The week ahead: BP, Rio Tinto
3rd February 2017 16:31
by Lee Wild from interactive investor
Monday 6 February
Trading Statements
Randgold Resources
Tuesday 7 February
Markets reacted well to fourth-quarter results from Thursday. The shares are up 3% as news on asset sales and cash flow offset lighter profits. A fresh surge in oil prices above $57 (£45.60) a barrel toward a nine-month high is also helping the oil sector.
And will hope for an extra boost on Tuesday when it publishes fourth-quarter numbers of its own.
Yielding way over 6%, BP is currently tipped by broker UBS to generate net earnings of $3.7 billion in 2016, giving earnings per share (EPS) of 20 cents. The numbers pick up in 2017 to $8.6 billion and 45 cents respectively. The dividend will likely stay at 40 cents for both years.
Trading Statements
BP, St Modwen Properties, RM Plc, Bellway, UDG Healthcare
AGM/EGM
Wednesday 8 February
told us about production in 2016 two weeks ago. Now, we find out what the company made from it.
The output data was largely in line with expectations, with the iron ore business - worth half of group profit - achieving record production over the three months.
A surprise cut in Chinese interest rates has taken the steam out of the sector this week, but mining analysts at Investec Securities are optimistic. They've just upgraded their price target on Rio from 3,437p to 4,099p, implying 21% potential upside.
"Our preference remains for companies with a strong balance sheet and exposure to commodities that China will need for infrastructure and electric vehicles," it says. "Rio Tinto ranks highest in this regard and we retain our 'buy'."
The minimum total dividend for 2016 is 110 US cents per share, but Investec thinks it'll be more like 142 cents, rising to 200 cents in 2017.
Trading Statements
Sophos, UK Commercial Property Trust, Hargreaves Lansdown, GlaxoSmithKline, Dunelm, Tullow Oil, Smurfit Kappa, Rio Tinto, Victrex, Severn Trent
AGM/EGM
Grainger
Thursday 9 February
Trading Statements
Frontier Developments, Innovaderma, Ashmore Group, Smith & Nephew, Henderson Group, Thomas Cook, Tate & Lyle, Pennon, Dairy Crest, Enterprise Inns, Grainger
AGM/EGM
easyJet
Friday 10 February
Trading Statements
Electrocomponents
AGM/EGM
GCP Infrastructure Investments
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.