Locally, the following companies are scheduled to release results next week:
- Capitec Bank (JO:CPIJ) (FY22 Results): As per a recent trading statement, headline earnings per share (HEPS) are expected to increase between 82% and 88% y/y. This improvement in bottom-line performance was expected, given lower credit provisions in the period. The company’s pending B-BBEE transaction is expected to have a small negative impact on near-term earnings.
- PSG Konsult (JO:KSTJ) (FY22 Results): According to management, HEPS are expected to increase by between 33% and 35% y/y while recurring HEPS will be between 31% and 33% higher y/y. This implies that bottom-line growth accelerated further in the second half (1H22 recurring HEPS: +23.4%), pointing to continued solid operational performances within both the Asset and Wealth Management businesses. It may also indicate a better underwriting experience from the Insurance division.
- Zeder Investments (JO:ZEDJ) will also release results for FY22 where further information on the potential winding up of the structure may be provided to investors.
- Mediclinic International (LON:MDCM) and Sirius Real Estate will provide 4Q22 sales updates.
- From a corporate action’s perspective, Tuesday marks the last day to trade AVI Limited (JO:AVIJ), Advtech (JO:ADHJ) and Old Mutual (LON:OMU) shares to receive their most recently declared dividends.
US earnings season gains further momentum next week with results expected from one of the world’s largest asset managers, BlackRock (NYSE:BLK), and a couple of Wall Street-based banks. According to Factset, for 1Q22, the S&P 500 is set to deliver an earnings growth rate of 4.8% y/y, while revenue is expected to grow 10.7%.
- BlackRock’s 1Q22 adjusted earnings per share are expected to climb 16.4% y/y to $9.0 while revenue is set to increase 10.3% y/y to $4.9 billion. The company’s profit margin over 2022, however, may be reduced by amplifying previous efforts that drove organic growth of up to 8% in long-term assets last year. BlackRock’s revenue run-rate is aided by managed-asset levels eclipsing $10 trillion this year, though market volatility does pose a risk amid elevated asset prices.
- Citigroup’s revenue for 1Q22 is set to decline 5.7% y/y while earnings are anticipated to fall 56.7% y/y as a result of higher costs and increased investment spending.
- Bloomberg consensus expects adjusted earnings for JP Morgan Chase (NYSE:JPM) & Co to drop 39.6% y/y to $2.7, while revenue is expected to edge 4.9% lower to $39.5 billion. The company’s costs may increase 8% to 9% y/y due to added investments, higher compensation and a normalisation in travel and expenses. This, however, could aid the business’s competitive outlook
- 1Q22 earnings for Wells Fargo (NYSE:WFC) are expected to fall 23.4% y/y, while operating profit is set to decline 6.2% y/y. Looking ahead, the company’s improving cost structure and higher net interest income (NII) should aid an increase in profitability over the year.
- Other notable releases in the US include Delta Airlines (NYSE:DAL), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), UnitedHealth (NYSE:UNH) and US Bancorp (NYSE:USB)
In Europe, results are expected from luxury goods giants LVMH (PA:LVMH) Moet Hennessy Louis Vuitton and Hermes, among several other companies.
- LVMH Moet Hennessy Louis Vuitton is expected to report revenue growth of 16.9% in the first quarter amid sustained operational improvement as it continues to widen the gap between its peers. The company’s brands, together with its structure and depth, remain unmatched and have propelled the business to beyond pre-pandemic levels.
In the Asia-Pacific region, the Bank of Queensland and Fast Retailing (T:9983) Company will release results next week.