Taylor Wimpey

Housing developer is seen delivering on its targets

Housebuilder Taylor Wimpey (TW.) is expected to report full-year operating profits of around £920 million, in line with market forecasts, despite a ‘challenging’ market in 2022.

However, the real focus in its 13 January trading update will be on the 2023 sales outlook, and especially prices, as the housing market continues to slow.

If sales and cash flow are set to decline, investors could start to question the firm’s ability to continue returning cash which has been a key incentive to own the shares.

Burberry

China reopening is a boon for luxury goods group Burberry

Luxury goods group Burberry’s (BRBY) third quarter trading update (18 January) gives investors an opportunity to check-in on festive trading at the high-end handbags-to-trench coats seller, whose well-heeled clientele are less exposed to cost-of-living pressures than most consumers. Burberry’s impressive interim results (17 November 2022) revealed an acceleration in sales of its leather goods – a key strategic objective for the company. New product launches and seasonal collections performed strongly. 

Shares in the UK’s only blue-chip luxury retailer have rallied in recent months on the expectation Burberry will benefit from the reopening of the Chinese economy and excitement surrounding new CEO Jonathan Akeroyd’s ambitious target to grow annual sales to £5 billion as Burberry refocuses on ‘Britishness’ under new designer Daniel Lee. 

US banks

Higher interest rates should lead to higher profits at US banks

This week sees numerous US investment banks and one of the country’s biggest retail lenders report, and hopes are high that rising interest rates will mean an improvement in margins and profitability compared with last year.

JPMorgan Chase (JPM:NYSE) is likely to be the main focus, with the market expecting fourth-quarter earnings per share of $3.12 and an increase in the dividend, which the bank has raised consistently for the last eight years.

Bank of America (BAC:NYSE), another big diversified financial firm, is expected to post fourth-quarter EPS of 80c while rival Citigroup (C:NYSE) is seen reporting $1.20 of quarterly earnings.

Finally, retail giant Wells Fargo (WFC:NYSE) is expected to generate earnings of 99c for the last three months of 2022.

Netflix

Has the big ad-supported launch helped to boost Netflix’s stalling subs? 

Streaming giant Netflix (NFLX:NASDAQ) is set to post its fourth quarter earnings on 19 January with the extent to which its new advertising-supported platform has boosted subscriber numbers being a key focus.

Seemingly well-sourced reports in mid-December suggested take-up had been disappointing and put the share price under pressure.

How the company might approach a crackdown on password sharing without alienating its customer base is another area the market will be keeping tabs on.

‹ Previous2023-01-12Next ›