Locally, we expect 1Q22 trading updates from the following companies:
- AB InBev (JO:ANHJ) delivered a robust performance during FY21 on the back of ongoing premiumization and revenue management initiatives, as well as growth in its own beer and non-beer volumes. Management also noted that EBITDA growth for FY22 will be in line with the medium-term outlook of between 4% to 8%, while revenue is expected to grow ahead of this. In addition, investors are looking forward to an update from management following the recent announcement that the company will sell its non-controlling interest in the Russian-based joint venture to Turkish brewer Anadolu Efes.
- Mondi (LON:MNDI) reported a 19% increase in basic underlying earnings per share and an 11% increase in underlying EBITDA for the financial year ended 31 December 2021, amid solid growth in the packaging business and a recovery in uncoated fine paper markets. Looking at expectations for the current period, management expects the group to benefit from price increases implemented in 2021 and 2022 as well as shorter planned maintenance shuts and contributions from the capital investment program.
- At its FY21 results, MTN (JO:MTNJ) management upwardly revised the company’s medium-term guidance outlook on the back of a solid performance seen across the group’s key markets. For FY22, SA service revenue growth is set to remain unchanged at mid-single-digits, and Nigeria's service revenue growth is expected to be at least 20% in constant currency terms. Fintech service revenue is anticipated to contribute at least 20%, while adjusted ROE is set to improve towards 25%. In addition, the ongoing focus on executing Ambition 2025, driving growth, and further deleveraging the balance sheet bodes well for the medium-term prospects of the business and shareholder returns.
- Miners Sibanye-Stillwater and Gold Fields (JO:GFIJ) will also provide updates for 1Q22, while Equites Property Fund will release FY22 results.
- On the corporate actions front, Tuesday marks the last day to trade in AB InBev, Capitec (JO:CPIJ), Exxaro (JO:EXXJ), PSG Konsult (JO:KSTJ), Thungela Resources (JO:TGAJ), and Zeder Investments (JO:ZEDJ) to receive their most recently declared distributions. Arden Capital, JSE Limited, Mondi, and Oceana (JO:OCEJ) are set to host shareholder meetings.
US earnings season continues next week with several well-known stocks, including Akamai Technologies (NASDAQ:AKAM), NXP (NASDAQ:NXPI) Semiconductors, and eBay (NASDAQ:EBAY), out with results. Earnings releases are also expected from food and beverage producers Starbucks (NASDAQ:SBUX), Yum! Brands (NYSE:YUM), Kellogg’s, and Monster Beverages.
- Akamai Technologies (NASDAQ:AKAM) is set to deliver revenue growth of 7.3% y/y, while adjusted earnings are anticipated to edge 2.8% higher y/y, driven largely by improvements in the company’s security segment. According to Bloomberg Intelligence, this segment is set to expand further over the year, due to increased customer needs and rising demand for advanced cybersecurity solutions. This will in turn support higher overall growth in the short to medium term.
- First-quarter adjusted earnings per share for NXP Semiconductors (NASDAQ:NXPI) are expected to climb 37.8% y/y to $3.18, while revenue is set to increase 20.8% to $3.1 billion – in line with company guidance. Management also expects adjusted operating profit over the period to top out at $1.1 billion (growth of ~4% y/y), with a margin of ~35%. The company will benefit further over the course of the year due to strong demand for chip technology, which remains ahead of market supply
Other notable releases in the US include pharma giants Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), as well as CVS Health (NYSE:CVS). Bloomberg Intelligence expects new Covid-19 variants to evolve faster than before – posing a new challenge to vaccine producers. Although disease severity is not expected to change, there’s still the possibility that a more virulent variant will emerge. Regardless, increased immunization should keep infection risk in check, emphasizing the importance of regular vaccinations. Large pharma is set to continue reaping the benefits from the production and sales of vaccines, general healthcare products, and medicine.
In Europe, sales numbers are expected from BP (LON:BP) and Shell (LON:RDSa), as well as vehicle manufacturers BMW, Volkswagen (ETR:VOWG_p), and Ferrari (NYSE:RACE), among several other companies.
- BP (NYSE:BP) is expected to report solid 1Q22 results, headlined by considerable growth in adjusted earnings and revenue of 77.6% and 78.6% respectively. This is largely due to elevated energy and commodity prices amid supply constraints pertinent to the war in Ukraine. The company, however, is set to report a non-cash impairment of as much as $25 billion, following the exit of its 19.75% interest in the Russian petroleum refinery, Rosneft.
- Revenue growth of 73.4% is expected for Shell (BS:SHELl) over the first quarter of 2022 while operating profit is set to more than double. Bloomberg Intelligence expects an accelerated recovery, headlined by strong value capture from commodity benchmarks amid increased trading, as well as higher gains from gas and oil optimization.
- BMW and Volkswagen are expected to face certain industry headwinds in the upcoming period as global vehicle sales remained subdued during 1Q22, with the likes of Toyota (-15%) and GM (-20%), among others, all experiencing a double-digit decline in volumes, driven largely by the ongoing constraints in chip and semi-conductor production. The extent to which European-based manufacturers have been affected over the period remains to be seen.
In the Asia-Pacific region, ANZ Banking Corporation and Mitsui & Co Limited (TYO:8031) will release results next week.