Tuesday preview: Hammerson, Wizz Air, 'flash' euro area PMIs in focus
Hammerson
26.68p
17:05 19/04/24
Corporate results will be in the spotlight on Tuesday, as the results season picks-up speed on both sides of the Pond.
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
Real Estate Investment Trusts
2,211.73
17:09 19/04/24
Travel & Leisure
7,521.61
17:10 19/04/24
Wizz Air Holdings
2,146.00p
16:59 19/04/24
Hammerson was among those firms set to update investors on Tuesday, with its half-year numbers.
In particular, analysts at UBS said they were looking forward to the company's announcement of its strategic plan and its view on recent tenant bankruptcies.
Alongside those updates, the Swiss broker expected the property developer to reveal a 1% drop in adjusted net asset value to 771p per share, with higher values for its French shopping centres and increased development profit helping to offset a 2.5% decline in UK values.
Net rental income meanwhile was seen down 6% to £173.4m, despite which earnings per share were seen rising by 2% year-on-year, on an adjusted basis, to reach 15.4p.
Analysts at Numis were also keen to hear from the company on its strategic direction going forward.
"The challenge, as we see it, for HMSO is that the UK market (46% of its portfolio) has a weaker outlook than other parts of its portfolio (France, Ireland, Premium Outlets) but in order to increase its exposure to the higher growth segments, either fresh capital is required or it needs to sell assets," they told clients.
"[...] HMSO is stuck between a rock and a hard place with no easy way out…but mgmt got themselves into this position and it is now up to them to convince the market that they have a well thought through plan to deliver value. A lot is resting on the strategy update."
Wizz Air's first quarter figures were also expected to draw more attention than usual, especially if the budget carrier managed to beat analysts' forecasts even in the wake of the cautious guidance provided by rival RyanAir just the day before.
Numis was projecting revenues of €550.7m for the first three months of the year, for EBIT of €54.3m.
"Exposure to LT structural demand growth and material cost tailwinds likely from direct ownership and network efficiencies, we believe WIZZ’s current valuation is undemanding," the broker told clients on 18 July.
"WIZZ remains our top pick amongst the UK-listed Airlines. BUY."
Meanwhile, and on the economic front, the spotlight was expected to be on the results of IHS Markit's 'flash' or preliminary purchasing managers' surveys for the euro area's manufacturing and services sectors in the month of July.
The consensus forecast was for a dip in the so-called composite PMI, which tallies up the results from the two sector PMIs, from a reading of 54.8 in June to 54.7.
Nevertheless, that alone would not suffice to materially change the broader growth signal from the surveys, analysts at RBC said.
Indeed, such a reading would continue to be consistent with the European Central Bank's own forecasts for the quarterly rate of growth in Eurozone GDP to level off at 0.5% in 2018, they said, even if that was less than the 0.7% quarter-on-quarter pace seen in late 2016 and 2017.
Tuesday 24 July
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
House Price Index (US) (14:00)
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
FINALS
Highlands Natural Resources, IG Group Holdings, PZ Cussons, The Fulham Shore, Victoria
INTERIMS
Centaur Media, Drax Group, Fevertree Drinks, Gresham Technologies, Hammerson, Huntsworth, Proteome Sciences, Science Group , Spectris, Unite Group
TRADING ANNOUNCEMENTS
Britvic
ANNUAL REPORT
1Spatial
IMSS
Wizz Air Holdings
AGMS
Bluerock Diamonds, Chariot Oil & Gas Ltd., Chariot Oil & Gas Ltd., Charles Stanley Group, EPE Special Opportunities, Eurasia Mining, Fuller Smith & Turner, Gresham House Strategic , Halfords Group, Motorpoint Group, TR Property Inv Trust, Wizz Air Holdings
FINAL DIVIDEND PAYMENT DATE
Coca-Cola HBC AG (CDI), Edinburgh Inv Trust, MS International