The Week Ahead: CPI and manufacturing data, easyjet and Vodafone results

calendarFund Strategy looks at some key events shaping the week and what to expect.

Tuesday 16 May

  • UK consumer price inflation, April – ONS
  • easyjet results
    The Share Centre investment research analyst Graham Spooner says:”The shares have rebounded strongly in the last three months thanks partly to some strong monthly passenger statistics which have reassured investors worried about the impact of Brexit. The last update from the budget airline in January gave a rather mixed picture. On the one hand it showed that passenger numbers and revenue rose but it also revealed that the weak pound was impacting profits. Investors will also be watching out for guidance on fuel costs given the fall in the oil price”.
  • Vodafone (Q4 results)
    Spooner says:”Consensus expectations are that group revenues will fall by roughly 5% in Euro terms but UK investors will still see the positives due to sterling’s plunge. The decline in revenues will be blamed on tough conditions in Europe even though recent trading updates have been a little more positive on the region. There will also be a large impact from the intensification of competition in India and there will therefore be a great deal of interest regarding the merger of operations with Idea. The group will still expect to see organic EBITDA growth in the region of 3-6% as management have guided. We should still expect to see good growth rates for data services and emerging markets”.

Wednesday 17 May

  • UK labour market statistics, May 2017 – ONS
  • Wincanton (Full year results)
    Spooner says: “The growth in online retailing activity has provided logistics groups such as Wincanton with a good boost to its growth. While first half revenues fell slightly, partly due to exiting some contracts, profits rose 36 per cent and in March the company said it expected its full year performance to be in line with expectations. New contracts have been secured with Britvic and Wilko this year and the market expects full year profits to rise by 12 per cent with dividends also forecast to go up by more than inflation”.

Thursday 18 May

  • Royal Mail (Q4 results)
    Spooner says: “The group has come under pressure from the trade union over proposals to close its current pension scheme. Royal Mail will be continuing its’ restructuring, as a result of the decline in the letters part of the business and the boom in parcels, on the back of internet shopping. In recent years management have been improving the performance and cutting costs. There remains a divergence of opinion amongst analysts as to the prospects for the group. Income seekers may be attracted, with the shares close to a 12-month low, a prospective yield of around 5.6 per cent and a P/E of 10.5. For the time being the market appears to be focussed on the growing threat of competition and falling letter volumes”.

Friday 19 May

  • Hikma Pharmaceuticals (interim management statement)