- Absa (JO:ABGJ) Group (Full-Year Results): Management guided for headline earnings per share (HEPS) to decline by between 50% and 60%.
- Shoprite Holdings (JO:SHPJ) (Interim Results): The company anticipates adjusted HEPS to increase by between 7.4% and 17.4% y/y. Adjusted HEPS from continuing operations are expected to increase by between 12.5% and 22.5% y/y. The company previously said that group merchandise sales increased 4.7% to R83.4 billion (1H21: +1.9%; Bloomberg FY21: +6.7%) and, excluding the impact of the closure of the RSA liquor stores during lockdown, merchandise sales were up 6.3%.
- Old Mutual (LON:OMU) (Full-Year Results): For FY20, adjusted HEPS are estimated to decline by between 69% and 79%. Management guided for results from operations to be between 79% and 89% lower y/y. Despite the impact of Covid-19 on earnings, strong gross flows throughout the year drove a significant increase in net client cash flows (NCCF).
- Sun International (JO:SUIJ) (Full-Year Results): The group is expected to report an adjusted headline loss per share of between 570 cents and 690 cents compared to earnings in the prior period of 605 cents (1H20: loss of 231 cents). The Covid-19 pandemic significantly impacted the group’s results, following the prolonged closure of many of its operations during the year as a result of the lockdowns imposed by government.
- Nedbank (JO:NEDJ) (Full-Year Results): According to a trading statement, HEPS are expected to decline by between 55% and 60%. Earnings per share are expected to fall by between 69% and 74% due to a R750 million impairment of the group’s investment in Ecobank Transnational Incorporated (ETI) and accounting for a share of ETI’s impairment of their own goodwill (R528 million).
- Libstar Holdings (JO:LBRJ) (Full-Year Results): As per management, Normalised HEPS (continuing operations) are expected to fall between 8.4% and 18.4%. Net revenue increased 4% (1H20: +1.9%; 2H20: +5.8%), with organic revenue growth of 3.5%. Volumes declined 4.6% on the impact of Covid-19 on the foodservice channel. Normalised EBITDA will decrease between 3.3% and 6.3%. Normalised EBIT is expected to fall by between 10.4% and 15.4%, impacted by increased depreciation and amortisation expenses (+20.4%).
- Curro (JO:COHJ) (Full-Year Results): Management has guided for recurring HEPS to fall by 18% to 30% y/y, a significant deterioration compared to the first half (+9%). The group continued to rightsize its schools to contain costs and successfully expanded its digital educational offering to meet the demand triggered by the pandemic.
- Metair (JO:MTAJ) (Full-Year Results): According to management, HEPS will fall between 55% and 57%.
- Northam (JO:NHMJ) Platinum (Interim Results): The group expects normalised HEPS to grow to between 623 and 660 cents. Production from own operations increased 15% y/y but sales volumes decreased by 4.4% y/y, adversely affected by Covid-19 and the negative effect on metal transport logistics during 4Q20. Revenue increased 51.9% y/y to R11.9 billion supported by a 49.7% increase in the average 4E basket price, a weaker ZAR/USD exchange rate realised (-9.9%) and a 4.4% decrease in refined 4E ounces sold.
- Other releases includeExxaro Resources Ltd (JO:EXXJ), Remgro (JO:REMJ), and African Rainbow Capital Investments (JO:AILJ).
- From a corporate action perspective, Tuesday marks the last day to trade Adcock Ingram (JO:ADEOJ), Anglo American (JO:AMSJ), Impala Platinum (JO:IMPJ), Imperial (JO:IPLJ) Logistics, Liberty Two Degrees (JO:L2DJ), NEPI Rockcastle PLC (JO:NRPJ), Sibanye Stillwater (JO:SSWJ) (JO:SSWJ) and Transpaco (JO:TPCJ) to receive their most recently declared distribution. Hudaco (JO:HDCJ) Industries and enX Group (JO:ENXJ) will host AGMs in the upcoming week.
US earnings releases have slowed down significantly, with few stocks expected to publish numbers. As of last week Friday, 99% of the companies in the S&P 500 had reported results. According to FactSet, 79% of S&P 500 companies have reported a positive EPS surprise while 79% reported a positive revenue surprise for 4Q20. Looking ahead, 34 S&P 500 companies have issued negative EPS guidance and 60 S&P 500 companies have issued positive EPS guidance for 1Q21.
- Accenture (NYSE:ACN)'s 2Q21 results may show improving growth in its consulting segment, driven by increased enterprise spending on cloud and security products. While the business has reported declining sales for the prior three quarters, it's possible that results may turn positive, fuelled by higher spending on emerging technologies.
- Despite unseasonably harsh winter conditions, FedEx's (NYSE:FDX) 3Q21 earnings are expected to surge 135.9% y/y. Severe weather conditions create network inefficiencies as flights are rerouted or grounded, shipments are trucked instead of flown and workers' productivity suffers. Weather will also affect revenue as freight is diverted or delayed.
- Dollar General (NYSE:DG)’s 4Q20 earnings are expected to gain momentum, growing 30% y/y. Same-store sales could increase 8.8% amid persistent demand for food and household essentials and a solid holiday season. Discretionary spending continues to improve, and Dollar General is attracting new, trade-down customers. Higher labour costs, along with elevated operational expenses, were likely offset by strong sales and productivity gains, particularly from the DG Fresh self-distribution initiative.
- Nike (NYSE:NKE)'s strong sales momentum may build with the potential for FY21 revenue to rise at the high end of management's low-teens guidance, driven by continued double-digit online gains. Gross margin could flatten or even rise in 3Q21, as promotions are pared back given lean inventories.
Results from EU automakers Volkswagen (DE:VOWG_p) AG and Bayerische Motoren Werke AG (DE:BMWG) (DE:BMWG) will be published next week. While EU automakers have weathered virus turmoil via pared selling expenses, capital spending and R&D, these costs will return in 2021, making consensus EBIT growth expectations look optimistic amid an uncertain 2021 economic outlook and accelerating unprofitable EV sales.
- Look out for FY20 numbers from Volkswagen AG, with earnings and revenue projected to contract 53.6% and 12.2% respectively.
- Bayerische Motoren Werke AG, commonly known as BMW, will release FY20 numbers, with earnings guided to decline 23.2% y/y. According to Bloomberg, BMW's preliminary 4Q20 results failed to raise expectations given a vague outlook. The company enjoyed a strong 4Q20 buoyed by Chinese and subsidised European EV sales, generating a 7.7% auto EBIT margin compared to FY21 consensus expectations of 5.6%.
A quiet week is ahead in the Asia-Pacific region, with conglomerate CK Hutchison Holdings (HK:0001) anticipated to release results next week. Hong Kong retail sales increased 4% in January and are expected to grow 15% in February, despite lockdowns and enforced Covid-19 tests for residents. A $4.6 billion spending-voucher stimulus may help resuscitate retail sales if virus cases fall and more mainland Chinese residents visit in 2H20.