Investors are eagerly awaiting the upcoming financial results from key companies next week, with Imperial Brands and Tesco in the spotlight.
Imperial Brands is expected to face a challenging first half of the financial year, with hopes pinned on a stronger second half to meet revenue and profit targets. The company has been offsetting volume declines in cigarettes with price hikes, but investors will be looking for signs that this strategy is sustainable. The performance of Imperial’s Next Generation Products, such as vapes, will also be closely watched, along with any updates on distributions to shareholders.
On the other hand, Tesco has had a better-than-expected year, with upgraded profit targets announced in January. The company is expected to report an increase in underlying retail operating profit, driven by volume uplifts and price cuts. Investors will be looking for further proof of these positive trends in the upcoming results, as well as insights into the company’s outlook statement and free cash flow.
Overall, both companies will be under scrutiny next week as investors look for reassurance and positive signs of growth. Any deviations from expectations could have a significant impact on market sentiment. Stay tuned for the latest updates on these key players in the market.
Written by Guy Lawson-Johns, Equity Analyst at Hargreaves Lansdown.
Published: 5th April 2024
