Locally, a less eventful week is on the cards:
- Nampak (JO:NPKJ) (Full-Year Results): Management expects headline earnings per share (HEPS) to be between 55.1 cents and 64.9 cents compared to a headline loss of 87.7 cents per share in the prior period. The improvement came on the back of less currency impacts, one-off costs, and other one-off items.
- Oceana (JO:OCEJ) (Full-Year Results): Bloomberg consensus expects FY21 earnings to increase 3.4% y/y. In SA, the company expects canned fish and fishmeal to remain under volume pressure, but management will look to navigate the stronger rand and focus on ongoing production efficiencies. In the rest of Africa, fresh fish offerings continue to show strong demand. The US operations are well positioned for volume growth with the addition of a 12th vessel and the introduction of a run-boat for the 2021 fishing season. Growth in pet food and global aquaculture continues to drive positive pricing for fishmeal and fish oil in all geographies.
- Sygnia (Full-Year Results): At the half-year ended 31 March 2021, assets under management and administration of R278.3 billion were up 27.8% y/y, off an undemanding base. Revenue was up 13.8% y/y and diluted headline earnings per share of 72.8 cents were up 15.7%.
- Dual-listed British American Tobacco (JO:SNHJ) will publish its pre-close trading update for 4Q21. The company previously said it expects global tobacco volumes in FY21 to fall ~1.5% (previously: -3%) driven by a strong emerging markets recovery. Management guided for constant currency revenue growth above 5% (previous: 3% to 5%), and continued progress towards the New Categories revenue target of £5 billion in 2025. Guidance for mid-single figure constant currency adjusted EPS growth was maintained. An expected foreign exchange headwind of ~7% was maintained. Operating cashflow conversion will be more than 90% with an adjusted net debt/EBITDA ratio around 3 times (also maintained).
- From a corporate actions perspective, Tuesday marks the last day to trade Coronation Fund Managers, Aveng, Balwin Properties (JO:BWNJ), Dipula Income Fund (JO:DIBJ), ISA Holdings, Investec Ltd, Investec PLC, Investec Property Fund, Life Healthcare Group (JO:LHCJ), London Finance & Investment Group PLC, The SPAR (JO:SPPJ) Group, and Safari Investments RSA (JO:SARJ) to receive their most recently declared distributions.
- Mas Real Estate Inc, African Phoenix Investments, Caxton and CTP Publishers and Printers, Harmony Gold, AH-Vest, Aspen (JO:APNJ) Pharmacare, Heriot REIT, Grand Parade Investments (JO:GPLJ), TeleMasters Holdings, Transformational Investment Portfolio One and Spur (JO:SURJ) Corporation will host AGMs in the upcoming week. Transcend Residential Property Fund will also host a GM.
In the US results are expected from Costco Wholesale (NASDAQ:COST), and Oracle Corp (NYSE:ORCL).
- Bloomberg expects Costco’s 1Q22 EPS to slow down, contracting 1.2% y/y, from a strong 4Q21 (+20.1%). Revenue expectations remain robust, anticipated to grow 13% y/y. Costco is driving strong membership renewal rates, thanks to auto renewal and a higher percentage of Executive members. This bodes well for membership income growth in FY22. Costco continues to drive strong same-store sales growth, even with difficult comparisons. Elevated freight and transportation costs are expected to persist through FY22.
- Computer software giant Oracle Corp will also release 2Q22 results, with consensus guiding for EPS to grow 4.8% y/y. Oracle’s application business continues to show steady gains, which are poised to extend on pent-up spending for finance-related enterprise resource planning (ERP) products. Non-GAAP operating margin may continue to face modest pressure on higher investment and sales and marketing expenses through FY22. Share buy-backs could support steady gains in adjusted EPS over the next few quarters.
A quieter week is also anticipated in Europe and the Asia-Pacific region with very few companies scheduled to publish results.