nathan, Head of Equity Research
Nvidia expects third quarter revenue to be significantly lower than last quarter and the same period in 2021. A key question is whether the pioneer of ultra-fast computer graphics cards has set the bar low enough in s expecting revenue to be within 2% of $5.9 billion. It has certainly been a tough time for the PC industry. Data from Gartner saw global PC shipments down 19.5% from the third quarter of 2021, the biggest drop since the mid-1990s.
In recent quarterly updates from other microchip makers, Intel and Advanced Micro Devices (AMD) have cut their guidance for 2022 as a whole. There are still some rays of light. Nvidia has deep roots in gaming despite it now accounting for well under half of its revenue. Data center customer sales are now in first place. Encouragingly, rival AMD saw data center chip sales increase by 45% in the third quarter and gaming chip sales by 14%. With the latest reported net cash of $6.1 billion, Nvidia is well positioned to absorb some bumps in the road, but with a tough market, we’ll be looking to see if the pace of share buybacks has been maintained.
Estimates are not a reliable indicator of future performance. Past performance is not indicative of the future. Investments go up and down in value, so investors could suffer a loss.
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