The week ahead: Tesco, Sainsbury's, Morrisons, M&S
4th January 2019 16:34
by Lee Wild from interactive investor
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After a gentle start to the 2019 corporate calendar, things get exciting with the big supermarkets, housebuilders and retailers giving their Christmas updates, writes Lee Wild.
Monday 7 January
AGM/EGM
URU Metals
Tuesday 8 January
Morrisons is first of the big listed supermarkets to reveal how its Christmas went, but don't expect a repeat of last year's strong festive trading.
Industry data has already shown that grocers are finding it more difficult now, and broker UBS has already cut its Christmas and fourth-quarter forecasts for retail like-for-like sales growth to 0.5% from 1.8%. It still rates the shares a 'buy' though with 290p price target.
Trading Statements
SIG, Morrison (Wm) Supermarkets, Greene King, Gateley, Safestore Holdings
AGM/EGM
Carrs Group
Wednesday 9 January
Third-quarter results from Sainsbury's should prove interesting midweek. Watch for a forecast decline in retail like-for-like sales growth to 0.3% from 1% in Q2.
At November's interims, management said it was comfortable with consensus estimates for full-year profit of £634 million, but a tricky Christmas may mean the eventual figure is a little light, warns UBS.
Trading Statements
Shoe Zone, Sainsbury (J), Taylor Wimpey
Thursday 10 January
Tesco brings up the rear, and UBS is waving the flag for Britain's biggest food retailer. "We think Christmas could deliver a positive UK like-for-like surprise versus market expectations," it says.
Repeating it's 'buy' rating and 400p price target, the broker predicts third-quarter UK LFL growth of 0.8% and Christmas growth of 1.5%.
Marks & Spencer has recovery potential, but it’s not tempting anyone yet. Might this upcoming third-quarter update stir some interest?
To do that it will have to be pretty darn good. A string of sector profit warnings has sent shivers down the high street, and M&S shares now trade near a 10-year low. A forward price/earnings ratio of 10 is modest, and an affordable prospective dividend yield of 7% is appealing.
However, investors will demand evidence that sales are holding up and that the radical restructuring currently underway is having the desired effect.
Trading statements
Tesco, Marks & Spencer, Card Factory, InnovaDerma, Mitchells & Butlers, Robert Walters
Friday 11 January
Trading statements
AO World
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