Local And International Releases Slowdown Next Week

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Local releases slow down this week with substantially less corporate news flow expected:

  • Oceana Group (Interim Results): At its FY20 results, management said it expected SA’s fishing rights renewal process to be finalised in 2021. The group remains cautious about the impact of the pandemic but will continue to drive volume growth particularly in the canned fish and fishmeal segments.
  • Bidvest (JO: BVTJ ) Group will publish an operational update.
  • From a corporate actions perspective, Tuesday marks the last day to trade Allied Electronics, Dipula Income Fund (JO: DIBJ ), Oasis Crescent Property Fund, Pick n Pay Stores (JO: PIKJ ), Spear REIT (JO: SEAJ ), and Transaction Capital to receive their most recently declared distribution.
  • SA Corporate Real Estate, enX Group, Libstar Holdings, JSE, Mpact (JO: MPTJ ) and Absa (JO: ABGJ ) Group will host AGMs in the upcoming week. Sasfin Holdings and Insimbi Industrial Holdings will host GMs next week.
  • Anglo American (JO: AMSJ ) trades ex Thungela Resources on Friday.
  • The Aveng follow-on rights offer closes on Friday.

US releases lose momentum next week but results are expected from Constellation Brands (NYSE: STZ ), Hewlett Packard Enterprise (NYSE: HPE ) and PVH Corp (NYSE: PVH ). Almost all stocks in the S&P 500 index have now released first-quarter results, reporting a sales and earnings growth of 10.4% and 49.2% respectively, according to Bloomberg. Overall 1Q21 sales beat expectations by 3.9% and earnings were ahead of consensus by 23.1%. Within the index, 87% of the companies reported better-than-expected earnings numbers.

  • Constellation Brands ’ 1Q21 earnings are guided to grow 5% y/y. New product innovation, including Corona hard seltzers, is attracting new customers, while a continued emphasis on acquiring and promoting its current premium-priced alcoholic beverage brands should support higher operating margin.
  • PVH Corp(NYSE: PVH ), which houses Calvin Klein and Tommy Hilfiger, is expected to kickstart FY21 on a sour note, with 1Q21 earnings guided to shrink 66% y/y. The company expects FY21 revenue and earnings to continue to be impacted negatively by the Covid-19 pandemic, particularly in 1Q21 due to ongoing store closures, predominantly in Europe. Despite these store closures in Europe, PVH expects its international businesses to exceed 2019 pre-pandemic revenue levels in 1H21.
  • Though chip shortages and memory pricing are likely to impede Hewlett Packard Enterprise’s 2Q21 sales and margin, overall demand is likely to improve amid stronger corporate IT spending. The pandemic may still temper sales in some regions. Hewlett Packard Enterprise likely has a small advantage over Dell in its as-a-service model move, but the latter’s PC business may offer a wider variety of devices-as-a-service.

A quiet week is ahead in Europe and the Asia-Pacific region, with no significant releases anticipated.

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